177 - Our Middle-Ground Portfolio Is Now More Safe And Less Risky | Q3 Update

WEBVTT
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Welcome to Roaming Returns, a podcast about generating
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a passive income with dividend stocks so you
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can secure your finances and liberate your life.
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This is our Q3 update for the main portfolio,
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the middle child between the conservative retirement
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account and the high yield ETF chaos machine.
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This one is built for a hybrid job, income, growth,
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valuation, and enough risk to keep things moving
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without turning the whole account into a dumpster
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fire. Q3 looks a little weird on paper because
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we made a lot of changes and some dividend timing
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got messy. But underneath that, the strategy
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is getting cleaner, less fragile, more resilient,
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and still positioned to compound while the high
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yield portfolio covers our living expenses. All
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right, for those of you who are interested in
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our intermediate main in -between portfolio,
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and you didn't actually watch the conservative
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or the high -yield one, what we're doing is the
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Q3 update. For the main portfolio. Right, right.
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So this is the one where we had a little more
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risk before, and we've started to bring that
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down because we have our crazy high -yield portfolio.
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We're making this more resilient. Trying to.
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Trying to. We still have some stuff. Allegedly.
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I would consider this more like an intermediary
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where you don't want to sacrifice. all growth
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for super, super amounts of safety and security,
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but you kind of can do a hybridized version of
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that. I feel like that is a foreshadowing of
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one of the stocks we hold. The main portfolio
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is doing remarkably well, actually. It's not
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going to look like it whenever I go over the
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data, but that's because quarter two was so inflated
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with shit that was risky as fuck. Right, and
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he made a lot of adjustments in Q2. Q2 and the
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beginning of Q3 that are actually starting to
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take hold now. Right. So sometimes when you actually
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sell something off to buy something else, the
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timing of it sometimes doesn't line up and you
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miss dividend payouts or the dividend payouts
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shrink here, but these ones haven't come in yet.
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So there's like a bigger gap in between months.
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So you'll see here that this portfolio has like
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that gap happening. So it should go up in future
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months, but it looks actually pretty bad for
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Q3 in certain months for that reason. Okay, the
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main portfolio. So we had a lot of movement in
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the main portfolio this quarter. We sold BME,
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which was a closed -ended fund for medical stuff
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and science. We sold that on 6 -1. We sold G
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&T, which is a closed -ended fund for natural
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resources, gold, silver, things of that nature.
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We sold that on 6 -17. We sold NUGY, N -U -G
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-Y, on 6 -25, which is a synthetic position on
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metal miners. We sold QQQI on 7 -1. I do like
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QQQI, but we only had like $900 in it. So we
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were only getting like $10, $12 a month. So it
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really wasn't worth it. I can make more money
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with those proceeds somewhere else. And we sold
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ULTI on July 2nd, 7 -2. ULTI. If you remember,
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there is a yield max and there's a round tail
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where they do options. Well, ULTI is not doing
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as well as ULTY. So we just moved the money from
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ULTI into ULTY. And he made a really good decision
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because the dividend payout after we sold was
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so bad. It was like $0 .06, $0 .05, $0 .06. And
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it cratered the price. So we got out like right
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at the last minute, which was fantastic. So that
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was the sales of the additions for the main portfolio
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in the quarter three was CAIE, which is the auto
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callable that we've mentioned that we talked
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about. We got into that on 6 -1. And then OTEX,
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which is the Canadian communications and internet
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company. We got into that on 8 -28. And both
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those, I actually like those a lot, actually.
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So the damage. This quarter. Quarter two, let's
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revisit. Quarter two, we made $6 ,995 .25 in
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quarter two, which was a ridiculously high number.
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And we only made $5 ,644 .43 in quarter three.
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So we made about $1 ,300 less. Right. That gap
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feels bad. So in March, which is the first month
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of quarter two, we made $2 ,631 versus June,
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where we made $2 ,196. So about... 400 and some
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dollars difference there. April, we made $2 ,224
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versus July where we made $1 ,633. So that's
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a big gap. And then May, we made $2 ,141 versus
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August where we made $1 ,816. So all three months
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in this portfolio in quarter two were substantially
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higher than the three months in quarter three.
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So what actually happened? Well, In quarter two,
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ULTI generated $519 and we only made $149 before
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we sold it. So that's a difference of about $360.
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Like we said, the payouts dropped significantly.
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Semi, which we've actually reduced our exposure
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in semi, we generate $806 in quarter two versus
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$479 in quarter three, which is about $350 again.
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NuGi generated $466 in quarter two versus $87
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in quarter three, which is almost $400. GIF,
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which we actually had to get out of. We mentioned
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that in the last episode. We actually had to
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get out of that. It generated $224 in quarter
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two and zero in quarter three. FEPI and F -E
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-A -P -I and A -I -P -I. If you watch the podcast
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or listen to the podcast, whenever they went
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to a weekly payer, I just recouped my initial
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out of it just in case. Right. Because we've
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seen the payouts do some weird stuff when they
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go from monthly to weekly because they don't
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have as much time to recoup their synthetic options
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and their other options that they do. I like
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the monthly payers for that reason. Like if there's
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a bad week, they have three weeks to recover
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some price before they actually pay out the dividend.
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But if there's a bad week and they pay the dividend
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out, they're literally... paying a dividend.
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They're taking money out of the coffers to pay
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a dividend out on a bad week, and it doesn't
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really recover very often. Yeah. So what happens
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with that is they issue it in return on capital.
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That's what the ROC is. And that usually initiates
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NAV decline. So FEPI generated $221 in quarter
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two. We only made $97 in quarter three. So that's
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130 -ish. BME generated 32 in quarter two, and
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we'd made nothing in quarter three because we
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sold it. And AIPI made $263 in quarter two versus
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93 in quarter three. To add up all these, like
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we made movements in all of these. If you add
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all this up, they accounted for $1 ,626 more
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in quarter two than quarter three. So that more
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than enough covers the difference of $1 ,300.
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So I think the thing should level off now that
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we have got rid of the volatile ULTI. We got
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pretty much all of our initial capital out of
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SEMY. We got out of NUGY and we sold JIF already.
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So I think this one, moving forward, should be
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more consistent, better than that, because that
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payout was super high. $6 ,995 was crazy, and
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it was not sustainable with some of the holdings
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we had. It was nice while it lasted, but as you
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said, sustainability is more important, especially
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if you're going to have declining in payouts
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over time. So in the main portfolio, we have
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the drip off, and we're recouping the initial
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in AFGE, which is the AFG, the insurance company
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preferred, which is trading at a... deep discount.
