STUDY GUIDE

QUESTIONS BY CHAPTER

    1. All investing is fundamentally about cash flowTimeline and manner

    2. Growth is not vs. Income

    3. Withdrawal strategy

    4. Accumulation strategy

    5. Superior companies

    1. What do we believe that effects how we think about investing?

    2. What events in our life or period we grew up in influenced those beliefs?

    3. What is the difference between a philosophy and a strategy?

    4. What is the “default” approach many have today?

    5. The key tenets of our investment philosophy (pp. 36-37)

    6. Four key questions:Why do you own what you own?

    7. Why do you believe what you own makes up a cohesive investment strategy?

    8. What do you know of human experience and knowledge that validates this strategy?

    9. What do you know of human experience and knowledge that might contradict it?

    1. What it is not – a bond substitute or replacement of risk asset investing?

    2. What it is – a return of profits to the owners of a business?

    3. Dividend growth investing comes with a reward for past risk taken, paid from current success, that carries a promise about the future

    • Investor benefits (Lowell Miller)Accumulation benefits

    • Spending benefits Sequence of returns risk for withdrawer

    • Corporate behavior benefits (Daniel Peris)

    1. History contribution to return

    2. Dividends and volatility

    3. Indexing: Vocabulary and mentality 

    1. Nvidia and Cisco

    2. Lessons of the 1990’s

    3. Post-crisis market

    4. The AI moment

    5. The counter-cultural benefit of that which seems small and is incremental

    1. Yield on Original Investment (YOI)

    2. The math of it

    3. The drivers behind it

    4. Historical reality of performance

    5. Six mistakes in this thinking

    6. Time as a force multiplier

    7. Avoiding regret

    1. Proper definition of risk

    2. Human nature and staying power

    3. Downside protection

    4. Automatic exploitation – dividend growth as offense

    1. Dividend and Capital Gain tax rates 

    2. The future liability problem 

    3. Ignoring the company issue 

    4. Prioritizing things correctly 

    1. The value of a business 

    2. Discounting the future 

    3. Expectations of the future applied to dividends 

    4. What to do with profits:

    • Dividends 

    • Stock buybacks 

    • M&A 

    • Reduce debt 

    • Hold cash 

    • Capex 

    1. Pros and cons of each 

    2. Superiority of dividends 

    1. Dividend portfolio construction 

    2. Criteria of company selection 

    3. Passive vs. Active 

    4. Buy and Hold pros and cons 

    5. High yield vs. dividend growth 

    6. Low yield aristocrats 

    7. The second quintile solution 

    8. Covered calls 

    9. Asset allocation even for dividend growth investors 

    1. History of doomsdayism 

    2. Sociology of doomsdayism 

    3. Low probability vs. high probability opportunity cost 

    4. The middle ground solution 

    1. Less focus on re-sale price, more focus on growing dividend 

    2. Less focus on potential, more focus on the actual 

    3. Less focus on what can’t be controlled or know, more focus on what can 

    4. The business of business 

    5. Eight benefits to dividend growth investing 

    1. What we are NOT saying? 

    2. Generative abundance – creation and yield 

    3. Compounding within compounding 

    4. Metaphor and literal 

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