How I Built a $300,000 Stock Portfolio Before 30 (And How You Can Too). My 8-Step Wealth Building Journey

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*** My Best 15 Ideas for 2019 are up +14.6% YTD (Jan). Learn more. ***

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Welcome! If this is your first time on my blog, check out these top blog posts, too:

  1. My Interview with Francis Chou
  2. 22 Investing Lessons From Jason Donville
  3. How to Find Tenbaggers
  4. Beating the TSX (BTSX)
  5. How I Pick Winning Stocks
  6. Canadian Capital Compounders
  7. Next Capital Compounders
  8. Small Companies; Big Dreams – Future 60 MicroCaps

***PLUS Email Me Now for a FREE copy of my new book – Capital Compounders***

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How I Built a $300,000 Stock Portfolio Before 30 (And How You Can Too). My 8-Step Wealth Building Journey

youtube_32 >>>You can also listen to my 8-Step Wealth Building Journey on My YouTube Channel

When I was 12 years old I made a decision. I was going to be rich. I looked up to successful people and wanted what they had: financial freedom. They seemed to be happier than everyone else. But who was I kidding? Becoming rich would be an uphill battle. I was from a middle-class family of humble means. There was no trust fund. And my parents didn’t have work connections to land me my first job. The odds were stacked against me. But I still made the decision to be rich and started on my wealth-building journey. And the path I chose to get me there: do-it-yourself investing “DIY Investing”.

Today, I manage a $300,000 stock portfolio. I’m 29 (almost 30). And my stock portfolio grows by the day. My goal is $1,000,000 in stocks by the time I’m 35 years old. I’ll show you my 8-step wealth building journey and share how you can build wealth by investing in stocks too. Read on…

When I was 12 years old I made a decision. I was going to be rich

How I Became a Do-It-Yourself (DIY) Investor:

1) Study Successful Investors

I realized that if I wanted to make money by investing in stocks I had to study successful stock investors. Common sense, right? Isaac Newton said it best:

“If I have seen further than others, it is by standing upon the shoulders of giants.”

So, from age 12 to 18, I read around 50 books on the topic.

These were the six most important investing books for me:

  • The Intelligent Investor – It was through Benjamin Graham’s The Intelligent Investor that I was introduced to value investing, and the important concepts of Margin of Safety, Mr. Market, and Intrinsic Value. Warren Buffett called it “the best book on investing ever written”.
  • Common Stocks and Uncommon Profits – Philip Fisher opened up my world to growth stocks. It was after I read Common Stocks and Uncommon Profits that I started paying more for stakes in higher quality, and faster growing businesses.
  • One Up On Wall Street – There are so many easy-to-implement lessons shared in One Up On Wall Street. But what really stuck with me was Peter Lynch’s focus on ‘buying what you know’. That has saved me from many dog stocks in the market.
  • Market Wizards – Jack D. Schwager introduced me to some of America’s top traders in Market Wizards. But instead of telling us their favourite stock picks (what they buy) he explained their investment frameworks (why/how they buy).
  • Buffettology – There are many books that endeavor to explain how Warren Buffett invests in stocks but most come up short. Buffettology is the book that gets it right.
  • The Money Masters – A classic that is fun to read. The Money Masters shares winning strategies from some of the world’s best investors who ever lived. It’s a book that I’ll read every couple of years to brush up on investing essentials.

I would also study Forbes’ list of the 500 Richest People in the World and Canadian Business’ Richest Canadians. It then all became very clear to me. I could become rich by earning money, saving the proceeds, and investing in stocks as other rich people, such as Warren Buffett, had done before me.

It then all became very clear to me. I could become rich by earning money, saving the proceeds, and investing in stocks

2) Earn and Save Money When You Are Young

I had opened my first bank account when I was about 8 years old. As you can imagine there wasn’t much there; cash from birthdays, Christmas, and some chores. Maybe $500 in total from what I can remember. I had to earn/save more money fast! So I did what Warren Buffett had done at my age – delivered newspapers. At 12, I joined PennySaver and became a paperboy for three neighborhoods in my hometown of Mississauga. I deposited each paycheque, along with any other money, straight into my savings account.

3) Understand How to Compound Money

Once I turned 14, and just started high school, my savings account had grown to about $5,000. At that point, I wanted to invest in stocks. But because of my age I wasn’t eligible to open a brokerage account. So I started with bonds. After returning home from the bank, I placed those newly purchased Canadian Savings Bonds into a small but sturdy wooden box, hiding it safely under my bed. I was so proud. I knew that my bonds would generate interest for me on the principal amount ($5,000). “Compound interest is like magic”, I thought. “And the earlier I started investing money the longer my money would compound (‘work’) for me”. Throughout high school, I would work several odd-jobs (mechanic shop janitor, meat department clerk, and Best Buy associate), all the while saving money from each paycheque, and then buying more bonds to further compound my money.

