I wanted to write a post on how I’m currently thinking about investing and what i’m doing with my money.
There are two aspects to my portfolio, dividend stocks and growth stocks. When I started investing, I primarily focused on dividend stocks to provide stability with income and as those businesses increased their dividends, a larger source of income.
This lead to me having a large share of my portfolio in Canada and seeing it underperform the US bothered me, so i’ve slowly shifted my portfolio to having a larger share invested south of the border.
I would ignore anything with a dividend yield greater than 6%, viewing this as a signal from the market something negative with respect to the business. I have a good mix of businesses yielding 3-5% and growing those yields at low double digits or high single digits and some businesses yielding 1-3% but growing that dividend at much higher rates. Some include TD, Brookfield Asset Management, CCL Industries, Algonquin Power and Magna International.
With growth stocks, I try to add to a position when there is fear in the market. Being greedy when others are fearful. I’m finding this increasingly difficult as i’m tempted to buy when things are going well for a business. Being patient is very hard.
I am now primarily focused on more growth oriented businesses. Leaders in their field with high insider ownership. Some of theses more risky names include Shopify, Kinaxis, MercadoLibre and Square. The volatility in some of these names isn’t for everyone, but as I continue to see these businesses growing and gaining market share, I can’t help but be optimistic on what they will be in the future (and hopefully much larger).
You can view my investing journal here, where I’ve recorded all decisions I make.