Liebster Award Nomination
Ryan from My Dividend Growth just nominated me for a Liebster Award. A Liebster Award is an online award given by bloggers to other bloggers. It lets you learn more about the writers behind the blogs you follow by allowing the authors to answer questions that might not be normally discussed. Sounds like a great idea, and I appreciate the nomination, Ryan!
What is your most prized possession?
While I do have material possessions that I would hate to lose…bike, car, etc. My most prized possession is something less defined: it is good health. Much of my enjoyment in life revolves around physical activities. Since dividend investing is setting us all up for successful retirements, I’m going to need excellent physical health in order to continue to enjoy it into old age.
Which company would you want as your largest holding five years from now?
Apple is currently my largest holding. I initially bought it when the share price had dropped to around $400 pre-split (approximately $57 post-split). I love Apple products and felt they were incredibly valued at that time (I still do!). I’ve since acquired more shares. While I bought them as a growth stock, they have also begun paying dividends, which means I love it even more. The split also allows more people to own shares and is possibly setting themselves up for inclusion in the Dow Jones Industrial Average. While I wouldn’t be opposed to having Apple be my largest holding five years from now, farther into the future I feel that Visa is going to be a good bet. While they only pay a small dividend now, the high rate of dividend growth and EPS growth powered by a world increasingly buying everything on credit card, will mean that Visa will ultimately transition from a high dividend growth stock into a solid blue chip dividend payer like a Coca Cola. What better than to get in now and reap the rewards many years down the line? However, I hope to alleviate some risk by ultimately not having a single company be a large percentage of my portfolio.
What is something you’ve never done before but would like to?
Watching the Tour de France again this year got me thinking: it would be really fun to bike a few of the stages before the riders get there. You could then stay in a little bed & breakfast at the top, experience the culture, and then the excitement as the riders pass through. That, or just backpacking through Europe would be incredible.
If you had to start a business, what would it be?
I love trying local coffee shops and think it would be fun to run one. I was actually recently reading an article in Money magazine (which I got for free) entitled How This Former Techie Gave Her Career a Jolt, which discusses this very business venture. It definitely takes a lot of hardwork to be profitable and succeed in that crowded industry. Much of the potential for success has to do with location, so I’d have to carefully pick that. My coffee shop would use only the very best beans, have a wide variety of espresso drinks (since that is where the money is), and provide occasional music venues for local artists. While I do a lot of studying at coffee shops, going there to relax and listen to music is also very enjoyable as well. Basically, any business that I would create would have to be something that I enjoy. It should be a pleasure to go to work each day.
Another possibility would be real estate. In fact, I was just talking to someone today who works for a real estate business. Owning apartments and houses and renting them out to others would also be fun…it sure beats being the one paying the rent without establishing any equity. It would take awhile to collect enough properties to live off the income, but it would be something fun to try!
Who is your Investing idol?
There are any number of famous value investors that I look up, including Warren Buffett, Benjamin Graham, and Peter Lynch. Another investor, that I feel is less discussed in dividend investing circles, is Burton G. Malkiel, author of A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing. This is one of my favorite all time investing books. Mr. Malkiel talks about everything from the history of the first publicly traded companies to why any way to “game” the system will ultimately fail. It’s a classic as so much is any books by the aforementioned investors.
And, recently, I’ve begun doing options trading. Helping with that are the excellent education (and funny) videos, which are live streamed during the day, created by Tom Sosnoff and company at tastytrade.com. He advocates for an active and high number of occurrences approach to be successful over the long run. I’m starting small but already am seeing how options premium income will do well to supplement my usual dividend reinvestment methods.
The Liebster award also allows me to nominate additional blogs that I follow. I don’t know if they’ve been nominated yet, but if they choose to accept, I’ll be nominating:
All About Interest: AAI is a man of all trades, literally. While dividend investing still makes up a large portion of his passive income generation, he is also involved in options and real estate. And, he’s well on the way to his goal of retiring or semi-retiring by age 40. AAI is about my own age so it will be fun to see the progress we both make, though I know I won’t be ready to retire by 40! I also love how detailed his goals page is. If you haven’t already, I definitely recommend checking out his blog.
Martin @ Hello Suckers: Martin runs another very interesting investing site. Like me, he also started with dividend investing but has now branched into options trading. He talks about his successes and failures and, I believe, has been doing so well with the investing that he has actually started doing it as a business! Martin has been great in offering advice to a new options trader like myself.
Questions for the new nominees:
1) Favorite investment book? Non-investment book?
2) If you had all the free time in the world, what would you be doing?
3) Why did you start your investing blog?
4) What was your best and worst investment?
5) Favorite job you’ve had so far?