"Adapt to your changing world is key to successful investing" by: John Sample

   October is proving to be a scary month for investors. 
   Hopefully, when the election is over, the market can focus on the economy rather than politics. Most signs in the economy are better than projected. 
   That is the good news, but it must overcome the fact that Covid-19 cases have increased to levels not seen since this summer. 
   How we react will have a huge impact on our recovery. Another shutdown could send equities markets into a tail spin. 
   The arrival of vaccines can’t be soon enough. That assumes anyone will take the vaccine. No one seems to blink about taking their yearly flu shots, so there is hope at least.
   I have said before that I am a value investor. I noticed while reading the Wall Street Journal that Ted Aronson was closing his value-based firm AJO as it has underperformed the market for far too long. 
   Simply said, growth stocks are where the action is. That simply reinforces the current interest in the FANG stocks and their ilk. 
   I have seen much the same thing. The growth in my accounts over the last ten years has lagged the indexes and averages.
   I am not changing my philosophy, as I am way more interested in income from dividends. This philosophy evolved over the years as I grew older. 
   I never thought that I would make it to collect Social Security and wasn’t even sure it would be there should I make the specified age which they keep moving back. 
   It wouldn’t have covered my life style anyway. So, years ago, I focused on buying dividend-paying stocks that would generate current income. That philosophy has worked. 
   I could have done much the same thing by investing in rental property or some other type of income-generating investment. 
   I chose equities as there is a market everyday should I need to sell.
   While that works for me, I would say that a younger person should focus on growth stocks. Most of these stocks are in the high-tech sector as reflected by FANG. 
   One should not limit themselves however. You can look to the growth of Chipolte, Home Depot and Wayfair. 
   After a rather incredible runup and crash, Bitcoin made a comeback and appears to be here to stay. 
   Betting on change and innovation is a good policy.
   On the value side though, companies can reinvent themselves. Microsoft is a good example and Coca Colas may be the next.
   I am not so sure you call that a value play but it is taking a well-known brand and adapting to a changing world. 
   There are all sorts of means of investing. Just make sure you have a real strategy that you will continue to work with and adapt to a world changing faster every day. 

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