Roaming Returns

025 - Our Full Portfolio Unveiled So You Can See Exactly What We're Holding

December 26, 2023 Tim & Carmela Episode 25
Roaming Returns
025 - Our Full Portfolio Unveiled So You Can See Exactly What We're Holding
Show Notes Transcript

We've dropped a lot of tickers throughout previous episodes, but curious about what stocks we're actually holding? This episode is the full unveiling of all the different investments that we hold in our portfolios.

And if you prefer a more conservative investing approach, we also cover the assets in  Carmela's mom's retirement account.  As an added bonus, we show you some other investments that our nomadic friends over at FnA Vanlife hold in their portfolio.

Even though we aren't up much in value, we're up A LOT in dividend income and share quantities, which is what really matters.

There's no way we could share all the tickers here, but here's the link to a spreadsheet with all the tickers. 

Drop your comments or questions for this episode on one of our posts.  

If you're looking for a more detailed summary of this episode, click here.

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Ticker metrics change as markets and companies change, so always do your own research. The content in this podcast is based on personal experience and is for educational purposes, not financial advice. See full disclaimer here.

Episode music was created using Loudly.

Welcome to Roaming Returns, a podcast about generating a passive income through investing so that you don't have to wait till retirement to live your passions.

This is the one that everybody that's been patient for months is probably going to be whoa
is our Christmas present to you, our avid listeners, our avid listener is way more than one set up.
This is where I go over three portfolios of what we actually have And I used I can tell you the ones where I use the hybrid strategy. And then other ones where I just said, that one looks good. And by hybrid strategy,
you mean what? Where I was, like all the rates
while I use the contrarian investing in method where like everybody was selling REIT so I was just picking up REIT shares and like quality companies. So contrarian is
when a person uses a investing methodology that goes against the grain of what everybody else is doing. So if you remember back
when we were discussing the psychological biases, one of the biases is herd mentality. So I'm actually using that bias to our advantage to our advantage by not following the herd controller and basically does the opposite of what everyone else does.
Yeah, contrary just remember kind of value investors when you
find a company that's like, well, what Warren Buffett does where you find a company, that good company that's undervalued, it's trading for well, less than they should be trading for. So what I do though, when I when I did to put these together as I basically found like sectors where people were just like, oh, that sector shit, we're not going to invest in that. And then I went through and I value invested with Okay, well, that this is the best. This is one of the best Rei T's and it's trading that like 60% undervalue that there's other ones out there that have a higher dividend. So if you're just strictly about income and you do the contrarian, you might be okay. But I like the whole long term growth, wait for it to get back to where it should be while collecting dividends in a really good company. So using this hybrid strategy, you kind
of get the best of both worlds, you get the dividends and you get a bit of the growth appreciation with the price. So
this like the what the first one that I did that with was ABR, Harbor, whatever. It's a REIT. I did that one. I got that for 1407 and it's currently like $16 and it's fraud. I think the actual like, fair market value that's like around 20 to 22. So you're gonna like sold that for example, like few years this? Basically the rates were pushed down ABR is technically a read even though it's could be a BDC. But technically, it's a read. So it was pushed out because the higher interest rates so that I found it's like probably one of the best Rei T's out there. And, and if you compare it to its peers in this sector, it's probably when we got it, it was probably 40% undervalued. So you basically hold it for a while that accumulates that 40% And you collect the dividend yield, which is what 14% The entire time to get great dividend
payout you get an under an asset that's on sale. Great company that's on sale. So I'm just gonna go over the rates
that I picked up like that ABR which I mentioned, this is in our portfolio I don't have it broke down into like the three portfolios. AFC G which is a marijuana REIT, a G and C which is I think it's just the mortgage rate like they just sell mortgage mortgages and whatnot, APR, which is a specialized rate, they have like the the shopping mall type things and they have like the movie theaters and they have like, indoor golf and also they have all sorts of crazy shit. They're actually really cool one indoor golf. Yep. indoor golf golf galaxy. MPW, which we've been talking about at nauseam and that I believe is my REITs Yes, that's all the REITs so I picked that I picked up those five Rei T's I got those all, at least 30 to 40% off of their, their fair market value. And I think though, which one I think EPR has the lowest yield at like seven and a half percent. So they all have a really good yield, which reads generally do because they have to pass through 90% of their their profit to the shareholders. So REITs are a good investment for income investors. Do you need to refresh on that? Go back to that episode that we talked about reach specifically. Then the next group that was pushed down a lot because of interest rates was the BDCs BDC is like one of the like, one of the two of the ones that we talked about that nauseam was Hercules, capital, and Trinity capital. And then we also I'm sorry, HTC and TR i n. And then we also picked up we just started a position in Main Street capital ma i n. And one more we're talking nonstop about main
main I have a really like I think
it has because it grows its dividend every year. It's like I think it's gonna be a really good one. S O S LRC. That's the fourth BDC we got and again, they're all super undervalued and I think the lowest think Mainstreet has the lowest yield now and that's like 7%. So like whenever we first started talking about this, this was something that I wanted to like address. I don't know if I did a did it justice. We do invest in a lot of double digit, sometimes in the 20% yields but we also have sprinkled in throughout that like conservative, six and seven and 8% dividend yield. We even have Camping World which you know is only like a 2% or 9% Yo I'm sorry. And we have the egg one egg one is sometimes 10%. Sometimes it's 1%. It depends on like that, that one they basically just give you a dividend based on their profits after everything. Second Kevin world's
9% But it was 2% It was 2%. Well, what we got in at is probably 2% Right?