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Like if you, if you don't have that and you want
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to get into preferreds, I would look at AFGE
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and mini, which is the yield max, um, miners,
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um, ETF. We have the drip off on both those.
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Uh, the drip off manual reinvestment is DNGDF,
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um, which is a gold company. They pay a one cent
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dividend every month. You're not getting a lot.
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It's like 2%, but whatever you have exposure
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to gold and it's a really good company and OPRA,
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which is the opera internet. And the reason the
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drip off is because Schwab won't let me put the
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drip on. So I actually have to manually reinvest
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those. That's really weird. That doesn't happen
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very often. Well, they're foreign companies.
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Ah, okay. Opera's foreign. Norwegian? It's from...
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Sweden? I think it's from Norway. Oh, it makes
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sense because they got that VPN thing going on.
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In this portfolio, the overall valued holdings
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are H2O. HTO. HTO. What are you watching, the
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water boy? I don't know. H -T -O. I never say
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that right. H -T -O. Because it's a water company,
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I just automatically put the T into it, too.
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It's H -T -O, but whatever. H -T -O. J -E -P
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-Q is overvalued. M -B -X -G is overvalued. Qualcomm.
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Q -C -O -M is... I think really overvalued SRV,
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which is overvalued SWKS, which is overvalued
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and UAN, which is because of the not a war is
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super overvalued. The best undervalued holdings
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in this portfolio are AB, which is pretty sick.
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It's like a, basically they make money for people.
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They're like a financial service company, but
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they actually don't invest in anything. They
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invest people's money. Okay. And that's how they
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make their money from the fees. AFGE, which is
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the insurance company preferred. ARLP, which
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is the coal? I think that's coal. I think that's
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the coal company. And I think UAN is the fertilizer.
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Fertilizer, yeah. BAH, which is Booz Hamilton.
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It's another financial services company. DLR
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preferred L. DLR slash PRL in Schwab. That's
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a preferred for the company that's building all
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the data centers, DLR. So that's a really...
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Pretty good one. NVO, which is the Noravisco
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Pharmaceutical. Opera, O -P -R -A, which is the
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Norwegian Internet. O -T -E -X, which is the
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Canadian Internet. O -Z -K, which is the regional
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bank Ozark. P -D -I, which is probably one of
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the best bond funds there are. S -T -L, which
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is Stefan. It's a chemical company. S -O -N,
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which is Sunoco. Not to be confused with Sunoco
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the gas station. It's Sunoco the paper company.
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U -P -S, which I just... Whatever. Everyone knows
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UPS. Everybody knows UPS. And WLKP, which is
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another chemical company. So all told, in this
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portfolio on June 1st, the amount was $210 ,546.
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And on August 31st, it was $216 ,464. So we made
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about 3 % on this portfolio for the quarter.
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So this one, somehow we made money on it. I don't
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know how. What do you mean made money? Because
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I was selling shit at losses sometimes. Well,
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didn't you tell me that the market right now
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is kind of inflated or it had an upswing? Yeah,
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it's super high. Right. So our portfolio, there
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were a couple of days, I think, in September
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where Tim was like, oh, we're down four grand.
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Oh, we're down three grand. Yeah, we were down.
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There's a couple of days in September where we
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were down 4 ,000. There was a couple of days
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in August where we dropped like 6 ,000. This
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one's pretty volatile, but that's... Okay. Because
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volatility feeds into it. Like we have a lot
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of covered calls. Right. So I'm okay with that.
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We don't really look at the principle as much.
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We put that out there just to like show how things
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fluctuate. But at the same time too, it's really
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hard to calculate that yield because your principle
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is always changing. So it's really hard to get
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a number specifically. So we do that just to
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try to compare to the market indexes and I guess
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for tracking purposes. Now this one's up about.
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12%. So again, it's right in line with the NASDAQ,
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the Dow, and the S &P 500. So this one's doing
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pretty good considering some of the shit we have
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in here is crazy. As a whole. But I assume previous
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quarters actually helped that number be up and
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that might change at the end of the year. Possibly.
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Probably. And so the buy up two points on this
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one. Damn it, I keep clicking the wrong sheet.
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Scroll down. Well, so when you open this spreadsheet,
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you will see numbers here. I have my phone. We
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don't have internet right now. That column, literally,
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if you click on one of them, if you have Google
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Sheets. That's how you can actually have your
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price real time in your spreadsheet. Just look
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it up. Google it. But if you look that up, that's
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how you can pull your real time price. And that
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actually helps a lot whenever it comes to monitoring
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your spreadsheet. So if you put equations in
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here, you can have this thing updated at real
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time and kind of create your own. But you'll
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see like there's a lot of fucking green in the
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main portfolio. So there's a lot of stuff that's
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undervalued. A lot of stuff that you can buy.
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So if you're in this spreadsheet, we're going
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to have this linked in the show notes. Like we
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always do the access to the Q3. quarterly dividends.
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So you can see the actual monthly payouts for
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each ticker across the board and the quarter
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totals and then the end total. And then we'll
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also have access to the other spreadsheet, which
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is the buy up to spreadsheet, where Tim essentially
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goes in and uses his calculations equations to
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give you a price buffer. What do you call that?