“Compound interest is like magic”, I thought. “And the earlier I started investing money the longer my money would compound (‘work’) for me”

4) Invest in Stocks for the Long Run

I turned 18, and was ready to enter University (party time! — NOT). In September, 2005, I moved into my “cozy” on-campus dorm room at the University of Waterloo. But even more exciting was that I finally opened my first brokerage account. By investing in stocks I could compound returns through both capital appreciation (i.e., stock price goes up) and dividend income (i.e., quarterly dividends from companies). I had already cashed out of my bonds; $10,000. So I invested that money evenly into 5 stocks, owning a $2,000 stake in each company. I felt like a true capitalist. This is how my idols, Benjamin Graham, Philip Fisher, Peter Lynch, and Warren Buffett, got rich; by investing in stocks. As I earned money though UW co-op job placements (which I recommend to every young person!), and bought more stocks, my portfolio grew, and grew, and grew. I was on top of the world. And then the financial crisis (’08) happened…

By investing in stocks I could compound returns through both capital appreciation (i.e., stock price goes up) and dividend income (i.e., quarterly dividends from companies)

5) Capitalize on Crises in the Market (i.e., Buy Low When You Can)

I was 21 years old when the entire world ended in 2008 (or so most people thought at the time). The financial crisis thrust economies around the world into recession. Stock markets collapsed. And my stock portfolio imploded. I suffered around a 50% decline from peak to trough. The financial press was all doom and gloom. “Sell! Sell! Sell!” Most people were scared and converted their stocks to cash. So I invested all of my savings into my existing stock holdings (crazy, right?). When I pulled the trigger I was scared stiff. But I’m glad I made that move as my stocks would soon rebound, pushing above pre-financial crisis highs into the years to come. I bought quality stocks on sale. 50% off! Was I a young genius; able to time the market? Nope. I simply learned from Benjamin Graham, the father of value investing, that economies and markets operate in cycles. Therefore, an investor could capitalize on manic markets, rather than become fearful and flee.

When I pulled the trigger I was scared stiff. But I’m glad I made that move as my stocks would soon rebound, pushing above pre-financial crisis highs

Indeed, 2009 was a great year to be a value investor. I would make a similar move in February, 2016 to capitalize on a bear market in Canadian stocks where the TSX declined close to -25% from its high in September, 2014. Why so confident? I know that the average bear market (on the TSX) has declined -28%, lasting 9 months, while the average bull market has advanced +124%, lasting 50 months. Based on this historical evidence then since 1956, I should eventually be rewarded in the long run when I take on “risk” (i.e., investing in cheaper stocks) during bear markets. As Warren Buffett said:

“Be fearful when others are greedy and greedy when others are fearful.”

6) Manage and Refine Your Stock Portfolio

In 2010, upon graduating from the University of Waterloo, I had about $50,000 in my stock portfolio. More money than any of my friends. This was certainly an inflection point for me as the magic of compounding started to take real effect and I was just about to enter a full time career and earn a much bigger paycheque (plus bonus), which meant more money for stocks. By 2013, three years into my first full time job, my portfolio had grown to about $125,000. However, I realized that I could build wealth faster if I compounded returns at a greater rate. So, at 25, I made it my mission to build a portfolio that actually beat the market. I started watching BNN Market Call, re-reading the best investing books, and magazines (Money Sense, Canadian MoneySaver, and Canadian Business) and following the top investors from around the world. From that I re-structured my portfolio into one that I’ve comfortably maintained since.

Here’s how my stock portfolio breaks-down:

  • Mispriced Large Caps
  • Speculative Takeovers
  • Small/Mid-Cap Capital Compounders

Mispriced Large Caps

For example, I started loading up on Starbucks stock in 2008 at around $15/share, at a time when Starbucks was oversaturating themselves in the market, with most “experts” doubting their strategy of selling high-priced coffee, especially with the financial crisis looming, and new entrants in the coffee business, such as McDonalds. However, when I bought Starbucks stock, after their huge decline on the market, I never witnessed a drop in traffic among the stores nearby me. Starbucks had huge competitive advantage then and now. I thought, “If Starbucks goes out of business, that’s probably when the world will end”. And, seriously, do you think business people would ever switch their coffee meetings from Starbucks to McDonalds?

