### Investigating Active Investing with Joseph Hogue
In this episode, we delve into active investing alongside Joseph Hogue, a former Marine, CFA, and well-known YouTuber.
While we concentrate on dividend growth stocks, **Joseph adopts a wider perspective**, integrating ETFs, bonds, REITs, and even penny stocks into his approach.
Let’s examine his investing philosophy, asset distribution, and the rationale for his 3-5 year holding periods.
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## **Key Takeaways from Joseph Hogue**
### **Joseph Hogue’s Investing Path**
Joseph commenced his investment journey in 1999 amid the internet boom, encountering many typical pitfalls faced by novice investors. His military experience fostered discipline, which later influenced his systematic investment technique.
Gradually, he transitioned from a heavily dividend-focused strategy to a **diversified portfolio incorporating ETFs, real estate, and venture capital.**
### **Portfolio Distribution & ETF vs. Stock Investment**
Joseph’s asset allocation is designed as follows:
– **65% equities**
– **15% bonds**
– **10% real estate**
– **10% venture capital**
He employs ETFs to gain insight into sectors beyond his knowledge, such as biotech. Nevertheless, he maintains dividend stocks like **JEPQ, SVOL, and MAIN** for income production.
### **Real Estate & REITs**
Once actively involved in real estate investments, Joseph now favors **REITs specializing in data centers, communications, and industrial assets**. This transition allows him to benefit from real estate without the obligations of direct property management.
### **Rationale for a 3-5 Year Holding Period**
Contrary to traditional buy-and-hold investors, Joseph reassesses his investments **every 3-5 years**. This strategy aligns with economic cycles and macroeconomic developments, enabling him to make necessary adjustments and maintain flexibility.
Although he is open to long-term holdings, he prefers **regular evaluations over becoming “attached” to stocks.**
### **Investment Methodology: Acquiring & Disposing**
Joseph adopts a tactical method for stock purchases, frequently **buying incrementally and employing technical analysis** to identify entry points.
Example:
– He acquired **SoFi Technologies (SOFI)** at $5, observed its rise to $14, and strategically sold some at $12 based on valuation metrics.
### **Risk Management & Steering Clear of Fads**
Joseph avoids trend-chasing, recognizing how challenging it is to predict when a trend will falter. He monitors his investments closely yet refrains from day trading.
By balancing high-growth stocks like **SOFI and ALLY** with stable investments like **ETFs and bonds**, he effectively reduces risk.
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## **Who Can Gain from This Approach?**
Active investing is most suitable for individuals who **enjoy researching stocks and keeping abreast of market developments**.
To succeed in this approach, one needs:
✔ Confidence in your selections
✔ Patience to await returns
✔ A solid grasp of **intrinsic value and industry dynamics**
## **Major Investing Errors & Lessons Learned**
Joseph’s most significant error was **pursuing Peabody Energy (BTU)** as it fell, without thoroughly assessing its debt load and negative outlook.
This incident emphasized the importance of **evaluating potential downside risks** before committing to any investment.
## **Retirement & Financial Freedom**
For Joseph, retirement signifies not withdrawing from investing. Instead of stepping back from the market, his financial independence strategy includes **remaining actively involved in investments**.
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## **Related Content & Resources**
📺 **Follow Joseph Hogue on YouTube** → [Click here](https://www.youtube.com/@josephhogue)
💡 **Understanding