Probably 2% So that is the BDCs. Then we have some yield maxes that we discussed ad nauseam. Again another thing we just discuss about him we haven't done an episode yet okay, well, we're have a we have an episode devoted to this in the future. But yield Max they have like I think they have 20 Different ETs that you can invest in each. Each ETF is an individual company like we told you about the Tesla one TSL y is basically they have covered they have options on the Tesla stock. So they make up their dividend payouts
basically by trading options in just the Tesla stock. So we have TSL y
we have NVDY which is in the video. We have AMZ y which is Amazon we have co NY which is coin base and we have MS F O which is Microsoft as you can see, if you invest invested in those individual companies you would literally get maybe half a percent and dividends, dividends but because the the whole purpose of the EO max if you actually go on their website their whole purpose is to give you income income for holding the Health Options in the stock so if you think like they have a paper one which I just got her dad's retirement into, do you think like the Pay Pal stock itself is a good investment and then it'll go up then you might want to consider the Pay Pal ETF through yield Max as opposed to holding the tape house stock itself. And the other reason we like these
compared to the actual stocks is because most of those stocks are so popular they're usually overvalued, like significantly high P e is yes.
Ridiculously overvalued. It's hard to get into those at a good
price to really reap any growth from them that I've been
in the emails. I don't think I've mentioned it too much in the podcast, but in the emails. I'm pretty bullish on utilities and energy stocks for next year. So we have a few of those who have ARL p, which is a call stock. So I mean, if you have a I don't know a moral problem with investing in coal then you probably want to avoid that one, but that one's a really good one. We have UA n which is a fertilizer stock that we brought up in the bloopers because I will see it on that one. I didn't use the value approach to that one. I use the contrarian approach but I didn't hybrid it with the value in project got that at like 86 and it's trading at like 72 right now. K RP which is like one of my favorite energy stocks that no one knows about because it's a small cap, oil refinery type thing. If you're going to invest in one of these energy stocks, I would suggest K RP because it's the shabam and then any P which is if you're know anything about utility stocks, and E is its parents company, and any E is like one of the utility stocks that everybody at all the experts check try to get you to buy. Well I took the NDP approach because basically what happened is any is electrical. It's electric and Florida and NDP is like it's alternative energy offsuit they got rid of it because they were like, Go away or that you're the redheaded stepchild. So I liked NDP and we got that one like dirt cheap like right now as it stands right now. That is our largest gainer of the year end up. Yeah, and AP is performing
extremely well since Tim had his spidey sense go off about down when he was like
15% 14 or 15%. And it's like it's raised its dividend for like 16 straight years. So that dividend is not going anywhere. It has a lot of free cash. So that's a really good utility stocks to invest in if you're one that you want in the like the defensive strategy of utilities. But the problem with utilities is they're good in down markets, but they're not great in up markets. And I believe we're basically going to have a AI driven bull market here so so what do you think is gonna happen
with our utility stocks? I think it's going to be
they're gonna go up because they went they all got pushed down because they have a lot of debt and their debt was at the interest rates had problems with their, like interest rates and debt, make stock prices go down. So they're gonna go up but they're not gonna go up like the other ones, but they're still gonna go up but like, but like the like, any piece 50% Karpis 12%. I mean, IEP technically is an energy stock too, and it's 23% ua ends like anywhere between 20 and 50% depending on what their profits aren't ARP is 13 to 14%. So all the dividend stocks that I have are super high yield for utility and like that's the beauty of what we mentioned at the top of this, if you invest with the value mindset after you identify a contrarian sector to invest in if you use the value approach, you know they're all undervalued and that you're going to be collecting these 12 1314 20% dividends and the stock is gonna go event it'll eventually get up to where the fair market value is. I believe they call that a
moat. It's when you actually price in like a buffer moat whenever
they're like, like Amazon has a moat. Oh,
you're okay. Everybody that's talking means like they have they
have a specific business that no one else nobody else can talk about. It's it's the nice way
of saying monopoly.