Speculative Takeovers

I also dabble in speculative takeovers. When Lowe’s first bid for Rona fell through, I bought a stake in Rona, and just sat on the position. I speculated that Lowe’s, or another company (maybe Home Depot), would eventually scoop up Rona, with the Quebec Government’s approval of course. When Lowe’s came back years later, bid on Rona a second time, and won approval to buy them out, my Rona shares shot up ~100% in one day. Well worth the wait.

Small/Mid-Cap Capital Compounders

But the most successful ‘bucket’ in my portfolio is the Small/Mid-Cap Capital Compounders. Why? I find that as long as the intrinsic value of these businesses grow every year, so does the price of the stock. I’m actually upset when one of my ‘capital compounder’ stocks get bought out, because most of the time there’s so much more potential for growth. It forces me to go out hunting for an equally remarkable capital compounder to replace the buy-outs. You can learn more about the criteria I look for in capital compounder stocks by reading How I Pick Winning Stocks.

7) Stick to Your Investment Strategy

From my ‘quarter life crisis’ (age 25) and onwards, I continue to earn, save, and invest in stocks using the same strategy. Now, at age 29, I have built a $300,000 stock portfolio. With a bigger capital base, it’s amazing how much more rapidly my portfolio can compound. For example, a 10% return will thrust my portfolio to $330,000 next year, without adding additional capital. I say “10%” because over the long run (since 1934), the TSX has delivered a 9.8% annual compound return, despite recessions, bear markets, and world crises. But there’s no guarantee. Nevertheless, $1,000 invested in the Canadian index in 1934 would have grown to $1,595,965 by 2014 with 9.8% compound returns. That’s “magic”, in my world.

$1,000 invested in the Canadian index in 1934 would have grown to $1,595,965 by 2014 with 9.8% compound returns. That’s “magic”, in my world.

8) Always Learn and Grow as An Investor

My DIY investing journey has been fulfilling so far. But I also know that I can further improve my odds of success by continuously learning, and improving my investing craft. This is why I recently met with some of Canada’s Top Investors. 28 in total. Those Top Investors told me how they invest in stocks, bonds, and options; sharing their proven investing strategies. It was enlightening. So I decided to put all of their investment advice into a book – Market Masters. You can now purchase Market Masters in Chapters, Indigo, and Coles stores across Canada as well as online on Amazon.ca and Indigo.ca.

I recently met with some of Canada’s Top Investors. 28 in total. Those Top Investors told me how they invest in stocks, bonds, and options; sharing their proven investing strategies.

My 8-Step Wealth Building Journey (Re-cap):

1) Study Successful Investors

2) Earn and Save Money When You Are Young

3) Understand How to Compound Money

4) Invest in Stocks for the Long Run

5) Capitalize on Crises in the Market (i.e., Buy Low When You Can)

6) Manage and Refine Your Stock Portfolio

7) Stick to Your Investment Strategy

8) Always Learn and Grow as An Investor

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If this is your first time on my blog, check out these top blog posts, too:

  1. My Interview with Francis Chou
  2. 22 Investing Lessons From Jason Donville
  3. How to Find Tenbaggers
  4. Beating the TSX (BTSX)
  5. How I Pick Winning Stocks
  6. Canadian Capital Compounders
  7. Next Capital Compounders
  8. Small Companies; Big Dreams – Future 60 MicroCaps

***PLUS Email Me Now for a FREE copy of my new book – Capital Compounders***

**************

MarketMasters

Robin Speziale is the national bestselling author of Market Masters, which is available at Chapters, Indigo, and Coles as well as Costco and Amazon.ca. He lives in Toronto, Ontario. Learn more about Market Masters.

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Top 5 Investment Ideas from Cantech 2019 (Guest Post)

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My friend, and fellow DIY Investor, Liam Zerter, visited the Cantech Conference in Toronto this year (2019), and wrote about his thoughts on five of the MicroCap companies that were there (three of which are included in my Future 60 MicroCap stocks list – Good Life Networks, Kraken Robotics, and Patriot One Technologies).

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By Liam Zerter:

I got a chance this year to participate in the 2019 Cantech Investment Conference, a showcase of multiple innovative and relatively unknown small cap companies. Here is my quick review and ranking of the most interesting companies on my visit.

1. Good Life Networks – A digital advertising company that operates the world’s highest-speed programmatic video ad exchange. Unfortunately, I did not get to speak to anyone from this company, but it was fellow Capital Compounder member Thomas Birnie that brought this company to my attention. When he mentioned it was trading at 2x EBITDA, my Spidey senses picked up immediately (Even though I am not a fan of adjusted EBITDA). The first introduction for me to this company was from diving into the latest conference call. On my first impression, I thought the CEO got subbed in for the voice guy from all those movie commercials. I quickly found out this was the actual CEO Jesse Dylan. He just happened to be a radio host in a past life. Apparently being done work at 9:30 lead him into becoming a proficient business dealer and negotiator, simply because at 9:30 am there “was no one around to play with”. There is a lot more to dig into for assessing the talent of this company, but at first glance, it looks promising with competencies in sales and programming capabilities.

