The Weekly Lineup: End of Summer Edition

Vancouver AutumnI’ve noticed over the last few days there’s a colder breeze in the air, and the large maple in the front yard is beginning to drop its leaves. The end of summer is nearing, and fall is on its way. There is also the weight on people’s shoulders, of that inevitable return to work after the Labour Day weekend. Everyone is winding down from summer fun getting prepared for the inevitable 9-5 grind. And for kids and teens, it’s back to school. That last point is especially important to me, since I just purchased a position in Staples Inc. (SPLS-Q) and looking forward to seeing back to school profits on the next earnings report.  So you know where I would like you to buy your kid’s back to school supplies!

The Financial Blogger Conference

It’s only a month until the first annual Financial Blogger Conference  begins. I can’t begin to tell you how excited I am to go to this conference. Philip has done a really exceptional job of organizing, promoting, and putting this huge event together. In fact, there are now 250+ registered attendees who are all quality financial bloggers. It’s going to be a great opportunity to connect with others who are like minded, learn some good tricks of the trade, and have fun at the same time! LOL this is going to be fun!

Canadian MoneySaver

I’m delighted to have my second article published with the Canadian MoneySaver in their September 2011 edition. I just received my copy in the mail a few days ago, and once again I’m honoured to be able to contribute. The article is titled – What Happened to the Income Trusts? – Part 1. It’s a review of how Income Trusts started in Canada, and why they ended up with such high-yields. I also review how they handled their conversions into corporations from 2010 to 2011, and cover a few of the most popular of these previous trusts. This article, with permission from Canadian MoneySaver, will be reposted on the Dividend Ninja after September 15th.  The second part continues in the October issue, time permitting.

The Permanent Portfolio

Back in my mid 20’s when I started reading investment books, I came across Harry Browne’s Inflation Proofing Your Investments. Browne suggested dividing your money equally among four asset classes: stocks, long-term government bonds, gold and cash. Each asset class (or more than one class) flourished in a different economic cycle. He called it the Permanent Portfolio.

Gold Spot Price 5-Year

Gold spot price (5 year)

In my 20’s I was hardly interested in asset allocation, and unfortunately I wasn’t smart enough to adopt this investing idea.  Since then, this has been a top performer over the years, and during the different economic cycles and market swings we’ve experienced. With this portfolio there is always a given that 25% or more of your portfolio is in a top performing asset class. And if bonds, stocks and gold should be losing assets at any given time, then you have 25% of your portfolio in cash – times like those Cash is King. While I wouldn’t want to be buying gold bullion at these levels, gold has been a stellar investment over the years (see chart).  The Permanent Portfolio has obviously been a winner over the last decade.

The Canadian Couch Potato wrote three superb posts this week on the Permanent Portfolio, and did a two-part interview with Craig Rowland, who has kept the Permanent Portfolio alive. This is an exceptional series of posts you must read:


The Weekly Lineup

There were a whole slew of great posts around the blogosphere over the last couple of weeks:

  • MoneyCone wrote an exceptional post last week on Buffett’s purchase of Bank of America (BAC-N) in, Following Buffett Blindly Can Be Injurious To Your Wealth. If you remember BAC shares soared, as investors rushed in after Buffett’s endorsement. If you are one of those investors who think Buffett is buying Bank of America because it’s a well run company, think again! This is a pure profit play. Read MoneyCone’s post and you will think twice.
  • Rumours are The Wealthy Canadian has a workshop of elves writing posts for his new blog, and that’s why he is able to publish one or two of them almost every day ;) Apparently he pays them with chocolate gold-coins (and not the expensive ones either).  According to a recent post, he buys these with his credit card to earn reward points: Buying 1 oz. of Physical Gold (And with my BMO Gold Card).
  • Andrew Hallam reminds us that if you rebalance your account by ensuring that you keep your account’s allocation relatively consistent, then you can make a small fortune during volatile markets: The Power of Rebalancing During a Volatile Market.
  • Andrew Hallam also points out that Canadians have some of the highest investment costs among the G7 nations, in large part thanks to mutual funds. Most Canadians are oblivious to the fees they are paying in mutual funds and advisors. Andrew covers this in: Canada – The World’s Easiest Place to Beat Investment Professionals.
  • Demitri at Sigma Swan asks readers, Is Now a Good Time to Buy Stocks?
  • My Own Advisor explains to readers why he drives an 11-year-old car. Actually his car looks brand new, and he is saving a fortune by not buying a new car. It’s a great post, and lots of comments too! MOA also gives us a great list of finance and investing tips, in My simple saving and investing rules of thumb.
  • And Dividend Mantra asks readers about the idea of Retiring Overseas. Nice idea Mantra, and you should definitely plan a few trips over there to check it out!


