Jeffrey Strain concocts 10 reasons why we aren’t rich. In particular, I like number 7, You Rely on Others to Take Care of Your Money. Unfortunately, most people want to make money themselves, and this is their primary objective when they tell you how to invest your money. And number 8, You Invest in Things You Don’t Understand. Throwing in your money because someone else has made money without fully understanding how the investment works will keep you from being wealthy.
Contrary to point 8 above, it may behoove you to emulate super investor, Warren Buffett. Between 1976 and 2006, Buffett’s Berkshire Hathaway eclipsed the market by a herculean 14.65% a year. Any dope who emulated Buffett’s every move one month after public disclosure would’ve surpassed the market by an equally impressive 14.26%. So much for market efficiency, eh? You can access Buffett’s holdings at this clean and easy-to-navigate website, DataRoma.
Warren Buffett’s astute business sidekick, Charlie Munger, offers his timeless 10 investing principles checklist. Any new value investor should seriously consider this list as a starting point to draft his investment philosophies.
According to Richard Croft’s article on longevity ultimately leads to success, an investor’s long-term success doesn’t depend on his investment style. Rather, it depends on how well the investor’s psychic agrees with the style in both good and bad times.
Who says a dividend portfolio must overweigh financials? There are plenty of prosperous non-financial dividend-paying stocks in Canada. Aron Yeomanson is revealing his favourite five strong dividend stocks that aren’t bank stocks.
Michael Sivy, a Money Magazine columnist, is a huge fan of dividend investing. In this article, Michael articulates the power of dividend yield and dividend growth, and why they’re superior investment vehicles over a more traditional portfolio that relies on capital gains and bond interests.
John Heinzl explains that there’re no greater sins then dividend cuts. Despite the gloom and doom prognosis we hear in these vulnerable times, the market is still flush with dividend stocks that are still showing off their confidence in their ability to deliver by rewarding shareholders with pay raises.
The heretic from Langley is convinced that the Vancouver real estate market is living on life support. In his article, he assembles a complete picture to formulate an informed view on the local real estate market.
Mackenzie Investments just released results from a new test of theirs, and found a majority of Canadians under 50 are demonstrating troubling patterns of overspending. You too can take the Burn Rater Spending Test to see how your spending habits compare to the rest of Canada.
Mostly, I wonder what these people were thinking as they tried to use real estate as their personal, get-rich-quick ATM.
Comment Number:
4
Written by:
Johnny
Posted on:
February 21, 2008 at 6:26 pm
Great post. I like the link to DataRoma. and shows us how Buffett’s Berkshire Hathaway and real investors look for and buy up solid businesses with nice growing dividends.
Comment Number:
5
Written by:
dropby
Posted on:
February 22, 2008 at 6:50 pm
Hi, FJ, BPT announced a dividend reduction today. That’s the kind of things I am worried most about dividend investing. Also, looks like banks will forego dividend increase this year. Under the circumstance, I do begin to have some doubt about divident investing strategy. I will still buy divident stocks, but maybe diversified more beyond that.
Comment Number:
6
Written by:
Financial Jungle Guy
Posted on:
February 22, 2008 at 7:12 pm
dropby - Yup, I was going to include that in the next dividend increases post.
I applaud BPT management for reducing distribution and conserving cash in the face of unfavourable hydrology and declining US dollar; both of which are no fault of the management team.
While distribution cuts are no fun, I’ll take solace on the margin of safety built into the purchase price in anticipation of a possible distribution cut. Even at this depressed level, these long-term assets are paying me over 11% based on my purchase price, or at the upper range of long-term stock market return.
Dropby, in the grand scheme of things, this distribution cut is immaterial. The ratio of dividend increases to dividend cuts is probably 10-to-1. A 1.00 batting average isn’t require to excel in dividend investing.
[…] Jungle Bulletins: Spending Habits, Buffett, Vancouver Real Estate,… Who says a dividend portfolio must overweigh financials? There are plenty of prosperous non-financial dividend-paying stocks in Canada. […]
Sweet - I get to add a new nickname to the list - heretic!!
Thanks.
PS - I also liked the Mackenzie website www.burnrate.ca