If the company The Trade Desk is a stock market equivalent of a broker, just in selling online video advertisements. Then Good Life Networks would be the actual technology integrating and providing the activity for the act of selling and bullying. Or consider it as the stock exchange equivalent, but for online video advertisement. The competitive advantages right now is in the speed to make advertisement video streaming decisions, the ability to weed out false advertisement space, protecting the anonymity of user identity (which has become a significant issue for the likes of Facebook and Google that are under fire for this by governments), and higher quality audience targeting through the use of AI learning. Of the two acquisition of Impression X and 495 Communications, it is in my opinion that Impression X is the more accretive acquisition to Good Life Networks strategy. Impression X connects video streaming to smart TV’s and devices like Roku, and Apple TV, which could be a great expansion avenue.

Good Life Networks currently trades at trailing 1x sales, and 0.5x sales after adjusting in the two new acquisitions. 2019 and 2020 are forecasted to hit $67 million and $100 million respectively in revenue. Good Life somehow picked up a very good deal in debt financing at prime + ¾% (This blows my mind! This should not be possible for such a small company). Dilution to acquire the two new acquisitions caused the share count to jump up to 93 million with all warrants and options factored in. 0% attrition of clients (but the company has only been around a short time). I expect further acquisitions as this company attempts to string together a full-service company, perhaps similar to that of its competitor AppNexus which got bought out for $1.6 billion. At a market cap of just over $20 million, there is a lot of potential for this company, and it is clearly mispriced when considering its potential and quick success. By end of 2019, the company could reasonably trade at 1.5x to 2x sales if it hits its targets, putting a price target on the company between $1.09 to $1.45 (Which….is a price target that makes me sound like a complete and utter nutcase as it trades at $0.31). The current concerns I have is how defendable a moat it currently has. A company like AppNexus or The Trade Desk with significantly more resources could move into their space and crush their main business. I currently hold a new position in Good Life Networks.

2. Xebec Adsorption – A manufacturer of equipment that transforms raw gasses, such as the off-put from landfills, wastewater treatment facilities, and farms into renewable natural gas and hydrogen. The company has a strong backlog in Italy and France as a result of EU government’s pursuit to reduce the impacts of climate change. Strong future growth potential exists in the U.S. and Canada through contract wins for new builds and tuck in acquisitions of smaller companies in the $1-$5 million range. This will allow Xebec Adsorption to build out its recurring revenue servicing arm. The company’s competitive advantage is in its technologies ability to recover gasses more efficiently than its competitors, leading to more profitability by its users who can then collect higher gas volumes for resale. The company currently trades at $1.05, with a $71.4 million backlog, and a market cap of $68 million. Revenue in 2017 of $14 million growing to a projected $28 million to close out 2018 shows the company has finally hit an inflection point. 2019 revenue targets are $40 million with 25% as recurring revenue.

Management has a target for EPS of $.05 – $.07 for 2019. My favorite aspect of this company came from when talking to CEO Kurt Sorschak about his greatest fear. His response was if his company gets taken out before it gets to realize its full potential. If a takeover offer occurred, let’s say 50% above market price. His 14% ownership won’t be enough to defend against the instant gratification that shareholders would most likely accept if such a scenario occurred (Kurt is hungry, I like this guy!). In my opinion, considering the defensiveness of the industry and the growth Xebec could experience, trading at 20x 2019 eps would be a fair valuation. If Xebec can deliver, and come out of 2019 with $.06 cents in clean diluted EPS, I see no reason for the company not to trade at $1.20 at a minimum. However, on the risks side, Xebec could experience cost overruns during this high growth period. I currently hold a new position in Xebec Adsorption.

