Had an opportunity to instruct in the matter of Long-Term, Buy-to-Hold Investing last week on Long Island and in the far western end of Connecticut. For my new friends in those two areas, I want to re-post the live link to the on-line PDF file for the excellent book: The Single Best Investment by Lowell Miller. Here:
Click on it and either save it as a Favorite, to go to whenever you might be on-line, or do as I have done, and save the entire PDF file on your own computer, complete with a shortcut icon right on your desktop, to open and read from at any time. You will want to keep this. And, there’s no real need to read any more than the Introduction and the first 4 chapters to really imbibe of The Safe-Dividend Growth Stock Market Investment Strategy to realize that striving to grow a nest-egg is not necessary, if you have any time at all to harness the “miraculous” growth principle of compounding to your efforts, as I have, to grow a portfolio dividend income instead.
I don’t speak of this much, but I am also a believer in the Survival Investment Strategy, whereby one also retains a % of one’s investable assets in some precious metals and cash. As I write, I am approximately 15% in precious metals; they being gold and silver, in paper, physical and numismatic forms. I hold some cash as well, there being only some 8% in the money fund.
If you did not notice, it looked as if the metals crashed yesterday. I did not conduct any volume study, but if it was unusually high, then the plunge in prices, along with great volume, would likely constitute a crash. If that is so, I would highly recommend that anyone acquire something in the precious metals sector at this time… primarily by way of royalty companies like RGLD, FNV and SLW, as these do not mine the metals, and they also pay a dividend. Don’t go crazy or overboard. I see no reason to put more than 5% to 10% into metals at this time. Another idea, which I also hold, is some mining shares in the form of the ETFs GDX and SGDM. Don’t buy these on my say-so… look into these things for yourself.
And, please, understand, I am not talking so much about an investment here, as I am about insurance. If you are concerned that these might be, or are more likely to become, perilous times in the future; this is part of your insurance coverage against the dangers of such a time, and is why it is called the Survival Investment Strategy. The point being that you hope you never need your ‘insurance coverage.’
I have found it amazing that while the metals prices have dropped dramatically, this had been preceded by a considerable increase in the value of the numismatic coins! Does this mean anything? I’m sure that I do not know, other than that if the you-know-what should hit the fan, as the saying goes… I’ll have gold and silver in a variety of forms by which I would hope to be able to adequately survive whatever it is that might come. Make sense to you? You might want to do something about that while prices seem to be in a very advantageous spot right now!
I’ll close on this note: Despite the move up in stocks and down in the metals, our portfolio is barely more than 1% from being at an all-time high in total value. But, that doesn’t matter half so much to me as the fact that our portfolio dividend income is only going up!
Here’s to your successful investing!
Harold F Crowell