The Snowball.

Know what you’re aiming to do

Buy Investment Trusts that pay a dividend and re-invest those dividends to buy more Investment Trusts that pay a dividend.

Look at value creation potential, not just balance sheet value

The current preferred yield for the Snowball is plus 7%. If u buy a Trust trading at discount to NAV, u could get a bid, if u are lucky, or as market sentiment improves the NAV gap could close. When you re-balance your portfolio any Trusts printing a profit, the profit could be crystallized and re-invested in the Snowball, subject to relative yields.

Buy to hold (but be prepared to sell)

If an Investment Trusts radically changes it’s dividend policy, u need to sell even at a loss. You simply need to read the RNS when the dividend is anoucced.

Stick to what you understand

Build your knowledge of Investment Trusts by Doing Your Own Research

It takes money to make money

If you invest 10k at a yield of 7%, and re-invest at 7%, better if higher. In 60 years that would equate to income of £46,844 pa which would have to be adjusted for inflation.

Better if you can add more funds to buy more Investment Trusts that pay a dividend. GL my friend.