June 9, 2022
The Source for Freedom and Self-Reliant Information[1]
Thomas Jefferson defined rightful liberty as “unobstructed action according to our will within limits drawn around us by the equal rights of others—I do not add ‘within the limits of the law,’ because law is often but the tyrant’s will, and always so when it violates the right of an individual.”
THE BEST KEPT SECRET TO FINANCIAL FREEDOM
The Best Kept Secret to Financial Freedom: Beard Jr., Robert G.: 9781483475615: Amazon.com: Books
On June 6, 2022, the following 5-Star Rating showed up on Amazon.com: The Secret is out! A must-read book!!!
“Great book--easy read--to the point--If you are losing money in your investment account this book is a must read--Since Covid we have lost a lot of money in two different large financial companies. We asked six months ago to have our investment money put into a safe account. Their safe investment was losing another 12% from mutual funds. This book will tell you to stay away from mutual funds! Mr. Beard from his newsletters and book highly recommends DRIP stocks (Dividends). Six weeks ago, we gave our broker a list of Drip stocks (most were in the book) to invest in. I am very happy to say we are up 5.4% in stock increase alone--dividends are not posted yet. READ THIS BOOK!”
I certainly appreciate this glowing review. HOWEVER, I want to make sure everyone understands that with respect to the forty-four (44) Great Businesses (DRIP Stocks) that we monitor AND invest in, if a stock market crash like 2008 occurs, these DRIP stocks will also decline in value. BUT this is a good thing for several reasons: (1) Our dividends that are reinvested purchase additional shares at lower prices (higher dividend yields); (2) even though the stock prices decline, the dividends stay the same and increase annually, on average, between 5% and 10% or more during the stock market downturn; (3) other DRIP stocks that have been over-priced meet our parameters and become current buys; and (4) the decline in value is short-lived, compared to most other securities.
On December 31, 2007, The Coca-Cola Company (KO) was priced at $30.68 per share. When the market crashed, KO was trading at $22.64 per share on December 31, 2008; a decline of 26.21%. Two years later, on December 31, 2010, KO was back up to $32.88 or a 7.17% increase over its share price ($30.68) on December 31, 2007. More importantly, during those two years, KO continued to pay and raise its dividends.
Today, even though KO is part of our Basic Portfolio, it is trading at $64.72 per share (111% increase over 12/31/2007 share price), with a dividend yield of only 2.76%. We are hoping for a stock market decline that brings KO’s share price much lower so that the dividend yield is between 3% and 5%!
In our most recent Newsletter, Issue 37-2022, dated April 30, 2022, out of the 44 DRIP stocks we monitor, we identified 20 that met our requirements for purchase; had you acquired 100 shares of each of those DRIP stocks, it would have cost you $147,000. As of June 3, 2022, those same 20 DRIP stocks would now cost about $149,000. Out of the 20 DRIP stocks, one stayed the same in price (several pennies difference), seven declined in value and twelve increased in share price. The same 20 recommended on April 30th are currently recommended today! https://static1.squarespace.com/static/57c612e75016e157ad8606cc/t/6272a217610f347cd9456639/1651679777188/JG-NEWSLETTER-Issue37-April2022.pdf
You must only do three things to become and stay financially independent and none of them have anything to do with the actual value of your assets or stock portfolio! Actually, there are four things you must do. The first, “READ [MY] BOOK!”
Dum Spiro Spero—While I breathe, I hope.
Slainte mhath,
Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.
[1] Each Jeffersonian Group, LLC (www.jeffersoniangroup.com) publication is intended solely for information purposes and is not intended nor does it purport to provide legal, tax, individual investment advice, estate planning advice, insurance advice or business advice. In addition, information and analysis is compiled from sources believed to be reliable but such accuracy cannot be guaranteed. Readers should do their own research and consult with expert medical, legal, tax, insurance, business, and financial counsel before taking any action.
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