Since I’ve written this blog, I’ve been completely transparent about my investment decisions. I always thought it would be helpful to see how others invest their money as I believe we can all learn from each other. However, since money is more taboo than sex, most people, even bloggers, are shy to bare it all. But since I believe there is no better credibility test than transparency, here I am today telling you that I’ve received my lump sum payment at the beginning of the month. The check was in the amount of $108,760.02.
This is exciting… but it’s a lot of work too
As I already explained, I intend to invest this money quite rapidly. My goal is to have a fully invested portfolio by the end of October. Why am I in such a rush? Because there is no better timing to invest in the market than now. I want to rapidly build a strong dividend growth portfolio and start cashing those dividend checks.
The technique used to build a whole portfolio within two months is different than how I build my RRSP portfolio (my retirement account). This account now shows close to $70K in value, but was built with a few thousands each year. Therefore, I only have two questions to answer while reviewing my RRSP account:
#1 Is the asset allocation and the current holdings continue to make sense? Are all my companies continue to meet my investment thesis?
#2 Which companies will I add this year with my contribution?
I added on average about 2 companies per year for a total of 13 companies. This time, I’m about to add about 20 companies within 2 months. It will not influence my asset allocation over the years; I will build it right up front.
I’ve already identify 20 prospects
Usually, building such portfolio would take forever if I want to do it properly. Finding the time to screen the market, analyse my favorite picks, determine an entry point and review my asset allocation would command several hours.
Fortunately, this is what I do full time now with Dividend Stocks Rock. I can then use the work my team and I do on our dividend growth investing platform and build my portfolio accordingly. To be honest, I am proud to use my own service and realize how DSR makes my life easy. The whole system has been built to make investment decisions simple & efficient. By using a mix of our existing portfolios and our exclusive stock ranking, I was able to identify 20 strong buys within an hour. At the end of the process, my portfolio should look like this:
As you can see, I will have a concentration on financials and tech stocks. I believe both sectors will outperform the market over the upcoming years. I’ve selected four tech stocks that are not evolving in the same sub-sector. They are all leaders in their market and three of them show strong cash flow generation abilities.
As for the financials, there again, I’ve picked two Canadian and two U.S. companies that are not exactly evolving in the same sub-sectors. The idea is to make sure I am well diversified in these two sectors since they will represent 40% of my investment. I like being invested in many different sectors to make sure that, if the market crashes, my portfolio will hold still.
My first trades are done already!
Last week, I pulled the trigger on a few stocks already as the market was down on September 5th. I’m definitely not about timing the market, but when everything is down, it’s just a great opportunity to make a few purchases. I will be updating you with my trades in the upcoming weeks, but I think each company deserves a full analysis. In fact, I will share our DSR stock cards of each purchase with you. Those are 2 pages reports helping investors to make smart decisions.
In the meantime, I’m curious about what you would buy if you were me? post your suggestions in the comments below.