Featured Reading: September 20th, 2015

It’s another hot and dry weekend in Los Angeles. My fiancée grew up here and today we celebrated her mom’s birthday with food and drinks at an awesome Italian restaurant. There was a funny accordion player who approached our table and sang a few questions that we answered. Before we knew it he improvised a hilarious ballad about the birthday, family history, our upcoming wedding, honeymoon and everything in between. It was a bunch of laughs and he was having fun too and stayed with us well after he got a real nice tip from my future father in-law. I love creativity like that and in this post I’m going to feature recent articles that caught my attention around the internet.

fossil fuels timeline

I’ve finally started buying oil and gas stocks again.  I claim to be a long-term investor who wants to hold stocks my whole lifetime but the reality is oil won’t be around for my whole lifetime.  What will happen to these investments in those final decades when it’s a mad race to extract any oil that’s left?  Or will we have already moved on to another energy source?  It’s a hard future to predict, but I completely agree when Elon Musk says humanity is currently running ‘the dumbest experiment in history'”

Given that at some point they’ll run out anyway, why run this crazy experiment to see how bad it’ll be? We know it’s at least some bad, and the overwhelming scientific consensus is that it’ll be really bad.” ~ Elon Musk

jasontwitter
Jason Fieber of Dividend Mantra is up to something and I’m excited to hear more about it.   Hopefully he’ll get back to his regular frequent posting that we’ve all become so accustomed to soon.  Meanwhile, he’s still around actively posting on Twitter so be sure to subscribe.  You can also catch him writing for Daily Trade Alert like his recent article “Undervalued Dividend Growth Stock of the Month — September 2015”

Is the supply of these commodities likely to grow over the long haul?

We know that supply of the resources that Exxon concentrates on is finite, yet demand across the world continues to increase over time.

Recent technological advances in E&P have led to a renaissance of sorts here in America, as fracking has allowed companies to tap previously unreachable sources of energy, which has led to a glut on the global market.

But this will glut will work itself out over time. Meanwhile, our global infrastructure still relies heavily on traditional forms of energy, meaning their dominance will very likely continue for years to come.” ~ Jason Fieber @ Daily Trade Alert

chuckc

Chuck Carnevale is an established author, investor and creator of Fast Graphs.  Every time I read him I feel like I’m earning a Ph.D in how to invest the right way and I often go through his articles several times.  He recently posted the second part of his series “Choosing Common Stocks That Make Sense For Your Retirement Portfolio: Part 2.”  In case you missed Part 1, you can find it here. “

…my objective will be to provide common stock investing strategies that investors can utilize and implement that are consistent with their specific goals, needs, objectives and risk tolerances. In my personal opinion, the idea that a stock should be chosen in accordance with specific investment objectives is paramount.” ~ Chuck Carnevale @ Mistervaluation

surec

Ben Reynolds of Sure Dividend posts how the average retirement age is increasing over time instead of decreasing and shows us how certain people are combating that and retiring much earlier.  Check out “Early Retirement Through Dividend Stocks.”

Time is valuable. I argue that someone who spends 1 hour a week making $75,000 a year will likely be happier (all other things being equal) than someone who spends 80 hours a week to make $75,000 a year.

One needs a balance, however. If you spend all your time providing value and saving money, you will have no time to enjoy the fruits of your work. On the other hand, if you don’t provide any value and make no money, you will not be able to do much with your time.

A balance between money, time, and life is critical. Passive income is the short-cut through the work-life balance conundrum. Passive income is money you make without having to spend additional time to make the money.

You are truly free when your passive income covers your expenses.” ~ Ben Reynolds @ Sure Dividend

ddd

Sabeel at Roadmap2Retire wrote an excellent piece about an investment opportunity in railroad Canadian National Railway (CNI).  I own competitor Union Pacific (UNP) and am very bullish on railroads.  Be sure to check out “Canadian National Railway Dividend Stock Analysis 2015.”

