This is the last in a series of eight articles expanding on the steps of the article:
8 Steps to Build Wealth
Step 8: Continued Growth
For as long as you live, building wealth is a process that doesn’t have to end. Humans thrive with change; to remain stagnant is to die. So, to continue building wealth is to continue to learn and grow.
There is no such thing as a professor that knows everything about his subject, or a martial artist that has perfect technique and knowledge of her style, or an investor that has run out of things to learn about investing. Even the best and most famous investors out there continue to learn.
Some people get stuck in the same investing strategy that they use for years, regardless of whether their strategy works or not. Other people shun investment tools they don’t understand. Adaptability and change are hallmarks of human existence, so feel free to address things in your portfolio that aren’t working, or that you want to try out.
My particular strategy is to build a core portfolio out of dividend growth stocks, and then allocate a smaller part of my portfolio for doing whatever I want. This could be to invest in smaller, growing companies that don’t necessarily pay a dividend, or to use options. This keeps my portfolio solid and growing, while also allowing me to keep it interesting and dynamic.
-Consider joining with other investors either in an internet community or in a physical community. Other investors with a similar mindset as your own can go a long way when it comes to helping you find great investment opportunities, build your strengths, and identify and remove your weaknesses.
-Maybe try out a blog. I started this blog primarily as a means to grow as an investor, and so far it’s been pretty successful. It’s a tool that helps keep me sharp by analyzing various companies. Of course most people won’t do this, but if you’re interested, I think it’s worth it.
-Read investing books, read the annual reports of the companies in your portfolio, and pay some attention to news in the world of finance (but don’t get drawn in, as 90% of it is short term chit chat).
I personally spent a lot of time building my strategy and I now refuse to follow new fads or ideas. I stay mechanical and follow the rules I have set. This is for fear of following the herd. That is one of the reasons I started by blog. To hold myself accountable and ensure I keep my strategy consistent. Of couse with time I also hope it becomes a place to engage with other like minded people.
I only see one change in strategy coming up. That will be when I go from accrual phase to drawdown phase.
Well, to each his own I suppose.
It’s nice to see that others create their blogs as tools for themselves as well. Your blog holds you consistent with your strategy while my blog holds me to continuing to investigate dividend companies that I might not look into as thoroughly otherwise.
Thank you for your comment.
That is what I like about the blogging world. There are so many people out there who have different strategies and are trying to reach different goals. One thing consistent that I notice though is that the bloggers out there are typically people who are really trying to better themselves which is something I want to be part of.
Interesting series. You misspelled ‘Eigth’ in the title above. It should be ‘Eighth’.
Thanks for the catch. It is fixed.
I have spell check on the site, but it doesn’t work in the title area.