Retirement Security: What's This Growth Stock Doing In A Retirement Portfolio?

Peter Lynch is a legendary investor whose most famous pronouncement and key to his success was "Invest in what you know."

I followed that nostrum into Green Mountain Coffee Roasters and scored a four-bagger.

We'll consider the prospects of a high-tech company, Roku, in the same vein and see if we can repeat that success.

Occasionally, a small diversion from a dividend growth strategy, with a small position, can yield unexpected results.

In the overall scheme of things, most retirement portfolios will be found to contain some mixture of dividend growth stocks, bonds, preferred stocks, CDs, annuities and the like. All of these investment classes are geared toward generating income for the retiree when he/she's either too old, too sick, or just plain tired of the rat race to work a regular job.

So, some might find it unusual to find a pure growth stock, one that does not pay a dividend currently, included in such a portfolio. It should be noted, however, that many of my subscribers and readers have messaged me over the years, in article comments, emails, and direct messages, that they occasionally add a growth stock to their portfolios to participate in what they anticipate will be a capital-enhancing exercise. Most retirees and near retirees (including me) devote the bulk of our attention toward those investment classes concerned with generating current income to fund retirement expenses.

And the Fill-The-Gap Portfolio, which I have written about for over three years here on Seeking Alpha, has adhered to that regimen, containing ONLY dividend growth stocks. Till now.

Once in a while, a pure growth stock comes along that appears to present the opportunity and potential for very good growth in market value alone.

source : https://seekingalpha.com/article/4156113-retirement-security-growth-stock-retirement-portfolio