Monday, September 7, 2020

The Barbell Strategy

Since beginning my F.I.R.E journey in January of 2020, I've devoted myself to income investing - i.e. investing in dividend stocks to fund a lifestyle. I was inspired by the likes of ASSI, dividendsrichwarrior, STE etc. However, I couldn't help but feel like it wasn't suitable for me - an element was missing from it. Earlier this week, I chanced upon an article about an investment strategy - DBS Barbell Strategy. I found it - it's the perfect fit! I've decided to blog about it because I believe that it might be useful for novice investors that are looking for an investment blueprint. Before I begin to ramble, I should give a bit of context:

  • Dee is 23 years old this year
  • Dee doesn't have a high paying career
  • Dee's objective is to F.I.R.E before midlife
Without further ado, I'll provide a brief introduction to the Barbell Strategy (BS)! The BS comprises 2 components: growth and income assets. On the one hand, the growth component should comprise of companies that will benefit from long-term, irreversible growth trends - the innovators, disruptors, enablers, or adapters. If it is done right, this component should provide superior returns (10 - 20% per annum). Given the nature of high-growth stocks, it's inevitable that it will experience volatile price movements. On the other hand, the income assets will serve to dampen the volatility of growth assets. It should comprise of dividend stocks that will remain resilient by paying in times of crisis. I believe that it's possible to find dividend stocks that will pay 5-8% per annum. 

How does the BS compliment my investment profile? On the one hand, I want to learn the art of picking dividend stocks. The goal is to F.I.R.E via dividend income. On the other hand, I should strive to grow my capital as a youngster. Since I have the luxury of time, I think it will be wise to allocate a portion of my capital into growth assets. By growing my capital at a faster rate, I should be in a better position to achieve F.I.R.E before midlife!

If you're keen to learn about the BS in detail, I'll attach a couple of links at the end of the post! What do you think of this strategy? What's your strategy for F.I.R.E?

Thursday, September 3, 2020

September 2020 - Portfolio Updates


  • Total value = 20,916.02
  • Current P&L (+Div) = +1,352.35 (+6.88%)
  • Overall P&L (+Div) = -3,222.73 (-16.37%)
  • Portfolio breakdown as of 02/09/2020