Michael Dell's Top 10 Rules For Success

Happy Friday!! Welcome to another edition of educational Fridays, where we will post up material (videos, infographics, links, etc) to help you learn more about passive income and investing.

This video below, by Evan Carmichael, highlights the best rules for success from Michael Dell.

Michael Dell’s Top 10 Rules For Success:

1. Understand your point of impact
In a bid to enter business early, he applied to take a high school equivalency exam at age eight.

2. Look for experiments
In his early teens, he invested his earnings from part-time jobs in stocks and precious metals.

3. Be resourceful
He purchased his first calculator at age seven and encountered an early teletype terminal in junior high.

4. Build a culture
At age 15, after playing with computers at Radio Shack, he got his first computer, an Apple II, which he promptly disassembled to see how it worked.

5. Tough times present opportunities
In high school he sold subscriptions to the Houston Post in the summer. He earned $18,000 that year, exceeding the annual income of his history and economics teacher.

6. Be willing to experiment
As a freshman pre-med student, he started an informal business putting together and selling upgrade kits for personal computers.

7. Accept risks
Operating out of a condominium, the business sold between $50,000 and $80,000 in upgraded PCs, kits, and add-on components.

8. Develop partnerships
In 1992, aged 27, he became the youngest CEO of a company ranked in Fortune magazine’s list of the top 500 corporations.

9. Be passionate
On January 5, 2013 he bid to take Dell Inc. private for $24.4 billion in the biggest management buyout since the Great Recession.

10. Failures lead to success
Accolades for Dell include “Entrepreneur of the Year” (at age 24) from Inc. magazine and “Top CEO in American Business” from Worth magazine.

My favorite rule is #10, “failures lead to success,” because you should be willing to take risk and try different ways to get to success, and when you fail, you learn from those mistakes and you grow to be a smarter, stronger person. My second favorite is #9, “be passionate,” because you need passion to get through challenges and tough times. Which rule do you like the most?

DGI Portfolio Report for December 2015

Dividends

This post is a status update for my Dividend Growth Investing (DGI) Portfolio. The goal of this portfolio is to build a stream of steady and growing passive income to achieve financial freedom. The strategy is to buy companies with dividends that are sustainable and increasing over time. All the dividends are automatically re-invested back in the same companies. This portfolio will be reviewed on a regularly basis to ensure that the holdings are aligned with the goal of the portfolio.

 

 

Account Balance
Beginning Balance: $99,779.81
Ending Balance: $100,082.53
Net Gain/Loss: +$302.72 (+0.0%)

Portfolio Holdings:

Symbol Current Price Quantity Current Value Dividends (per share) Dividend Yield (%) Annual Dividends Prorated Monthly Dividends
CVX 0
VZ 46.22 204.809 $9,466.27 0.565 4.95% $462.87 $38.57
T 34.41 205.55 $7,072.97 0.47 5.51% $386.43 $32.20
JNJ 102.72 101.553 $10,431.52 0.75 2.92% $302.42 $25.20
O 51.63 202.378 $10,448.77 0.1905 4.57% $460.85 $38.40
OHI 34.98 611.586 $21,393.27 0.56 6.66% $1,369.95 $114.16
POT 0
IBM 137.62 100.932 $13,890.26 1.3 3.70% $520.00 $43.33
MIC 72.60 302.978 $21,996.20 1.13 6.12% $1369.46 $114.12
Total $94,699.26 $4,880.86 $406.74

Note: Cash balance not shown here. Dividend yield is as of writing the post.

Dividend Payouts This Month:
JNJ    12/8/2015    $75.60
CVX    12/10/2015    $1.49
IBM    12/10/2015    $130.00
O    12/15/2015    $38.40

Month Total: $245.49

Lifetime Cumulative Dividends Received: $1,730.32
*This is the total dividends received since the inception of this portfolio in June 2015.

 

Portfolio Update

Welcome to another monthly report for my Dividend Growth Investing (DGI) Portfolio. This post provides an update on my holdings, performance, plans and thoughts for this portfolio. I started this portfolio with an initial funding of $100,000, which is is a nice and even number. I’m running this portfolio like a fund manager who runs a dividend growth fund. I will look for stocks that are a great fit for this portfolio, review the portfolio on a regular basis and make adjustments as necessary. Of course, I reserve the right to make any exceptions to buy or sell a stock. The results will be published here on Growing Money every month. I seek companies that have a healthy balance sheet and a competitive business advantage in the market, thereby protecting my principal investment. The dividend growth will help build a stream of growing income for the long term. If the dividends are sustainable and increasing over time, then naturally, the stock prices should follow and the total returns should be wonderful. This is a long term investing plan, a marathon and not a sprint, so do not expect any flashy words or colorful signs in these posts. It’s going to be a slow and steady climb to the top of the mountain.

