Our Scratch the Itch (STI) variant on our main dividend growth focused Make Your Family Rich investing philosophy took an interesting turn yesterday. Readers of the MYFR books remember we recognize that investors frequently have a special understanding of a business or opportunity that doesn’t fit the standard MYFR target investments. For example, we have identified Tech Dividend Champion Wannabes as logical STIs. Those are the high growth dividend paying tech stocks that we believe will achieve Dividend Champion status given the time to grow dividends for 25 years. We did something similar identifying pharma and aerospace and defense DC Wannabes.
Today, on a big dip, we sold an out of the money put on IBIT. That’s the ETF that invests in bitcoin. Anything bitcoin will be volatile and that means solid options premiums as you can see on the daily chart. That’s attractive particularly because we forego any dividend opportunity should we acquire IBIT. As you know, we measure our success by our constantly increasing dividends. That does not mean we are not mindful of the overall value of our ownership.
One thing we have learned in this process is that with a generational succession plan not all data and ideas flow down to the next generations. This idea flowed up to the old man from his offspring. Let’s see how it works.
Happy New Year!
Comments