As part of Financial Literacy Month (last month), I reached out to various bloggers and financial experts to ask what’s in their portfolio. More specifically, I wanted to pick their brains to find out what their investing goals where, learn a little about their investing strategies, uncover some of the products they own and see what advice they might have for other investors. As it turns out they had lots to share.
In my first post, I took a look at Larry MacDonald’s portfolio.
Today’s blogspost will take a look at what and how Passive Income Earner invests.
Here is what I asked this experienced Canadian financial blogger and what he kindly shared back:
1. Describe your investing goals in one or two sentences:
My main goal is to build wealth through a simple investing strategy and making my money work for me. I like to have some predictability of future income as well in order to full fill my retirement without withdrawing from my invested capital.
2. Describe your investing strategy that helps you fulfill your goals in one or two sentences:
Investing in blue chip dividend stocks. The companies must have an economic moat (competitive advantage over other companies within same industry) and provide necessities of life nowadays. The dividend must grow annually (except for REITs and income oriented investments). Dividend aristocrats are a really good filter to start with; some of the best companies increase their dividends 10% annually and they also provide growth, examples include CNR (Canadian National Railway) and GIS (General Mills).
3. List some of the investing products you own that help you with your investing strategy:
Canadian National Railway, Canadian banks, telecommunications companies, Johnson & Johnson, Kimberly Clark and many more. You can see my stock holdings here.
4. What advice do you have for other investors based on what’s working with your approach?
Patience is really important. You’ll never see magic in the first year or two. Stick to your plan once you have defined your plan. Identify your goals and always review your portfolio against those goals.
Although Passive Income Earner’s approach is more active than Larry’s, this is a sound investment plan tailored to this investor’s financial objectives. His individual plan is about planning and patience, and it reminds me about what Carl Richards wrote about in The Behavior Gap.
“Planning for your financial future is personal. It has to be. A good plan will unique to your situation, and what is right for your situation may be a disaster for your neighbor.”
A big thanks to Passive Income Earner for participating in my series what’s in your portfolio? Stay tuned for more profiles in future blogposts.
Disclaimer: The contents of this post are not recommendations for any individual investor but have been shared to educate readers and provide insight into how others are managing their portfolios. My Own Advisor is not a financial professional. Every reader is encouraged to seek help from a financial professional before making any important investment decisions.