Dividend Growth Investments for May 1
I wanted to let you know that I added to two existing investments a few minutes ago. I initiated them this year, and have been slowly building my exposure to them. I will try to get to $500 invested in each, which could theoretically take one or two more months. I like to build positions slowly, and over time. I take into considerations valuations, quality, fundamentals, as well as opportunity costs. I am a fan of diversification and spreading risk between many companies, and between time. I also like to test my assumptions as I build a position, and look for disconfirming evidence that would prevent me from risking more than I should be.
I have found that different companies and industries are available for sale at different points. It makes sense to acquire companies when they are available at a good price in relation to value. It is also important to realize that when investing, we are also dealing with imperfect information - the future is never going to be 100% predictable. And we are never going to be right. Hence we try to design systems and methods to protect us from the inevitable times when the assessment is incorrect. Hence the need to buy slowly over time, diversify and to buy other companies as well. This is why I try to allocate the $1,000 I invest monthly into several companies, rather than just one company at once. I like the diversification aspect, and the ability to build positions in multiple good companies.
Long story short, I added to the following two companies:
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