Method #1 - Leveraged Investing

The History of Leveraged Investing

It took me close to a decade of studying the markets, myself, and a whole host of different trading techniques, investment vehicles, and market philosophies before I knew enough to recognize, appreciate,and customize the style of investing that best suited me, a philosophy I now call Leveraged Investing.



What is Leveraged Investing? in a nutshell, this type of options-based investing attempts to synthetically mimic successful value investing - acquiring quality assets as cheaply as possible and then squeezing a little something extra from those assets once you've acquired them.

I've gone into greater detail re: the nuts and bolts and rationale for Leveraged Investing in other areas of this site. Such as:

I certainly don't claim to have invented anything entirely new here. I mean, there's nothing Top Secret about any of the individual strategies I employ and promote, although there is a lot of customization in how I invest.

And I know of no other resource, book, or website that so systematically and vocally advocates combining the power of options with the discipline and philosophy of value investing.

The emphasis of my approach is always on the assets themselves, not the options.

If it's not Quality Investing, then it's not Leveraged Investing. The options themselves are merely tools, although they are very powerful tools that can give you huge edge over other investors who are resigned to paying full price for their stock and then having to wait for the share price to appreciate.

Practitioners of this style of investing, however, seek not only to acquire their stock for a discount but to continue lowering their cost basis on the stock for as long as they own it. Conceivably, given enough time and patience, they could actually lower their cost basis all the way to zero (and beyond) and pay nothing for their stock (technically, they paid for it with time itself.)

Although this is not get rich quick, the accelerated compounding effects will produce long term results in significantly less time than traditional long term investing.