I’m excited to start building up my Dividend Portfolio. However, before going further, I would like to put into words my Investment process. As I had mentioned in my previous blog post, Dividend Investing Strategy takes time, discipline and needs a robust investment plan.
I do believe, every investor MUST have an Investment process. This Investment process helps the investor to be in focused and on track thereby preventing him from making emotional investment decisions which will eventually ruin his portfolio. With clear investment process that you MUST refer to in every buy or sell decision, you simply go through each step and tick the boxes logically rather than making a rash investment decision whenever emotion dictates as a result of current news or rumors.
To give you a very clear picture of how I manage my investment portfolio, I summarize my investment process into seven (7) simple steps. As a self-taught and do-it-yourself investor, I am not suggesting that this is the right way to build a portfolio, nevertheless you can provide me your suggestion/feedback to let me know if there is anything you do differently. Please note that as of this writing, I have a limited knowledge about investing and by any means in the future, I will not pretend to know everything about investing that’s why the ultimate purpose of running this blog is to continually share and learn.
Below are my seven (7) simple steps in managing my Dividend Portfolio:
- STEP 1. Goal Setting
- STEP 2. Stock Screening
- STEP 3. Stock Valuation
- STEP 4. Technical Evaluation
- STEP 5. Emotional Check
- STEP 6. Portfolio Building
- STEP 7. Investment Performance Review
Due to time constraint, I prefer to give details of each step in a series of posts. I will update this post to set the link whenever I publish the corresponding step for our quick reference in the future.
How about you? Do you already have an investment process that you refer to every time you make a buy or sell decision? I hope you already had.
Again, thank you for reading and looking forward to our success in all our endeavor!