What to buy?

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After the last few years of watching the Dow (DJIA) peak at 14,000 and then drop to the mid 6000’s it seems like buying stocks would be the last place to look for income. The reality is, even with the recent run up in the dow back above 11,000 there are still good opportunities.

Some might argue that bonds offer more security, but we’ve seen bonds (ala General Motors – GM ) go bust and I for one agree with the thought that a bubble is forming in the bond markets.

What about real estate? Yes, real estate can be a great investment for income, but in building this cash machine – being able to make small (highly liquid) investments is key. You just can’t get into and out of real estate in a day.

I should state that while I’m placing an emphasis on the importance of liquidity – it is a secondary concern. My goal in building a cash machine is to purchase equities and HOLD them indefinitely. If I buy the stocks of the right companies, that continue to pay increasing dividends for the long haul I shouldn’t have to worry about share price.

Now, let’s figure out what to buy…


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