My personal Blog

Monday, May 15, 2006

Finance - The Motley Fool Investment Guide

The Dow Dividend Strategy

1) Picking all 30 stocks in Dow will give you 10.5 percent return;
2) Dow top 10 yielders will be 17.23%
3) The Dow 5 - Michael O'Higgins in Beating the Dow proposed narrowing the list down to the five-lowest priced stocks of the group of ten as he believed that investors ought to take advantage of the extra vaolatility tied to lower-priced issues. This will give 21.1% growth
4) The Foolish Four - 2-2-3-4-5. Pick the top 10 highest yield, and the sorting the price. Pick the #2 stock to #5.

Finance - Stop Working - Derek Foster

Why retire early? It does not mean do nothing but financially free to do chase after my own's dream. Come up with a list "things to do before I die", such as write a book, make a personal relationship with God, practice piano.

Answers from the Three Wise Men

Warren Buffett - rule of investment
rule#1 don't lose money;
rule#2 remember rule#1;

Investing in what you don't understand is risky.

Peter Lynch - Beating the Street/One up on Wall Street
1) Pick stock that made it onto the "High Dividend Achievers" list
2) Don't invest in a company that a little kid can't understand/Focus on stock that you know and understand well

Picking stocks with good dividend yield in retirment planning will improve cash flow so that we will live through the dividend instead of selling the stocks. This is similar to eating the fruits of a tree instead of cutting down the tree.