3. Kraken Robotics – A marine technology company engaged in the design, development and marketing of advanced sensors, software and underwater robotics for Unmanned Maritime Vehicles used in military and commercial applications. Speaking to the CFO and the Investor Relations group the hired at the conference, this is easily the smartest collection of people in the conference. I heard a stat once that there were over 450 separate drone manufacturers. Think of Kraken Robotics as underwater drones that sell for $1 million plus, and in most of the different forms of servicing there are really on 2 competitors that can do any one type of service effectively. The reason behind this is that lithium batteries under a great deal of pressure are going to explode at major ocean depths. The Germany acquisition for the lithium gel batteries made by Kraken was transformational in that this allowed them to fully manufacture a subversive drone, and now at a cost far less than the competition. Kraken robots are more efficient than their competitors at scanning the bottom service of the ocean, and one unit can be built and sold with a healthy margin. Talking to the CFO, his big dream in 5 years is to have revenue at a stable minimum of $100 million a year with 30% coming from recurring revenue projects. I believe this is one to watch for a dip in order to get a position, as at a market cap of $93 million the company might be a little bit ahead of itself. I like management and I think it has a great defensible niche where it is positioned to dominate its market. If their devices start getting used in military applications at just a fraction of the way air based drones are used, this company could take off. Kraken Robotics is on my watch list.

4. Patriot One Technologies – Covert weapon detection systems. This is simply a great idea. These guys have built a smart scanning system that scans to pick up trace metal detections and signature patterns that make up the identity of dangerous weapons. When it scans for signals, it measures all items across a database and alerts security when it comes across a dangerous item. The great thing about this product is that you can hide it inconspicuously without anyone knowing it’s there. Patriot One also entered into a joint venture to develop a chemical detection scanner for narcotics, chemical agents, and volatile organics. The business also has a smart video surveillance system leading to a potentially even broader service offering. Just watching this morning’s episode of the Daily Show and finding out that schools in the U.S. will pay $400,000 just for bulletproof glass or $1,500 a pop to just purchase projection style pepper spray in batches of a dozen or more, you quickly get a concept of how big the market is for anti-school shooting safety programs.

Currently, the PATSCAN covert weapons detection system is still in trial. The true positive rate is only at 91.6% and the true negative rate is at 94.4%. I see the true negative rate is a bit of an issue. If 1/20th of the signals is a ghost signal identifying something dangerous has passed through an area, the system will essentially be “calling wolf” a bit too frequently to be trusted. However, this technology is still in the early stages and likely will improve in time, and the video monitoring AI is a great complement to follow up and reassess the potential threat. At a market cap over $300 million, the market has already priced in some big expectations for this company. Patriot One Technologies is on my watch list.

5. Timia Capital – A little while ago I came across a podcast on esoteric lending on Patrick O’Shaughnessy’s Invest like the Best. Essentially esoteric lending is the process of using different data points to identify clients that were deemed risky by traditional banking risk measurement procedures, but in reality, this is actually far from the truth. Timia Capital has an interesting niche in lending out with credit terms of 20% interest to high growth technology companies. When you think about a technology companies assets in today’s world, they essentially don’t have any hard assets. A technology company’s patents, goodwill, and people are what makes up the value of these companies balance sheets, which is not the kind of asset make up that a traditional bank considers high quality. Using complex algorithms Timia Capital invests in companies that are growing so fast, and have such high cash flows, and so little in real assets, that they have nowhere else to turn to for getting the working capital needed to expand. Timia also structures the deal so that they get payments to the loan as a percentage of the revenue that comes in. If the company defaults they take ownership and can sell the company off at a decent return. This company has a great concept, however it’s a bit too small. It needs to grow larger to have the economies of scale to show decent profitability that will capture my interest. Management mentioned they were planning on meeting with Constellation Software that week in Toronto for a reason they did not divulge, so this caught a bit of my attention. Timia Capital is on my watch list, and I expect it to take some time until it can become attractive.

***Information above was pieced together using company websites, yahoo finance, presentation materials, and discussion with management. The accuracy of information is to the best of my knowledge.

Future 60 Canadian MicroCaps – Update (2019)

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/// Top 10 Winners +55% Since Inception (July 10, 2018) ///

Let’s check in on the Future 60 Canadian MicroCaps that I wrote about in the Summer of 2018; “Small Companies; Big Dreams“. It was a fun newsletter (and one of the most popular, breaking through the top 5 most-viewed issues of all time).

Some stats, since inception (July 10, 2018):

Future 60 MicroCaps: -8.4%

  • Top 10 Winners: +55.5%
  • “Highest Growth” (1/3): +5.2%
  • Takeovers (3): + 61.6%

S&P/TSX Venture Index: -17%
S&P/TSX Composite Index: -5.5%

Shortly after writing “Small Companies; Big Dreams”, markets around the world started to correct, and so -8.4% since inception (Future 60 MicroCaps) doesn’t concern me. These are very small companies (< $100M market cap), and mostly listed on the TSX Venture, which was down -17% over the same period (July 10th – Feb 12th). What excites me is the growth potential in some of these small companies. In the original issue, I segmented 1/3 of the Future 60 into a “Highest Proven Growth” sub-list, because those 21 out of 60 stocks had all achieved the following hurdles:

