I all but preach that a self-directed investor of any persuasion should treat his or her investing like a business. Give it a name. Have a plan. Create rules, procedures, even a culture that give your business its particular character and keep it on track. Define goals and strategies to reach them. Keep emotions at bay. Anticipate changes in your business environment and how you will react. Constantly learn: You should be better at your business after five years than when you started.
In dividend growth investing, stock selection is required. In evaluating stocks, I place great emphasis on understanding the company's "business model." That means how does the company make money? For example, Intel's (INTC) actual product-microprocessors-is very complex. But you don't need to understand how a microprocessor works to understand Intel's business model.
Source: Seeking Alpha
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