Weekend Reading – August 15, 2014

happyweekendLife is just plain good.

I feel like I’m overwhelmed with optimism lately, and it just kind of oozes out of every pore of my body. The sunshine has never been brighter or felt warmer on my skin, the sky never bluer, dreams never sweeter.

And time has never been longer, as I recently wrote about.

This is the embodiment of “Here Comes the Sun” by The Beatles. I’ve exited a long winter of far too many years of far too much work and entered into a great summer of my life. Which is kind of ironic since I moved from Florida to Michigan. But such is life.

Moderation is wonderful. Though I’m working harder and longer than I might let on, the work is fully enjoyable. I kind of liken my life right now to someone who plays video games for 40-50 hours per week. Many wouldn’t call gaming “work”, and I enjoy my work much in the same way as that gamer would his games. This is what those seeking early retirement have to look forward to. Working or not working, whatever you “work” at will be by choice, and therefore likely very enjoyable. Too many people have this narrow definition of work where any effort that’s paid is work, and thus must suck. Pay is just a way to put value on your time, but you can still love how you spend your time even when money is involved.

I’ve been busy besides writing, though. Spending a ton of time with loved ones is chief among my concerns right now, and last weekend involved quite a bit of that. On Friday, I had lunch with my best friend in Ann Arbor before exploring the city for an upcoming article. For Saturday, I took my aunt out lunch, then went to a birthday party for my best friend’s oldest son, followed up by meeting some family at a Detroit Lion’s game. My aunt scored some free tickets from work; her employer pays for a suite at Ford Field and nobody wanted to attend the first preseason game. Count us freeloaders in!

This weekend is going to be a bit slower. The weather is beautiful today, so I’ll probably just go for a nice jog later this afternoon before settling in with a movie or two for the night.

Anyway, I’ve got some really great articles coming up. On Sunday, I’ll publish my July income/expense report. I haven’t had a chance yet to get the budget published because I’ve just been busy with so much content here lately, but I’m excited to finally get that out. It wasn’t nearly as great as June, but it was definitely another step in the right direction.

In the meanwhile, I’m including a compilation of articles I recently read that I think you all might enjoy as well. Have a great weekend everyone!

Buffett’s Latest Trades: Buys 13 Stocks, Sells 8 Stocks
I was actually up until 3 a.m. this morning putting this article together for Daily Trade Alert. Berkshire Hathaway Inc.’s (BRK.B) 13F just came out yesterday, and so the deadline to put together an article is pretty tight. But I think it came out pretty good. It’s a long read for those on a time crunch (more than 4,500 words), but I wrote a few notes about every single transaction that Buffett/Berkshire recorded this past quarter. The most interesting might be the initiation of a new position in Charter Communications, Inc. (CHTR), with what appears to be pretty unfavorable metrics. However, it appears that Buffett is making some big bets on media content delivery with his recent trades. Some of you might not know this, but DTA actually tracks Buffett via their Buffett Tracker, which publicizes both his portfolio as well as historical trades going back four years. Cool stuff!

Not so golden: Wealth gap lasting into retirement
Yahoo Finance published this stark piece on how many people are entering into retirement with either no savings at all, or far too little to provide for any meaningful income. Such a shame when we live in a country that offers among the most opportunities of any country in the world, as well as during a time of peak human civilization where even the poorest Americans live far better than the greatest of our ancestors. Though, I think the article misses the mark a little bit. It’s less about an income gap, and more about a gap between wants and needs. Needs are cheap; wants are not. Unfortunately, people spend too much time and money chasing the latter.

Our New House in Chiang Mai
I love to see how people are actually living on the other side of the world, and I’ve always had an interest in Thailand due to warm weather, great food, cheap living, and kind people. As such, Chris and Angela’s story is pretty interesting. They just recently shared the details on their new $450/month home they’re renting in Chiang Mai. $450 goes a lot further over there then it does here in the US, though there are some areas here in Michigan that could probably come pretty close. But it would be comparing apples to oranges, as they’re living a life of relative luxury over there. I’ve got to see Chiang Mai for myself one day!

