Hello everyone. Thank you so much for your support and for coming back to my blog!
This post is a bit different and will not be stock specific nor about dividends. This blog post will be about my thoughts on life.Read More
People who chases FIRE often have a bucket list. And there is a good reason for that. People who chases FIRE sees experiences and adventures as the good things in life. It resembles freedom, time and independence.
I also have a travel bucket list and here is my top 20:
1 – Isla del Holbox in Mexico and the possibility of snorkling with whale sharks
2 – Slovenia. An underestimated destination in Europe
3 – Japan
4 – Cage dive in South Africa to see a Great White Shark
5 – Train ride in Switzerland
6 – Cycling on Corsica
Visit the Maldives (jan 2016)
Cycling in the Alps and Dolomites (summer 2004, 2006, 2009 and 2011)
9 – Kayak in Lofoten, Norway and see orcas
Drive across USA (2005)
11 – Experience the English countryside
12 – See Hawaii
13 – Live right on the beach in Belize
14 – Costa Rica
15 – Vietnam
See the finish of Tour de France i Paris (summer 2004 & 2006)
17 – Spring in Portugal
18 – See all capitals in Europe (so far I have been in Madrid, Berlin, Copenhagen, Budapest, Prague, Athens, Paris and London)
19 – See Mont Saint-Michel i France
20 – Go to Iceland
I have four stamps.. Not the boring thing you put on letters back in the 90’s, but stamps in the way, I have bought a small portion of shares in four companies that I consider high risk.
It is mostly a Danish term to call these small buys with high risk a “stamp” – It just means that you invest a smaller amount than you usually do, and that you are ok with a bankruptcy or two 🙂
Now I want to show you my stamp collection, which at the moment must be the worst in Europe 🙂
Even though these numbers are terrible, I actually don’t mind. I haven’t risked my entire savings in these stocks. I have invested an amount I’m ok with loosing – I don’t plan on it though!
Stocks is a risk/reward type of game. My global ETF’s are not that risky, but I can’t expect a return much greater than 5-8 % per year. With these stamps I hope that one of them will grow 100-500 % over the next 5-8 years. Substantially more than my ETF’s but also with a risk of getting a big fat zero!
To those of you that haven’t heard of these stocks before here comes a small recap of the 4 businesses:
Chinese car manufacturer who specializes in electrical cars. Their design is no on level with Tesla or the Germans yet, but even if they only get successful in China, that is still a pretty big market!
Saniona is a research and development company focused on drugs for diseases of the central nervous system, autoimmune diseases, metabolic diseases and treatment of pain. (source: Nordnet)
They don’t have a blockbuster with some candidates they are hoping to get approved.
With an Å (aa) in its name this company will have a hard time to sell outside Scandinavia. Yet they actually sell a lot and have a quite good order book. Unfortunately, they don’t make a profit… yet.
The company specializes in Nanosatellites just like the Danish company Gomspace. I heard about ÅAC in a podcast, where some analysts conveyed the market and different market players and concluded that ÅAC was one the companies most likely to make a net profit in this business.
This company is also Chinese and specialized in gaming. The big loss I have in this company is actually a huge dividend! I don’t expect i 50 % yield every year, but from what I have heard the company have made a successful game and decided to pay out the profits from this to its investors. This buy is a hope, that they will develop another game with success.
Stamps to me is a way to stimulate my need and desire to stock pick. I believe in my strategy, but I also know myself well enough to acknowledge that I need stimulation to keep motivated. These stamps do just that.
For me it is not about the amount of money, but more about finding hidden gems in the stock market. This keep me at my toes and motivates me to read a lot about the stock market in general which in the end will benefit me along the way. And maybe I will someday be able to write an updated article about these 4 stamps and be able to tell you about one or two success stories.
Sell in May, and stay away!!
Wow – sometimes I forget my strategy and start to panic when my stocks sdecrease in value. May has been a son of a b*tch to my portfolio value… But hey: Great news!!
My strategy is not based on selling my stocks, but rather keeping my stocks for a long long time as long as they are paying me dividends. And guess what? They are!!
I love so many things in life: Of course my wife and my daughter! I have to admit I also have a love for some material things as my roadbike. I also have a deep love for a few concepts as well. Concepts like FIRE, compund interest and of course dividends.
In my speech to my wife at our wedding I tried to make the perfect love declaration (only interrupted by my sobbing). This time I will make a love declaration to dividends.
My first dividend came from a stock, I no longer have in my portfolio: Microsoft. I bought the stock because I found it undervalued and liked their products. Then suddenly, a few months after, a small amount of money got transferred to my bankaccount from Microsoft!
I wish I could say, that my world was never the same after that, but sadly no. It did’nt make that big a difference for me, and a few months later I had to sell all my stocks to make the down payment for an apartment.
When I recently got back into investing, I needed a strategy to approach the market. Shortly before I had read the book by Jakob Lund Fisker called ERE – Early Retirement Extreme. And that really DID make a huge difference for me! His approach to investing was to get his expenses covered by passive income. (He also cut his expenses to an absolute minimum, and that I’m not nearly dedicated enough to copy.)
