There are six basic investing principles that, if followed diligently, can make you a winner. I wrote about these principles in the fall of 1991, and if you are one of my long-time readers who has stuck to them, like me you have achieved investment success. If you are a newcomer to the investing philosophy of Dick Young, I can tell you that this is how I operate, and it has worked for me year after year.
My own Dynamic Maximizers® Portfolio is on track to achieve its 18th consecutive annual gain this century. Can you name a worthy competitor for a .1000 batting average? No home runs in the mix, just zero strike outs, plenty of spraying the ball around the playing field, and a wicked high on base percentage. Bill James, Billy Beane and Wade Boggs would be proud.
Here are the six principles that made me a winner in the investment battle:
Six Guiding Investment Principles
It’s a regimented, slow and steady progression. Not much spinning, but through the years, a lot of weaving. I’ve been a winner in the investment battle, and you can be a winner too, thanks to six basic investment principles:
- SAFETY: I don’t lose my money. I’ve not taken a meaningful loss in my near 30 years of investing; my biggest was for $5,000;
- DIVIDENDS: I emphasize dividends and interest;
- COMPOUND INTEREST: I place strong value on the power of compound interest;
- FEES: I pay few commissions and sales charges. Rarely do I take a big tax hit because I let my positions alone to grow;
- BALANCE: I balance my program rather evenly between U.S. Treasury securities investments and commons stock investments. I don’t try to outguess the markets;
- SIMPLICITY: I keep it real simple.