Amazon Amazon has the monopoly of commerce and Maylene and all that stuff in the video has the monopoly of like, the chips and the AI type stuff. And so like, the point I was trying to make is that
there's basically a buffer of use the contrary and in combination with a value investing. There is
so that's like on I never nobody I like I mentioned the previous podcasts. I have a lot of subscriptions, some free, some paid, and I've never came across anything and like he's dawned on me a couple of weeks ago, I was like, Well, hell because they're, they're either contrarian investor or their value investing in are there momentum investing, or they're just like they specific or they're like a sector specific like utility or technology. I've never heard anyone combine them. That's usually what experts
are. They're very deep in one area. And that's what's nice about not being an expert, you can actually look at all the different things that experts are doing and like hybridize your own strategy from it. Take the good, get rid of the bad so like if you don't take
anything from the podcast. I think what we are discussing today is probably the most important thing that you as an income investor can take from it. And I actually started the our email subscription. If you haven't signed up, you should probably sign up because it actually includes like I have a chart now that basically breaks it down. Here's the profit margin of the stocks that I think are the best this week going X div. He's doing the work for you gonna here's what their price to earnings is. And here's what the industry averages so like it's literally all there like you can see like Main Street capital capital, for example, has like an 89% profit margin. So their dividends not going anywhere back it's probably going to be raised which it should be because they've been raising it every year but 89% profit margin means they have room to raise it. And it's currently like 30% under its pure, its peers and price to earnings so it has a good value. So you're gonna be waiting to see you're gonna get it 30% Under undervalued with a really good dividend that has room to grow because all the all the metrics there just show that to you it's very, it's very cool. I'm very excited about that. I actually stumbled upon that somehow and I woke woke up from a nap one day and said hmm, and there there we go. My brain never stops working, apparently, I think it's a great idea.
So if you want to get those in a timely manner, get on the email subscription list. Tons of good info totally does it for you. And even if you're not looking for us to give you pics, you can see what what numbers we're putting in there so you can compare them to what you're potentially researching yourself to make sure you're on the right track. Some like some of
the best stocks that I've came across are like Mo and BTi which are tobacco stocks. Some people don't want to invest in tobacco stocks because they're like this just morally against Yeah, but you can see but I have to list 10 every week that are going ex dividend so that means if you like any of those and you do your research and you've determined that, hey, these are kick ass stocks, well, you know, if you get them before the ex dividend date, you're actually going to get a dividend right away to reinvest. So it's it's nice. Super nice. Okay, back to the portfolio. I just mentioned the icon. I mean, it's technically an MLP but it's been it's an energy MLP. So we could include that in our energy stocks and we have a couple of one offs we have comme ca LM, which is the Ag one what does that actually end commodity? That's a Yeah, some commodity or consumer staple or some consumer staple? That makes more sense. We have Camping World, CW H, which we've talked about a few times. That one's making a comeback. It's up to like $28 now. Well, I believe that one's worth like 40 to 50 So that one's like that's a one to watch. Like, they're gonna start raising the dividend once they get their debt paid off. So once they get their debt to forgiveness, then we have we have a retail one is queer tap KQRT EP, it's a preferred share that is par value is 100. And it's trading at like 38 right now see, it's 62% undervalued with a I don't know 2020 To 23% yield so that's a really good one that like if you know anything about preferred shares, you're awesome if you don't we have actual podcast where we discuss them. I forget which one it is and they'll run them out. I'm not sure we did do preferred shares maybe we did.
