Follow one of our strategies (above) or mix and max to meet your goals.
Step 1:
Determine Your Personal Investment Goals: For example, are you seeking high current income? Long-term growth? How much volatility can you handle? Are you willing to accept the higher short-term volatility of growth stocks in exchange for stronger long-term returns? Are you mostly indifferent about volatility as long as you keep receiving high current income payments? Be sure to review the stated objectives for each of the portfolios linked above.
Step 2:
Determine Your Asset Allocation: A mix of 60% stocks and 40% bonds is the traditional balanced portfolio. This mix is designed to keep long-term returns healthy while reducing near-term volatility. Some aggressive long-term investors choose 100% stocks. Other conservative investors have traditionally chosen 100% bonds—a strategy that is starting to regain some of its former glitter as interest rates rise.
Step 3:
Build Your Portfolio: We recommend at least 25-30 individual holdings in a portfolio (and perhaps a lower number if you are going to use funds (which typically already have many individual holdings within them to begin with). We also believe in the importance of diversifying across market sectors to reduce risks; you’ll see the portfolio sheets above generally display sectors.
Step 4:
Stay Disciplined: We believe in long-term discipline meaning we don’t chase returns and we’re comfortable with prudent contrarian opportunities. You’ll also see “buy under” prices and stock ratings in the portfolio sheets (based on real-time market prices) to help you identify timely opportunities.
Step 5:
Be Cognizant of Fees: High fees are your enemy, but in limited situations they’re tolerable as long as they’re associated with investments uniquely able to deliver bottom-line results (for example, several unique value ads in our “High Income Now” portfolio).
*Important Note:
*Information Only—Not Investment Advice: Everything on this website is for informational purposes only. We cannot make individual recommendations for you because we don’t know your personal situation. If you are looking for personal advice, please consider our other business whereby we can consider your personal tax situation, various account types, cash flow needs and personal volatility tolerance, to name a few. However, for those inclined, Blue Harbinger is designed to help you identify exceptional opportunities in managing your own investments.
The Bottom Line:
Disciplined, goal-focused, long-term investing has been a winning strategy throughout history, and we strongly believe it will continue to be in the future. Be smart. Know your goals, and stick to a strategy that works for you.
