20 Stock Portfolio

Posted by Tim

August 21, 2007

I am always on the watch for stocks to invest in and write about. My passion for the writing side is growing and I am definitely interested in making more money. I have decided to set up a model portfolio of stocks I review. This will give you readers an opportunity to see if I have any validity in my analysis and allow me to track what I have written about.

First, some background on the criteria I use to pick companies I think will be good investments. Number oneI like strongly profitable companies. I am not a fan of companies with future profit prospects. I want to see a management team that turns revenues into profits.

I like dividends. Dividends are cash to be reinvested elsewhere. This often leads to foreign companies with a tradition of good dividend payments. Also, industries like shipping companies, who pay out the majority of profits as dividends when times are good.

Energy and natural resources. These are the raw materials of an industrial world. There are lots of ways to invest here, so I will be looking for companies with niches or especially strong advantages.

Real estate: Another necessity for most businesses and people. What companies can generate good returns from the ownership of property?

Technology: Somebody, somewhere is making money off the technology that pervades the modern world. Let’s find some companies that have a good plan to do this.

Anything else I like.

So, far I have reviewed two stocks on this blog: Gigamedia will become the first member of the portfolio. Thornburg Mortgage has too much uncertainty around it at this time to be included.

Check back often to see if I have any updates.