Nov 26 2007

The Metamorphosis From Mutual Fund Investor to Dividend Investor


Metamorphosis

Personal Finance blogger Moolanomy has a contest going to win a book by writing a post about our own investing story. I was intrigued by some of the posts that I have been reading in reference to this contest so I wanted to participate. My entry is about my metamorphosis from being a mutual fund investor to a dividend investor.

My interest in investing started when I was about 12 years old while spending summers at my grandparent’s cottage. Everyday few days my Granddad would go to the store to pick up a newspaper and he would sit down and read the stock tables. Being the curious 12 year old that I was, I asked him what he was doing. It was at that point, and during the rest of that summer, that I began my education in how the stock market worked.

Fast forward 6 years and I was now an 18 year old going into University and working part time at a hotel making good money in tips and hourly wage (but mostly tips). I also read the book, The Wealthy Barber and knew I needed to become an investor and start investing on a monthly basis. I just so happened to come across an advertisement in the newspaper for an investment company called Altamira. Altamira’s business was no-load mutual funds that allowed investors to invest monthly with as little as $25 per month. I signed up and bought a Canadian equity fund every month with $25. I have been investing every month since then, except for the year and a half period I was busy getting and paying for my MBA.

Over time I kept reading investing books and started reading that mutual funds were perhaps not the be-all-end-all their marketing materials were telling me. Specifically, I discovered the The Motley Fool and realized that I was smart enough to start investing in index funds and perhaps individual stocks (p.s. – you don’t need to be super smart to invest on your own). I started reading as much as I could on stock selection and began buying stocks. My investing focus changed from investing in mutual funds, which I was now convinced were not a good choice because of fees and poor performance relative to the market, to investing in index funds and individual stocks. I had not starting focusing on dividend stocks yet.

You will notice a theme here in my investing education through the years – books had a big part in my strategies and invest philosophy. My dividend focus began by seeing compound growth charts for companies that consistently increase their dividends in books like The Single Best Investment and The Dividend Growth Investment Strategy. Slowly but surely I began researching and investing in dividend growth companies such as Royal Bank and Wal-Mart.

This leads me up to today as an independent dividend investor who is skeptical of investment marketing and mutual funds and trying to build up a retirement fund on my own using high quality, dividend growth stocks. I know am not done learning yet but I beleive I have a strategy that I will be comfortable with over the long haul and look forward to seeing where it takes me.

(Photo Credit: Erika Thorpe)



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  1. Giveaway: Share Your Investing Story for a Chance to Win a Book | Moolanomy wrote:

    [...] The Metamorphosis From Mutual Fund Investor to Dividend Investor @ The Dividend Guy Share This [...]

    November 26th, 2007 at 9:25 am
  2. books » Blog Archive » The Metamorphosis From Mutual Fund Investor to Dividend Investor wrote:

    [...] Mobasoft, LLC wrote an interesting post today onHere’s a quick excerpt [IMG Metamorphosis] Personal Finance blogger Moolanomy has a contest going to win a book by writing a post about our own investing story. I was intrigued by some of the posts that I have been reading in reference to this contest so I wanted to participate. My entry is about my metamorphosis from being a mutual fund investor to a dividend investor. My interest in investing started when I was about 12 years old while spending summers at my grandparent’s cottage. Everyday few days my Granddad [...]

    November 26th, 2007 at 9:34 am
  3. Skhulz » The Metamorphosis From Mutual Fund Investor to Dividend Investor wrote:

    [...] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerpt [IMG Metamorphosis] Personal Finance blogger Moolanomy has a contest going to win a book by writing a post about our own investing story. I was intrigued by some of the posts that I have been reading in reference to this contest so I wanted to participate. My entry is about my metamorphosis from being a mutual fund investor to a dividend investor. My interest in investing started when I was about 12 years old while spending summers at my grandparent’s cottage. Everyday few days my Granddad [...]

    November 26th, 2007 at 9:35 am
  4. peakeyed » The Metamorphosis From Mutual Fund Investor to Dividend Investor wrote:

    [...] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerptPersonal Finance blogger Moolanomy has a contest going to win a book by writing a post about our own investing story. I was intrigued by some of the posts that I have been reading in reference to this contest so I wanted to participate. … [...]

    November 26th, 2007 at 9:47 am
  5. aahillyer » The Metamorphosis From Mutual Fund Investor to Dividend Investor wrote:

    [...] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerpt [IMG Metamorphosis] Personal Finance blogger Moolanomy has a contest going to win a book by writing a post about our own investing story. I was intrigued by some of the posts that I have been reading in reference to this contest so I wanted to participate. My entry is about my metamorphosis from being a mutual fund investor to a dividend investor. My interest in investing started when I was about 12 years old while spending summers at my grandparent’s cottage. Everyday few days my Granddad [...]

    November 26th, 2007 at 10:24 am
  6. daddy9mm » The Metamorphosis From Mutual Fund Investor to Dividend Investor wrote:

    [...] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerpt [IMG Metamorphosis] Personal Finance blogger Moolanomy has a contest going to win a book by writing a post about our own investing story. I was intrigued by some of the posts that I have been reading in reference to this contest so I wanted to participate. My entry is about my metamorphosis from being a mutual fund investor to a dividend investor. My interest in investing started when I was about 12 years old while spending summers at my grandparent’s cottage. Everyday few days my Granddad [...]

    November 26th, 2007 at 10:47 am
  7. The Carnival of Personal Finance #129 | Cash Money Life wrote:

    [...] Dividend Guy shares his story The Metamorphosis From Mutual Fund Investor to Dividend Investor. Personally, I have made the step away from mutual funds and into index funds. My next step is [...]

    December 3rd, 2007 at 6:44 am
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    December 5th, 2007 at 11:07 am
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    [...] The Metamorphosis From Mutual Fund Investor to Dividend Investor @ The Dividend Guy [...]

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    Secured Home Loans for UK Homeowners…

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  1. moneygardener said:

    Good post.

    I wish I had started so young. I didn’t buy my first investment until I was out of University..

    November 26th, 2007 at 5:08 pm
  2. Pinyo said:

    Great story. I was hooked on the Motley Fool too, at least when they were more focused on fun and free information, as opposed now.

    November 26th, 2007 at 7:11 pm

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