Figure out what you don’t want and avoid it,
and you’ll get what you do want.—Charlie Munger
Or as Sherlock Holmes put it: ‘When you have eliminated the impossible, whatever remains, however improbable, must be the truth.’
Life is full of options. Too many options for the limited time we have. You have to triage.
I use this clever maxim when making choices. From what to order at a restaurant. Where to go. And what investments to make.
We seek investments with managed risk, capital upside, and a high level of passive income from growing dividends.
Your choices decide your outcomes.
South Tyrol, Italy. My next holiday destination paid from dividends.
Source: Image by Karl Egger from Pixabay
The Nasdaq was down last month while the rest of the market rotated toward value. Many tech stocks had simply overreached their actual value.
Then, last Monday, fallout from the yen carry trade hit thin August markets.
Our wholesale portfolios have held up fairly well against volatility across the rest of the market.
This is due to fact that we don’t put a lot of allocation into risky tech.
These portfolios are also generating good passive income to enable choice.
We concentrate our portfolios across 15 to 30 of the very best-quality companies we can find sitting at value.
Of course, this changes every month. As the market catches up, the discount starts to disappear.
You have to stay curious. Keep an open mind. Keep hunting.
Now, here’s a shortcut to help find value on public markets.
It’s not foolproof. It still requires you to do some homework.
But this year, it has been delivering well…
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Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios.