STEP 3 - Investing the Mason Jars
What to Accomplish Within the Investment Strategy
After the Mason Jars are set up, an investment strategy needs to be assigned to each mason jar:
- Needs to be tax efficient with account structure and investment selection
- The strategy needs to address reaching the goal of the jar with the least amount of risk possible
There are lots of different theories and styles of investing. At Intelligent Investing we think it is best to keep things simple and utilize sound and tested strategies used by the most successful investors.
Value investing is an investment strategy that derives from the ideas on investments that Ben Graham and David Dodd began teaching at Columbia University in 1928 and used later by Warren Buffet. It involves buying securities that appear undervalued by some form of fundamental analysis and are financially secure. The securities are then paired with other components which are negatively correlated to reduce the over risk of the portfolio.
The goal of the portfolio is to reach the desired returns in accordance with the mason jar of the portfolio, and do so with the least amount of risk possible.