PS

Enjoy your last summer weekend everyone, and don’t forget to shop at Staples (SPLS-Q) and support my dividends. Don’t worry, I’ll be back to investing and dividend articles soon enough! :)

11 Responses to “The Weekly Lineup: End of Summer Edition”

  1. Dividend Mantra

    Sep 03. 2011

    Thanks for the inclusion Ninja!

    Congrats on the second article in Canadian MoneySaver! Great work.

    Enjoy your weekend.

    Reply to this comment
  2. MoneyCone

    Sep 03. 2011

    Congrats on getting your article published in CMS and a big congrats on getting nominated for the Plutus Awards! You have my vote!

    Thanks much for the mention. I’m glad you agree with my analysis.

    Reply to this comment
  3. Canadian Couch Potato

    Sep 03. 2011

    @Ninja, thanks for the mention, and congrats on your growing list of achievements. Pretty soon you’ll be so busy that you won’t have time to pick stocks. :)

    Reply to this comment
  4. The Dividend Ninja

    Sep 04. 2011

    Dividend Mantra, MoneyCone, and Couch Potao, Thanks guys!

    CCP, Too busy to pick stocks? I’m hoping you aren’t suggesting I take up index investing. ;)

    Reply to this comment
  5. My Own Advisor

    Sep 04. 2011

    Thanks for the mentions Ninja!

    Continued success my friend!

    Cheers!

    Reply to this comment
  6. The Wealthy Canadian

    Sep 04. 2011

    First off, thanks for the mention! Although my wife’s favorite movie is “The Elf” starring Will Ferrell, I wish I had a few elves running around to help out every now and then!

    Maybe you’ll end up indirectly profiting from my RESP account when it comes time for my kid to go to school. He’s surely going to need school supplies! :) Good stuff. It’s always an adrenaline rush when you make a new position – at least it is for me. I’ll try to make my next computer purchase at Staples (if they sell Macs) so you don’t have to wait 17 years or so.

    And once again, congratulations on being offered to write another article for Canadian MoneySaver! It’s certainly well-deserved [P.S. let me know if you ever need a co-author ;)]. I haven’t received my copy in the mail yet; I’ll be watching my mailbox like a hawk all week until it arrives.

    I’m really looking forward to the income trust series. I feel as though I’ve been through some of the good and ugly over the past years, leading up to the new federal tax legislation and beyond. I’m sure you’ll do it justice, no doubt.

    Fantastic stuff and congratulations on your continued success.

    All the best,
    TWC

    Reply to this comment
  7. The Dividend Ninja

    Sep 04. 2011

    TWC, thanx for your comment and continued support! It means a lot. You’re going to like the Income Trust series :) Let me know what you think.

    Funny you mention buying a computer at Staples. Ironically when they have sales on their computers, I have found them to be more competitive than BestBuy or Futureshop. You might be able to get yourself a good deal come October and November.

    I’d be delighted to co-author a published article with you anytime, let’s talk ;)

    Cheers
    The Dividend Ninja

    Reply to this comment
  8. The Dividend Ninja

    Sep 04. 2011

    MOA, Thanks man! I appreciate your support ;)

    Cheers!

    Reply to this comment
  9. The Wealthy Canadian

    Sep 04. 2011

    I’ll be sure to devour the income trust article, it’ll be great.

    I’d love to chat about doing a published article together sometime :)

    Cheers
    TWC

    Reply to this comment

Trackbacks/Pingbacks

  1. Rob Carrick's Guide (Part 2 of 2) | The Wealthy Canadian - September 5th, 2011

    [...] this book. I also found out today that one of my favorite bloggers, Dividend Ninja will be doing a two-part mini-series about income trusts for Canadian MoneySaver magazine, titled, “What Happened To The Income Trusts?”Congrats [...]

  2. Best Of The Blogs: On The Road Edition | The Wealthy Canadian - September 10th, 2011

    [...] Ninja is having his second article featured in Canadian MoneySaver magazine, so be to sure to pick up a copy of the September edition [...]

Leave a Reply

*