Income For Millionaires

Yield pigs suffer losses chasing yields in REITs and oil.

A better approach is a portfolio of consumer and utility stocks anchored by the S&P 500 and Berkshire Hathaway.

Seth Klarman has wise words for yield pigs.

You've seen them: headlines promoting high-yielding stocks. Be careful; some of these high-yielding stocks may have to cut their dividends. Not all income is created equal. In this article I will discuss the challenges associated with high-yield securities. Income doesn't really matter if the portfolio is worth less today than a year ago. I will show you a portfolio of consumer and utility stocks anchored by the S&P500 and Berkshire Hathaway (NYSE:BRK.B). I like the defensive nature of utility and consumer stocks; they have low volatility and a history of modest returns, plus dividends.

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