Dividend Investing for Financial Independence
Dividend Growth Investor shows us how putting away $1,000 per month in stocks with a 4% yield and 6% growth could generate $7,200 per year in dividend income after just a decade. His advice is essentially what I’m living out, month after month. I’m putting away more than $1,000, but my timeline is less than 10 years and I need more than $7,200 per year in dividend income. But DGI’s example was just for illustration purposes. The whole point is to find a plan that works for you and stick with it. It’s easy to reverse engineer your plan by figuring out how much dividend income you need by a particular date and work backward from there. That’s essentially what I did back in early 2010, and I’ve been working toward that goal ever since.

Recent Buys
Passive Income Pursuit shares some recent buys. I’m a shareholder in both of these companies, and I find one of them to be particularly cheap. Always nice to be able to put some capital to work and march closer to financial independence.

4 lessons from Warren Buffett’s biggest quarter ever
I thought this article had a great conclusion on Buffett’s recipe for success. Much like I laid out at the beginning of the article, optimism is powerful and infectious. And Buffett has displayed overwhelming optimism about the US, stocks, and great companies.

These 19 Dividend Growth Stocks Go Ex-Dividend Next Week
I published this list of 19 stocks for DTA, and also took a look at a stock with 60 consecutive years of dividend raises. I also took a look at 15 stocks that recently increased dividends, and another stock with 60 years of dividend growth under its belt. Six decades for two companies. Gotta love it!

Net Worth Update – July
Kipp updated his net worth for the month, and he showed a small uptick. Small steps lead to big results. It’s all about staying consistent and moving forward!

Why I am aiming to save 60% each month
Lanny is reaching high. I love it! Saving 60% of your net income is incredibly difficult. I’ve been able to hit that mark on an annual basis only once, though I came really close last year. I doubt I’ll be anywhere near that mark this year with all the recent changes in my life, but if I can nail the 50% mark for the fourth year in a row even while moving to self-employment I’ll be very happy. I hope Lanny nails his goal!

No Value In An Empty Room
The Minimalists point out something very valuable: emptiness offers no value. Furthermore, minimalism isn’t a “one-size-fits-all” proposition. The key is to be aware of your surroundings and value your time. Be conscientious about your purchases and how much stuff clouds your life. You don’t have to live with nothing, but having everything likely won’t get you far either. You have to find your own balance.

Why it’s difficult to retire with passive income
Joe pointed out how difficult it is to generate enough passive income to actually retire off of, especially for those looking to retire early. I have a more optimistic attitude on it, especially if you’re starting young. Obviously, starting out at 39 means you won’t be retiring at 40. But being aggressive and valuing your time over money can make immediate and lasting impacts on the rest of your life. Joe followed this post up with some moves that are necessary to make for those that find the trek to passive income difficult.

OK. One Quote from Robin Williams
James Altucher wrote this piece on not just the talents of Williams, but also what we can take away from people with high energy and a great talent for connecting to audiences. Williams’s passing is a tragedy, and there’s no way I can speak as to what he was going through. But James did include one great quote from Robin that I find particularly apt.

What is a Liebster Award?
Ferdi was recently nominated for a Liebster, which is a sort of chain letter that allows smaller bloggers to spread the word about themselves via sharing a little more about their personal life, and then nominating other blogs to do the same. It’s  a great way to share, have fun, and spread some love. Ferdi was kind enough to nominate me as well, but I felt my blog was a little too large to participate, so I simply answered his questions in the comment form. I did the same when Wallet Engineers nominated me after their own nomination.

2014 Financial Goals – August Update
Mark updated us on his 2014 financial goals, and it appears that he’s completely on track on then some. In fact, he even added a goal since he’s doing so well with everything else this year.

