My strategy has always been to find a company that has been increasing its revenues, earnings and dividends and then invest a small amount of money in the shares of that company. I view this as similar to a tree farmer planting a small seed in the ground. As time goes by, and with the proper care, that tiny seed will grow into a very large tree. For me, that care that I provide for my investments is the reinvestment of dividends back into the stock position that I’m holding, the sale of call options to generate funds for additional purchases and adding to that position through open market acquisitions. As long as that investment is healthy, I continue to monitor it and to add to it. If it starts to die from within, I eliminate the seedling and plant a different type of tree.
It’s a simple strategy of adding to your better trees and cutting down your sick or dying trees. The reason this is done this way isn’t to gloat over the successful trees or to mourn over the dying trees, it’s to keep the entire forest healthy. It’s important to grow the most healthy money trees you can in order to increase and expand the forest further than originally thought possible.
For anyone new to this website, I actually do the things I write about. Some of my investments have been more successful than others, but it’s essential that mistakes are recognized and dealt with as early as possible and that successes are allowed to grow larger. It’s from these successes, the strong trees, that additional new seedlings can be planted and grown.
A lot of investors concentrate on owning and concentrating on just a few securities at a time. There’s merit to that method because it allows the investor to focus only on those few investments and perhaps use volume to increase their successes. But for me it’s a matter of analyzing stocks and taking small positions. And then growing them.
Once established, I monitor those positions for growth and success. If the company’s revenues, earnings and dividends continue to grow, I continue to grow my position. And as each position in turn becomes more and more successful over time, I end up with a forest of money trees bearing the maximum fruit.
And I love it when those lovely leaves start to fall toward me.
It’s a simple strategy of adding to your better trees and cutting down your sick or dying trees. The reason this is done this way isn’t to gloat over the successful trees or to mourn over the dying trees, it’s to keep the entire forest healthy. It’s important to grow the most healthy money trees you can in order to increase and expand the forest further than originally thought possible.
For anyone new to this website, I actually do the things I write about. Some of my investments have been more successful than others, but it’s essential that mistakes are recognized and dealt with as early as possible and that successes are allowed to grow larger. It’s from these successes, the strong trees, that additional new seedlings can be planted and grown.
A lot of investors concentrate on owning and concentrating on just a few securities at a time. There’s merit to that method because it allows the investor to focus only on those few investments and perhaps use volume to increase their successes. But for me it’s a matter of analyzing stocks and taking small positions. And then growing them.
Once established, I monitor those positions for growth and success. If the company’s revenues, earnings and dividends continue to grow, I continue to grow my position. And as each position in turn becomes more and more successful over time, I end up with a forest of money trees bearing the maximum fruit.
And I love it when those lovely leaves start to fall toward me.
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