Bigsky Investments®
  • Home
  • Equity Research
  • Blog
  • On Watch
  • Market Data
    • Portfolio
  • 🌲

Where to Put Your Money in 2019

12/31/2018

0 Comments

 
Picture
Where to Put Your Money in 2019          
12/31/2018
We can wax-poetic on the recent market volatility or debate whether a recession is coming or not. The fact of the matter is volatility is likely here to stay. I’ve long grown tired of hypotheticals and have little desire timing bear-raids or attempting to short cult-frenzied tech stocks.
A well-defined strategy makes it easy to find investment candidates. Nothings set-in-stone and of course positive returns are never guaranteed but falling back on fundamental analysis and dividend income makes it easy to sleep at night with minimal regard to political nonsense and interest-rate hyperventilation.
The easiest way to search for actionable investments is to set minimal investment criteria.

Investment Criteria
Dividend Yield
> 5%
* The Core of my Investment Strategy which relies more on Income than Capital Gains. Care must be taken in assessing the sustainability of the Dividend Yield.

Operating Margin
> 0%
*An Investable Company should be profitable. Many REITS do not show Net Profitability but should at the very least show a Positive Operating Margin.
 
This search will return a list of profitable companies that pay a respectable dividend.

There is a myriad of additional metrics you can apply to the screener perhaps the most useful being ROE & ROA. However, it is truly mind boggling how many companies do not meet these basic criteria.

The key to this strategy is diversification. I want my portfolio to pay me consistently and often. I do not expect all of these companies to hold up. I go into this strategy knowing that some will fail and others will go on to produce nice returns. However, I don’t concentrate any one position in my portfolio. Currently, my portfolio is holding around a hundred or so different securities. These securities encompass all types of investments of different industries, nationalities and market-caps. Almost every day I have dividend income coming in, even if it may seem negligible in isolation, in aggregate it all adds up. Once this income is received, it is immediately reinvested in more dividend paying securities. This is where the fun and challenge of this investment style comes in. Gone is the trend-following, market-timing game. In is the fundamental analysis and long-term investment game.

​That being said, the speculator in me knows that low-priced stocks have the greatest probability of delivering strong capital-gains. Therefore I tend to focus on stocks trading below $15/share. It’s important to note that theoretically share price is irrelevant to the value of the company. In fact there are many companies with huge market caps that have low share prices.  Conventional wisdom generally goes, the larger the market cap, the less risk. This makes sense when you consider that larger companies simply have more resources at their disposal to help protect and sustain themselves through downturn and recession.

...to be continued with specific suggestions...
0 Comments



Leave a Reply.

    Picture

    R. J. Sullivan IV

    Equity Research
    Portfolio Management
    ​Trading

    Picture
    Picture

    Archives

    September 2019
    March 2019
    December 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    April 2018
    March 2018
    January 2018
    October 2017
    July 2017
    May 2017
    April 2017
    March 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    November 2013
    October 2013

    Categories

    All

    RSS Feed

© BIGSKY INVESTMENTS®​

DISCLAIMER: This is a personal web site, reflecting the opinions of its author(s). It is not a production of my employer, and it is unaffiliated with any FINRA broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities. DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER BIGSKY INVESTMENTS®, NOR ITS AFFILIATES, NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.