I mentioned that one
of them. Basically a preferred shares a lot like a bond like the preferred like I think we've mentioned it with bonds. Generally speaking, if preferred share has a $25 par value. So you know if it's under 25, you're going to get you're getting an A discount it's going to like and they they can call them back at any point after the call date that they want to like a bond. They have a yield like a bond. So they're basically bonds. The only difference between bonds and preferred shares is the price like a bonds are like $900,000 for preferred shares or like between some they're $20 or like, queer tips $30 There's some that are like $10 Like I know, CG sheet CEQP which is a really good oil company has a $10 one. I just checked we
didn't actually do prefer chosen itself. I think it is lumped in with a bond episode. So it's on my list of ones that if you listen to the bond episode
we we highlighted preferred shares there like I think every income portfolio should have them. You don't get like the difference between stocks and preferred shares is stocks. They'll send out like a ballot if you want to vote on like the Boggo know the higher ups that run it or like if they're gonna reorganize from a BDC to an REI t you can vote on it if you're holding shares, whereas you're holding preferred shares. You don't have the voting power you just got you get precedents of
payout. Yeah, so like there's a trade off basically
like the the order is like venture capitalist than preferred shares than bonds then common shares. So you're like so if they ever cut the dividend, like a lot of them have some minimum or if they cut the dividend, that will just accumulate accumulate your your dividend return that you should have got and then whenever they start paying the dividend, again, they'll pay you your back, whatever that is back tax and the preferred shares are
lower risk because you have more of a guarantee of payout. It's kind of like FDIC insurance, kind of I like
them. So maybe we'll have to do that sometime. Yeah. And then on the list once
we get past these fun ones that are we have bond
closing to fund bond things we have why why why PDI a DSU. Those are like all bond things like they basically are closing and funds that just based they invest in different companies bonds, and you get a pretty good return. Blanca DSU is 10% While I was 14% and PDI is 15% yield. So like he would never get that on a bond. I was just going to ask you so what's the
incentive of getting a bond versus buying one of these bond funds? Well, if you got
the bonds when I was beating the table on the bonds, you're getting a percent return plus you're getting the share appreciation. So it depends if they're undervalued.
Like we never would have good we you're never going to get a 40% increase in price and DSU. But you did get that when a couple of the bonds. So then we have the Etn that we brought up. I actually it's on the website and it's under one newsletter, one newsletter. There's usli which we own, which is the oil crude oil Etn. What an Etn is is basically they actually don't invest in the commodity itself. They invest in paper
putting the paper like they're just investing in,
like futures and things like that. I had to clarify because I'm
sure if I had a question they have like usli is it's
follows the US, oh, Crude Oil Fund, and all it is is it's it buys shares and uso so it's investing in paper. But if you think crude oil that's kind of like the options trading of the
ETF the yield Max ETFs but it's with oil, it's with silver and it's with gold and we own SLV which
is the silver one. We don't own GLD AI which is the gold one because we have that one that didn't we did years ago. And then the so those are the two et ends we our SL VO and usli. They both they have variable dividends, but they're generally in the 20% range. And then we have the closing funds that cover the technology sector we have je PQ and we have in MB XG and BXGNBXG and jpQ are the two Tech Tech funds that we follow and they're both offer ridiculous amounts right now. So I wouldn't I mean, they're diversifying the AI sector.
They're diversified
however they're because they're actively managed. So they did I'm assuming now they are the AI they have to be. And then I picked up two new Schwab funds in the last month. X s HD, which is small cap, the high dividend index fund, supposedly pretty sick and SDI V which is super high dividends. Tim likes his small caps.
I love small caps.
