Active Trader 20% gains.
As you know in the last article I mentioned that 5% gains are awesome. This was coming from my real-estate investments of 8+ years. I also have been an active stock investor over my life, but I didn’t find the magic combination until my brother gave me a hint. “IF you can’t beat them, copy them”, was his wise advise. He was refering to my idle Warren Buffet. Warren’s thinks long long long long term. Not 10, but 40 50 years ahead. He buys very stable companies, which have divident heavy.
So I took his advise in 2010 and invested in a few companies, including warren’s own Berkshire Hathway. Though Berkshire has done well, I have been able to do better with 2 other long terms stocks. One I would consider right in his footsteps of stable and high divident while the other was high risk. The 1st being Altria. Back in 2007/8 after doing much research, (http://www.growthstockwire.com/2370/the-best-performing-stock-of-the-last-half-century) I figured, why not bet on a winner and see what it does. This was not a winner in the last 10 years, but had a track record of 40–50 years.
As you can see it turned out pretty well. I will probably never sell it, so we can watch the experiment for another 40 years.
As you can see I also purchased high risk Amazon stocks. This was a gamble and its time to pull the plug on it now. It does not follow’s Warren’s core principals which are tried and true, so even if the gains are impressive, they arn’t sustainable.
In closing.. The nice part about 20% gains , is partly due to the fact that Altria’s devidents are almost 4%, so even in a bad year, one can do pretty well, without having to deal with tenants :) I still think 5% is great, anything above it is awesome
The story line is , be diverse, pick high value high divident stocks and keep them for a long long time.