club strategies for destiny multiple
Post on 30-Dec-2015
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Aug 2008Updated 1/2011
Goal:
Maximize gains while minimizing risk
How: DIVERSIFICATION!!
Utilize the 80/20 rule for the club’s portfolio
80% - Blue Chip * 20% - Others
Purpose:Provides steady growth in our portfolio
* Well established financially sound companies
No more than 25% ownership in any one industry
Purpose: Protects from meltdowns in a particular industry
When Market Prices fall 20% below or increase 50% above the Purchase Price, we will vote to sell
Purpose:Provides automatic triggers to sell stocks and allows efficiency in monitoring them
*** Each Member is responsible for watching stocks but specifically the Financial Partner
Purchase stock shares in multiples of 5 (5, 10, 15 etc)*
Spread out large purchases over time
Purpose:Reap the benefits of “dollar cost averaging”
* Other amounts will be considered on a case by case basis.
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