I love them so much. And then we have two more to go over we have Beto which I mentioned in passing it's because I expect about Bitcoin to be crazy. Beto basically trades on the futures of Bitcoin and the pays a dividend of like 50%. So it's pretty nice. And we have a one that we got a while ago. It's blue chips, but it's European blue chip. It's a ag Qi and I like that one because that actually pays a pretty good, pretty good dividend. And I think it's like 10% I don't, they just went through a name change. It was ftu for a while now it's this ag Qi thing. But that's our portfolio and like, Why didn't you tell me about that before I
can pass that along to our UK friends. My back. Yeah, you're back on the podcast. Let's cycle back to the whole gold thing. So congrats to any of you who are holding physical gold or gold investing or even the mining gold because they search their little behinds off in this last upswing. My brother called me to have like a full hour and a half discussion about why gold is amazing. I feel like we should have him on here at some point to like talk about gold, gold and
silver and alidium and he has a completely different
investing strategy than we do and no, no one strategy is 100% Perfect. But people have their preferences and they excel in the things that they're good at or what they're interested in watching. So he's doing really well because he's obsessed with what he's obsessed with. But it's completely different. Archie has no faith in the stock market.
The biggest difference he's definitely like a doom and
gloom prepper it's pretty interesting. Our portfolio that was all
of our portfolio there's what 2023 stocks in our portfolio 3333 stocks in our portfolio, which according to
experts, quote unquote experts. That's a lot. Right They say between
12 and 20 is generally the sweet spot. But I just wanted to diversify more like we don't hold more than 5% in any of these positions. And once they get above 5% I'll sell the profits and I'll invest it in the little like the little ones. Well, I think the reason we keep branching
out is because if something is not on in our metrics to buy, if it's one we're already holding, we're going to look for other opportunities to have that money continue to work for us, right? Yeah, I'll probably put like by the time
we're old and gray, I mean, I'm getting there, but by the time she's old and dry, this portfolio will probably have 50 to 60 stocks and that because what happens is, I will find other investments that fit the contrarian method that people are pushing down and they fit the value investing. I'm like, well, that that's a good investment. It doesn't like I don't care if I have 40 or 50 things to monitor. I don't care about that. I just don't want more than 5% at any one investment. I made that mistake and that is in the ass with icon. Yeah, you heard you heard
in the last episode. That was a pretty big, big deuce. But you'll see
like ours is pretty like it's not completely risk free but it's not completely conservative. Either. Like I bet you are average yields probably 11 to 12% for the whole portfolio
for the whole portfolio.
Now if we go into her mother's which we'll discuss her mother's right now which This to me is like the perfect song for you guys listening.
I'm going to actually take that post these charts on our website somewhere and I'll put a link down in the show notes that way I don't have to put out all the 3040 Whatever. I mean, these other two portfolios are gonna have a lot of tickers that would just be too much to go through in the show notes. I think different
moms or moms only has 28 or something like that. investments but to me, this is like the best I've ever seen a retirement well and again, we're gonna there
is a distinction between our portfolio and my mom's portfolio. My mom is 65 years old. She's fairly healthy, but she is definitely in like the later life planning stage whereas we're younger and we plan to have a lot more time to grow and compound our stuff. So because of my mom being in an older age, we Tim wanted to be more capital preservative while still making dividend yield. Yes, so it's more hybridized in that way where versus ours is more of a growth of dividend approach. And you'll see with like
the bottom 1234 Like bottom like bottom like like the last six I bring up here you'll see the actual benefits of the contrarian value investing hybrid, but if you don't like
the riskier things that were in in our portfolio, and you want to have more of that capital preservation, listen more closely to what we're going to talk about for my mom's portfolio because this would probably be a more ideal fit for your type of desired outcome. Now there's a lot of crossover
with hers like the board chairs we put her on board chairs so she has a good chunk of cash and bullet chairs. That fluctuates between six and 15,000 depending on what's going on. We even have a lot of board chairs
too depending on the situation like if we don't have a stock that is in our price buying or whatever situation hooked on them in the board chairs waiting for the right opportunity to grab or add to one of our in our
portfolio. We had both chairs until I actually started I got into those like three or four the last ones I took all of our board chairs and put it into them. So it's essentially a liquidity
pool. That's still generating income as opposed to losing money from inflation. Well butcher the one that will I go
on to is BSJ IQ the yields are like 6.3 to 6.8% it fluctuates the yield but it's it's above 6%. So your cash is actually making more than 6% which is better than if you just kept it in your bank. That's why we do both chairs. We have her NJ PQ like like ours, and we've had her in that one for years and we we've been in that one for years like that's one that we've just been in for years. Oh, I have her an x y l d which is an s&p covered call fund. So I do believe the s&p is going to keep going up. And I've just kept her in the s&p covered call what the difference between an s&p index fund is you're not getting any dividends from that but you're getting all the growth whereas you do if you do an s&p covered call, you're not going to get as much growth but you're gonna get way more dividends. So I wanted more income than I wanted actual growth. That's why I did x y LD as opposed to like an s&p index one. We have her and ABR as well as ours. We have her and CW H like ours HTC like ours, icon IEP and B x G G, tr N, T R I N queer tab, que RTPUAN Then we have y y y and we have nividia and the Tesla yo Max and V d y and TSL y those are all the same as the ones that we have. She just has a lot less money in them. And even
with IEP, she Tim actually had her cut losses when it was on his way down. So she law she got out with less losses than we did and then then I got her got back
in are back into it.