  • >= 0% Latest Quarter YoY Revenue Growth (Average = 26%)
  • >= 0% Latest Annual YoY Revenue Growth (Average = 39%)
  • >= 0% Last 5-Year Revenue CAGR (Average = 21%)
  • >= 0% Cash Flow Yield (Average = 8.6%)

Here’s how those “Highest Proven Growth” stocks have done since July 10, 2018:

Company  Ticker Since Inception
Bevo Agro* BVO 163.5%
Evergreen Gaming TNA 73.9%
Xpel Technologies DAP.U 25.6%
Redishred Capital KUT 21.0%
Caldwell Partners International CWL 18.2%
Hamilton Thorne HTL 16.9%
Sunora Foods SNF 16.7%
Cortex Business Solutions* CBX 12.3%
Namsys CTZ 9.7%
Symbility Solutions* SY 8.9%
Intrinsyc Technologies ITC 5.7%
Quarterhill QTRH -8.5%
Avante Logixx XX -12.4%
Titanium Transportation TTR -15.5%
Swiss Water Decaffeinated Coffee SWP -17.3%
Wi2Wi YTY -25.0%
AirIQ IQ -26.3%
Partner Jet PJT -34.3%
Diamond Estates Wine & Spirits DWS -38.2%
Nanotech Security NTS -43.1%
Organic Garage OG -43.5%
Average  +5.2%

The above “Highest Proven Growth” sub-list of Future 60 MicroCaps gained +5.2% (v.s. -17% for the S&P/TSX Venture Composite Index), and contained all of the companies (3) from the Future 60 list that were taken-over(*) since July 10, 2018: Bevo Agro (+163.5%), Cortex Business Solutions (+12.3%), and Symbility Solutions (+8.9%). Naturally, I expect more of these MicroCap stocks to be taken over. Note: I wrote about Bevo Agro (BVO) for the first time in an earlier issue (Aug, 2017), and since then it’s gained +345%.

There were some surprises in the Top 10 Winners (+55.5%), which I recently posted on Patreon, along with the complete spreadsheet of Future 60 MicroCaps that you can check out, and follow as the list evolves. There’s 85+ members now, and more goodies, including new audio interviews with Jason Donville, and Francois Rochon (more coming soon…), My Top 15 Best Ideas for 2019 (+14.6% YTD), and more.

$5 VIP Investing Package (Patreon) – Join Now

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I’ve partnered with Patreon to give DIY Investors & Readers the VIP Experience. For only $10 $5/month, I will provide you with exclusive access to the following:
  • Best 15 Ideas for 2019 (+14.6% YTD – Jan)
  • Seven (7) Model Growth Portfolios
  • In-Depth Investor Interviews (audio) – Jason Donville, Francois Rochon, plus more coming soon
  • Capital Compounders Club (700+ Members)
  • Talkin’Stocks Private Chat Group – Discord
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Update (Feb, 2019): I recently uploaded a bunch of new content for on Patreon.com/RobinSpeziale. My Best 15 Ideas YTD Performance (+14.6%), Audio interview with Francois Rochon, Jason Donville’s Top 10 Ideas for 2019, and a 1 Year Free subscription to Wealthica’s Premium Sheet.

How to Join:

Click on ‘Become a Patron‘ now! You’ll immediately get access to everything. Plus, you can easily cancel anytime. If you have any questions, email me at r.speziale@gmail.com.

Jason Donville II (2019)

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/// My Follow-up Interview with Jason Donville (2019) ///

I featured Jason Donville (hedge fund manager), among other top Canadian investors, in my National Bestselling Book; Market Masters (2016). Since then, we have been in touch, but haven’t done an official follow-up interview… until now.

I met Jason sometime in January 2019 in his downtown Toronto office. Here’s what we talked about (90+ minute conversation):

  • Current strategy and stock selection process
  • New ideas
  • Portfolio breakdown – industries, trends, company size
  • Long-term winners
  • Stock market outlook and observations
  • Beating the market over the long run
  • 10-year punchcard
  • Thought process for DIY investors
  • Risk management (including shorts)
  • Future plans
  • Random facts, and more…

I’ve already posted this full 90+ minute audio interview w/ Jason Donville on Patreon, for all members. Are you interested in listening? Join Now (there’s more goodies too..)

