Ricklee's Wealth Journal

New! Use this space to post your goals, accomplishments, and setbacks on your path to get rich slowly. Others can read about your situation, and provide critiques and motivation. Look here to find somebody who has experienced a situation similar to yours!

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RICKLEE
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Signed up for my first Dividend ReInvestment Plan DRIP..

Postby RICKLEE » Thu Jun 11, 2009 7:04 am

for my first Buffett Style stock pick.

After I reached the agent at my discount brokerage, the event took all of 8 seconds to do. A bit of an anti-climax, but most actions towards financial progress usually are.
RICKLEE

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RICKLEE
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Asked Many Questions of My Investment Advisor..

Postby RICKLEE » Thu Jun 11, 2009 4:01 pm

..even though the markets have rebounded somewhat, I felt it was necessary to ask him about what is going on with a few of our investments. Topics ranged from:

- talent of the fund managers
- dividends we received over time
- Warren Buffett's meeting in Omaha
- Peter Lynch
- Tech stock bubble of early 2000s
- Labor Sponsored Fund requirements (locked in until 2011)
- What is the normalized price for one of the bank stocks given the historical dividend yield vs today's price and its higher yield.

We concluded by agreeing to the following actions:
- Move the cash to a high interest savings account
- Enroll in a Dividend ReInvestment Program for one of the stocks
- Give the weak performer one more year to improve performance or get out

I expect better returns in the near term.
RICKLEE

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RICKLEE
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Found an amazing excel spreadsheet for Value Investing..

Postby RICKLEE » Fri Jun 12, 2009 6:45 pm

..from a Canadian business school. It automatically downloads financial information for the past 5 to 10 years and allows for quick comparative analysis between companies.

What used to take me 30 minutes to do manually per company, I can now do in 30 seconds!

www.bengrahaminvesting.ca is the source.
RICKLEE

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RICKLEE
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Found a great website to share and compare net worth..

Postby RICKLEE » Fri Jun 12, 2009 6:48 pm

..I was wondering how others were doing with tracking their net worth. I'm quite focused on it these days.

The website is www.networthiq.com and there are some very rich individuals there, as well as some deep in negative territory!

If you are like me, and enjoy the nitty gritty numbers (I am a former Chartered Accountant and CPA), such a site is a lot of fun, in a voyeuristic way.
RICKLEE

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RICKLEE
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Read chapter on Defensive Investing..

Postby RICKLEE » Fri Jun 12, 2009 6:49 pm

..in Ben Graham's book. Great stuff.
RICKLEE

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RICKLEE
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Correlating Net Worth to Quality of Advice..

Postby RICKLEE » Sun Jun 14, 2009 5:10 pm

..exploring the website networthiq.com further this weekend. I noticed the 'questions' section was rudimentary in terms of technology, but powerful because I can link back to any answer given to the net worth of the individual giving the answer.

In one case, a question was posed regarding investing in an existing small business. I would not be sure how to answer that myself, even though I am an entrepreneur with a few years experience. The answers given were thoughtful and not the sort of trite commonsense stuff of most sites. A quick look at the net worth stated corroborated the quality of the advice given!
RICKLEE

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RICKLEE
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Discovered the power of ValueLine..

Postby RICKLEE » Sun Jun 14, 2009 5:13 pm

the financial summaries provided for free on valueline.com cover the Dow30 stocks.

They are densely packed and cover at least the past 10 years with quality financial information useful in making investment decisions.

No wonder Warren Buffett endorses them...I never knew about them until this weekend.
RICKLEE

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RICKLEE
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Listened to a discussion about Web 2.0

Postby RICKLEE » Sun Jun 14, 2009 5:16 pm

..one of my mentors, Raymond Aaron, was interviewing his guest about Web 2.0 and how its social networking aspect has affected how we use the internet today. Leveraging these social networks for friendship building is an obvious benefit. Leveraging the money-making capabilities were not as well covered or proven.
RICKLEE

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Paid down $600 from TDLC leaving $8700...nt

Postby RICKLEE » Mon Jun 15, 2009 1:06 pm

nt
RICKLEE

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RICKLEE
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Bought 500 units of an income fund..

Postby RICKLEE » Wed Jun 17, 2009 4:46 pm

..been watching this one a few weeks now.

- pays a distribution monthly that at today's price yields 12%
- distributions have been steady and increasing for the past 7 years.
- in an industry that sells to peoples needs, not wants
- future looks good with growth through accretive acquisitions.
- will be held for the long term (over 5 years) in my RRSP
RICKLEE

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Updated Family Balance Sheet...NT

Postby RICKLEE » Thu Jun 18, 2009 4:05 am

nt
RICKLEE

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Dividends vs Retained Earnings..

Postby RICKLEE » Thu Jun 18, 2009 4:23 am

I like dividends. If the company can pay me a good distribution as a percentage of my invested capital, and if that percentage strongly exceeds what I can get in a savings account, and if the company has a track record of solid and growing dividends, I have a safe investment relative to my risk.

In such an investment, I do not need to concern myself what the Market says the stock is worth. In fact, if the Market is depressed and offers the stock at a bargain price, and if the dividend yield becomes say 20 percent or more, I will take advantage of that opportunity and buy more, if the company itself remains in a durable competitive advantage.

Retained earnings are the company's assumption that they can make a better return for the shareholder with the owner's earnings. In that decision, the earnings are like an advance of additional capital to the company. If the company results in subsequent earnings from the retained earnings, the decision to retain is proven a good one. If instead the subsequent results are a loss, the decision to retain was a poor one.

It is as if the company paid out all its earnings as a dividend, and then asked all the shareholders for the right amount of money for expansion to seize opportunities the company should rightfully pursue. But by retaining the earnings, the shareholders avoid transaction costs and tax consequences of the dividend income.
RICKLEE

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Updated New Chapter on my blackjack blog.

Postby RICKLEE » Thu Jun 18, 2009 9:02 am

This is my new project. I want to develop my first blackjack e-book based on my own observations and experiences, plus some essential lessons for beginner players - my niche is Smart Women Blackjack Players who want to win thousands from their local casino.
RICKLEE

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Worked Out This Morning..tried the new elliptical machine NT

Postby RICKLEE » Thu Jun 18, 2009 9:08 am

nt
RICKLEE

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Absorbed Brian Tracy's Advanced Selling Strategies audiobook

Postby RICKLEE » Thu Jun 18, 2009 9:13 am

- dress professionally
- rehearse my sales presentation
- show up 10 minutes early
- lift my head
- sit straight like a board is attached to my back
- act and look like a winner sales professional
- rapport, then diagnose the problem, then offer the solution
- open ended questions
- before I begin, may I ask you a question?
- may I ask you another question?
- how do you feel about the results your getting from what you're doing now?
- would that give you better results than what you're doing now?
- is that benefit important to you?
- questions, questions, questions, rather than info, info, info

Great stuff, Brian Tracy, thank you for sharing your wisdom.
RICKLEE


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