Young People Could Follow My Old Strategy

I paid in, using cash money every month to my cash fund held by my broker as part of my account. This was about $50 per month or $600 in a year.

Over the years this cash fund got pretty large, about $5000.

My idea was to grab the most reliable income stocks if the market crashed totally. So, my list was JNJ, PG, O, KO, and SO.

I paid no attention to their day to day stock prices.

I was interested ONLY in MARKET timing, not trying to time individual stocks.

I was interested only in a whirlpool to the bottom total stock crash, not a momentary down blip in the ziggy zaggy line.

Total stock crash was the only thing I cared to watch for.

The truth is that in a total stock crash, everything goes down. The high fliers, of course, the growth stocks, of course, but also the stable, and reliable income stocks — everything gets pulled down into the whirlpool of the massive crash.

So, what I did was feed in my cash bit by bit was the total crash proceeded. The bits of my cash that I was feeding in got larger, and larger as the crash went deeper and deeper. I could not be sure that I would still have anything to feed in when the crash hit rock bottom. And that did not matter to me.

What I cared about was getting stable, reliable income stocks at crazy low prices that they should never sell for.

My idea was that their dividends would just keep paying in a sort of flat line, while their return on investment would skyrocket as their prices were sucked down by the whirlpool of the massive crash.

So when the turnaround arrived, my cash fund would be gone, but I would have a nice portfolio of income stocks.

And then in the next 20 and 30 years the dividends would re-fill my cash fund, and the stocks would still be there for me anytime I wanted to sell them.

I was in my early 20’s.

This strategy worked perfectly for me.

People in 2025, who are in their early 20’s might do the same thing I did.