YTD 2019 (January) Performance – My Best 15 Ideas

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/// My Best 15 Ideas Up +14.6% in 2019 (YTD January) ///

I just posted an update on Patreon;

My Best 15 Ideas: +14.6%
TSX Composite: +8.26%
S&P 500: +7.97%
DJIA: +7.44%

Do you want to see my Best 15 Ideas?Learn more. There’s lots more goodies, including a new 60 min in-depth audio interview with Francois Rochon (Giverny Capital), Jason Donville’s “Top 10 Picks for 2019” (source: DKAM Presentation in Toronto, Jan 30th, 2019), and Wealthica’s Premium Sheet, where you can see all of your investments in one place.

More coming soon…

(P.S. You can still grab a complimentary copy of my new book, Capital Compoundershere)

2019 and Beyond

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*** Update: My Best 15 Ideas for 2019 are up +14.6% YTD (Jan). Learn more. ***

It’s that time of the year again. I just posted the Best 15 Stock Ideas for 2019 on Patreon. If you’re interested in joining and becoming a member (there’s 45+ now!), learn more here. On Patreon, you’ll get access to the 2019 Best Ideas list, as well as many more goodies…

I’ve even thrown in a “lottery ticket” idea for 2019 and beyond — Bitcoin. I’ll be called crazy for believing in cryptocurrency, but I now think there’s a future for Bitcoin (and maybe some others such as Ethereum…). However, that doesn’t mean Bitcoin will go to the moon. Some readers will remember that in last year’s “2018 Ideas” newsletter, I said that Bitcoin’s parabolic run-up to $20,000 USD, and the entire cryptocurrency market had “gotta be a bubble”.

I was right. The latest cryptocurrency bubble (2017) popped, and Bitcoin lost 85% of its value through 2018. It’s currently in a bear market. Most crypto-coins will never rebound (similar to what happened in the 2000 dot-com bubble). But I have a hunch that some institutions, hedge funds, and family offices are now accumulating Bitcoin during this bear market. It’s impossible to ignore now; they won’t want to miss the next rally, and a direct stake in cryptocurrency can potentially hedge a portfolio in the future.

It’s a possibility. I was reading the latest edition of The Economist, and they featured a UBS/Campden report, which surveyed 311 Family Offices (Feb-May 2018); here’s the current asset breakdown (average portfolio %):

28.0% Equities
18.1% Property
16.2% Bonds
14.0% Direct Investment (Private Equity)
7.6% Funds (Private Equity)
7.0% Cash
5.7% Hedge Funds
3.4% Commodities
(X% Cryptocurrencies?… maybe soon)

There’s a lot to like about Bitcoin: Decentralized. Non-inflationary. No middleman (e.g. financial institution), etc. I wouldn’t be surprised to see Bitcoin accepted one day at McDonald’s, and in the future — everywhere. Apparently, 8% of Americans currently have a cryptocurrency wallet (based on a survey), and that’s expected to grow (to ~100%?). Imagine… a global, trusted cryptocurrency that can be used anywhere, by everyone.

Ok, maybe I’ve had too much rum n’ Eggnog today. But if you are intrigued at all, and want to dabble (cautiously) in cryptocurrency, you can use this link to get $10 USD in Bitcoin on Coinbase. Merry Christmas, and Happy Holidays!

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Robin Claus II

Investing

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SubscribeSubscribe Now to My Newsletter (Join 3,500 Subscribers!)

I’m in a giving mood (again). It’s become an annual tradition. Last year, I gave away complimentary copies of my paperback, Market Masters. This year, it’s a very special package that I’ve put together for you. Have a look:

  • Seven (7) Model Growth Portfolios
  • Talkin’Stocks Private Chat Group – Discord
  • $19.95 CAD Paperback Book – Capital Compounders
  • $25.00 CAD Audiobook – Capital Compounders
  • $9.95 CAD eBook (ePUB) – Market Masters
  • One-on-One Conversations
  • Capital Compounders Club (700+ Members)
  • Subscription to My Investment Newsletter
  • Events and Get-togethers
  • Other Freebies, and More!

Interested? Learn More.

My Portfolio Update (Nov 27)

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*** I originally sent this newsletter issue to my 4,000 subscribers on November 27, 2018 ***

/// Grab a copy of my new book – Capital Compounders ///

It’s interesting how quickly market sentiment can turn. We’ve gone from hot to cold seemingly overnight. My stock portfolio has dropped in value and I’m sure yours has too. Currently, there’s lots of pessimism in stock markets around the world – Canada, U.S., Europe, India, China, and pretty much everywhere else. We’re in the midst of a correction with ~10%+ declines from highs among the S&P 500, DJIA, TSX Composite, and other indexes. My Facebook Group, YouTube Channel, and other platforms’ activity has gone down. All I can hear are crickets.

