Annual Update – 2016 Review

Welcome to the annual 2016 update. This is part of  a series where I track our financial progress on a regular basis. I present four parts in this series: (i) Investment & Portfolio Update, (ii) Passive Income Update, (iii) Blog Update, and (iv) Goals Update.

1. Investment & Portfolio Update

2016 saw a big change in direction of my overall portfolio. I decided to cut the number of individual stocks I own as life has gotten busier both personally and professionally. In addition, the current economic environment does not give me a lot of confidence to stay fully invested and decided to move to a cash-heavy position over the summer.
On an ongoing basis, I continue to invest in index funds regularly, which gives me broad market exposure and is currently on “cruise-control”. I have a smaller set of companies that I focus on and make bigger bets on each instead of spreading myself too thin by investing in 40, 50, or 100 companies. Studies have shown that the Unique risks drops substantially by owning as little as 12 stocks. To be on the safer side, I want to focus on a approximately 20 companies and invest in those stocks instead. I have discussed more about this topic in the past — see this post. As a result, you will notice a lot of sales in the following image.
I present the following image which summarizes all the purchases (excluding the regular ETF/seg fund purchases which occur regularly on a monthly basis), all the sales, and all dividend increases in my portfolio.

Companies listed without any activity during the year mean that we did not add or remove these positions in our portfolio, nor did those companies have any change in dividend policy. These investments remain dormant in our portfolio.

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Simply Investing Review

I recently came across Simply Investing and realized that it was run by a blogger here in Ottawa, Canada. Not only that, we both work in the same industry and our offices are within a couple of kilometers from each other. Needless to say, we had to meet up for lunch and chat all things investing and blogging. This was my first time meeting another blogger in real life, and I have to admit that it was very refreshing and a fun lunch to chat about our common interests.

Kanwal, founder of Simply Investing, has been investing, blogging, and teaching for years now and he asked me to review his Simply Investing Monthly Report and offer it to my readers as a sweepstake. As a special, one Roadmap2Retire reader will get free subscription for 12 months (of value $240) and other Roadmap2Retire readers will get a 15% discount. What does the Simply Investing Report offer? Read on.

Simply Investing Report

Simply Investing Report is Kanwal’s way of presenting dividend growth companies that can be potential investment targets based on 12 Rules. These rules include qualitative aspects such as whether a company is recession-proof, has a competitive advantage in the sector etc as well some quantitative rules such as debt ratio, P/E ratios etc (see the full list of rules in the image below). Based on these rules, the US and Canadian companies are presented each month that are undervalued and overvalued. The universe of stocks selected comprise of 60 US dividend stocks and 50 Canadian dividend stocks. In addition, Top-Five picks are presented at the beginning of the report for US and Canadian markets. This provides a quick overview and a short thesis on why a particular stock made it to the list. It is also interesting to note that each report also contains overvalued stocks — which can provide some perspective on which companies to avoid. The data in Simply Investing Report is published in PDF form for easy reading, but for the DIY investor, an excel sheet is also provided, so that investors can sort data according various metrics presented.

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Simply Wall St Review

I recently came across a new (new to me) financial data visualization called Simply Wall St. Right away, the interface was addictive from this Australian fintech start-up — providing a quick visual of how a company is currently positioned – based on something called a snowflake – a great visualization which shows investors how a company is currently valued based on various categories (more on this below). I try a lot of different financial tools available on the internet, but so far have been fairly disappointed with most and there are only a couple that stand out. Now, the other tools will have to fight hard for my subscription dollars after I tried and am honestly hooked on Simply Wall St.

Full Disclosure: I have signed up as a user on Simply Wall St and please note the links included in this article are affiliate links. You can still sign up for a free version, and if you choose to upgrade to a paid version, I will earn a small percentage of the sales generated. With that disclosure out of the way, lets get on to the review. I have also added an image linked on the sidebar, so if you are planning on signing up, please consider using the link on the sidebar.

Simply Wall St Review

Snowflake

First thing that the users will notice is something that Simply Wall St calls a snowflake – a blob that has two aspects to it – color and shape. The snowflake changes colors based on each company’s strength or weakness in each category. The snowflake comes in different shapes based on the following five categories: (i) Value, (ii) Expected future performance, (iii) Past performance, (iv) Financial health, and (v) Dividend income.

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Annual Update – 2015 Review

Welcome to the annual 2015 update. This is part of  a series where I track our financial progress on a regular basis. I present four parts in this series: (i) Investment & Portfolio Update, (ii) Passive Income Update, (iii) Blog Update, and (iv) Goals Update.

1. Investment & Portfolio Update

2015 saw some great amount of activity in our portfolio. We initiated/added to various positions and closed one position that did not fit into our portfolio. I present the following image which summarizes all the purchases (31 in total excluding the regular ETF purchases), all the sales (just one this year), all dividend increases (35 in total) and the dividend cuts (just one) in my portfolio.

In my wife’s portfolio, we initiated a new ETF portfolio and moved from the traditional expensive mutual funds. Click here to read details about my wife’s portfolio and why we chose the route of index ETFs.

2015 Annual - DG2

Overall, I am pretty pleased with the purchases made. Lots of fresh new money put into the portfolio and the cash put to work in investments. Most of the dividends received were reinvested back into the investments, thus ensuring we compound our growth going forward.

Companies listed without any activity during the year (such as CVX, GE, and IMG.TO) mean that we did not add or remove these positions in our portfolio, nor did those companies have any change in dividend policy. These investments remain dormant in our portfolio.

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The Behavior Gap – Book Review

The Behavior Gap

I just finished reading The Behavior Gap from Carl Richards. There is no other way to put it, its a great book! The book is an easy read and Carl shares his insight working as a financial advisor/Certified Financial Planner and the observations he has made over the years of how people make the same mistakes over and over. This book is an ever-green read that will stand the test of time as it is generic enough to hold true now or a decade from now.

About the Author

Carl Richards is a certified financial planner and the director of investor education for the BAM ALLIANCE, a community of over 130 independent wealth management firms throughout the United States. He is the creator of the weekly Sketch Guy column in the The New York Times, and is a columnist for Morningstar Advisor.

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