Monday, March 1, 2010

ADJUSTING MY INVESTMENT STRATEGY

While revising my investment plan at the first of this year, I wanted to cut investment costs while increasing stakes in some of my long term holdings. At the same time, I set a goal to increase cash holdings as well. To attain both goals, I instructed my investment company to re-invest dividends on 6 of my top long term investments and had them pay the dividends from the other 22 stocks in my regular portfolio to my money market account.

By doing this, I'll be increasing my stakes in the my top 6 long term holdings, while keeping investment costs low. (My investment company charges no commissions for re-invested dividends). This still leaves me with an income stream of dividend payments from 8 to 12 stocks each month. The dividends from those stocks will build cash holdings in my money market account, with or without any additional money invested on my part.

I do plan to invest additional funds in some of the energy partnerships. I've been doing quite well with those as far as price appreciation and dividend income. Considering energy prices are still relatively low, I would expect these investments to do quite well as the overall economy begins to recover and energy prices go up.

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