Think Tank

Yo! I have sent this to all of you because in the past we have spoke at one time or another about investments and have agreed (mainly over drinks) that setting up a think tank group is a good idea. First thing first, I am not an expert and everything I put out there is based on my own research and findings, I might be right, but I also might be wrong and it goes without saying that if anybody is investing they should do their own due diligence.

As hinted above, I am certainly not an expert in this field and probably only have a wee bit more experience than some of you. My passion is breaking free from the 9 to 5 day job, I personally think it is an outdated way of living and making money has to be easier than slaving away for an organization that could not give a toss about you. I’m also a firm believer that you don’t need a lot of money to put it to work and with the magic of compounding the earlier you start the better.

The purpose of this group for me, is based on the premise that 2 heads is better than one and I am hoping that you all will contribute once you feel comfortable. If I have added you and you have no interest than let me know and I’ll exclude you from the group.

 

So lets get down to business…..

 

My process of building wealth is extremely simple to the point it is almost boring. I look for suitable value stocks that are likely to pay dividends and I hold on to them like harry held on to me on the back of my Yamaha scooter. It is so simple that it is hard,it is hard because investors love drama, they listen to the news and want to buy the stock that might make them millions but instead they buy when the price is high and sell when the price is low. FOMO is a terrible thing and my only advice to you is that if it has made the news than you are too late to the party.

Everyone here will have different goals and will have a different level of income, but what I will say is that weather you have €100 a week or €1000 a week it does not matter, all that matters is that you start. Personally, I aim to invest €1000 a month every month and increase this by 3% every year, I can do this because luckily I went to college for 3 years and learned to live on a small amount of income, so when im working I can still live on the same income and I invest the rest. Generally, I tend to pick up to 10 companies which I will invest in each month.

 

Below is a copy of my portfolio

 

Ticker Stock Annual Dividend increases 10 year dividend growth Forward P/E Yield on cost Entry Price Dividends per share Number of Shares Est Dividend Income
GL9 Glanbia  €    14.73  €        0.23 20  €       4.60
REE Red Electrica Corp 13.41 5.09%  €    18.08  €        0.92 15  €    13.80
SON Sonoco Products Company 36 4.20% 2.93%  $    56.03  $        1.64 4  $       6.56
WEYS Weyco 36 8.10% 2.59%  $    35.47  $        0.92 35  $    32.20
AMP Ameriprise finacial services 13 19.20% 9.6 2.54%  $  142.01  $        3.60 1  $       3.60
AFL Aflac Inc 36 8.10% 11.5 2.25%  $    46.25  $        1.04 3  $       3.12
CVS CVS Health Corp 14 24.20% 10.5 2.60%  $    76.95  $        2.00 2  $       4.00
SJM JM Smucker Co 20 10.00% 12.5 3.29%  $  103.39  $        3.40 1  $       3.40
OMC Omnicom group Inc 9 14.90% 12.3 3.44%  $    69.70  $        2.40 8  $    19.20
WBA Walgreens Boots Alliance 43 16.21% 10.9 2.46%  $    71.47  $        1.76 5  $       8.80
KO Coca-cola 56 7.90% 19.9 3.50%  $    44.56  $        1.56 7  $    10.92
JNJ Johnson & Johnson 56 7.44% 15.5 2.66%  $  135.51  $        3.60 2  $       7.20
ETN Eaton Corporation PLC 9 10.80% 16.6 3.02%  $    87.38  $        2.64 1  $       2.64
CAH Cardinal Health Inc 34 19.70% 10.9 3.55%  $    53.86  $        1.91 2  $       3.82
MO Altria Group Inc 49 11.30% 15.6 5.10%  $    61.19  $        3.20 2  $       6.40

Have a look at the table and see if you can see why I have invested in these companies. You can reference this video I made to show you how I screen the companies and whittle them down https://www.engodel.com/2018/03/18/how-i-select-companies-to-invest-in/  . Just to note the website that I used to download from is not in operation as the owner has sadly passed away so a lot more manual work is required but it will give you a feel for what I do.

Next month, I will hopefully send you on some more companies that I have picked and will give some background into my thought process

 

 

Disclaimer: This portfolio is for educational purposes only. By reading this newsletter you are agreeing that you are solely responsible for your investing decisions. Stock investing is risky, and can lead to losses in capital. Past performance is not indicative of future results.