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Dividend cushion? It's dividend cushion, but
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like the reason that I do it this way is obviously
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I could just put down what the experts say. And
00:12:33.879 --> 00:12:36.080
their buy up to point is basically where they
00:12:36.080 --> 00:12:39.379
project the price to be in 12 months time. So
00:12:39.379 --> 00:12:41.559
some of these, like some of their things are
00:12:41.559 --> 00:12:44.860
already like over their buy up to point. So you
00:12:44.860 --> 00:12:48.080
like, or they're close to it and you still think,
00:12:48.279 --> 00:12:50.100
oh, I have a chance to buy up to, because the
00:12:50.100 --> 00:12:52.860
experts are saying buy up to $20 and it's trading
00:12:52.860 --> 00:12:55.889
at 1950. So I can make, what is that? two percent
00:12:55.889 --> 00:12:58.889
i can make a two percent gain but i try to make
00:12:58.889 --> 00:13:01.990
it so that you make the most like maximize what
00:13:01.990 --> 00:13:04.490
you can make out of it with the dividend included
00:13:04.490 --> 00:13:06.909
but i also do it with in combination with the
00:13:06.909 --> 00:13:09.629
experts i actually take what they say into account
00:13:09.629 --> 00:13:12.769
and then i because part of my equation is using
00:13:12.769 --> 00:13:14.990
what the experts to project the growth to be
00:13:14.990 --> 00:13:17.649
and what they project the eps growth to be because
00:13:17.649 --> 00:13:20.490
that affects investor sentiment which can actually
00:13:20.490 --> 00:13:22.269
affect the prices and where things go from a
00:13:22.269 --> 00:13:24.350
target but the other thing that i think is really
00:13:24.350 --> 00:13:25.929
cool with this is if like the yield is supposed
00:13:25.929 --> 00:13:28.370
to be something tim basically keeps you from
00:13:28.370 --> 00:13:30.250
buying it too high priced in case you have a
00:13:30.250 --> 00:13:32.850
price like reduction or a pullback so you're
00:13:32.850 --> 00:13:35.610
not essentially eating up your profits for example
00:13:35.610 --> 00:13:37.470
like a prime example of what we're buying too
00:13:37.470 --> 00:13:40.809
high if you highlight afge it's currently like
00:13:40.809 --> 00:13:43.519
17 something like that I don't know what the
00:13:43.519 --> 00:13:46.620
price, but I know it's under the 1850. 1850 is
00:13:46.620 --> 00:13:48.460
not the accurate buy up to point because it's
00:13:48.460 --> 00:13:51.899
a $25 preferred. So 2499 would be the buy up
00:13:51.899 --> 00:13:54.600
to point, but I'm giving you a lot of runway
00:13:54.600 --> 00:13:56.600
with the 1850. So you're like, you're looking
00:13:56.600 --> 00:14:00.409
at, was that 25 %? Price appreciation plus the
00:14:00.409 --> 00:14:04.409
7 % yield. Right. So I'm maximizing your potential
00:14:04.409 --> 00:14:06.769
returns by my buy of two points. So what that
00:14:06.769 --> 00:14:08.830
does is it helps you actually have less red in
00:14:08.830 --> 00:14:10.429
your portfolio when you're looking at it. Because
00:14:10.429 --> 00:14:13.470
some people do have that emotional negative trigger
00:14:13.470 --> 00:14:15.610
thing happening. So he tries to actually help
00:14:15.610 --> 00:14:18.450
you prevent that. Even though we don't necessarily
00:14:18.450 --> 00:14:21.029
look at the actual principle of things. But he's
00:14:21.029 --> 00:14:23.230
building that into this to help you guys. For
00:14:23.230 --> 00:14:25.149
the viewers, because I know a lot of people will
00:14:25.149 --> 00:14:27.730
have a negative visceral reaction if they have
00:14:27.730 --> 00:14:30.309
a $100 ,000 portfolio and it's sitting at $94
00:14:30.309 --> 00:14:32.389
,000. I'm like, oh, I can't invest. Investing
00:14:32.389 --> 00:14:34.629
is stupid. Panic sell. Blah, blah, blah, blah,
00:14:34.649 --> 00:14:38.669
blah. So I'm trying to give a safety buffer the
00:14:38.669 --> 00:14:41.070
best possible starting point you can have for
00:14:41.070 --> 00:14:44.350
some of the investments. Right. But you see a
00:14:44.350 --> 00:14:49.129
lot of green, AFGE, AGNC, AIPI, ARCC. These are
00:14:49.129 --> 00:14:51.470
all like you can buy these tomorrow and still
00:14:51.470 --> 00:14:53.870
make a pretty good amount of money on them. Then
00:14:53.870 --> 00:14:57.309
the DLR, PRL is another one. It's like $20. I
00:14:57.309 --> 00:14:58.950
should also say that the whites in here mean
00:14:58.950 --> 00:15:01.970
they're kind of fair market. So it's around $20
00:15:01.970 --> 00:15:04.730
right now. But again, it's a preferred to $25
00:15:04.730 --> 00:15:08.480
is the actual. par value. So if you get it, anytime
00:15:08.480 --> 00:15:11.679
you get it under $25, when they call it back,
00:15:11.759 --> 00:15:15.639
which they will, it'll be worth $25. And that's
00:15:15.639 --> 00:15:17.440
actually especially important to buy those things
00:15:17.440 --> 00:15:19.120
undervalued when it's bonds and anything that
00:15:19.120 --> 00:15:20.879
can be called back. Because if you buy it over
00:15:20.879 --> 00:15:23.259
the par, they can call it back when it's above
00:15:23.259 --> 00:15:25.899
and they'll actually give you par instead of
00:15:25.899 --> 00:15:27.559
what you bought it at. So you can actually lose.
00:15:27.980 --> 00:15:30.139
lose money if they decide to call the debt and
00:15:30.139 --> 00:15:32.019
that's actually very contingent upon interest
00:15:32.019 --> 00:15:34.639
rates because why would they continue to have
00:15:34.639 --> 00:15:36.340
debt that's at a higher interest rate when they
00:15:36.340 --> 00:15:38.639
can refinance for lower so they might call some
00:15:38.639 --> 00:15:40.720
of these bonds back so that's always a risk when
00:15:40.720 --> 00:15:43.500
it comes to the bonds from the preferreds bonds
00:15:43.500 --> 00:15:45.340
preferreds usually have a par value right but
00:15:45.340 --> 00:15:47.120
that's a quick tip like don't ever buy above
00:15:47.120 --> 00:15:49.100
par but like the green one i would stick to the
00:15:49.100 --> 00:15:51.879
green right the white i would ignore even if
00:15:51.879 --> 00:15:54.500
you really really want the red do not buy in
00:15:54.500 --> 00:15:56.779
the red But if you're already in those, you can
00:15:56.779 --> 00:15:58.559
turn your drip off if you want to compound your
00:15:58.559 --> 00:16:00.580
stuff and invest that money that you would be
00:16:00.580 --> 00:16:04.059
getting into the green ones. The one that I always
00:16:04.059 --> 00:16:09.279
chuckle about the most is JEPQ because there's
00:16:09.279 --> 00:16:11.320
always like if you go on Reddit, if you go on
00:16:11.320 --> 00:16:13.759
Quora, if you go on like Facebook, there's always
00:16:13.759 --> 00:16:18.500
this discussion between JEPI and JEPQ. JEPQ always
00:16:18.500 --> 00:16:22.909
has a higher yield. And JAPQ, we've made so much
00:16:22.909 --> 00:16:24.470
money. You mean JAPI? I think you said it backwards.
