> For the complete documentation index, see [llms.txt](https://samurai-cipher-token.gitbook.io/samurai-cipher-token-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://samurai-cipher-token.gitbook.io/samurai-cipher-token-docs/the-stock-strategy.md).
# The Stock strategy
The Stock strategy is designed to form a long-term investment portfolio of shares of public companies in various regions of the world in order to generate profitability through asset value growth and dividend payments. This direction provides Samurai Cipher Token with additional diversification of its investment portfolio beyond the cryptocurrency market and allows it to participate in the development of the world's largest companies and industries. To reduce concentration risks, investments are distributed among several geographical regions and various sectors of the economy. Structurally, this strategy is presented in Figure 7 below.
**Figure 7 - Block diagram of the Stock strategy**
#### Geographical distribution of capital
All funds allocated to the Stocks category are distributed among the regions as follows:
Region
Share of capital
USA
70%
Europe
20%
Asia
10%
This structure reflects the current capitalization of global stock markets, as well as the level of liquidity and investment attractiveness of each region.
#### **Distribution by investment strategies**
Regardless of the region, the investment portfolio is divided into two main categories: Growth stocks — companies focused on increasing capitalization and business development. Dividend stocks are companies with stable cash flows and regular payments to shareholders.
**Figure 7.1 - Diagrams of the distribution of investment capital by networks and strategies.**
This approach allows combining the potential for long-term asset value growth with regular cash flow from dividend payments.
#### US stocks
The American market is the largest and most liquid stock market in the world, so it is allocated the bulk of the investment capital of the Equity strategy.
**Growth stocks**
This category includes companies in the following industries:
* High-tech sector.
* Artificial Intelligence Sector
* Communication Services Sector
* The industrial sector.
These industries are considered as the main drivers of global economic growth in the long term.
**Dividend Stocks**
This category includes companies in the following industries:
* The automotive sector.
* The consumer goods and services sector.
* The energy sector.
* Information technology.
* Telecommunications sector.
These industries are characterized by steady cash flows and the ability to generate regular dividend payments.
#### **Asian stocks**
The Asian region is one of the fastest growing economic centers in the world and provides access to emerging markets and new technologies.
**Growth Stocks**
This category includes companies in the following industries:
* Financial sector.
* Telecommunications sector.
* Information technology.
The main focus is on the digital transformation of the economy, the development of fintech and technological solutions.
**Dividend Stocks**
This category includes companies in the following industries:
* The automotive sector.
* The consumer goods and services sector.
* Public utilities sector.
These industries provide stable financial performance and regular dividend yields.
#### European stocks
The European market provides additional regional diversification and access to the largest international corporations.
For the purposes of the Samurai Cipher Token, both Western European and Eastern European companies are included in the European Shares category.
**Growth Stocks**\
This category includes companies in the following industries:
* Financial sector.
* Telecommunications sector.
These industries have the potential to grow due to the digitalization of financial services and the modernization of telecommunications infrastructure.
**Dividend Stocks**\
This category includes companies in the following industries:
* Oil and gas sector.
* Metallurgical sector.
* Public utilities sector.
These industries are traditionally one of the largest sources of dividend yield in the European market.
#### An approach to portfolio formation
As part of the Samurai Cipher Token strategy, specific issuers are not recorded in the Whitepaper and may change depending on:
* Market conditions.
* The macroeconomic situation.
* Industry perspectives.
* Changes in geopolitical conditions.
* Assessment of the investment attractiveness of companies.
This approach allows you to maintain the flexibility of money management and reduce the risks associated with individual companies, jurisdictions or political events.
#### Profit generation
The profitability of the Stocks category is generated from two main sources:
* Stock price growth.
Making a profit from an increase in the market capitalization of companies and an increase in the value of acquired assets.
* Dividend payments.
Receiving regular dividends from companies included in the dividend portion of the portfolio.
The combined income from these sources allows you to generate a stable cash flow and increase the value of assets managed by Samurai Cipher Token.
#### Profit sharing
The profit received from the sale of shares and dividend payments is distributed as follows: 90% is used to buy back the Samurai Cipher Token (SCT) from the open market as part of the Buyback mechanism, 10% is allocated to increase the investment capital of the Stocks category and further expand the stock portfolio.
#### The goal of the Stocks strategy
The Stocks strategy is designed to form a sustainable long-term investment portfolio of publicly traded companies from various regions of the world.
The strategy combines the growth potential of the world's largest economic sectors with regular cash flow from dividend payments, providing additional diversification of the Samurai Cipher Token ecosystem and creating an additional source of financing for the SCT token Buyback mechanism. The investment model is based on the principles of diversification, long-term capital accumulation and adaptation to the changing conditions of global financial markets.
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