Micro Blog #20: Have A Strategy For Your Investments

So, you read my last blog and now you have some objectives for your investments. You now know why you are investing, and what you are trying to achieve. That's great!!! I'm happy we got this far. So, what's next???

Well, the next thing you need to do is have a Strategy. How are you planning to achieve your objectives? Objectives don't just achieve by themselves. You got'a have a plan, a strategy that you can execute to make those objectives come true.

You can go all crazy with your plan or strategy, but I would advise you to start with a simple high level strategy/plan first, and use it as a pillar or foundation to start building a more elaborate business plan. You can see mine here: My Business Plan

But for now, let's just focus on building a simple high level strategy that you can review in less than 5 minutes. As you become more comfortable with your high level strategy, you can start building a more elaborate business plan which can include whatever rules/guidelines you want.

Let's first recap my Investment Objectives: My primary objective is to generate sustainable, growing, and predictable income or cash flow. Capital gain is my secondary objective and will mainly be used to generate more income.

My Strategy To Achieving My Objectives:

  • I will achieve my objectives by primarily investing for long-term in high quality dividend paying stocks in companies that are leaders in their respective industries.
  • I will ensure the companies I invest are of highest quality based on metrics such as credit quality, dividend history, and industry moat.
  • I will ensure proper diversification of my portfolio at all times by maintaining at least a minimum number of positions required for such diversification, while limiting excessive exposure in any individual position or a sector.
  • I will reinvest dividends and capital gains (when reasonable) to generate more cash flow.
  • I will regularly monitor my investments for proper diversification and risk management and will take appropriate actions to mitigate risks.

The reason why I've written down my strategy points starting with "I will" is because it is about me and what I need to do. I want this strategy or plan to tell me what I need to do to achieve my objectives in a simple plain language, that is personal to me and easy to read. It is not for anyone else but myself, it is all about me, me, and me. Ha!

Therefore, when you write about your investment strategy, it has to be all about you, and only you. Don't try to make it too complicated with investment jargon or metrics, you can go crazy with them in a business plan. Also, don't worry about what anyone else thinks of your strategy. As long as you are happy with it and confident that you can follow it, that's all it matters. Keep it simple!

Alright? Now go and put your strategy together and next time we will talk about Tactics, where metal hits the road.


  1. Mr. ATM,
    Determine your objectives, set your strategy to achieve those objectives, develop a tactical action plan to execute against your strategy.

    It's interesting how investing is like a lot of things in life. You can accomplish a lot by applying these principle in other areas where you want/need to get things done.


    1. So true Tom, but in investing it’s just so easy to jump right in and get burned, no qualifications required. All one needs is a little money.

  2. Mr. ATM, love the name!

    Your strategy is rock solid and shows you are a man of knowledge and experience. Your business plan and action plan are great for anyone looking to follow. The best thing to do now is to put it into action and show the world what you can do.

    Keep it up!

    1. I am a man of something, not sure if it's knowledge or experience or something else. But thank you for your kind words. I simply share what I know and practice when it comes to investing and what I've learned by watching other more experienced investors. It has worked for me, no guarantees if it would work for you or others.

      As for putting a plan into action is concerned, well my plan has been in action for the past 8 or so years. How do you think I retired early? :)

      And as for showing the world is concerned, I'm not interested. Or should I say it's not a concern of mine. I'm not looking for fame or recognition, per se.

      I blog because I got free time and I enjoy sharing and networking about investing. Now, if someone can benefit from it then I can also call my blogging as volunteer work.

      I'm a volunteer worker. Ha! That box is checked now on my things to do in retirement :)


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