Holding Myself Accountable: the (Belated) July Review
Addison released the update on her July budget. Though she exceeded her budget by a fairly healthy amount, it seems she’s having a great time during her recent transition in life as she figures out what’s next. I find it’s during times of transition that we find out who we really are and what we want, readying ourselves for another 5-10 years before possibly re-evaluating.

Failure is the most useful lesson of all
Richard Branson reminded us of how valuable failure is as a learning tool. Failure allows us to grow. I often get asked if there are any mistakes in my life I regret, and I have to answer that I truly don’t. Sure, I’d love to see what would happen if I could go back in time and slap the 21 year-old version of myself upside the head before he goes and spends away a $60,000 inheritance. But that mistake was a life lesson for me. It made me realize how quickly money can disappear, and how money doesn’t buy happiness at all. A valuable lesson for the rest of my life.

My Net Worth Exposed!
No More Waffles exposed his net worth for the world. Though he admits it’s not as high as other personal finance bloggers out there, I think it’s important to qualify it with his age. He’s only 25 years old right now, so I personally think he’s doing fantastic. I was 27 with a negative net worth, so having a positive net worth well into the thousands of euros at a younger age is particularly impressive. I’m confident by the time he’s my age he will have far exceeded where I’m currently at.

Dividend Growth Investing Right Now In 2014
Tim put together a great article to remind us all of the true power of dividend growth investing. It’s not about capital gains and portfolio values, but rather stable, growing income year after  year. It’s about funding freedom 20 or 30 years from now, or a trip to Asia that the you of 15 years from now is going to take, or thousands of dollars in monthly income you can pass on to loved ones. It’s about creating a future, not a number on a screen. Remember that.

Weekly Sharebuilder Purchases
My Dividend Pipeline is living up to his name. He’s chasing after a goal of adding $100 in dividend income to his portfolio every week. What a goal, but he’s firing on all cylinders. He added to some high-quality companies here, three of which I’m a fellow shareholder in.

Thanks for reading.

Photo Credit: gubgib/FreeDigitalPhotos.net

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54 Comments

  1. Hey Jason,

    Thanks for the mention! I have alot of stuff brewing for articles but not enough time it seems! Maybe it will be easier once I am done reading Snowball.

    Kipp

  2. Thanks for the reading material Jason. I enjoyed the two yahoo finance articles too. Now I’m just hoping this Russian/Ukrainian skirmish stirs up the market enough that we can secure some solid values. Have a great weekend, and I won’t make fun of you for being a Lions fan. They aren’t any worse than the Buc
    -Bryan

  3. Thanks for the post and the nice links. I totally echo your enthusiasm for life right now! As you well know, today was our last day at work, and we are basking in the glow of newfound freedom.

    It’s a beautiful day here as well. I’ve been stuck in a cube for so long that sometimes I forget how bright the day is at its peak.

    Three cheers for Financial Freedom! Three cheers for life!

  4. Jason, Glad to hear that life is going well, I love the optimism! don’t let it be forgotten though that you’ve worked hard to achieve this state and it wasnt just handed to you.

    I’ve had a hell of a week with workplace redundancies announced which have reminded me why I’m trying to follow your path to financial independence (http://www.earlyretirementguy.com/reminders/). I hope things will pikcup and I can start to feel as free as you do once I’ve got my capital levels raised.

    Thanks for the excellent reading recommendations! Strange to see some main stream sites (yahoo finance) actually publishing worthwhile pieces for a change 😉

  5. Kipp,

    That’s a big book! Takes a while to get through it, but well worth it. 🙂

    Hope you’re having a great weekend. Enjoy this amazing weather!

    Best regards.

  6. Bryan,

    Haha! Well, I wouldn’t say I’m a “fan”, but I support the local team. And by support I mean go to games when they’re free. 🙂

    But the Lions can be fun to watch. Calvin Johnson is a beast. Gotta give credit where credit is due.

