I called out, Derek Foster called back – to BNN

Thanks to Arjun, one of my readers, I found out Derek Foster was on MoneyTalk last week, on the Business News Network (BNN).

You might recall for one of my posts last week, I called out to Derek wondering what “Canada’s Youngest Retiree” he has been up to. Well, apparently he was preparing for a MoneyTalk interview. Unfortunately, I haven’t heard from Derek personally since I wrote him last week, but after watching his interview with MoneyTalk host Patricia Lovett-Reid, I have a better sense of what he’s been up to. Beyond raising his five kids (wow…that must be busy…) he’s back into dividend investing. As a fan of his journey, great news to hear Derek!

Here are my personal takeaways from the interview. While the notes below are by no means verbatim responses from Derek (you can watch the interviews for that), I think the messages are important; so much so, I wanted to write them down. Derek’s responses were pretty honest. That was refreshing – certainly given how successful Derek has been with his strategy, or lack thereof, for some time in 2008 and 2009. As a maturing dividend investor, they are certainly worth highlighting and remembering for me (which is why I have this post today) and I hope you gain some perspective from them as well. Here goes…

Patricia Lovett-Reid (PLR) – When discussing how life is expensive…
Derek Foster (DF) – Oh yeah, it can be, absolutely. But I focus on investing in dividend-paying stocks, essentially those dividends keep on coming in and it funds my lifestyle.

PLR – When discussing Derek’s (dividend investing) strategy…
DF – Yes, still a dividend investor although admittedly, a couple of years ago, I sold everything and “I was an idiot”; got a “kick in the pants” and “made some dumb mistakes quite honestly”; thinking he could outsmart the market.

PLR – When discussing how Derek’s doing it (staying a millionaire)?
DF – I focus on dividend-paying companies.

PLR – When asked if buy and hold still works?
DF – Yes, absolutely. “Buy and hold and hold and hold.”

PLR – When discussing about what stocks he buys and why…
DF – I buy investments (stocks) “simple enough for a six-year old to understand.” I still get up in the morning and brush my teeth like everyone else, so I buy Colgate. I buy Coca-Cola. A can of coke used to cost 5 cents fifty-years ago. Now (that same can) costs $1.50. More people buy and drink Coca-Cola than they did fifty-years ago; Coca-Cola makes more money; Coca-Cola pays more dividends.

PLR – When asked about his fixed income holdings…
DF – I’m not a big advocate of fixed income; he’d rather be an owner (stocks), it adds to your wealth.

PLR – When discussing what he worries about…
DF – “I’m not smart enough to know what’s going to happen”, so I don’t worry about the market details. I do worry if I’ve analyzed the stocks incorrectly (uses GE as an example). Sometimes, I make mistakes (with GE); I did and I’m going to make mistakes again in the future.

PLR – When discussing his advice to others…
DF – Ensure your income comes to you in good times and in bad. Stick to your plan, don’t deviate from that. Lastly, enjoy life.

I like the last sentence!

What did you think about Derek’s comments? Agree or disagree?

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