Francisco Javier Gomez, who goes by the user name jgpastrana, is a Popular Investor on eToro, but isn’t your typical financial professional. His background is in mechanical engineering where he holds an MSc in Project Management and a postgraduate MBA certificate. It was through self-education and learning from top investors that Javier has paved his direction in financial markets. He has created a comprehensive investment strategy with the goal of providing increasing and reliable income through dividends and capital growth. Appropriately, he calls himself “The QualityDividendGrowth Investor,” based on his investing strategy. We found some time during his busy schedule to speak with Javier about his background, investment strategy, and goals as an investor.
Tell us a little about yourself
My name is Javier and I am from Spain. I am 27 years old and passionate about economics, geopolitics and investing.
Tell us about your financial background.
I have been interested in investing and economics for many years. Most of my knowledge comes from self-study, reading various books and through my own experience investing.
I graduated with a Bachelor’s Degree of Mechanical Engineering from the Universidad de Vigo (Spain) in 2017 with a major in Naval Technology and received an MBA from the ThePowerMBA Business School and Project Management. My MBA provided me with a deep knowledge about business strategy, accounting, marketing, and finance, which I use for quantitative and qualitative analysis of companies.
Recently, I earned the International Certificate in Wealth & Investment Management from the Chartered Institute for Securities & Investment (CISI) and I intend to advance to the next level on the CISI pathway.
What is your strategy and have you changed it recently to adapt to the volatile markets?
My strategy is based on Dividend Growth investing. I search for top-quality companies with a story of growing dividends and wide moats. I like to say my strategy has three rules:
1️⃣ Invest in quality companies with a history of growing dividends and with moats over competitors.
2️⃣ Buy & Hold
3️⃣ Reinvestment of dividends to benefit from compound interest.
To avoid volatility, I have built a well-diversified portfolio among regions, currencies and industries.
How has eToro changed the way you trade?
eToro provides me the opportunity to invest in a wide range of stocks and other assets and to share my knowledge and investment strategy with a large community, as well as to learn from many other investors worldwide.
How do you research and select companies in which to invest?
I have developed a research methodology that consists of collecting large amounts of data from primary and secondary sources and then analysing them using both qualitative and quantitative analysis. All this information and analysis is reflected in a scoring system I have created called The QualityDividendGrowth Score, which shows in a single number how much a company fits my investment philosophy.
The analysis includes aspects of quality (such as profitability and moat), financial strength and dividend, both in absolute terms and relative to other companies in the sector.
With the score obtained, I rank the companies on five levels: Excellent, Very good, Good, Fair, and Poor. With rare exceptions, I only select those companies ranked as Excellent and Very good. Also, I add an ESG criteria, which provides another filter for screening out companies.
Finally, I calculate what I believe to be a fair price for the company to ensure that I do not invest in a company trading above its value.
Which assets or industries are you eyeing?
I hold between 20 and 50 stocks in my portfolio, making sure I have exposure to different regions: Europe, Asia, UK, US and Canada, and currencies: EUR, CHF, HK, USD, and CAD, and industries: according to GICS.
I am looking closely at Polaris Inc., which I think is a high-quality company with growing dividends and trading below its real value.
What was your favourite trade over the past 12 months?
A few months ago, I added T. Rowe Price to the portfolio. For me, it is a hidden gem, since it is a company with great returns, big margins and low capital expenses. I like the leadership of the company and its strategic view.
Do you invest in any asset classes outside of stocks, commodities and crypto?
My portfolio, which I call The QualityDividendGrowth portfolio, is a stock only portfolio.
I am not saying other assets are not interesting. On the contrary, I tell followers and investors that my portfolio can be complementary to a portfolio consisting of other asset classes.
What is your long-term trading goal?
The goal of the QualityDividendGrowth portfolio is clear: to provide recurring and growing income through dividends that, in the long term, can cover expenses or a large part of them.
Any message to copiers or potential copiers?
If you want to build a solid source of passive income through dividends, the QualityDividendPortfolio is an interesting option. With my research methodology, I select top-tier companies with a history of growing dividends to ensure dividend reliability and growth year-over-year.
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