JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Comparison of Three Investment Strategies
for Financial Independence
Author(s): Carlos Spaht, Harvey Rubin
Citation: Carlos Spaht, Harvey Rubin, (2014) "Comparison of Three Investment Strategies for Financial Independence," Journal of Applied Business and Economics, Vol. 16, Iss. 6, pp. 44-55
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper discusses how investors can achieve financial independence regardless of timing in the
market. To do this, we study three investors referred to as the luckiest, average, and unluckiest investors
in the market. Using the S&P Dividend Aristocrats Index, each selects the same stocks and then
continues, each quarter for fifteen years, to invest the same amount and reinvest the dividends in each
stock. But their timing is different; the lucky investor invests at the low point of the market whereas the
average and unlucky investors invest at the average and high points. Amazingly, each investor achieves
financial independence.