Carol asked me to write an article on stock investing. She must think I know something about it. Actually, I know from personal experience more about what not to do (that means I've lost money) so my first inclination was to pass; then I remembered the 25% cash machine. The web site is Cash machine. It's a subscription newsletter written by Bryan Perry. I've followed it from its early 2006 inception and was impressed enough to make some investments.
Here is an excerpt from Bryan. "Double-Digit Income Investing involves investing in a detailed portfolio of high-yield strategies that generate a 10% to 12% stream of income from dividends and interest, while aiming for an additional 15% capital appreciation over time. This is your income portfolio "something that you should build and keep for the rest of your life. We will not get 25% every year on our money, but over time, this approach will look to generate 25% annual "total return."
Now, here are some reasons why I like it.
1. I'm nearing retirement and I want something that's easy to follow and implement.
2. It's not volatile or high risk.
3. Bryan appears to be in the right place at the right time.
4. It works! I receive a solid stream of dividends plus capital appreciation.
5. It invests in areas I've found difficult to research and understand i.e. business development companies.
6. Bryan also teaches what many of us have learned as we've become wiser "don't chase stocks, have some fun, craft the portfolio.
Bryan recommends taking a 3% position in each stock. This is very important to follow as it reduces risk. Let's say you have $50,000 to invest "3% of $50,000 is $1500. If the stock is $50, you buy 30 shares (1500 divided by 50). If the stock is $20, you buy 75 shares. You don't overload on any one stock because it looks hot. Over time, most all the stocks will have their hot and warm times.
More excerpts from Bryan. "If there were a mission statement for Double-Digit Income Investing, it would be to show the income investor in the next five, 10 or 20 years a way to beat the historical returns of the major averages and get at least twice the dividend stream on income assets compared to what the banks and traditional blue chip stocks are paying."
"Double-Digit Income Investing seeks to position capital into high-income securities in the sectors that have the strongest fundamental one-year outlook. This approach holds many attributes that today's income investors are looking for -- in fact, they are willing to take on some risk in order to accomplish certain objectives. Double-Digit Income Investing is defined by: "It is highly diversified. "It is a flexible strategy. " It pays a dividend yield twice that of conventional investments. " It is highly liquid." It offers upside appreciation with less volatility than common stocks. " Business Development Companies (BDCs) " Canadian Business Trusts " Canadian Royalty Trusts (CanRoys) " Closed-End Funds " Convertible Securities " Corporate Bonds " Enhanced Income Securities (EISs) " Income Deposit Securities (IDSs) " Master Limited Partnerships (MLPs) " Preferred Stocks " Real Estate Investment Trusts (REITs) " Oil/Shipping Tanker Stocks".
To reduce your expenses, find an online investing site that lets you trade large or small numbers of shares for under $15.00. Pick a well known, reputable one. Bryan just published The 25% Cash Machine as a book. You can find it at all major bookstores.
BTW, I am not affiliated with Bryan Perry in any capacity and I do not receive any benefit or gain from this recommendation. This article is only my opinion and not the opinion of BMI.