    Let’s indeed hope things shake up a little bit. I don’t have nearly as much capital as I used to, so I need all the help I can get!

    Have a great weekend down there in FL.

    Cheers!

  7. Nicola,

    Thanks! Having more time does amazing things. Forget a spa or a Caribbean vacation; give me more time instead. 🙂

    Appreciate you stopping by. Hope your weekend is off to a great start!

    Take care.

  8. DGJ,

    Well, he has holdings in energy. You’ll notice I went over his Suncor purchase. But it was definitely a net reduction in energy. I thought the sale of GHC was really interesting. That’s a very old holding (over 40 years), so I can only assume he wasn’t a fan of the sale of the newspaper to Bezos.

    Best wishes.

  9. Keith,

    Absolutely. I read both consistently, and both were on the list for this week’s recommended reading list. DGI was near the top, and Tim down near the bottom. I think they both have a lot to offer, though sometimes their perspectives and ideas diverge a little bit. Which is ultimately what makes everything interesting. It would be boring if we all thought the same. 🙂

    Have a great weekend. Hope you’re enjoying the gorgeous weather this evening. I couldn’t have asked for a better Friday!

    Take care.

  10. Spoonman,

    Man, that’s some exciting stuff right there! I’ll raise you a cheer; four cheers for freedom and a bright future! 🙂

    What’s next? I’m guessing some time to decompress. I personally enjoyed some serious downtime after leaving my job, but before moving up here to Michigan. It was nice to have that quiet time to ponder the next move.

    Good stuff ahead. Sounds like you’re ready.

    Best wishes!

  11. Addison,

    Glad you’re feeling optimistic right now. You’re going through a big transition, so it would be easy to kind of get down about it. But I’ve found that every time one door closes for me, another bigger, better door soon thereafter opens. 🙂

    Thanks for stopping by!

    Best regards.

  12. ERG,

    Read the post. I feel bad for some of your co-workers who are not prepared, but at the same time people have to want to change. So, to a degree, they are their own worst enemy if they’re not financially prepared.

    I think it’s really all about being flexible. I’m nowhere near ready for financial independence, but I’m very flexible right now. And that flexibility is what gave me the courage to do my own thing for a while. Even just having $10 grand in the bank offers the kind of flexibility that few people have. We all throw around big numbers here in the community, but it really doesn’t take much to better your situation and reduce stress/worry.

    Glad that you’re taking the future you seriously. He’ll thank you!

    Cheers.

  13. John,

    I’m not really worried at all. I’m still gladly collecting the rising income and reinvesting it the best I can.

    It’s impossible to know Buffett’s thoughts or motivations. I noted in my report that both PSX and COP have been strong performers over the last year and over the last quarter. COP was reduced pretty significantly, but Berkshire maintains a sizable position in PSX still. COP has some great exposure to some of the best domestic developments, and I’m a happy shareholder. PSX, on the other hand, is a little more iffy. They’re heavily exposed to cyclic refining, and they haven’t been a public company for long. I can only assume Buffett saw the chance to take some profits off the table and reinvest elsewhere.

    Best regards!

  14. DM,

    Thank you so much for mentioning the 60% savings goal – humbled to be a part of your weekend reading again. I am excited to dive into the details of the status of my savings goal per month, with August being the first monthly post that I will have on how the challenge is going.

    Great articles about Buffet, by the way. Always interesting to see where he is shifting his cash around – and then seeing what intangible the company has that he invests in.

    Just had a frugal friday with the co-workers, caught in another Tribe game and we actually won in a walk off. I then am driving to our non-profit’s Golf outing tomorrow, to help show case and work the event – should be a fun, exhilarating and exhausting time nonetheless. I am looking forward to sunday where I’ll be writing a bulk load of articles that day.

    Thanks again DM, truly appreciate it and hope you have a fun weekend planned!

