Post 2355
- 8 years and 274 days since I started this blog -
Daily Comment
The income factory style of investing that I use is difficult to understand for people who are only familiar with 'conventional' capital-style stock investing.
The goal of traditional investing is to increase the amount of capital, and minimize any capital losses.
The income factory seeks to employ capital for immediate income, with an eye towards increasing the income over capital appreciation.
I developed this style of investing on my own, then found out it was a known style and had a name: Income Factory.
Basically it consists of buying stocks that pay dividends, then reinvesting those dividends to compound payout growth and create larger dividends.
In this scenario, as long as the dividend is paid, it is actually an advantage when the stock price goes down, since dividends are paid in cash, and reinvesting makes us net buyers, for whom a lower share price allows us to buy more shares.
Basically, you're creating an annuity for yourself. The income factory 'manufactures' income in the form of these dividend payouts, which are recurring.
It is also a fact that over time, dividend stocks give a better total return than stocks without dividends.
As lucky as I am, I started my income factory portfolio at the beginning of the longest all-time bull market in history. As a result, I have seen my capital grow by almost 9% a year since 2009. More importantly, my portfolio now yields 10% a year, more than $15,000 each year, in dividends. It is, effectively, an income stream I can tap without touching the principal that generates it.
This is an important point. I don't know of any other investment that you don't have to reduce the principal to take your profits.
I am, as I said, extremely lucky. I 'fell into' this, and it looks like it is going to serve me well going forward.
I couldn't be more grateful.
Food and Diet
The goal of traditional investing is to increase the amount of capital, and minimize any capital losses.
The income factory seeks to employ capital for immediate income, with an eye towards increasing the income over capital appreciation.
I developed this style of investing on my own, then found out it was a known style and had a name: Income Factory.
Basically it consists of buying stocks that pay dividends, then reinvesting those dividends to compound payout growth and create larger dividends.
In this scenario, as long as the dividend is paid, it is actually an advantage when the stock price goes down, since dividends are paid in cash, and reinvesting makes us net buyers, for whom a lower share price allows us to buy more shares.
Basically, you're creating an annuity for yourself. The income factory 'manufactures' income in the form of these dividend payouts, which are recurring.
It is also a fact that over time, dividend stocks give a better total return than stocks without dividends.
As lucky as I am, I started my income factory portfolio at the beginning of the longest all-time bull market in history. As a result, I have seen my capital grow by almost 9% a year since 2009. More importantly, my portfolio now yields 10% a year, more than $15,000 each year, in dividends. It is, effectively, an income stream I can tap without touching the principal that generates it.
This is an important point. I don't know of any other investment that you don't have to reduce the principal to take your profits.
I am, as I said, extremely lucky. I 'fell into' this, and it looks like it is going to serve me well going forward.
I couldn't be more grateful.
Today's Weight: 199.5 lbs.
Previous Weight (9/30/19): 197.3 lbs.
Net Loss/Gain: + 2.2 lbs.
Diet Comment
Food Log
Breakfast
5:30pm, at CoreLife: Shiitake mushroom and Roasted Tofu broth bowl: Chicken bone broth, shiitake mushrooms, napa cabbage, shredded kale, roasted tofu, sprouts, ginger, lemongrass, sliced almonds.
Lunch
10:55pm: Pepperoni and cole slaw and a Quest bar.
Dinner
1:10am: LEO (lox, eggs and onions) on riced cauliflower and a Quest bar.
Liquid Intake
5:30pm, at CoreLife: Shiitake mushroom and Roasted Tofu broth bowl: Chicken bone broth, shiitake mushrooms, napa cabbage, shredded kale, roasted tofu, sprouts, ginger, lemongrass, sliced almonds.
Lunch
10:55pm: Pepperoni and cole slaw and a Quest bar.
Dinner
1:10am: LEO (lox, eggs and onions) on riced cauliflower and a Quest bar.
Liquid Intake
Espressos: 2; Coffee: 0 oz.; Water: 70+ oz.;
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