CVX – If you look at my holdings above, you’ll notice that I no longer have any CVX holdings. I have decided to liquidate the few shares that I was left with after my option got exercised. The few shares were a result of the dividends that was reinvested. The interesting thing to do note is that those few shares also created dividend for me, but all those fractional shares will be liquidated too. I think that oil will be continued to be challenged in 2016 therefore I have decided to sell all shares of CVX and will not buy any oil stocks in this portfolio until I can see a good investment. My initial purchase for CVX shares was around $100 and my sell price was around $80, I took a loss on CVX shares.

POT – Another stock I sold is POT. Like oil, potash is getting hammered really bad. The other thing is that I also do not want to pay a fee on foreign dividends, so I have decided that this is not the proper dividend stock for my portfolio. My initial purchase for POT shares was around $24.70 and my sell price was around $17.50, so I took a loss on POT shares.

MIC – I added 100 shares to my MIC holdings after selling my POT shares. MIC shares were getting crushed and I thought it may be a good time to add on the dips.

Overall, I feel more confident with the current holdings, especially AT&T Inc. (NYSE:T). Initially, I had thought of selling AT&T, but doing some analysis on the company, I think their footing will be stronger after the acquisition of DirecTV. They have raised their dividend by a penny and they will use rest of the cash to pay down debt, which is a smart move for the company. I think once they have the debt under good control, then they can make bigger increases on the dividend increase.

Short Term Goal – Year 2020
My short term goal is to have $2,000 in dividend income a month on a prorated basis from this portfolio by the year 2020. This is an aggressive goal but it is necessary to lay the foundation for my ultimate goal, which is financial freedom. I need to plan ahead and set up the ground for more income growth. I will make adjustments that are necessary to steer towards this direction. Currently, my monthly passive income for this portfolio is at $406.74, so I still have a long way to go. These monthly updates will be constant reminders for me to stay focused and work hard on my goal. By making this portfolio opened to the public, I will hold myself accountable and show my every thought and move to everyone. Good luck to me!

Happy investing!!

 


 

Steve Wozniak's Top 10 Rules for Success

Happy Friday!! Welcome to another edition of educational Fridays, where we will post up material (videos, infographics, links, etc) to help you learn more about passive income and investing.

This video below, by Evan Carmichael, highlights the best rules for success from Steve Wozniak.

Steve Wozniak’s Top 10 Rules for Success:

1. Strive for perfection

2. Build things for yourself

3. Be a good friend

4. Better the world in some way

5. Take it one step further

6. Just #Believe and be nice to people

7. Think for yourself

8. Create a working product

9. Acceptance is the key

10. Live a happy life

My favorite rule is #4, “better the world in some way,” because when you are on a mission to improve lives in some way, you will work hard to get there. Which rule do you like the most?

Jeff Bezos's Top 10 Rules For Success

Happy Friday!! Welcome to another edition of educational Fridays, where we will post up material (videos, infographics, links, etc) to help you learn more about passive income and investing.

This video below, by Evan Carmichael, highlights the best rules for success from Jeff Bezos.

Jeff Bezos’s Top 10 Rules For Success:

1. Have no regrets

2. Follow your heart not your head 

3. Invest more in the product than marketing

4. Pick a good name

5. Stand for something

6. Focus on the customer

7. Focus on your passion

8 Build a culture

9. Premium products at non-premium prices

10. Take a risk

My favorite rule is #7, “focus on your passion,” because when you are doing what you like to do, you will work very hard and that will create a strong foundation for success. Which rule do you like the most?

IRA Portfolio Monthly Report for November 2015

Retirement

Image credit: 401kcalculator.org

This post is a monthly update to track the performance of my IRA portfolio. The goal of this portfolio is to build wealth and generate income for retirement. The strategy is to buy companies with strong growth prospects and a high dividend yield. All the dividends are automatically re-invested in the stocks. Dividends help grow income by buying more shares of the company and having more shares of the company help generate more income.