The argument against dividends are:
My best arguments pro dividends are:
Dividend stocks are not the answer if you have a huge pile of money, that you want to invest right now and doesn’t know that much about investing. Then I would definetly buy passive index funds! No question about that.
Dividend stocks are perfect for people like me, who invest small amounts every month with a long-term focus. I wan’t the money to grow steadily.
The safest way to earn money in the stock market is to have patience. Patience requires motivation, and dividends are a perfect way to motivate you to stay on track.
Let me give you an example.
I have bought Essity (ESSITY-A). A Swedish company that produces hygiene and health products. One of the things they produce is paper and soap dispensers for commcercial use. That means, I use the brand several times a week when I use a bathroom at work, at the gas station or at the library, when the paper towel dispenser is from TORK, which is owned by Essity.
This may sound a but strange, but using the brand actually motivates my in my stock strategy because I use a company’s products, which generates money for me. The same goes with coca-cola, Apple, McDonalds or any other brand that pays dividends.
I wish I could end this post with intelligent phrases and well-thought arguments, but sadly the truth is very simple:
I love dividends
Dividends make me happy every time I see money transferred in to my brokerage account. The accumulating process that I’m in keeps me interested in the stock market and eager to find the best dividend stocks.
It’s a win-win for me. When the market goes ups, my stocks are up as well. When the market takes a dip, I can purchase stocks with a discount. I’m not investing money I can’t spare, but my wife and I refer to the stock acccount as the “dream account”. Meaning the money will in the future be the fuel to some of our travelling dreams or hopefully give us the chance to quit our jobs permanently.
Dividends. You are the one for me.
There is a first time for everything. This is my first monthly update on European Dividend Blog ever! Congratulations to me.
The blog is actually gaining some traction and there are more followers/readers than I would ever expect after just two months blogging. Thank you for that. I know my English skills are not the best, but I actually started blogging in English to educate myself and improve my skills in this language. I promise I will improve along the way!
On the personal side we have sold our house and we are moving out in April. I don’t share a lot about our personal finances, but maybe that will change along the way with this blog.
The sell of the house was good news for us. We are planning to move to a cheaper part of Denmark closer to our parents. I have quit my job and got a new one also near by the city of our parents. It is a big change in our life but our investment strategy shouldn’t be affected by this.
The sale of the house means we most likely will have some spare cash to spend after the purchase of a new house, and I really don’t know what to do with this. That is something to figure out in the next couple of months.
In February I received my first dividends!! YAYYYYY!!
Here are the BIG numbers. Prepare to be blown away:
|Kinder Morgan = 11,24 DKK|
|California Water = 4,41 DKK|
|SparIndex World = 16,35 DKK|
|SparIndex C25 = 28,91 DKK|
|Gladstone Investment = 6,72 DKK|
Total = 67,63 DKK / 10,3 $
This will cover 0,3 % of my monthly expenses 🙂
I know it is almost something to laugh about, but I am actually just really happy to be on my way. My strategy is to invest small in a lot of different companies to lower my risk. That means I will receive a lot of small dividends throughout the year. Hopefully we will see a big increase next year, and the year after that, and the year after that….
The best way to make great stuff is to steal from the best. In these monthly updates I will copy the work of Carl from moneymow.com and give you my top three favorite posts from the dividend, FIRE and personal finance ‘blogosphere’ the last month.
Stockles – Arne is no longer anonymous. In this post he reveals his identity and tells an honest story about love, investing and life decisions.
WannabeWalden.com – Louis at Wannebe Walden have made this post, where the FIRE guru Jakob Lund Fisker’s answer from a Facebook group is re-posted. Jakob Lund Fisker is a great inspiration to me, and his answer in this post could persuade anyone to chase FIRE.
RouteToRetire.com – Ever dreamt of moving to another country with better weather? RouteToRetire are planning to move to Panama in the summer of 2019. In this post he explains some of the thoughts behind the big move.
See you in my next update. /EDB
As I told you in my last post the difference between Danish and Swedish kroner is at a favorable rate (for Danes) right now. Therefor I turned to my watch-list of stocks and found some Swedish dividend stocks to pick up.
This really pins out why it is important to have a watch-list with a lot of stocks on it. Maybe I should write a post about it later on.
By having these stocks in my searchlight I could react fast when the currency hit a low yesterday. My broker have certain rules for minimum buys, and regarding Swedish stocks they have a minimum buy amount of 1.000 Swedish kroner – but with the low rate on Swedish kroner that meant I could buy a lot of different stocks for a small amount of Danish kroner.
These are my buys yesterday:Read More
There are thousands of analysts, experts, experienced traders, hedge-fund managers, billionaires, scientist and geniuses trying to beat the stock market. What makes you think, that you can do a better job?
We are all trying to pick the best stocks possible, but everybody can’t beat the market. But I think you can beat the market if you settle for less than the best possible stocks.
To simplify this, I’ll define that you can beat the market in two ways:Read More