    -Lanny

  15. Jason,
    Thanks for sharing the great weekend reading, that’s quite a long list this week. Your blog keeps getting better and better, thanks for all of the amazing insights. Wishing you a super weekend!
    Sincerely,
    Ian

  16. 2 nice articles on Daily Trade Alert, Jason. Specially the one commenting on BRK buy/sell.
    I’m ploughing through The Snowball… 🙂 WB does not stop amazing me!

    Enjoy your weekend.

  17. Jason,

    It’s great to hear life is going so well! You really sound optimistic and full of energy. Very motivational writing style lately!

    Thank you for the kind words on my net worth. Let’s hope dividend growth investing will be as kind to me as it has been to you the past four years. My first purchase of an individual stock will be on Monday, exciting!

    Now to find myself a quite spot in the park to read all these articles…

    Have a great weekend,
    NMW

  18. Well done, Jason. I like your article ‘Buffett’s Latest Trades’ very much. Espacially the graphs so you can see in which range Buffett did buy.

    Ahoj
    ZaVodou

  19. “Spending a ton of time with loved ones is chief among my concerns right now, and last weekend involved quite a bit of that.”

    Isn’t that what life should be all about? Nice to read Jason.

    Thanks very much for sharing my article, hopefully we can share more articles between us in the months ahead!

    Keep up the great work with saving and investing and blogging. In another few years, you’ll be able to do whatever you wish with your time.

    Cheers,
    Mark

  20. Lanny,

    That sounds like a great Friday right there! Your weekend seems to be off to a fantastic start. 🙂

    Hope you have a great time at the golf outing. Keep up the great work.

    Cheers!

  21. Jos,

    He never stops amazing me either. His life story is pretty amazing, especially when he was young and just starting out. I hope you’re enjoying the book. 🙂

    Thanks for the kind words. Glad you enjoyed the DTA article. I put a lot of time into that one.

    Cheers!

  22. NMW,

    I’m glad the optimism is shining through. 🙂

    And I’m confident you’ll find more success than I have. You’re starting off earlier and in a better spot. You’ll do wonderful.

    Have a great weekend!

    Best regards.

  23. ZaVodou,

    Glad you enjoyed it! I thought it came out pretty well. Always room for improvement, but that article was on a pretty tight deadline.

    Have a great weekend over there!

    Best wishes.

  24. Mark,

    I’m with you all the way. Spending time with people you care about is where it’s at. I always have so many interests and passions pulling me in different directions, but it’s great to have time with everyone right now.

    I think we’ll both be in a very similar situation a few years down the road. Looking forward to that complete freedom!

    Have a great weekend.

    Take care.

  25. Next week we will visit my brother in Florida for a few days. After that we’ll have two months to decompress and iron out the details of our first move. We’ll try our best to take it one day at a time.

  26. Hello DM,

    Thank you for your blog! I stumbled onto your blog about a month ago. Until then I didn’t understand how one can make an income from stock investing that did not feel like gambling on the rise and fall of the stock market. I am a newbie to stock investing and now, because of your well-written, relatable explanations and interesting, honest content, I finally “get it”! My Sharebuilder account is now growing because of it. I am so excited! Thank you, thank you.

    Rowena
    P.S. I think you will have a great career as a writer.

  27. DM,
    Good stuff here. Nice piece on Buffet’s recent moves. That’s a lot of work going through those reports. Interesting he is dumping NOV, PSX and COP and picking up SU. Sounds like you’re enjoying some new-found freedom. Man I wish I could stay up until 3am!
    -RBD

  28. Thanks for the reading list. As far as gaming for 40-50 hours a week for work it is actually doable. Many gamers stream games they are playing on twitch which provides income like youtube for ads. Remarkable how many are doing it.

  29. Rowena,

    That’s so great! I’m really glad that it clicked for you. Sounds like you’re already building your snowball over there. Keep it up!! 🙂

    Appreciate the support. I hope you continue to stop by and stay in touch.

    Best regards!

