The Stingy News Weekly (10/29/2016)
New from StingyInvestor
The salary class
"A few years ago he gave investors a second choice that proved to be even more popular. Investors in the ROMC Fund 'salary series,' pay Mr. McLean a flat annual salary for his services. As a result, the fractional fee they pay declines as the fund's assets rise, which is highly unusual. Indeed, it is - as far as I can tell - unique for a Canadian hedge fund." [$]
The price of financial advice
"The good news is there are several ways to cut fees, some without cutting out an advisor. Broadly speaking there are three ways to do it. You can keep the individualized advice but move to a portfolio of low-fee funds. Or you can opt to do your own planning and choose a low-fee portfolio of professionally managed funds. Finally, those with sufficient knowledge and experience can do it on their own and cut costs to the bone."
Dividend All-Stars 2016
"We're pleased to say that our efforts have also been highly profitable over the long term. If you had purchased an equal dollar amount of each A-graded stock in your RRSP and rolled the proceeds into the new ones each year, you'd have gained a total of 148% since we started back in 2007. Similarly, a portfolio of A and B stocks would have climbed 88%. By way of comparison, the S&P/TSX Composite ETF (XIC) logged a return of 39% over the same period while the Select Dividend ETF (XDV) advanced 50%."
How Venezuela imploded
"Things are pretty bad right now in Venezuela. Grocery stores don't have enough food. Hospitals don't have basic supplies, like gauze. Child mortality is spiking. Businesses are shuttering. It's one of the epic economic collapses of our time. And it was totally avoidable." [World]
Of milk cows and moats
"When considering businesses that rely on a given locality, ask how the health of the locality affects the business. It's worth considering. For those who invest in municipal bonds, it is a critical factor. Particularly as the Baby Boomers age, weak municipalities will come under pressure. Stick with strong municipalities, and services that would be impossible to do without." [Government]
Watching the flows
"As the available research shows (and anyone with experience in the business knows), flows follow performance. To varying degrees, it is true in every part of the investment world. Individuals and institutional investors alike chase performance. Avoiding that tendency is behaviorally difficult but essential for long-term success" [Behaviour]
Give up the news for a week
"No matter what your reasons for being a news junkie, researchers are finding that consuming news on an hourly or even daily basis is bad for your brain. Studies have shown that an overabundance of news can make you depressed, anxious, and, for the most part, doesn't usually provide you with the ability to actually change or influence anything being reported." [Behaviour]
Choose time over money
"Although the majority of people chose more money, choosing more time was associated with greater happiness - even controlling for existing levels of available time and money." [Behaviour]
Semi-retirement is more fun
"I have described elsewhere that my vision of Semi-Retirement is to find a balance that.s neither too busy and stressful nor too leisurely and boring: or as the subtitle of the book has it, Work while you play, Play while you work." [Retirement]
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