How It Works

The Priciples Behind Our Strategy

Compounding

Let the money earned from one period be reinvested into the next period to return more money (greater dividends). Additionally, continued regular investment of new capital will significantly increase the growth of your portfolio – that’s what compounding is (see Mathematics below).

Diversification

This is the widely accepted principle of “not having your eggs in one basket”. No one wants their money to decrease, but it can’t be avoided. We can minimize that chance by having our investments spread across multiple investment vehicles (such as stocks, ETFs, bonds, and more). In addition, we typically invest in stocks that themselves are diversified (i.e., they are involved in more than one company).

Simplicity

We don’t also look to make large gains from the stock price itself. As we scan for investment opportunities, we tend to avoid stocks that have already risen significantly unless there is a clear reason to believe that they will not drop in the near future. If you become a member, you will receive "Buy" and "Sell" messages along with how to buy to sell, when to buy or sell, and why this recommendation was triggered.

Automation

These investments are made using your financial firm - a company that holds your investment money and follows your instructions ("fiduciary"). When each of the companies you invest in "pays" its dividend, you do not receive a check. The money is directly deposited to your account at your firm. That money is available to either accumulate as cash or can be invested in new stocks or to buy additional shares of stocks that you already own. This is the heart of "compounding" explained above.

The Mathmatics

The mathematical term is geometric progression; it has the following formula:

**Future Value = Principal * ( 1 + i ) ⁿ**

Given any principal amount (beginning investment), the interest earned (in our case, the dividends expressed as the interest earned per period) will compound exponentially.

The Simple Logic

For this we will refer to two giants of our time:

Albert Einstein is credited with the following quote:

“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”

As proof, we can look at how a mortgage front loads interest payments to the lender which is a function of exponential compounding working in favor of the lender – not you and me, the buyer.

Warren Buffett is known as one of the most successful investors of all time. As of August 2024, his investment fund’s value topped $1 trillion! He has described compound interest as a snowball that as it rolls downhill, gathers additional snow and grows in size and speed.

We take a simple idea (compounding), use basic mathematics, apply wisdom from very experienced and educated professionals, and apply it to our desire to earn income from our investments.

Doubling your money

We all like the idea of doubling our money. The problem is in actually doubling your money without trying something that is speculative, has high risk, or illegal.

The simple process or math of doubling your money uses the “Rule of 72”: Divide 72 by the APR to approximate the number of years to double your money. For example, if you can earn 7% interest, you can estimate that your money will double in 72 / 7 = 10.3 years. Conversely, if you want to know what interest rate is needed to double your money in 6 years, divide 72 by the number of years to estimate 72 / 6 = 12%

The exact math for this calculation is easily done in Excel (and other tools). In Excel:

If you are consistently earning 7%, how long will it take to double your money?

NPER( 7/100, 0, -1, 2) = 10.245 years

If you want to double your money in exactly 6 years, what interest rate must you earn consistently?

RATE( 6 * 12, 0, -1, 2) = 11.61%

Full disclosure: We have not yet doubled our own money, but that’s because we have been using this method for only just over 4 years. To double our money in that short period of time would require earning 39.7% interest which we have never achieved. However as of late 2024, this method has generated dividends at a rate of 14.92% for the past 50 months (the range is from 7.2% to 26.7%).

Benefits

The general information made available on this website and in the free newsletters combined with the investment models (coming soon), will give you the potential to generate similar income from these specially selected investments. The strength of this is that you only have to follow the models and their recommendations to gain this benefit. You also do not have to invest the time and energy to od the level of research and analysis that we do on your behalf.

Risks

Let’s face it: all financial investments have risks: real estate, bank certificates of deposit (CDs), savings accounts, brokerages, gold, cryptocurrency, whatever.

Among the risks associated with our method of identifying reliable frequently repeating high dividend generating investments are the following:

Interest rate risk (the federal fund rate varies in response to perceived needs of the overall economy). You can see the variations over the last 70 years:

Digital Safety

We have no interest in knowing your account numbers, passwords, or retirement, checking, or savings accounts. That’s none of our business just as our account numbers and passwords aren’t any of your business. If you are ever prompted to share such information with what seems to be from us, you must consider it to be spam or worse and act accordingly.

We won’t take any time or space here to educate you on being a safe and secure digital citizen, but please be sure you have appropriate backups of your key data files and have implemented strong security measures (such as passwords and/or passkeys, two factor authentication, and more as you see fit).