Simplicity is the ultimate sophistication.

Simple: take 2 investment strategies that work really well, combine them and get exponential results.

## Dividend (RE)investing works

Have a look at the calculator results below of the S&P500 In 25 years you would have multiplied your initial investment by** 8,5 times** if you reïnvest all the dividends. If you didn’t reïnvest, you would only have multiplied your initial investment only by a factor of **4.5**

Source: https://dqydj.com/sp-500-return-calculator/

## PUT option writing

The red line in the chart below shows the PUT option writing index compared to the S&P 500 index. In 25 years the PUT index almost beats the S&P with a factor of 2.

Putting A & B together, it is not hard to see the exponential results you can achieve with this strategy.

## The 3rd pillar: Multi-Dimensional Compounding

Most people think of compounding in one dimension. Basically reïnvesting interest and dividends they receive.

Multi-Dimensional compounding takes advantage not only from the present but also of future cashflow (think dividend income, % of savings, commisions, rental income, etc) I wrote a separate blog post on Multi-Dimensional compounding here.

How are we doing Multi-Dimensional compounding practically?

## “Cashflow” covered put option writing

“**Cashflow**” covered put option writing is how we call it

The third pillar of the super snowball strategy

Cashflow= your anticipated dividend income +other sources of reliable income + the amount of money you can save each month (and put on automatic recurring payment)

We will be writing out-of-the money put options on dividend paying stocks for the amount of the Cashflow or capital that is not invested yet.