Portfolio Holdings:

Symbol Current Price Quantity Current Value Dividends (per share) Dividend Yield (%) Annual Dividends ($) Prorated Monthly Dividends
VER 8.33 760.109 $6,331.70 $0.1375 6.6% $411.19 $34.27
KMI 23.57 204.001 $4,808.30 $0.51 8.66% $408.00 $34.00
Total $11,140 $819.19 $68.27

Dividend Payouts This Month:

KMI 11/13/2015 $102

 

Account Balance
Account Balance at start of month: $12,699.53
Account Balance at end of month: $12,091.04
Net Gain/Loss for month: $-608.49 (-4.8%)

 

Portfolio Update

Sorry guys, this update is a little late. I have been busy and have finally gotten a chance to put this together.

This was little change for the month November. I will need to come up with a strategy to get this portfolio back on track.

Original Deposits

My original deposits for this account is $43,709. Unfortunately, I had made some bad decisions over the past 2 years and invested in dividend traps and lost 72% of the original deposits. I hope to make back up for the losses by becoming more focused and disciplined on investing now. I’ve learned from my mistakes and am better at growing my portfolio now. Let’s hope I can make back the losses in the near future. Good luck to me!

Richard Branson's Top 10 Rules For Success

Happy Friday!! Welcome to another edition of educational Fridays, where we will post up material (videos, infographics, links, etc) to help you learn more about passive income and investing.

This video below, by Evan Carmichael, highlights the best rules for success from Richard Branson.

Richard Branson’s Top 10 Rules For Success:

1. Keep it simple

2. Give it a try

3. Be a leader

4. Don’t give up

5. Delegate

6. Treat people well

7. Shake things up

8. People will be skeptical

9. Affect lives positively

10. Do things differently

My favorite rule is #4, “don’t give up,” because every successful person has to overcome challenges and failures. My second favorite is #9, affect lives positively, because you want to be a positive influence in this world and make it a better place to live for everyone else. Which rule do you like the most?

KMI: Goodbye My Shares

As I have written in my previous post, KMI has sunk in the past few months. The company is in trouble now with their high debt and a low oil price environment. They will definitely need to restructure their company financials to survive this oil crisis. They have already started this by cutting dividends and allocating the extra cash to debt repayment.
Perhaps KMI may recover over the long term, but in the short term I believe that KMI is dead money. Furthermore, since KMI has slashed their dividends, they do not my strategy any more. Therefore, I have decided to sell my KMI shares in the IRA Portfolio, even at a huge loss. I sold all my KMI shares at $15.15 on December 20th. With a purchase price of $29, my gain/loss was 48%. Unfortunately, this loss will add to the damage done to my IRA Portfolio and this will be another tough lesson learned.

KMI: What To Do?

Kinder Morgan Inc (NYSE:KMI) has dropped from $44 in April 2015 to almost $15 in December 2015. KMI was one of the best “toll collecting” companies in the past and was thought to be immune from oil price collapse.

I have heard of the name Kinder Morgan for several years on the Intrnet and on TV. It was always one of the top companies to buy, recommended by many analyst and Jim Cramer. I thought KMI was undervalued when it dropped from the high of $44 to under $30. I picked up the stock in my IRA Portfolio when Richard Kinder said that the dividends will still grow at a rate of 6 to 10%, which was still a very good growth rate in my books. Initially, I thought the market was reading KMI wrong and I was hoping for a rebound. Then I realized I read the KMI stock wrong and became a bagholder.

Instead of a rebound, the stock continued sliding. Then their huge debt came to the spotlight. They will need to repay their debt and they will need to make some sacrifices. The dividend became one of the sacrifices. Shortly after my purchase, the company slashed 75% of their dividend payout. There was a brief (very brief) rally, but it was very short-lived because the stock has resumed the slide.

On December 16, the Feds had finally decided to raise the interest rate after many years of 0% interest rate. The market had widely anticipated this move and it had a huge relief rally. Many of the stocks soared on that day, except for KMI. This is strong indication to me that something is wrong with KMI. How can the whole market move up and KMI not react positively with the market. I fear that the fundamentals for KMI are not strong and therefore I’m questioning my holding.

I think KMI is “dead money” for the foreseeable future. I think I will look for an exit point now.