Money Tree Portfolio Gained 9.4% in 4 months!

By | July 12, 2013

Hey guys, I just wanted to give you an update on the money tree portfolio. So far the fund gained 9.4% (without including dividends) since the inception date of March 5, 2013. Wow. This portfolio reflects my philosophy of value investing and dividend investing. I select stocks that I think have a sustainable competitive advantage whether it be a solid brand name, superior buying power, better distribution channels, better management, ect.  Warren Buffett, one of the greatest investors of our time, had two rules when it came to investing. The first rule was not to lose money. The second rule was not to forget the first. This means investing in companies that are good quality and selling at a substantial discount, and an investor can do this by sifting through a company’s financials and assessing their qualitative pros and cons. Which is much like finding a diamond in the rough.

I selected 18 companies from a variety of industry sectors that show these qualities and have demonstrated the kind of leadership that will give these companies a superior performance over the long run. I will look forward to managing this money tree portfolio and will update this post periodically. Accounting for dividends received, this fund has netted more than 10% in gains in only 4 months!

money tree watering


Why is this portfolio called the money tree portfolio? Think of this fund as a tree that bears fruit every three months or so. You can choose to pick this fruit and eat if (spend the dividend income) or reinvest the money to make this tree grow larger and larger. As these stocks grow in value overtime and throw off more dividend income, this portfolio can grow to the point which an investor can happily live off of the dividend income without touching the principle! You would need at least $1.2 million dollars to achieve such a feat.

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