Round Table Discussion- Volume 1

Summary

• Welcome!
• Grab a seat, your favorite beverage, and let's have a discussion.
• Volume 1 Topic: What is your investment style?
• A brief summary will help to share how you approach investing.

Why a Round Table discussion?

During my HS football season, we practice on Thursday night to prep for our games on Fridays. Following practice, I meet a local sports reporter for a bite to eat and a few cold beverages to talk about our upcoming game, our last game, and life in general. We started calling our meetings Round Table Night. Not only do I enjoy talking about my players and our team, but we get to discuss all sorts of topics and we have built a wonderful friendship.

Granted, we can not meet to enjoy some steak and ale, but we can share and discuss.

Topic #1-

What is your investment style?

This topic has been discussed on our Blog many times in the past. I want to re-visit this topic as I believe that the many different approaches to investing are worth discussing. If you have a style that works for you, share it and discuss it with folks who may have questions. If you do not have an investing style, perhaps you will read about a few that might interest you.

Please be open to discussing styles with one another. This not about criticizing anyone or their style if it differs from yours. It is about having discussions that can lead to a better understanding of what folks are doing out there with their investing.

Ground Rules-

Please keep comments and discussion on topic.

Comments and discussions are to be positive and, hopefully, productive.

Negative comments and criticisms are not welcome.

This is not the usual Blog format. 

Picture yourself sitting around a table with friends and let's get this started!

My Investment Style-

I have commented many times on our Blog that my wife and I are investors who have built two portfolios based on two principles:

1. Diversification 

2. Dividends.

We have worked to include stocks in many different sectors, the diversification part, and lean toward stocks that pay dividends. We do have some stocks that we consider "speculative plays." These stocks are usually potential growth stocks that we are willing to "take a chance on." Please know that these are researched. No throwing darts to choose stocks! Speculative plays make up no more than 2-5% of either portfolio and there are some that have, over the years, "graduated" from speculative to earn a place in our portfolios proper.

I will leave my contribution to our Round Table discussion with this insight from Benjamin Graham which pretty well describes our approach to investing.

The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned about sizable declines nor become excited by sizable advances. He should always remember that market quotations are their for his convenience, either to be taken advantage of or to be ignored. He should never buy a stock because it has gone up or sell one because it has gone down. He would not be far wrong if this motto read: "Never buy a stock after a substantial rise or sell one immediately after a substantial drop."

Wise words from Mr. Graham, in my opinion. 

Whatever your investing style may be, I think we can all agree that it takes some research and some homework.

Let me also add that if you are not comfortable developing your own investing style, you should consult with a trusted financial advisor.

So, grab your favorite beverage. Pull up a chair and join the Round Table discussion!