Invest with a Margin of Safety

My Philosophy is to look for value and invest in dividend producers with healthy revenue growth that easily cover the dividend yield with their earnings per share (EPS).

• My bread and butter is dividend stocks that have a competitive price to earnings within a given sector. I look for quality companies that have a proven track record for growing their dividend in a healthy shareholder friendly manner. I aim to buy big chucks when I feel a stock is fairly priced in the market. I try to buy in a range that gives me a healthy dividend yield and a fair price for the companies earnings. These stocks often won't trounce the market, but they will produce solid income and help grow long term wealth. You will also find it easier to sleep at night knowing the companies you are invested in aren't going anywhere. I also like to reinvest the dividend growing my share count steadily over time. This also gives a slight tax advantage v.s. taking the dividend to reinvest elsewhere or transfer out as income.

• Dollar coast averaging into an ETF that focuses on the market, or various sectors of the market is a great way to own a basket of stocks without having to pick a given stock. Consistently allocating money to these types of ETFs on a monthly basis is another great way to build long term wealth. This strategy is a favorite of Warren Buffett for those looking to gain exposure to the stock market without having to have a great deal of knowledge about the market itself.

• Have a balanced approach and never invest money into the market that you will need in the next 5 years. The longer the money is invested the great chance to see outsized returns.

• The sooner you get started the longer your investment will have to grow potentially unlocking great financial reward.

• The first step is action. Don't procrastinate! Your 70 year old self will be grateful that you took action today to create financial security.