00:16:24.730 --> 00:16:27.970
No, JAPI is like 9%. JAPQ is always like 1 .5%,
00:16:27.970 --> 00:16:29.610
2 % higher. Oh, no, you did say it right. Never
00:16:29.610 --> 00:16:32.730
mind. And so you're getting more yield for basically
00:16:32.730 --> 00:16:35.090
NASDAQ companies, where I think JAPI is the S
00:16:35.090 --> 00:16:39.570
&P. And the NASDAQ offers you higher potential
00:16:39.570 --> 00:16:41.169
because it's more volatile because it's a tech
00:16:41.169 --> 00:16:43.330
company. So I never understood the JAPI versus
00:16:43.330 --> 00:16:45.470
JAPQ conversation. You should actually hold them
00:16:45.470 --> 00:16:48.279
both if you're going to be 100 % honest. So that
00:16:48.279 --> 00:16:50.759
conversation always cracks me up. But yeah, I
00:16:50.759 --> 00:16:53.519
would stick to the green, avoid the red, and
00:16:53.519 --> 00:16:55.720
avoid the white. And if you have the stuff that
00:16:55.720 --> 00:16:58.779
is green, drip its face off. And if you don't
00:16:58.779 --> 00:17:01.000
have, like... Some of these things you should
00:17:01.000 --> 00:17:02.600
be really think about getting into because they're
00:17:02.600 --> 00:17:04.380
like super supremely undervalued. I was going
00:17:04.380 --> 00:17:05.880
to say this actually gives you a really easy
00:17:05.880 --> 00:17:07.619
watch list. It's already vetted. It's stuff that
00:17:07.619 --> 00:17:09.460
we're invested in. He's already done the valuation.
00:17:09.599 --> 00:17:12.579
He's giving you a safety margin. Like this is
00:17:12.579 --> 00:17:14.640
a great place to start if you have money to invest
00:17:14.640 --> 00:17:16.940
or if you're just starting with investing. But
00:17:16.940 --> 00:17:18.900
don't put all your eggs in one basket. Let's
00:17:18.900 --> 00:17:20.440
look at the actual dividends we made in this
00:17:20.440 --> 00:17:24.390
portfolio. All right. Any notables in here? You'll
00:17:24.390 --> 00:17:26.130
have access to this as a link in the show notes.
00:17:26.410 --> 00:17:28.809
For example, DNGDF, for example. You look at
00:17:28.809 --> 00:17:30.450
that, you're not making shit in it. I've made
00:17:30.450 --> 00:17:33.369
$22, $23 for the year, but that's literally a
00:17:33.369 --> 00:17:36.410
gold mining company. So that's how I get my exposure
00:17:36.410 --> 00:17:39.569
to gold without actually having to hold gold.
00:17:39.690 --> 00:17:41.410
And I'm still getting a little bit of a dividend.
00:17:41.609 --> 00:17:43.250
And I assume that one's actually undervalued?
00:17:43.390 --> 00:17:46.349
Yeah, by about 10%. So he's actually optimizing
00:17:46.349 --> 00:17:51.009
more for macroeconomic or macro trend plus...
00:17:51.390 --> 00:17:53.210
under value and then a little bit of dividend
00:17:53.210 --> 00:17:55.009
bonus but you can look at feppy right there for
00:17:55.009 --> 00:17:58.069
example like we we basically reduced our we recruit
00:17:58.069 --> 00:17:59.890
our initial in may you can see we were making
00:17:59.890 --> 00:18:06.410
105 102 94 95 101 and then that's what our profit
00:18:06.410 --> 00:18:07.910
shares are making right there from that point
00:18:07.910 --> 00:18:09.829
on that's why there's such a huge discrepancy
00:18:09.829 --> 00:18:13.089
between feppy we sold right we sold between april
00:18:13.089 --> 00:18:15.700
and may Uh, G and T, G and T, we weren't making
00:18:15.700 --> 00:18:17.660
crap in. So like that one doesn't hurt a lot
00:18:17.660 --> 00:18:19.940
to get out, but GIF we were, but then they liquidated
00:18:19.940 --> 00:18:22.039
GIF and I didn't think so. Yeah. GIF was one
00:18:22.039 --> 00:18:23.700
we could not stand cause they actually were closing
00:18:23.700 --> 00:18:26.880
the fund or whatever it was. Mini seems to be
00:18:26.880 --> 00:18:29.140
pretty good. It's like consistent and like, you
00:18:29.140 --> 00:18:32.220
know, 45 to $60 range. So I'm okay with that
00:18:32.220 --> 00:18:35.279
one. Uh, Nuji, if you look at Nuji, you'll see
00:18:35.279 --> 00:18:36.960
right there why we got out of that one. Cause
00:18:36.960 --> 00:18:39.359
it was paying a lot. And then it, and then it
00:18:39.359 --> 00:18:41.440
didn't in June. Like it wasn't even close. And
00:18:41.440 --> 00:18:42.799
I was like, I fuck it. I'm done with this one.
00:18:43.480 --> 00:18:45.180
And the same thing happened with Semi. Semi is
00:18:45.180 --> 00:18:46.980
another one that we took. We basically recovered
00:18:46.980 --> 00:18:49.099
most of our, we have like a hundred and some
00:18:49.099 --> 00:18:51.420
dollars recovery yet, but we were, it paid a
00:18:51.420 --> 00:18:56.460
lot in a quarter to a lot, a lot, 340, 348, 349,
00:18:56.539 --> 00:19:01.859
237, 220. And then it dropped down to 183, 81
00:19:01.859 --> 00:19:04.019
in August. And we sold, I was like, I'm done
00:19:04.019 --> 00:19:07.579
with this one. ULTI, you'll see, we were making
00:19:07.579 --> 00:19:10.000
a shit ton of money in ULTI as well. But like
00:19:10.000 --> 00:19:12.690
that one just decayed. so bad. It went from 200
00:19:12.690 --> 00:19:18.309
something, 159, 157, 200 to 115 to 33. So I couldn't
00:19:18.309 --> 00:19:20.230
justify that one anymore. And that was the one
00:19:20.230 --> 00:19:22.430
where Tim got out right pretty much when the
00:19:22.430 --> 00:19:25.309
even lower payout came out and the price then
00:19:25.309 --> 00:19:26.990
plummeted. He got out before that all happened
00:19:26.990 --> 00:19:29.809
because we've been in these high yield ETFs so
00:19:29.809 --> 00:19:32.369
long and Tim's really good at reading patterns.
