High Quality Dividend Growth

Buy and hold wonderful dividend-paying companies at least at fair prices. Sell only when there is a very high valuation or when the investment thesis is broken. Stocks may be added to the portfolio when the fundamentals and the valuation indicate it. The focus should be on high-quality businesses with a business moat, with great management and decent growth potential. The value investing approach may be the basis for every investment decision. The portfolio should be concentrated. Diversification (or building an ETF-like portfolio) is not the goal. The goal is to find a rather small number of companies, invest in them, and stay invested. Risk should be reduced by paying a low enough price for the business, understanding the business economics, and looking at the fundamentals. Occasionally, non-dividend-paying stocks can be added for a number of reasons: a potential dividend payer in the future or a great, wide-moated business that is on sale. Under certain circumstances, the portfolio can be spiced with very contrarian opportunities. The price must be so low that the risk to the downside is very limited. By design, the portfolio is long-term oriented. The contrarian approach (buy low or when no one wants to buy) is often underperforming in the short term, but should outperform in the long run.