Monday 29 August 2016

Today's Pick : ANH [Anworth Mortgage]

Bulls have no leash again today and a pricey stock market continues to get pricier. I hear more and more investors are strapped with Cash and looking for areas to see the double digit growth that historically came with Index Funds.

Not Surprise. I am still working around this market since it doesn't want to work with me.

Hunting for Cheap stocks, that do not manifest volatility and yield a decent return, one usually lands up in an REIT (Real Estate Investment Trusts).  I got ANH by word of mouth when buying our little Home Sweet Home. This was years ago and the REIT has stood the test of time. With an yield of 12% today, the stock doubles you put in in about 6 years.

[Let me share a hidden rule to quickly calculate how long it takes to double your money. Divide 72 by the yield and you should roughly get the number of years it will take to double your money. WIth ~12% yield on ANH, you are set to recoup all of your investment in 6 years and start reaping a new harvest with the 7th].

In days to come, i will begin posting a graph for return on my recommendation on 'Bo Derek'.

For those who are just landing at this place, 'Bo Derek' is the adjacent text page that has additional analysis on my recommendations.

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