00:19:32.470 --> 00:19:34.730
He just knows when they're going to... I don't
00:19:34.730 --> 00:19:36.670
know. Well, pretty good guess. Right. Pretty
00:19:36.670 --> 00:19:38.470
good guess. And it's like, do you want to take
00:19:38.470 --> 00:19:40.289
that risk of having it fall off a cliff and having
00:19:40.289 --> 00:19:42.390
another Coney experiment? We don't really want
00:19:42.390 --> 00:19:44.250
to deal with that because our main portfolio
00:19:44.250 --> 00:19:47.970
is supposed to be more secure longevity. You'll
00:19:47.970 --> 00:19:49.509
see there's a lot of dividend growers in here.
00:19:49.569 --> 00:19:53.730
Tractor Supply, T -Row, Trinity, Sunoco. And
00:19:53.730 --> 00:19:55.630
then there's a mix and they're sprinkled in with
00:19:55.630 --> 00:19:59.809
like some ETFs that are yielding 25 to 60 percent.
00:19:59.849 --> 00:20:01.390
So there's like a sprinkling of those in here.
00:20:01.490 --> 00:20:02.549
And that's why we call this the intermediate.
00:20:03.099 --> 00:20:05.859
portfolio because it's like we're balancing or
00:20:05.859 --> 00:20:08.519
or hybridizing essentially the dividend growers
00:20:08.519 --> 00:20:10.839
which pay like the three percent yields and like
00:20:10.839 --> 00:20:13.160
the higher and this portfolio still sticking
00:20:13.160 --> 00:20:17.440
to the 60 40 we have 60 percent in stocks dividend
00:20:17.440 --> 00:20:20.559
growth stocks for the most part and 40 percent
00:20:20.559 --> 00:20:23.000
in etfs closing in funds and you'll see like
00:20:23.000 --> 00:20:24.980
our uh dry powder is making a shit ton of money
00:20:24.980 --> 00:20:28.099
thca is making them it's dropping bombs all the
00:20:28.099 --> 00:20:30.410
time well you do have how much in there Made
00:20:30.410 --> 00:20:32.569
about $1 ,500 in that. S -Bar is dropping bombs.
00:20:33.710 --> 00:20:37.269
$300. $300, $300, $300. Foxy Cleopatra is our
00:20:37.269 --> 00:20:40.670
third pillar. These are actually in alphabetical.
00:20:40.670 --> 00:20:43.869
Yeah. Oh, my God. Foxy's dropping pretty decent,
00:20:43.910 --> 00:20:45.809
$50 a month. Considering you don't have a ton
00:20:45.809 --> 00:20:50.049
in that. CAIE is the fourth pillar of that, our
00:20:50.049 --> 00:20:52.089
dry powder, and that one's doing okay as well.
00:20:52.230 --> 00:20:55.430
Our dry powder is making a lot of money, and
00:20:55.430 --> 00:20:57.910
I talked about it previously, and I'll bring
00:20:57.910 --> 00:21:01.519
it up again here. It's very difficult to sell
00:21:01.519 --> 00:21:03.720
your dry powder when your dry powder, like between
00:21:03.720 --> 00:21:05.759
the four of them, I'm making about 10 .5 % to
00:21:05.759 --> 00:21:09.000
11 % on them. So it's very difficult to sell
00:21:09.000 --> 00:21:10.779
my dry powder and dump it into something that's
00:21:10.779 --> 00:21:12.980
only going to make 3 % no matter how undervalued
00:21:12.980 --> 00:21:15.720
it is. But at the same time, we have that dry
00:21:15.720 --> 00:21:17.720
powder available so that if he sees something
00:21:17.720 --> 00:21:21.160
that's like 30 % undervalued and paying a ridiculous
00:21:21.160 --> 00:21:24.619
dividend. because it's undervalued so much, he
00:21:24.619 --> 00:21:26.259
can liquidate some of the dry powder and actually
00:21:26.259 --> 00:21:28.319
take advantage of something because he has it
00:21:28.319 --> 00:21:30.019
available. I will tell you that we did actually
00:21:30.019 --> 00:21:34.259
sell SWKS in this portfolio in the month of September.
00:21:34.259 --> 00:21:36.079
We recouped our initial in that one. So we now
00:21:36.079 --> 00:21:40.720
only have 19 shares of SWKS left, but it was
00:21:40.720 --> 00:21:45.119
not making too terribly much, 50 bucks a quarter.
00:21:45.240 --> 00:21:47.240
So I was able to recoup. I basically dumped that
00:21:47.240 --> 00:21:50.039
into - A bunch of things? A bunch of things.
00:21:50.380 --> 00:21:53.769
Yeah, that'll be - Coming up in the next week's
00:21:53.769 --> 00:21:58.049
podcast. Investing Insights podcast episode next
00:21:58.049 --> 00:22:02.309
Friday. Skyworks, because they've suspended the
00:22:02.309 --> 00:22:03.849
dividend, but because they might actually have
00:22:03.849 --> 00:22:06.430
some good growth, we kind of took the initial
00:22:06.430 --> 00:22:08.529
off the table. I learned from Rocket Lab. Right.
00:22:08.869 --> 00:22:10.730
Because you never know when something's going
00:22:10.730 --> 00:22:14.869
to go crazy. We just covered that in this week's
00:22:14.869 --> 00:22:17.609
Insight. I feel like it hurts more when you lose
00:22:17.609 --> 00:22:21.630
out on wins. But like we just covered it. I actually
00:22:21.630 --> 00:22:25.029
bought Rocket Lab at $3 .75 and I sold it at
00:22:25.029 --> 00:22:28.930
$5 .01 in 2024. And I was like, oh my God, I
00:22:28.930 --> 00:22:31.750
made 70 % on Rocket Lab. I'm a genius. And now
00:22:31.750 --> 00:22:35.190
like had I held it, I would be up 2 ,900%. So
00:22:35.190 --> 00:22:38.390
that 70 % kind of pales in. Right. And it's last
00:22:38.390 --> 00:22:40.730
year it was up 700%. And then this year it's
00:22:40.730 --> 00:22:42.670
like the gift that keeps giving. Now it has come
00:22:42.670 --> 00:22:44.990
back down a little bit. But it's still. But still
00:22:44.990 --> 00:22:46.849
it's the point of like we learned that lesson.
