Investment Ideas – Family Owned Businesses

Lately I stumbled upon a few research reports that concluded what I had just heard as off-the-cuff comments about the advantage of owning stocks in family owned businesses. I had heard that there was research on the topic, but had never seen actual hard, cold data on this front until recently. At a basic level, the argument is fairly straight-forward: family-owned businesses have a better track record at taking a long term view and taking better decisions for the survival & growth of the business. As a result, the stocks in these companies consistently outperform their peers in the market, thus generating alpha for shareholders.

There are various slightly different terms used to indicate this kind of company control. Commonly used ones are owner-operator, or family-owned, or founder-run businesses. But no matter the term, the objective is the same: Build and grow a business; leave a legacy and/or continue the legacy of the business after inheriting from family members.

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Oura Ring Review

For something completely different…

Over the course of past few months, I have been reading and learning a lot about sleep. I bought a copy of the book Why We Sleep by Dr. Matthew Walker and listened to a few interviews on podcasts (I really enjoyed the Joe Rogan Experience episode from April 2018). There are also some good Youtube videos where he has talked extensively on the subject.

Dr. Walker is a sleep scientist & neurologist at University of California, Berkeley and sheds a lot of light on this misunderstood aspect of our life. We spend 1/3 of our life sleeping and Dr. Walker unravels the mysteries behind why its so important to get a good night’s rest. In fact, the book and talk are scary on how much damage you cause if you don’t get enough sleep (for e.g. studies have shown that there is direct correlation between lack of good sleep and some chronic illnesses & diseases such as Alzheimer’s disease, cardiovascular diseases & some types of cancer). It’s only in the last decade or so, we have finally started understanding more about sleep and I highly encourage reading or listening to Dr. Walker’s work.

Painting with broad brush strokes, there are three aspects that we need to focus on for a healthy living – diet, exercise & sleep. The three pillars play a huge part on our quality (and quantity) of life. We can easily measure, track & optimize diet & exercise, but sleep is difficult to evaluate without hard data since we simply have to go by a feeling in the morning. You can only improve what you measure & track. This is where the Ōura ring comes in.

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Passive Income Update – Feb 2019

Welcome to our monthly passive income update for February 2019. This is part of the scorecard series where we track our dividends and other sources of passive income. We 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 February 2019 was CAD$509.07, which comprised of US$185.50 and CAD$266.06 (exchange rate is US$1 = CAD$1.31).

The passive income for the month is -29.8% QoQ and -33.29% YoY for the month. Passive income YTD is $1,247.81, which achieves 15.6% of our annual goal of $8K in passive income.

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2 Recent Buys – XGRO, RNX

BuySell

A quick update on a couple of purchases in our portfolios.

First purchase was same transaction repeated in two different portfolios – one in Mrs R2R’s RRSP, and the other in Baby R2R’s RESP account. For these portfolios, I follow a index investing approach and lately I’ve been thinking of moving to a simpler multiasset portfolio holding. I recently previewed the multiasset ETF options available in Canada. Based on that review, I decided to initiate a position in iShares Growth ETF Portfolio (XGRO.TO). This follows a 80/20 stock/bond approach and provides a one-stop passive investing approach providing global exposure. This was a small initial investment and over the months, I will continue buying regular amounts dollar cost averaging & building a full position. I still hold some bond positions that exist in these accounts and will leave them there for now until I am happy with the XGRO position & then sell those to go to a simple one-fund holding.

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