Investment strategy

To put the investment theory into use, we need a robust strategy for stock selection. While the investment theory is mathematically exact, the investment strategy is more liberally defined. The KISS investment strategy is based on applying DDM to dividend stocks and aiming for index meeting or even beating performance with lower risk than associated with index investing. 

Here you find:

1. A review of the historical stock market performance. To develop a robust strategy, it is imperative to understand the average expected returns for the stock market as whole. We will study the stock market price appreciation, earnings and dividend growth, and dividend yield for the stock market as a whole.

2. A prediction of future stock market returns. The dividend discount model is applied to the stock market to estimate the long term (50+ years) stock market return. A slightly shorter, 10 year return estimate, is also developed. These will guide us for setting a realistic discount rate for dividend investments. 

3. The details KISS investment strategy. Here we detail the rules for KISS investment.
4. Analysis of alternative investment strategies.