Some say that this is the start of a long bear market, and that declines will continue from here, “so you should sell all of your stocks”. Rising rates, punishing trade wars, and ballooning debt loads are among the worries. Plus we’re around 10 years into what many so-called experts call a “prolonged bull market”. The worries are warranted, and should not be completely discounted. It can be scary. My Mom even texted me last week, asking “what is going on with my investment account…it keeps going down”. Don’t worry, Mom. Times like these excite me; let me explain…

I’ve never regretted pumping more money into stocks when the broad market was in decline, and sentiment was gloomy. During the decline it’s scary and feels downright stupid to invest more into my existing holdings, but in hindsight it’s always been the right decision. I’ve never called the exact bottoms, and if I did I would be on a beach somewhere, but this is how you build wealth in the stock market; it’s not a sprint, it’s a marathon.

Over the past couple of days, I pored over the latest quarterly reports of my existing stock holdings, and added money to the companies that posted solid results with unchanged guidance, but still suffered a 10% – 40% drop in their stock prices. In the future, I’ll know whether I made the right decision. And if the market declines further from here, I’ll look to add more capital. It’s impossible to time the market. That’s what I’ve accepted; I don’t know where the market is going in the short term, but I do know that that it’s going up in the long term. I’m an optimist. But I’m also a realist; not all of my stock picks will be winners, and that’s ok.

You might be at that point too where you don’t know where the market is heading from here. You’re contemplating whether or not you should add more money to your existing stocks, and wondering if there’s other discounted opportunities out there. If you have picked up my new book, Capital Compounders, flip to Chapter 20: My Universe of Growth Stocks. In this chapter, you might find some ideas that you’d like to conduct more research on.

I wish you well out there. Investing can be tough, but the more years you’re in the stock market, the more desensitized you become to the declines, and the more aware you are about the ability to compound wealth faster if you stay invested, buying at depressed levels. Most people understand this truth, especially the older readers. But while there’s lots of smart people out there, from doctors to lawyers, not everyone can stomach the market, and most people just want to become a gazillionaire overnight. That’s not going to happen.

Some dip their toe into the stock market, and quickly jump out. Others are perpetually scared and will never try to swim. That’s why when someone new to investing asks me what to do in the beginning, I always tell them: “lose money early; develop thick skin”. They think I’m crazy but that’s the best lesson that I cannot teach them. After one loses money, and then later develops their own investment strategy, including what stocks to buy in their universe, making money in the market becomes easier, but not easy.

Plant seeds, and water the trees. Invest for the long run and you will build wealth.

Regards, and happy investing,

Robin

*** I originally sent this newsletter issue to my 4,000 subscribers on November 27, 2018 ***

Audiobook Giveaway (9 Free Audible Codes) – Capital Compounders

Investing

Capital Compounders is now available as an audiobook, releasing worldwide on Audible, iTunes, and Amazon (November 14, 2018).

In my book, you’ll learn how to beat the market and make money investing in growth stocks.

In celebration, I’m giving away nine (9) Audible codes, for free download of the audiobook. It’s first come, first serve:

TPFSWMGB4P9UJ
C9HF8ZJYU25DS
7CNX2P4AC846T
YNTSC2XQ8N2HM
DEENZ8N6K4T3J
YNSNJTQ34TT3M
MPX3KGE26Z5AZ
LALAWTF6Y9DPS
M5FFD554S89KW

Instructions:

1. Go to my book’s page on Audible.com: https://www.audible.com/pd/B07K6W8H1F

2. Add the audiobook to your cart

3. If you are prompted to sign in, please create a new Audible.com account or log in.

4. Go to https://www.audible.com/at/redeem. Enter the promo code and click “Redeem” to receive a credit for the title in your cart.

5. Head back to your cart. Make sure the button that says “1 Credit” is selected and that your subtotal reads $0.00 dollars.

6. You may proceed through the checkout by clicking “Proceed to Checkout” and “Complete purchase” on the subsequent page.

Update

Investing
  • Capital Compounders reached #1 Hot New Release in its first week (November 4th – 11th)
  • Audiobook is now available through Audible, Amazon, and iTunes, so you can listen to the book anywhere
  • Virtually all Public Libraries across Canada have the book on order
  • Some Universities and Colleges are starting to place orders
  • Signed a distribution deal in India, and so Flipkart will soon carry and sell the book in India
  • Famous investor, Mohnish Pabrai, picked up a copy to read
  • You can order Capital Compounders anywhere worldwide; Amazon, Barnes and Noble, Indigo, Book Depository, Books-a-Million, and soon – Flipkart
  • The eBook is still a complimentary download on http://CapitalCompounders.com