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Reviewed by Asher Syed for Readers' Favorite
The Hidden Power of Rising Dividends by Gregory Donaldson traces his investment evolution from the aftermath of Black Monday in 1987, shaping his High-Dividend-Yield strategy by 1988 across sectors like consumer staples and materials. Through research and collaboration, Donaldson refined his approach with the multistage DDM by 1992, leaning into sustainable investments and meticulous stock valuations. Transitioning to the "Rising Dividend" strategy in the 1990s, Donaldson Capital Management (DCM) managed $37 million by 1995, focusing on dividend growth's stability against market fluctuations and interest rate changes. Donaldson's preference for dividend-paying stocks over high-growth alternatives during the tech boom was validated, and strategic divestments showcased DCM's efficacy. External shocks like the 9/11 attacks reinforced Donaldson's long-term investment perspective, driving a deeper focus on corporate governance and ethical practices. By 2014, DCM emerged as a corporate leader, surpassing $1 billion in assets under management, epitomizing its legacy in dividend-centric, client-focused investment management.
As far as business memoirs go, The Hidden Power of Rising Dividends by Gregory Donaldson is a finance enthusiast's dream. I enjoyed the energy of Donaldson's early years and was particularly interested in the historical context that he imparts, and the moments in time that had a much greater impact on the micro level than most watching them unfold on television at home likely realized. That said, for me the best parts of Donaldson's story hit their stride when the decision to start Donaldson Capital Management was made, reflecting the 'small fish in a big pond' entrepreneurial courage and commitment that makes a memoir stand out. Of course, over time, Donaldson has become one of the big fish, but at first, there was a dependence on support offered by colleagues like Gene Tanner from NatCity Investments, who provided a temporary platform for managing assets while awaiting SEC approval. The progress from here is meticulously detailed in Lewis' The Big Short meets Goodman's The Wheeler Dealers literary baby, in which the Rising Dividend strategy is born. Overall, this is a comfortable read even with its heavier numerical elements, and a truly inspirational memoir of the little broker who could. Very highly recommended.