Purpose

My Stock Screener – Part 1:
Purpose

My Path to Financial Independence

The stock market offers countless opportunities to invest your savings. Such investments can smooth your path to financial independence. However, there is also a sheer endless number of individual stocks and investment funds from which to choose from. Therefore, you first need to find an investment strategy that perfectly suits your needs.

Fortunately, investment decisions do not have to be particular difficult. Most private investors should just invest their money in passive index funds and do not try to beat the market by stock picking or market timing. By following this simple rule, you can earn the average market return and easily outperform most investment professionals after costs.

For a long time, I firmly believed in passive investing – not only from a theoretical point of view, but also because it generated superior investment returns since I started my index portfolio during the 2008 financial crisis. However, I was never entirely happy with a passive-only approach. Probably because I missed an active component to take advantage of exceptional market situations.

My Investment Strategy

Therefore, I decided to pursue a core-satellite investment strategy. Its core is a broadly diversified ETF portfolio, which I manage through value averaging. But in addition, my index funds are now complemented by several – mostly high-yielding – individual stocks.

One might hold against me that I voluntarily took a pass on the more promising investment method. But although I know that I will not follow in Warren Buffett’s footsteps, I now at least have the opportunity to make use of any kind of unusual market behavior.

Having said that, cyclical companies and “hot” stocks still do not have a place in my portfolio. Instead, I clearly have a long-term investment horizon and practice a buy-and-hold approach. As a result, my particular focus is on companies, which are attractively valued and have a high dividend yield.


More details about my stock screening process can be found here:

Full transparency: All of my stocks, funds, bonds and options are subject to multiple risks. However, I’m neither a financial nor an investment professional. Hence, the presented information is not to be understood as any financial advice or recommendation. I’m not liable for any losses or suffering experienced by any party. More detailed information is available here (only in German).