Again, more capital preservative whereas we were like let's see what happens. So he had a different even taking losses or cutting losses strategy with that. One of the better
ones that I wish we would have gotten to in our Schwab account. Is SBL K. It is a dry the dry bulk cruise ship that just transports goods. It's pretty bad. It's pretty bang and it yields like 20% It's awesome. Okay, and then I got her to AFGE, which is really it's like 100 year old bank and only yields like 2% but it has a special dividend every year. So the yields more like seven or 8% If you believe in the bank, banking system, I don't know. Oh, and she's an LBO and usli as well I just use that what I do with hers is I actually reinvest her

providers put a little bit in into those and I just let it reinvest every month whereas ours I have the trip turned off. I don't even think he can use the trip at Schwab but I would have it turned off and we use it as a paycheck along with the EO Maximus. I'll discuss that
and when he means paycheck, he means like income to then funnel into other investments and so
whenever the yield Max, they they have an ex dividend, the ex live date of the seventh around the seventh of the month. And then I look at the price between the seventh and the pay day which is generally five days after that, and if, say the video is overpriced, I'll turn the drip off. So I get the video in cash and then I use that as money to put into our other small investments. I always have the Tesla TSL Why have that turned off completely in our account, and we just use that straight as cash in her account. I didn't put a lot into these so I let them compound. And once they reach like a certain dollar amount, I'll just turn that off, turn the drip off and entirely only have a monitor in her account. I'll just use that as cash to put in the bonds or the bullet shares or something. We'll go into
that strategy a lot more when we talk about the yield Max stuff, but you'll see why we do it certain ways for certain ones. She's
in like one of the better BDCs when we had money wasn't at a good price but when we didn't have money was at a primo prices ARCC it's like one of the best BDCs along with Hercules capital. We got her into that at a really good price. She's up a decent amount in that and then CSW C which is a it's a BDC that's been growing its dividend for a few years. So I like that one. Now, here's the ones that I had the aha moment with the hybridization of contrarian investing and value investing. I got her into mm M at $90. And if you know anything about Triple M that's usually about 126 127. That's a steal. It has a 6% yield. It grows as dividends every year for and it's been doing it for like 50 years. It's like a dividend King. So we got that really cheap I got her into Verizon at $31 and that's another one that Saturday growth is dividend like every year for like 20 Some years and it has a 6% yield and that one's gone up a lot since we got the 7% yield. I got her into OG n which is a pharmaceutical type one that has grown its dividend for like 27 years. I got her into that $11 Miss should be about $30 So she's gonna have a lot of appreciation in that one. It's actually went up like 30% In the last two weeks. I got her into BTi at a decent price $29 It shouldn't be about 36 but it has a 10% yield. And we got which one we're looking at high IPR which is like one of the best. If you ask the experts quote unquote experts IPR is always in their top five best or EITS it's always Oh, because Oh, it's grown its dividend for like 50 years and it's never missed a dividend blah, blah, blah, blah, blah. But I P R has like a percent yield and it's it's normal value should be I don't know 120 130 And we got it at 98. And
if you're on the email subscription that came out yesterday, you would have been notified that that one's actually on the ex dividend date thing for this week.