  30. RBD,

    Haha. I’m a night owl, but 3 is pushing it. I always hated waking up at 6:30 in the morning to trot off to the dealership. It just put me in a bad mood right away, and kind of wrecked the rest of the day for me. I’ve just never been a morning person. 🙂

    Thanks for stopping by. Buffett’s recent moves are indeed interesting, especially Charter and Graham.

    Best wishes!

  31. A-G,

    What a job, right? That’s what I’m talking about. Getting paid to do what you’d do for free. Doesn’t get much better than that.

    Thanks for stopping by.

    Cheers!

  32. Thanks for the great links, Jason.

    I was just reading this : http://us2.campaign-archive1.com/?u=13eb080d8a315477042e0d5b1&id=0b0b122ec6&e=b054769628 and my thoughts were redirected to you.

    You thanked me for supporting you in my last post, but the true fact is that is not what I was doing. I was just having a good time writing to you. In fact the real story is that you support me, while repeating unavoidable truths about investing in dividend growth enterprises.

    Another link I came upon: http://www.dividata.com maybe you already linked it in your blog or maybe someone else, but just in case….

    A good Sunday to you and everyone !

  33. Hello Jason,
    I have one question regarding your article on Buffett’s transactions.
    DNOW is it really a new BUY or just a new position because of the SPINOFF from NOV?

    Ahoj
    ZaVodou

  34. Thanks for taking the time to put together this list. I was looking for some Sunday morning reading and I’ve found it! I always enjoy DGI’s posts on wealth accumulation through dividend investing. I’m just hoping the market shakes up a bit so I can get some good buys!

  35. Aspenhawk,

    That’s a sad, but touching story. I suppose it’s sad in that he was stifled for so long, but touching in that he finally got to do what he loved. I was never aware of that particular writer. I’ll have to read more about him. Good stuff. 🙂

    Thanks for sharing. And I suppose the real truth is that we all support each other.

    Best wishes!

  36. ZaVodou,

    That’s a good catch! I knew it was a spin-off, but I didn’t do the math on shares received. It looks like the shares were acquired only through the spin-off, so no additional shares were actually purchased by Berkshire. I think the notes still hold true about their desire to hold the position, or otherwise I suspect they would have simply sold it off. But we’ll see if they still hold the equity next quarter.

    Thanks for catching that. 🙂

    Cheers.

  37. GMS,

    Glad I could be of service. 🙂

    I think there’s some pretty solid stuff up there, and I enjoyed reading it all. And I’m with you; let’s hope Mr. Market starts feeling particularly depressed here pretty soon.

    Best regards!

  38. Thanks for the links DM. Hope your weekend is going well. Will you be posting about Ann Arbor this week by chance? Anxiously awaiting that one! Take care!

  39. Josh,

    Great question! I plan on publishing that post Tuesday. I’ve already got it all written up. 🙂

    I hope everyone enjoys it. Ann Arbor doesn’t have the ability to “wow” through pictures like GR does, and that’s simply because it doesn’t have much of a skyline. But the city definitely has a vibe to it.

    Keep an eye out on Tuesday.

    Cheers!

  40. I want to thank you for mentioning my article on dividend investing for financial independence. FI is not that difficult, but it is not easy. You have been doing your work for 4 years now, by showing patience, persistence and perseverance, and will be doing that for a few more years. Unfortunately, many people lose focus of the goal, attracted by shiny objects that consume their earnings and prevent them from saving much. Thus, their journey is stopped right at the onset. Thus, even if you knew about the next Johnson & Johnson, you will never achieve FI without any meaningful funds to invest.

    Best Regards,

    DGI

  41. DGI,

    I’m with you. The path to financial independence is rife with temptation. However, nothing is more tempting to me than owning all of my time, and being truly free.

    Appreciate all of the ongoing support. And it’s a pleasure to share your perspective, which is obviously very similar to my own.

    Cheers!

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