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Originally Posted by Oldmanb777
Besides real-estate, what's the current hedge against inflation?
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My investment strategy is income driven and heavily hedged as follows:
oil sector -->mREITS sector -->Tech sector (selling covered calls).
I take the dividends from oil (currently around 10 to 15k a month) and I dump it into mREITS sector. I then take the mREIT dividends (currently around 2k to 3k a month) and I dump it into the tech sector, which i then sell covered calls against. Everything has a stop loss in case of another black swan event. I never reinvest my dividends into the same sector (as a hedge), and I always buy at discount.
Alot of people have no idea on how to invest let alone try to get income on it. They focus only on the valuation of the stock (AMZN/GOOGL/TESLA) and forget about dividend stocks, when they should be looking at it first. Worse, people don't know how to reinvest their cash, and buy high and sell low..lol.
I found out that by investing in high yield dividend stocks when they are cheap, you increase your wealth (valuation of stock) and income (dividend/interest) over time (increase share count). I rather make money 3 ways instead of 1 way and during bear markets/recessions, it keeps my losses to a minimum,. I basically copy Warren Buffet's strategies. Collect dividends, reinvest dividends into distressed SECTORS, and then wait for the pop, then go buy something cool for the 4runner.
Investing is a side hobby for me, I do it for fun, and I make a shit ton of money from it. Only thing i can say is find a strategy that works for you, and stick with it. I didnt come up with this strategy or the funds to do this overnight.
Anyone wants to continue talking about money/investing, continue to post here. I LOVE TALKING ABOUT MONEY...lol.
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2016 trail 4runner, twin locked on 34's.
Can read more of my build here (2 parts):
https://www.lasfit.com/blogs/news/ho...ad-build-part1