For many years, my clients have asked me why my investment selections were so boring.
I told them that my investments are boring but the rest of my life was fun and exciting.
In the past three years, the Dow Jones Industrial Average has dropped about 22 percent but my personal portfolio is up more than 60 percent.
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Meanwhile, this weekend starts the festivities of my 30th high-school reunion.
My fellow classmates from Mayfield High School are going to assemble from all over the country and return to where it all began. Although many of us haven’t gotten together for years, every year me and four or five of my buddies carry on the tradition of seeing a football game and hanging out.
Although we have all achieved relative success in totally different fields and meet many new friends and co-workers, we all are very distrustful of those who we haven’t known for 30 years or more.
What does this have to do with investing?
Many of you have watched your nest eggs diminish or stagnate in the past few years. With saving rates and bond rates at all-time lows, many investors who thought they were secure aren’t feeling that way anymore
My approach to investing is similar to my approach to friendship.
I realize there are only a limited number of stocks that I “trust.” I have two sets of friends: the ones I have known my entire life and those I have met in recent years.
In my very successful Dividend Machine newsletter, you will find that my selections consist of conservative, safe and high-yield investments — and some aggressive selections, which offer larger, outsized returns with a slight chance of permanent capital loss.
The reason that investing has been much easier for me than most folks is that I really haven’t changed.
I enjoy counting on those folks who, year after year, have continued to “deliver the goods.” While I occasionally meet some exciting new friends, I have always favored the tried and true over the exciting and new.
This approach to your social life can also be used in your investment life — if you want to achieve personal and investment nirvana, that is.
I know it’s possible because it happened to me.
Find your nirvana.
About the Author: Bill Spetrino
Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here
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