Some Ground Rules

My investing strategy has evolved a bit over time. It’s never too late to make improvements as I learn more. It helps to define rules now, though, even if the rules change over time.

My strategy in one sentence: 

Invest all my investable assets in a globally diversified portfolio of growth stocks at value prices, with a tilt towards world changing technology.

Long sentence but I think it works. Now what are my rules?

  • No position greater than 30% of my portfolio.
  • No Margin.
  • Don’t hold cash in excess of 10% of my portfolio.
  • Don’t neglect international equities. Maintain at least 35% international, preferably more.
  • Avoid companies and industries that are bad for consumers and society.
  • Avoid turnover as much as possible in my taxable account.
  • Keep high yielding investments in my Roth IRA.

My strategy matches my personality, it’s aggressive and it encourages me to spend less so I can save sizable chunks of each paycheck. I know we are late in a bull market cycle, but I’m going to remain fully invested in the asset class that provides the best returns over time. I don’t believe in trying to pick market tops. I do believe in dollar cost averaging into great companies at reasonable prices.


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