00:22:46.910 --> 00:22:48.690
And now what we do is we take the initial off
00:22:48.690 --> 00:22:51.390
the table. So you take your capital risk or your
00:22:51.390 --> 00:22:53.990
initial capital risk off. And then you let it
00:22:53.990 --> 00:22:56.009
you still have like skin in the game in case
00:22:56.009 --> 00:23:00.140
it actually does go up. And then ABR discussed
00:23:00.140 --> 00:23:02.519
that one because in the conservative portfolio,
00:23:02.720 --> 00:23:04.819
you liquidated it completely. I liquidated it
00:23:04.819 --> 00:23:06.720
completely in the conservative portfolio. ABR,
00:23:06.880 --> 00:23:10.359
they're going through what we would call a tough
00:23:10.359 --> 00:23:15.470
time. And during their earnings call. Whenever
00:23:15.470 --> 00:23:17.769
their earnings, they indicated they have like
00:23:17.769 --> 00:23:20.789
$1 .1 billion in money that's not being paid
00:23:20.789 --> 00:23:22.509
on at all. So that's really going to hurt their
00:23:22.509 --> 00:23:25.109
bottom line. They cut their dividend twice in
00:23:25.109 --> 00:23:27.450
the last two years, went from $0 .43 down to
00:23:27.450 --> 00:23:29.369
$0 .30, and then went from $0 .30 down to $0
00:23:29.369 --> 00:23:31.410
.17. I think they're a penny stock now, aren't
00:23:31.410 --> 00:23:33.829
they? They're a penny stock now. So I'm basically
00:23:33.829 --> 00:23:36.910
just going to hold this in the portfolio, in
00:23:36.910 --> 00:23:38.730
the main portfolio. It's going to be another
00:23:38.730 --> 00:23:41.329
Camping World. It's going to be another ICON,
00:23:41.349 --> 00:23:45.359
IAP, another, what's the other one? MPW. NPW,
00:23:45.400 --> 00:23:47.319
yeah. So we're going to have a fourth one where
00:23:47.319 --> 00:23:49.200
we're just waiting on the turnaround. Like Icon
00:23:49.200 --> 00:23:51.559
will turn around at some point. Camping World's
00:23:51.559 --> 00:23:54.259
starting to turn around a little bit. NPW's starting
00:23:54.259 --> 00:23:55.640
to turn around a little bit. But we have the
00:23:55.640 --> 00:23:57.660
luxury of time in this one where I can wait seven
00:23:57.660 --> 00:23:59.440
to 10 years for the shit to turn around, whereas
00:23:59.440 --> 00:24:01.319
in the retirement, I didn't. So that's why in
00:24:01.319 --> 00:24:04.119
the retirement, I sold all shares. And in the
00:24:04.119 --> 00:24:06.380
main portfolio, I've kept all shares. You kept
00:24:06.380 --> 00:24:08.079
all the shares? You didn't take the initial off?
00:24:08.480 --> 00:24:10.640
Oh, okay. I wasn't sure about that. But yeah,
00:24:10.680 --> 00:24:12.279
that's a big difference. And there's two different
00:24:12.279 --> 00:24:14.019
investing strategies because of time horizon
00:24:14.019 --> 00:24:15.599
that you need to pay attention to because not
00:24:15.599 --> 00:24:19.400
every portfolio fits every situation. My mom
00:24:19.400 --> 00:24:22.059
is 68. She will be 70. She'll need to draw soon.
00:24:22.140 --> 00:24:23.900
She doesn't have the time horizon to let this
00:24:23.900 --> 00:24:25.960
thing turn around. So it made more sense to make
00:24:25.960 --> 00:24:27.359
that move and put it into something that's going
00:24:27.359 --> 00:24:30.500
to actually be paying more with less risk. And
00:24:30.500 --> 00:24:33.579
for us, Like we have the time frame and because
00:24:33.579 --> 00:24:36.779
the macroeconomic situation, ABR is more invested
00:24:36.779 --> 00:24:41.640
in single family debts or rentals type deal.
00:24:41.819 --> 00:24:45.059
They own the mortgage rights to single family
00:24:45.059 --> 00:24:48.160
homes. Right. And that sector is kind of struggling
00:24:48.160 --> 00:24:49.799
right now. So it makes sense that they're having
00:24:49.799 --> 00:24:52.440
default issues and a bunch of stuff. NPW did
00:24:52.440 --> 00:24:55.400
kind of turn around its stuff. I assume our ABR,
00:24:55.539 --> 00:24:57.319
it's going to come with like a cyclical thing.
00:24:57.400 --> 00:24:59.400
Or ABR could very well get bought out by one
00:24:59.400 --> 00:25:01.410
of the bigger companies and then it. might become
00:25:01.410 --> 00:25:02.970
a moot point and the share ticker will change
00:25:02.970 --> 00:25:06.250
so we don't really know but how far down are
00:25:06.250 --> 00:25:11.650
we in this ton ton no about 20 oh it's not terrible
00:25:11.650 --> 00:25:13.250
it's way better than icon so we have learned
00:25:13.250 --> 00:25:15.549
our lesson the reason icon and stuff was so bad
00:25:15.549 --> 00:25:17.690
was because we were over allocated we do not
00:25:17.690 --> 00:25:19.369
make that mistake anymore because of you know
00:25:19.369 --> 00:25:23.150
icon yeah we had uh this the icon was one of
00:25:23.150 --> 00:25:24.910
the first stocks we had in the main portfolio
00:25:24.910 --> 00:25:28.660
we had about 30 % or 40 % of our portfolio was
00:25:28.660 --> 00:25:31.680
in ICON. So when it went from $77 down to like
00:25:31.680 --> 00:25:36.000
$20, that hurt a lot. Oh, yeah. So I learned
00:25:36.000 --> 00:25:38.640
now that's why we have like the 5 % rule, except
00:25:38.640 --> 00:25:40.480
for like the dry powder. The dry powder is at
00:25:40.480 --> 00:25:43.720
like 6 % or 7%. But that's different than normal
00:25:43.720 --> 00:25:46.259
holdings. In fact, most of the holdings are between
00:25:46.259 --> 00:25:51.420
like 2 % and 3 .5%. I don't like that. 5 % might
00:25:51.420 --> 00:25:53.779
actually get replaced at some point. And that's
00:25:53.779 --> 00:25:55.599
up to the individual investor. Some people are
00:25:55.599 --> 00:25:57.740
willing to take more concentration. And I think
00:25:57.740 --> 00:26:01.019
it also kind of depends on economic macro trends
00:26:01.019 --> 00:26:02.519
and stuff, because sometimes you'll want to be
00:26:02.519 --> 00:26:05.019
over allocated and say like utilities and water
00:26:05.019 --> 00:26:07.680
right now, as opposed to. The only thing I'll
00:26:07.680 --> 00:26:09.460
mention is on the bar right here where she has
00:26:09.460 --> 00:26:11.160
this highlight, you'll see that where it's bolded,
00:26:11.160 --> 00:26:13.279
that means the quarter actually generated less
00:26:13.279 --> 00:26:16.700
money than the previous quarter. But it's different
00:26:16.700 --> 00:26:20.359
for AIPI and FEPI because we. took our initial
00:26:20.359 --> 00:26:21.940
off like that obviously is going to be lower
00:26:21.940 --> 00:26:23.579
so like right some of these are not apples to
00:26:23.579 --> 00:26:25.180
apples because our share quantities change because
00:26:25.180 --> 00:26:29.599
of the risk mitigation tactics fepi aipi they
00:26:29.599 --> 00:26:32.940
went from monthly to weekly and we wanted to
00:26:32.940 --> 00:26:35.759
make sure they weren't going to do less payouts
00:26:35.759 --> 00:26:38.640
so we took our Initial off the table? Is that
00:26:38.640 --> 00:26:39.920
what you did? Yeah, I took all the initial off
00:26:39.920 --> 00:26:41.759
the table. So everything that's in them now,
00:26:41.799 --> 00:26:44.259
we have about $1 ,500 in FEPI. That's all profit.