Railroads are the pulse of the economy. Whether transporting crude, lumber, merchandise, agricultural or industrial products, railroads are what keeps the economy moving.” ~ Sabeel @ Roadmap2Retire

ddd

Mike at The Dividend Guy presented a few questions about portfolio allocation to fellow bloggers and I was honored to participate.  Check out everyone’s answers “In the Search for Optimal Numbers of Stocks in your Portfolio Part 1.” There was also a part 2  posted during the week that you can read here.

What shocked me about the dividend investor community is that there are many differences on how they invest their money. One aspect that tends to generate the greatest variation is probably the number of different stocks owned by each investor.” ~Mike @ The Dividend Guy

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Lastly, one of my favorite shows ‘Shark Tank’ is starting up again soon and I thought this was a fun question and answer session Forbes did with Mr. Wonderful.  “Shark Tank: Kevin O’Leary Answers Quora’s Most Burning Questions About The New Season”

Every year the deals get larger. We’re only halfway through taping, and the deals are huge. But the other thing I’ve noticed about this season is a lot more technology. So tech companies that have been funded in Silicon Valley have seen the power of the “Shark Tank” platform, particularly for consumer-based technology. Anything to do with consumer, social media — they’re flocking to “Shark Tank.” We have more tech deals than I’ve ever seen before. So technology is the main headline of “Shark Tank” this year.” ~ Kevin O’Leary

Tomorrow I get to relax and watch football.  My team is the Minnesota Vikings and I hope they look better than last Monday as they take on the Detroit Lions.  There’s plenty of other good games to watch too and I’m happy to have football back.  Hope everyone has a great finish to the weekend and thanks for reading.

My Dividend Growth

http://www.mydividendgrowth.com

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18 thoughts on “Featured Reading: September 20th, 2015
  1. roadmap2retire

    An excellent summary of articles from the community. Thank you so much for including me in this post 🙂

    Sounds like the guy with the accordian knew what he was doing…love it when things happen randomly like that. Thx for sharing your story.

    R2R

     
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  2. mraitn

    Thanks for sharing these articles, had a good time harvesting them all 🙂
    About the gentleman with the accordion, it’s funny how it always seems to be the small things in life we tend to appreciate the most.
    I’m definately sure we haven’t seen the last sign of confidence in the oil price, the question is of course not whether or not the oil is fading source of energy but when it is gone for good. I think to it will be gone by the end of our life time, unfortunately I don’t think it’s going to look pretty through out the world when it does..

    – mraitn

     
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    1. My Dividend Growth

      Glad you liked the links, thanks for reading 🙂

      Great points there about oil. We’ve messed this earth up badly. Necessity is the mother of invention and I hope we can figure out some way to repair the damage we’ve done, but it’s going to be so hard to unite the world. I’m a human first and investor second, so I definitely want to get to the renewable energy era as soon as possible.

      Thanks for the great comment, and welcome to blogging!
      ~Ryan

       
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  3. Jason Fieber

    Ryan,

    Thanks so much for the kind mention. Doing my best to complete the changes and get things up and running as normal once more. Should be complete very soon, and I should have a post on that up pretty quickly here.

    I hear you there on fossil fuels. It’ll take quite a while, in my opinion, to change the infrastructure meaningfully enough so that alternative/green/renewable energy sources make up a significant portion of generation. But I think your best bet is to go with what you know while hedging your bets along the way.

    Sounds like you’re having a great weekend over there. And so much to look forward to as well. Excited for you!! 🙂

    Best regards.

     
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    1. My Dividend Growth

      Glad to mention your DTA work and I’m excited to see what you have in store for us at Dividend Mantra.

      Completely agree with your take on fossil fuels. For anything meaningful to change, most of the world would have to unite and that is so far fetched in the near future. I wonder how much damage will be done before we do transition to renewables. As far as investments go, I feel safe letting them run for at least a decade expecting the usual cyclical growth. I guess we’ll find out before we know it.

