Consuming Too Much Investing Information

 

Just a short post today about consuming too much investing information and how that can in most cases influence our investing decisions.

I like to read a lot and do my own investing through a self directed brokerage account and as such pick what I buy and when to sell if need be.

I am usually a net buyer of stocks and rarely sell any investments I've made. I just choose big boring Canadian Dividend Growth Stocks and let them ride to help supplement our pension income in retirement. My wife is still working PT so we have that luxury of having her income at the moment.

My stock choices mainly come from the financial, utilities, pipeline and telco sectors. Why? They just have a history of paying and raising dividends which is my goal in retirement. To grow income through dividend investing. Check the link below for a fantastic read which explains this strategy further.

Income Investing

Traps to Avoid

1. Buying whatever is recommended by a financial guest on TV without investigating the company on your own.
   
   
2. Trading to frequently based on perceived bad  To Learn Fromeconomic news.
   
   
3. Selling good solid companies because your friend said he heard some negative chatter about the company.
   
   
4. Don't get all tied up in reading about different investing strategies that you have doubts about just because this guy is doing it.
   
   
5. Switching from one form of a plan to another because you lack confidence.
   
   
   

My Mistakes to Learn From

• Invested in mutual funds 
• Switched to ETFs
• Switched to the Permanent Portfolio
• Switched to the Couch Potato Portfolio
• Switched to all in one balanced mutual fund
• Switched back to all in one asset allocation ETF
• Started to pick my own individual dividend growth stocks

As you can see a lot of changes as the years ticked by. I get asked a lot about what investing strategy is the best. My answer is usually, whatever allows you to sleep at night. Whatever you do pick one and have confidence in your decision. There is no need to jump back and forth because you heard that doing it this way is better.

The above changes and switches in strategy  have cost me thousands throughout the years. No need for you to do this as I've hopefully saved you some time and heartache.

Why I Like Dividends

• getting paid regularly
• it's fun
• watching the dividend income grow
• participating in stock splits
• no fees other than buying premiums
• allows for dividend reinvestment
• allows you to hedge against monthly bills

These are just some of the reasons I enjoy doing my own investing and collecting dividends. This shouldn't be stressful and you don't need to doubt yourself by buying anything you know nothing about.

I just prefer to buy my own companies and not the whole market through mutual funds or ETFs. You might like this approach but it's not my jam.

In Sum

I find it just best to avoid listening to financial TV and buying the top picks of some investment advisor. Really? People do this. Ya, they do. How many picks a show multiplied by how many shows in a year. That's a lot of different picks. Are they all winners? Are they right for you?

I suggest turning the TV off, reading a lot of books on investing at your local library. Put in the work and have confidence in knowing there is no need to jump in and out of different strategies because you doubt your choices.

You can always sell that company if you want to but selling the whole portfolio and switching to something else will be very costly.

Consuming too much financial and economic news can be deadly to your financial if you act on it. Control yourself and enjoy the rest of your life. We are not professionals using other people's money. We have to be smart and take good care of our own cash.

Further Reading

Your Ever Growing Income

Salary for Life

Your TFSA Compounder