Baby R2R’s Portfolio Update – Q2 2019

This post is part of the series where I share the progress of Baby R2R’s investment portfolio. I started documenting this in Q3 2017 and intend to provide quarterly updates.

Baby R2R was born in Spring 2016 and a few months later, I setup her education fund to which I contribute on a regular basis. We live in Canada, so we take advantage of the RESP program (Registered Education Savings Plan), an account type where we can save and invest for our child’s secondary education. In addition to tax advantages, we also receive an education grant, which matches upto 20% of the saved amount (upto a max of $500 per year). How can anyone say no to free money? 🙂

In addition to the education fund, we also decided to start a Nest Egg fund, where we save and invest for Baby R2R and let compounding do its job over the course next couple of decades. The two accounts take different approaches to investing strategy.

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Quarterly Update – Q2 2019

Welcome to the quarterly update for Q2 2019. This is part of  a series where I track our financial progress on a quarterly basis. I present three parts in this series: (i) Investment & Portfolio Update, (ii) Passive Income Update, and (iii) Goals Update.

1. Investment & Portfolio Update

Q2 2019 saw a some decent activity in our portfolio.   We added to the following positions.

We closed position in

We continued adding to index funds as well as shown in the image below.

Q2 saw 5 dividend increase announcements in our portfolios. The following calendar provides a quick overview of changes in our portfolio.

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Recent Buy – RACE

BuySell

A quick update on a recent purchase in my portfolio. This time, another new position in my portfolio.

As I read and learn more about investing and valuation models, I have come to realize that paying higher attention to Return on Invested Capital (ROIC) (and other similar metrics such as ROE, FCF etc) and qualitative aspects of a company present a better probability of finding compounding machines. A good read on this topic is a blog post from Intrinsic Investing about finding the next ROIC machines. As outlined towards the end, investors should look for companies that have economic moats, owner-operators, intrinsically understandable & sound business model, and value accretive to all stakeholders. I believe this new addition to my portfolio checks all those boxes and is a good candidate for a long term compounder.

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Passive Income Update – Jun 2019

Welcome to our monthly passive income update for June 2019. This is part of the scorecard series where I track our dividends and other sources of passive income. I also include changes and updates related to our investments during the month – showing the overall progress.

Passive Income  Update

Passive income for the month of June 2019 was CAD$1,059.57, which comprised of US$146.10 and CAD$868.18 (exchange rate is US$1 = CAD$1.31).

The change for the month is 79.46% QoQ and 45.36% YoY for the month. This brings our passive income to $4,339.23 YTD and achieves 54.2% of our annual goal of earning $8K.

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