Yes it is and it has a pretty good it's like $1.82 or something like that per share. So it's pretty nice. That's pretty sweet. And then I got her to Exxon Mobil EXO M, it was just $100 like it was undervalued and because oil prices have been pushed down in the last couple of months. And it grows its dividend every year for like 30 years like the last ones I mentioned. All are like growing their dividends like 20 years plus, and they're just really good investments for an old, older person to be invested in because the capital is never going to disappear like any of these companies is never gonna go to zero. You never have to worry about bankruptcy because they all have a lot of free cash flow and their dividend and raises every year. It's not a lot. It's like between five and four and 9% so it's not huge double digit yields but but if you've got every year but if
you bought them way back when and you allowed it to come out loud those dividend increases to happen your older share assets because of your what do you call it? Your average buying price will actually put you in double digits at some point will
at some point and then we got some bonds but
though I would like to actually do an episode talking about the bond situation but I don't know if you want to separate or
they're all like they're all over price now. So the bonds on my man mentioned that just like if you listened to the podcast and we then looked at bonds whenever we like saying you should buy bonds like a year before anyone said you should buy bonds. We got GM at like $68. We got a Altria Algeria How are you say that Altria at $67 We got eco eco petrol like $78 or something like like we could they were like seriously like 20 to 30 to 40% off and they're all decent, like really good companies that had no reason for their bonds to be that undervalued and
almost everything we've been looking at is back up significantly. Now
I was looking I was looking to see I was for this podcast. I was like Are there any bonds left? There's not any bonds per se, but the mean muni bonds. So that's whenever you look at the if you go into the bonds you do a search for bonds actually have a tab where you can search for like local governments, like local governments trying to pave the streets. So I'll take out a bond muni bond they're tax free, and they're pretty good. They're undervalued, and they yield 6% around there between six and seven, and it's tax free. So it's literally Yeah,
so if you're looking if your investment account is not in a retirement account from the tax perspective, those are really good to be in, if you're trying to get away from paying taxes. In an account that's not in a retirement account.
They're like 13%, like you can get them for like 86 to 88 cents on the dollar. So you're saving 12 to 13% plus the plus the six to 7% yield. So you're getting it's gonna be like 20% to 20 to 30% yield when it's all said and done. That's tax free. So nudies are really good. And that was the other one I said it was not too bad details wasn't the treasuries Treasuries are all over priced. If all government agencies like the treasuries are all overpriced, but if you go into like the actual federal government agencies, you can get those at like, between 80 and I don't know I'm gonna say 88 and 93 cents on the dollar. So again, it's only like seven to 12% discount but again, tax they're tax free as well so and then our buddies that we had a podcast with us just listen to the podcast to see how bad we were. It was bad. It was pretty bad. It was bad. I was so nervous. If you are nomads like us, I would recommend checking check nomads, FNA van life. They're pretty cool as Frankie and Alex are they're, they're fun people. They just had a baby and so they're kind of tied up with that but they're on Instagram and they're on YouTube and I pretty much I'm assuming they're on every
Yeah, they're on every channel. They're trying to I guess put up the lifestyle stuff or they're small. We've been following them since
they had like 300 subscribers and YouTube likes a tiny,
tiny people. I do like so they've grown a lot since we started actually following them.
She she came to me with the portfolio. And what she did is once once she found out that I've liked this and I'm good at this and I have like different ideas like she had a financial dude planner. I don't know what they're called fiduciary. I don't whatever, financial planner and like my ideas are completely different than theirs. And if you've talked to anyone that's in in the financial world, like what we're talking about is completely different than the norm. Because they'll still like they'll camp out the growth stocks and they'll have they'll sprinkle in a few dividend stocks. Or they'll do what the experts do like they'll say, Well yeah, if you want to be in a defensive position, you want to own all utility stocks and with some CDs and some cash and stuff like that, like I don't know anyone that just ties like just throws everything in all at once. Like I don't care if my portfolio goes up 20% In like price appreciation.
Yeah, we're looking for that income generation, more shares, more
dividends, more monthly income, that's all I'm concerned with. If the price goes up sweet if the price goes down, doesn't matter to me, like we did discuss that at one point. It really doesn't matter. Like if the price of your stock goes up or down. It doesn't matter as long as they have free cash flow and they have good profit margin and their value is good. It doesn't matter what the price does.
