08-11-2016, 11:35 AM
(08-11-2016, 10:55 AM)cannew Wrote: Unrealistic premise, how many people will have $1 Mil or even $500k to invest in a lump sum. Also because its a lump sum investment, the major objective is Capital appreciation, though DG is computed.
Why not take the same premise but set up a portfolio list (say max 20 stocks) for someone who can invest say $1,000 to $3,000 per month and is seeking Income Growth. To assist with this objective, set buy prices and market drops as the buy points. Have all the dividends reinvested and plot it for several years to see much income the portfolio generates, and as a footnote, capital growth.
The original premise for the portfolio came from a reader's comment asking how I would invest my cash if I sold a business, got an inheritance, cashed out an IRA, won some money, etc. So, realistic or not, that was the basis for the article.
As to your second idea, this is essentially what I do with my public portfolio that I write quarterly updates on. It started as a $25K portfolio back in the beginning of 2013 and has roughly $300 per month added to it. I highlight all the trades I make and give quarterly updates on my dividend income and the capital growth.
Here is the thread talking about it.