      Thanks for the well wishes and right back at you! Have a great week ahead and we’ll talk soon.
      ~Ryan

       
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    1. My Dividend Growth

      It’s been a good while since some of these names have dipped this low compared to their earnings and growth. I’m happy to have a position in UNP. CNI looks really attractive as well. I wish I had more room in my ROTH IRA, and if prices stay depressed through the end of the year I’ll be adding CNI to it.

      That was a nice article, thanks for sharing! Have to like that Buffett and Gates are both railroad tycoon’s, that’s such good company to be in.

      Hope all is well with the family and take care!

       
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  4. Dividend Gremlin

    Ryan,
    Nice set of articles. I think I’ve already read most of them, so its good see we are spending our reading time viewing the same things. Only problem I had with your post was the Vikings. I have 2 friends who are Vikings fans, and they depress me when they talk about football… That being said you did win this weekend. That is more than I can say for my Eagles, who have decided to stop winning.
    – Gremlin

     
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    1. My Dividend Growth

      It’s hard to be a fan some years, that’s for sure. I still can’t believe we haven’t won a super bowl. I like where this years team is heading, we’ll have to see how it goes. Good luck to your eagles, I like watching Chip Kelly’s offense a lot. Thanks for the comment, Gremlin!

       
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  5. Dividend Chimp

    Hey Ryan,

    Nice summary, I’m finding that I like to check on summaries like yours to see what I have missed, there is so much great content out there sometimes some slips by. On the weather, dang yes it’s hot, people in the valley are melting.

    I feel the same way about old school “energy” as cigarettes and fast food. Companies like CVX, MCD, MO/PM have some great track records, but things change. There is a push for cleaner energy and healthier living. I’m not saying they aren’t great dividend companies, but as investors we need to be aware of shifts in demand moving forward.

     
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    1. My Dividend Growth

      Hope all is well, DC. Oh man, today is extra hot. This show I’m on is posting in Van Nuys, so I’m definitely melting when outside. I’m guessing you’re in LA?

      That’s a great point grouping the ‘sin’ stocks together. I didn’t really care to have any of them in my portfolio when I first started out because I knew the risks would be hard to predict and limit. Now that’s changed somehow and I find myself owning them. They’re almost like a Ben Graham cigar butt stock with a few puffs left. I’ll be watching closely and hoping they’ll make good investments for at least a decade. Thanks for the comment and take care!

       
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      1. Dividend Chimp

        Van Nuys ouch. The valley is brutal, I was in Burbank for years to be close to Warner Bros. I just moved up to Ventura county by the water. I own CVX, MO, PM. MO is killing it. Future Health trends do concern me though.

         
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  6. DivGuy

    Thank you for the mention Ryan!

    I hear you about the fossil fuel. We are in elections period here in Canada and I must admit I’m either deceived by the propositions made in regards to the environment or in regards to finance… As if the two couldn’t go together. It takes a lot of time for such changes, but it’s as if we didn’t really start yet.

    Cheers!

    Mike

     
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    1. My Dividend Growth

      Happy to mention those articles, part 3 was excellent too – finally hearing from you. Those are great points about fossil fuels, we see things many ways as investors. I hope in the future things evolve more toward social and environmentally responsible business models, I think there’ll still be great and attractive businesses to invest in that aren’t so seemingly evil, hehe. Hope all is well Mike, talk soon my friend!

       
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  7. DivDayDreamer

    Ryan, I’ve been reading several of your posts and really enjoyed them. When I looked at you portfolio I wasn’t too surprised to find that we have a lot of overlap in our choices in great companies, as do many of the Dividend Growth Investors. You are doing great, keep it up and thanks again for the great site!
    – Divdaydreamer

     
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    1. My Dividend Growth

      Glad to hear from you, Divdaydreamer. Thanks for reading, that means a lot. You’ve got a serious looking portfolio over there, I’d be so happy with it great job! I look forward to checking in on your progress, so keep at it yourself!

       
      Reply

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