I like my investing to be simple. That’s because I’m a simple kind of guy. When investing gets complicated, I start to lose money. I don’t like losing money. My whole investment philosophy revolves around having money move toward me rather than away from me. That idea makes more sense to me.
Just because my investing methods are simple doesn’t mean they’re easy. It takes a lot of discipline and it takes a lot of time to find the right stocks. And it involves derivatives which can be a daunting area to master. But the easiest part is if the first two things are done right, I simply sit back and watch the dividends get deposited into my accounts.
When it comes to investing, I don't think there's a simpler or an easier way to invest than to do what I do. I’ve named this tactic “Buy, Write, Collect” and the title tells the whole story. There’s only three parts to this. And here's the three parts in their entirety.
- Buy the Stock
- Write the Option
- Collect the Dividend
My investing strategy is to buy great quality securities that pay a dividend and are optionable, sell out-of-the-money covered calls over and over and over again, and then sit back and collect the monthly and quarterly dividend payments. It's a strategy based upon the knowledge I have gained from years and years of trial and error and the discipline that comes from years of trading and investing. It's a strategy that I understand and has worked well for me for a number of years. So I hope this strategy continues to work for a very long time. I could use the money.
Be aware that this strategy will in no way make an investor instantly rich. It will, however, over time produce some very outstanding results. As to whether this is the only way to get rich, the answer is a very resounding "certainly not." There are most certainly better ways to get rich, and there may even be easier ways to get rich, but if there are I'm simply not aware of them.
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