How did my portfolio perform and what have happened?
My portfolio and holdings have actually performed better than the market have overall. As much fun as that is, to outperform the market, my long term goal is still to invest for the dividends over decades. And for that matter, the portfolio is doing perfectly fine, no matter if it goes up or down.
NOLCO Inc: -0.4%
S&P 500: -2.51%
Not every week I beat the market, but I have actually done so the last two weeks now. But like I have said many times before, do not think too much about the short term, but rather on building passive income for the long term.
The portfolio did recieve some dividends this week from several companies:
- Exxon Mobil $0.87
- Emerson Electric Co. $1.00
- Walgreens Boots Alliance $0.94
- Archer Daniels Midland Co. $0.36
May not be much right now, but keep in mind that these dividends are here to stay for a long time. My portfolio is built to last untill retirement, which means I have 45 years to grow dividends and keep investing, and that is a long time! The compund effect of those dividends are gonna be enormous in the end.
- Been using FinBox lately to evaluate companies, and to look at their numbers and erarnings. In my opinion the site works perfectly well to help me find the right stocks for my portfolio, and is letting me use the dividend discount model to find out if a company is undervalued or not. Not only that, but it is so easy to compare companies with each other in the same industry, to see how the rest of the industry is performing versus the company you are looking at, and from there you pick the one for you.
- Not only have I done some research on which stock that are most undervalued now from my watchlist, but I have even made the list on FinBox for any potential interested reader. If you are into dividend investing, you know dividend growth is important to ensure security to your portfolio of a dividend actually getting payed further. Therefore my criterias are that the company must have raised their dividends for 25 concecutive years, unless there has been a split (like with Raytheon getting rid of Carrier Global and Otis Worldwide). I also have a rule, that the company must be trading on a discount in order for me to buy it, otherwise I am waiting for the right time.
- I do not only do financial related stuff either. Along with researching my companies at FinBox, I have also equipped my website with analytical tools in order to track how my website is doing. This is actually very helpful & makes it easier for me to get insight on what works and not. Since I love researching companies and looking at their numbers & charts, tracking my website surprisingly became so much fun with all those charts and numbers too. I went with using Diib to track the website, simply because of the elegancy that the site provides and also because of the oppurtunities it gives me with the charts, numbers, and the overall tracking performance.
- Besides doing research and tracking my website, I have been updating my dividend growth watchlist, spreadsheet in the numbers app and made a renewable energy watchlist. So for those that are interested in making the world a better place and supporting clean energy, I will post the watchlist later. I did not just make the list just for the fun of it or to have something to post, but rather because I want to make my home smarter, getting an electric vehicle and fuel my home with clean energy. And there are a lot of interesting companies out there regarding this!
Potential next buys
The list is long, right now I have 100 companies on my list that are undervalued. 50% of them are from asia, and I think people should get their eyes on those markets too. Recently Warren Buffet even bought some stocks from Japan, I own some of those too & I plan to buy a lot more in the future.
The ones I am looking at buying with my salary are:
- CTBI (40% upside)
- BEN (25.9% upside)
- JW.A (22.3% upside)
- CARR (19.9% upside)
- FLIC (37% upside)
These are the ones I am closely looking at right now. Why american you might wonder. Because I can then get passive income already this year, with the asian stocks I might have to wait untill next year, therefore might aswell wait with the purchase too.
I am focusing a lot on finding undervalued stocks, or stocks that are trading below their fair value. So basically what I do, is I investigate/research all the companies that fits my criterias, and then see which ones that are below their fair value. If I am happy with the discounted percentage, I will add them to a seperate list which contains all the stocks from my watchlist that are trading below their fair value.
Why am I not just buying dividend stocks, since passive income is the goal with my portfolio? Well, it is like everything else you purchase in life. Would you buy a tv if it was overpriced? Most likely not. The same goes with stocks, why would you pay more for something when it is not needed? I am only buying stocks if they are trading on a discount, the same goes with all the materialistic things I have too. Not paying more then I have to & prefer it to be on sale as well.
And here comes the important job, the researching/investigating. Finding the undervalued stocks that fits your criterias. That is where my focus is, every single day.
Something to think about
You are in it for the long run, so do not feel sorry or care much about the short term results. The stockmarket goes up and down, but in the end you will see it actually moves slowly upwards all the time with some minor setbacks now and then.
Dronning Mauds gate 12