00:26:44.339 --> 00:26:46.920
We have about $1 ,100 in AIPI. That's all profit.
00:26:47.059 --> 00:26:49.799
And I have the drip on. I'm letting them compound.
00:26:50.480 --> 00:26:52.180
Whatever happens, happens. It doesn't matter.
00:26:52.319 --> 00:26:54.220
So maybe we should actually add another line
00:26:54.220 --> 00:26:56.740
here that the share quantities went down. So
00:26:56.740 --> 00:26:59.299
they're looking at this. It's not an apples to
00:26:59.299 --> 00:27:01.220
apples. Then you can differentiate. That might
00:27:01.220 --> 00:27:03.099
be something to update in future for usability.
00:27:04.079 --> 00:27:05.759
And on the main one here, whenever there's a
00:27:05.759 --> 00:27:07.859
bold on it, that means the dividend is not in
00:27:07.859 --> 00:27:10.740
the right spot. You still got your dividend,
00:27:10.839 --> 00:27:12.539
but instead of being like, for example, if you
00:27:12.539 --> 00:27:16.900
go to UAN, UAN normally pays out the third month
00:27:16.900 --> 00:27:18.960
of our quarters and it paid out in the first
00:27:18.960 --> 00:27:21.299
month in March. So that 1773 should technically
00:27:21.299 --> 00:27:23.319
be in February, but because it's in March, I
00:27:23.319 --> 00:27:24.799
have it highlighted. Right. And that's why we
00:27:24.799 --> 00:27:27.259
do the first of the month in each quarter comparison,
00:27:27.559 --> 00:27:29.500
second of the month in comparison, third of the
00:27:29.500 --> 00:27:32.329
month, because the... So technically we should
00:27:32.329 --> 00:27:34.289
have 13 months with 28 days and some payouts
00:27:34.289 --> 00:27:36.089
get like shifted weird. Like there's a 13th week
00:27:36.089 --> 00:27:38.589
in the third month of each quarter. So it gets
00:27:38.589 --> 00:27:41.069
a little wonky with certain ones. So that's why
00:27:41.069 --> 00:27:43.470
we do the quarterly comparisons. Plus you also
00:27:43.470 --> 00:27:46.529
have quarterly payers. It's hard to do apples
00:27:46.529 --> 00:27:48.769
to apples, but we're trying to do this from a
00:27:48.769 --> 00:27:50.650
consistency standpoint. And yeah, those payouts
00:27:50.650 --> 00:27:53.789
do. But this is everything. This is all transparency.
00:27:53.829 --> 00:27:56.630
This is everything that we hold except for a
00:27:56.630 --> 00:27:58.289
couple of growth stocks that don't pay a dividend.
00:27:58.329 --> 00:27:59.970
So I don't really have them in the dividend tracker.
00:28:00.859 --> 00:28:03.700
And that goes as well with the conservative portfolio.
00:28:03.759 --> 00:28:07.160
Like her mom owns Palantir and she owns like
00:28:07.160 --> 00:28:11.619
CEGN or CENX or whatever it is, the eyes for
00:28:11.619 --> 00:28:14.119
robots. Like those ones I don't actually keep
00:28:14.119 --> 00:28:15.819
track of because they're just growth stocks.
00:28:16.079 --> 00:28:17.420
Right. And they don't really count for the normal
00:28:17.420 --> 00:28:19.859
strategy. They're kind of flyers. We have a couple
00:28:19.859 --> 00:28:23.039
in the main portfolio, but. Like we have NVIDIA
00:28:23.039 --> 00:28:24.460
in the main portfolio. We have like 19 shares
00:28:24.460 --> 00:28:26.599
of NVIDIA, but I don't keep it in here because
00:28:26.599 --> 00:28:29.339
it's growth stock. But all in all, this portfolio
00:28:29.339 --> 00:28:31.140
is doing really well. We've so far for the year
00:28:31.140 --> 00:28:37.819
made 17 ,300 -ish, 200 -ish. Yeah, 1 ,700, 300.
00:28:38.059 --> 00:28:40.680
Through the end of August. We have 493 so far
00:28:40.680 --> 00:28:42.539
in September. Right. This is like up to date.
00:28:42.640 --> 00:28:45.339
And the cool part about this is. You'll see here
00:28:45.339 --> 00:28:47.059
in the next portfolio we evaluate, if you tune
00:28:47.059 --> 00:28:49.720
in, the high yield is actually helping us be
00:28:49.720 --> 00:28:54.230
able to reinvest 100 % of... what we're actually
00:28:54.230 --> 00:28:56.329
earning in this portfolio. So this thing is compounding
00:28:56.329 --> 00:28:59.069
its face off. It's unfortunate that our Q2 was
00:28:59.069 --> 00:29:01.910
so high and Q3 was like lower. But like if you
00:29:01.910 --> 00:29:05.210
look at Q1 to Q3, which is like apples to apples.
