That’s my investment creed. I don’t mind when markets are down as long as I’m still getting paid. Regular dividends and interest are succor to any investor when capital appreciation is wiped out at the whim of the markets.
In January of 2012, I explained my investment creed, writing:
So the investment environment today is cloudy and laced with sinkholes and other entrapments. Your mandate is armadillo-like self-protection both on the portfolio front and the personal security front. I invest a substantial portion of my personal wealth in liquid portfolio assets I can jockey around at a moment’s notice. I have, what are for me, huge positions in blue-chip stocks, fixed income, gold, and foreign currencies. I will continue to add to these positions. I care about asset protection and purchasing power protection—period. If some pleasing capital appreciation comes my way, great, but I do not invest with price appreciation as anything but an afterthought. Give me my interest and dividends and protect my capital and leave me alone. That’s my investment creed.
Make “Give Me Cash” your New Year’s resolution. Set your portfolio on course for dividends and interest payments you can use to fund your retirement, or to unlock the power of compounding through reinvestment.
Happy New Year!
Originally posted on Young’s World Money Forecast.