Sunday, August 17, 2014

KDK's Investment Plan

KDK Fund has a mission to invest in companies and projects that bring a solid return while falling in line with the standards of the fund. The fund will look to create an income stream for its investors, inspire confidence in the companies and projects it invests in, and provide a blueprint for those looking to invest capital in worthwhile projects while at the same time restricting capital from projects and companies that don't go along with the fund's standards. There will be both fundamental and technical (price) requirements and analysis for each investment. This plan will continuously evolve as the fund grows and different opportunities arise. Feel free to make constructive comments and suggestions as the fund feels collaboration can improve the plan.

Please check back with this page periodically to see any changes made to this post. Updates to the post will be communicated when changes occur.

Current holdings include Realty Income, Ford, AT&T, Sysco, and Powershares Build America Bond ETF.

The companies or projects that the fund will invest in will have business plans with which the fund can align itself. Continuous success in execution of those plans is expected. Some topics that the fund looks at are below.

Management Behavior

- How does management run the business? The fund will use product management, wage behavior, resource management, and profitability as some of the metrics.

Wage Behavior

- Does the company pay wages that create a balanced work atmosphere? Does the company allow its workers to require support from governmental agencies and taxpayers because of its wage structure? What is the wage difference between the CEO and the average worker if the CEO is not the founder? Are stock options evenly distributed throughout the company?

Resource Management

- Does the company have policies in place that promotes stable resource management? The fund is looking to invest in companies that are making an honest effort in curbing its resource use. Does the company promote innovation within its resource usage for long term success?

Profit Growth

- What is the company's profit growth targets? Does the company have a plan, that when executed, creates profit for the company? Does the company make its money through a unique and protected product or service that provides the profit?


- Does the company have a stable and growing dividend? How would compounding affect the continuous accumulation of dividends? The fund expects dividend growth overall and dividend reinvestment growth to expand as time goes on.


- Are Options available to trade both on the selling and buying side? The Fund plans to use call selling in order to provide the fund with another revenue stream. If it makes sense, the fund will use the revenue from the call selling to purchase more shares.

Where To Invest In?

Stock/ETF Shares

- First Investments are in shares of stock and ETF securities. This provides a relatively stable environment for the fund to grow. The fund will grow from stock appreciation, and consistent growth in dividend payments

KDK Options

- The Fund will use KDK Options to trade aggressively looking for 5X gains. The plan is to only use a small percentage of the fund for trading options. The fund will look to momentum news and strong technical analysis for each trade.

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