Events of the past week have again driven home to investors the fact that the financial markets, dominated by computer-driven institutional trading, can feel like WWII’s Battle of Bastogne. The word terror becomes an understatement. I have been advising conservative, small business owners and retired and soon-to-be-retired investors for nearly five decades. My two monthly investment strategy reports (Intelligence Report, Young Research’s Global Investment Strategy), along with our family investment management company Richard C. Young & Co., Ltd., www.youngresearch.com, and this website can help you set your course of action. In these difficult times, we’re here to help.
Here’s a post that I know will be of interest to every investor saving for a comfortable retirement, whether today’s or in the future. The following display tells the story of Young Research’s Retirement Compounder’s Stock Portfolio.
Young Research is the exclusive research provider to our family investment management company, as well as manager of youngresearch.com. The complete nine-year record of the Retirement Compounders (RCs) is displayed below. The model portfolio comprises exactly 32 dividend-paying stocks. The current yield is about 5.4%, or well more than twice the yield on the S&P 500. This advantage is a goal of the RCs. Although no effort is made to “beat the market,” that is just what has occurred year after year with amazing consistency and reliability. Investors, of course, don’t know what the future holds, but the last decade has been one of the most volatile and dangerous in history. Many investors have seen retirement accounts decimated. I operate under the ongoing assumption that the most important words in investing are interest, dividends and compound interest. I encourage you to adopt my strategy of nearly five decades. You will sleep better and achieve a more consistent, reliable total portfolio return. It’s a hard formula to beat.
P.S. Take a look at the compilation of the developed world’s worst bear markets at Youngresearch.com. The countdown shows investors’ reaction to the unprecedented global events, but especially those in Europe, that are shaping the financial and economic landscape. Young Research’s RCs do not include a single name from these countries.