Weekend Reading – Tech stocks or nothing, millionaire migrations, you don’t need alpha and more #moneystuff
Welcome to my latest Weekend Reading edition where I share some of my favourite articles from the week that was across the personal finance and investing blogosphere.
Off to the cottage soon! But not before this list of Weekend Reading material is out the door for friends!
Before the articles, I mean, whoa. Tech stocks. Can you believe the run?
Here is a 5-year chart for Apple:
Here is a 5-year chart for Microsoft:
Closer to home, here is the 5-year chart for Shopify:
I mean, absolutely incredible. Right???
Comparatively, here is the 5-year chart of the TSX 60 (as measured by low-cost iShares ETF XIU) and the U.S. Total Stock Market Index (as measured by popular U.S. Vanguard product VTI):
It makes me wonder if it’s a dozen tech stocks and then everything else to invest in these days.
Certainly if you didn’t have Canadian juggernaut Shopify ($SHOP) in your Canadian portfolio this year you would be under-performing the TSX Index year to date. There is really little way to compete otherwise.
When it comes to my portfolio, I will continue to own my dividend payers (in Canada and the U.S.) and hope the market does what it always does – reverts to the mean with time. This means today’s darlings will eventually come back to planet earth and the dogs that nobody wants to invest in will shine again…
If that doesn’t occur, I’ll be even more convinced the market is not nearly as efficient nor rational in the long-run as some investors think it is.
In looking at my portfolio recently, I calculated we’re now DRIPping more than 150 shares each quarter across our portfolio, commission-free, with dividend payers and a couple of low-cost ETF funds (for extra diversification). With that compounding machine running our portfolio is largely on autopilot to start semi-retirement in a few years.
For the curious, some of our top-DRIPs include the following:
- Algonquin Power (>10 shares per quarter)
- Telus (>10 shares per quarter)
- Enbridge (>10 shares per quarter)
- Emera (8 shares per quarter)
- TD Bank (8 shares per quarter)
- Brookfield Renewable Energy (5 shares per quarter)
- Brookfield Infrastructure Partners (5 shares per quarter)
- Royal Bank (5 shares per quarter)
- Bell Canada (5 shares per quarter)
- Vanguard High Dividend Yield ETF (VYM) (4 shares per quarter)
- And more and more…
Stocks I hope to DRIP at least one share of each of the following in the coming years include Canadian National Railways (CNR), Waste Connections (WCN), and Microsoft (MSFT) – after some more purchases.
At the end of the day, as I was saying to a friend of mine recently (for a podcast I will link to in the coming weeks by the way!) our plan has gotten us this far so I’m not going to change my approach now.
Thoughts on the latest tech sector boom? Owning lots of tech? Just a bit of tech like me?
Enjoy these articles from the personal finance and investing blogosphere and we’ll see you in the comments section below and on Twitter @myownadvisor should you want to chat online there.
Have a great, safe weekend!
With a reader question in mind, from my inbox, I told investors to leave DSC funds for good. Read on why and what to think about when it comes to any potential asset drawdown plan.
Fans of this site 5i Research wrote about the BEP and BEPC split and special stock distribution for shareholders. I am one of them.
A reader asked about the 4% rule this week so I pointed them to these great posts for some different views.
Great stuff on MoneySense by Dale Roberts once again – trying to make sense of any markets.
Cool infographic I found on the global migration of millionaires.
Partnerships and Deals!
Thanks to my passion for personal finance and investing, some great companies reach out to me and provide reader offers. I’m happy to share those below from my Deals page:
- As a My Own Advisor reader you get full-access, for FREE, to all of 5i’s research reports, all the model portfolios, top companies and best ETFs to own.
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- You can get $50,000 managed free with ModernAdvisor.
A reader asked me if I would sell any stocks given recent dividend cuts. My answer remains the same in this post here with Mat Litalien – who holds an MBA, is a Certified Health Executive professional, and is a diverse and respected blogger for Motley Fool, Seeking Alpha and a newer site to the Canadian investing scene Stocktrades.ca.