00:29:05.410 --> 00:29:08.509
4 ,600 to 5 ,600. So that's a freaking big jump
00:29:08.509 --> 00:29:10.029
from there to there. So I'm actually really curious
00:29:10.029 --> 00:29:11.890
to see what Q4 clocks in at because we should
00:29:11.890 --> 00:29:15.069
actually have a more normal month of payouts
00:29:15.069 --> 00:29:17.250
because of the reallocation strategy and we don't
00:29:17.250 --> 00:29:19.750
have like skip divvies like we did in Q3 with
00:29:19.750 --> 00:29:23.740
the change of what we had ownership of. So I
00:29:23.740 --> 00:29:25.420
would tune in for that. That'll be in the first
00:29:25.420 --> 00:29:27.240
week of December, second week of December. Q4
00:29:27.240 --> 00:29:29.539
will be really interesting. To see what's what.
00:29:30.460 --> 00:29:32.660
Yeah. That's the main portfolio. It's doing what
00:29:32.660 --> 00:29:34.279
it's supposed to do. Everything's compounding.
00:29:34.279 --> 00:29:35.779
That's supposed to be compounding. Everything's
00:29:35.779 --> 00:29:37.160
giving us cash. It's supposed to be giving us
00:29:37.160 --> 00:29:38.920
cash. And I like this because this is a really
00:29:38.920 --> 00:29:41.240
good example of like how you change and shift.
00:29:41.400 --> 00:29:43.279
Like if you kept this stagnant, like if I was
00:29:43.279 --> 00:29:45.660
managing this by myself with my bandwidth problem
00:29:45.660 --> 00:29:47.559
that I had, I would have missed a lot of these
00:29:47.559 --> 00:29:50.250
moves that Tim was doing because he's so... like
00:29:50.250 --> 00:29:53.009
in the news and in the earnings reports and things.
00:29:53.109 --> 00:29:56.009
And he is very good at preemptively, you know,
00:29:56.009 --> 00:29:58.250
mitigating the risk crap, whereas I'm usually
00:29:58.250 --> 00:30:00.910
delayed behind the thing. So I am actually going
00:30:00.910 --> 00:30:03.269
to at some point figure out if there's tools
00:30:03.269 --> 00:30:05.210
that I can supplement to try to replicate as
00:30:05.210 --> 00:30:07.049
close as possible to help other people that might
00:30:07.049 --> 00:30:09.339
not. or might be more like me than like him.
00:30:09.759 --> 00:30:12.319
But if not, you can always follow what we do
00:30:12.319 --> 00:30:14.480
on our weeklies. I don't mind doing the work
00:30:14.480 --> 00:30:16.099
because this is what we're going to be living
00:30:16.099 --> 00:30:18.480
off of whenever the income portfolio goes to
00:30:18.480 --> 00:30:20.440
shit. Right. And I think you actually like strategy
00:30:20.440 --> 00:30:22.019
and I think you like numbers and I think you
00:30:22.019 --> 00:30:24.920
actually like kind of gamifying this. I've noticed.
00:30:25.140 --> 00:30:27.180
It is like a game. Right. So like this is a more
00:30:27.180 --> 00:30:28.940
productive game than him like literally screen
00:30:28.940 --> 00:30:31.980
-tarting with stuff that has no purpose. So I
00:30:31.980 --> 00:30:33.779
like that component of things. So this gives
00:30:33.779 --> 00:30:35.259
him something productive to actually like be.
00:30:36.670 --> 00:30:38.289
nerdy with? I don't know what the right word
00:30:38.289 --> 00:30:42.809
is. White and nerdy. White and... I don't even...
00:30:42.809 --> 00:30:44.710
Is that like a hashtag? That's a Weird Al song.
00:30:44.950 --> 00:30:47.849
Oh, okay. White and nerdy. I didn't know. I'm
00:30:47.849 --> 00:30:51.109
so pop culture illiterate. But that's the main
00:30:51.109 --> 00:30:52.349
portfolio. It's doing what it's supposed to.
00:30:52.390 --> 00:30:54.569
I would tune in in December to look at like quarter
00:30:54.569 --> 00:30:56.589
four versus quarter three. Right. I'm assuming
00:30:56.589 --> 00:30:57.869
quarter four is going to be better than quarter
00:30:57.869 --> 00:30:59.650
three. And if you're interested in our crazy
00:30:59.650 --> 00:31:02.789
like new experiment essentially with taking putting
00:31:02.789 --> 00:31:05.819
off or... extending when we have to tap this
00:31:05.819 --> 00:31:07.900
by living in the van after we sold the condo
00:31:07.900 --> 00:31:10.240
back in december we're doing we're doing that
00:31:10.240 --> 00:31:14.240
52 000 portfolio in the high yield etfs to try
00:31:14.240 --> 00:31:17.519
to actually like live off that income and not
00:31:17.519 --> 00:31:19.980
touch this so that's coming up next yep high
00:31:19.980 --> 00:31:22.119
yield income and that one's really important
00:31:22.119 --> 00:31:24.900
too because we're doing a lot more micromanagement
00:31:24.900 --> 00:31:27.339
of That's the one I spend the most time on. Nav
00:31:27.339 --> 00:31:29.880
decline issues and trying to actually extend
00:31:29.880 --> 00:31:33.299
that because the goal initially was, can we actually
00:31:33.299 --> 00:31:37.019
get the $52 ,000 back in the initial investment
00:31:37.019 --> 00:31:40.299
or extend it past? So instead of living off a
00:31:40.299 --> 00:31:42.000
lump pile of cash and taking disbursements of
00:31:42.000 --> 00:31:44.119
it to pay every month, can we invest it in stuff
00:31:44.119 --> 00:31:45.799
that's more cash flow paying and actually get
00:31:45.799 --> 00:31:48.579
more than that $52 ,000 out of it in payments?
00:31:48.859 --> 00:31:50.700
So we're trying to see if we can actually like...
00:31:50.880 --> 00:31:52.380
I don't know what's the word, extract more from
00:31:52.380 --> 00:31:54.279
our money through putting it in these high -yield
00:31:54.279 --> 00:31:58.299
ETFs. But as you'll see, not all of them are
00:31:58.299 --> 00:32:01.319
doing what you'd hope. And the NAV decline is
00:32:01.319 --> 00:32:04.240
always a freaking monster. And then sometimes
00:32:04.240 --> 00:32:08.119
we're moving into less risky stuff as an interim.
00:32:08.599 --> 00:32:10.279
So that one's actually really, really fascinating.
00:32:10.460 --> 00:32:11.940
We'll be back here in a second with that if you're
00:32:11.940 --> 00:32:12.619
interested in watching.