Well I think you should say it doesn't matter in the short term and the long term like everything trends up because that's just essentially the way with inflation. So what
she came up with this specific like idea of like what she wanted, like she wanted sectors, sectors and stocks, so he will travel stocks, bonds, funds, international funds, things of that nature. So hers is a bit different. But again, the her average yields probably 12 or 13%. It's pretty good. She's an XY LD as well. She wanted an s&p 500 index fund and I said, Well, if you do want the price appreciation that goes with an index fund, or do you want the income that goes with it, and we set it on the x y LD? She's in Hercules capital H TGC. Because that's like the shit. It's an every like I recommend I recommend that to everybody. She's in a USA which is a it's a it's an s&p like Growth Fund. It's a little one, like it only trades for like between between five and $8 per share. But if you put like $10,000 into your bid and ask them as to an amount of shares and the PE is I think like five cents a share. So it's pretty nice. Then she's an S, C E. PR K which basically means she's in the preferred share k of the CEE like they're very weird how they let lists prefer chairs. That is sometimes it'll be the company name as CEE and then they'll have an underscore, and then pra prb whatever or sometimes it'll have a dash sometimes it'll have a slash a slash this way we she died for I don't know what she is. I think she uses fidelity. I'm not sure. But it's Pete. It's slash PRK. Since she's in I
think she switched account so I'm not entirely sure what she prefer share
K of SCE which it is it's just a utility when it doesn't do much. Then I put her in both chairs BSJ queue for her to hold her cash and then whenever there's a time to buy something might say hey, take your money out of us JQ and put it into this or whatever. And then she's in JP Q as well. That one's like probably the best technology fund there is that she's an RVT which is it's a bond thing. What does that mean? It's it's a guy it's like a bond fund,
a bond fund. Like a bond family. What is a bond for English? She's
an STR which is a oil energy fund. So that was probably gonna go up. She's down a little bit in that one, but that one should go up. And then she's my favorite BDC besides Hercules capital is HR Z. And I've know I've mentioned it before. What they do is they literally invest in startups, technology companies, that's all they've put their money to. So they're they're bagging like that. So they have a monthly a monthly dividend. So probably my favorite because it has a monthly whereas hurt us capital is quarterly. I got her into ry LD, which is the small goes the Russell 2000 The small cap version of the XY LD
moms and that one, right? Yeah.
It's basically it follows the Russell 2000 which is the small cap index, and it does the cover call approach in the small cap, which I really like we were in that for a while and probably get back into at some point. If no, we're still in it. I had mentioned that we're in now in two or so many MPW, which we've discussed. And then g o f which is a really good as a Guggenheim bond fund is really good at pays monthly dividends and Art Museum in New York. I mean, that's probably yields 16% It's really bang. She's an ih D which is an India fund. That means we expect the Indian the country of India their their their stocks to go up. That's a
huge investing market. Yes, like I didn't realize that was a thing until I started getting crazy Indian followers all over the place.
PDI again, which is like if you follow there's certain quote experts out there and the person that runs PDI is he's labeled the bond expert by like everybody. So PDI is it's a Pemko fund, and he's supposed to be the shit. So PDI because it yields 50% And he's like He actively manages it so that you know, you're getting quality dividends. And it almost always trades at premium but because of what happened the last year it's like 12% at a discount. So you're getting 12% price appreciation plus that 15% yield. So that's a really good one
that pays for the active fund management fees. And I
just didn't wi W which I forget what that is, to be honest, I really don't I think it's a Inflation Protected fund where they just go invest to cover the the railroads they invest to cover the rate of inflation. So they'll invest in treasuries and things of that nature to cover the stock right now installations quote 3% or whatever the hell they're saying the quote unquote, whatever they're lying about. So like, their whole purpose is to make sure you make more than 3% to cover your to cover the cost of inflation and keep your capital the same. It's a weird font. So what
they're essentially keeping you at breakeven. Yeah, okay. Yeah, that's
it's out there. And then she's in preferred share a of BP, which is a energy company. There all right, I guess. I mean, not my favorite, but that's what we sell them. On because what she wanted, then she's in CW e n, which is really good utility company. I really liked that one. And she's an AQ n, which is another really good utility company that's been really down that one. I don't know if it will recover anytime soon. Really don't bet yield sub percent and it's been around for like 150 years. It's not going anywhere, but I just don't know if the share price is gonna go back up anytime soon.
We'll find out if it's actually supposed to be a bull run in 2024.
And she's in DSL, which is another monthly paying dividend and it invests in bonds. DSL, and she's an icon
so I didn't know she had icon. Yeah, we got her an icon with the wrong price. That's gonna
say she took as much of a hit as we did didn't more.
Because we got like, I think a year prior to her getting into it went up to like $60 before she got into it. Then we got like 48 But I said I really believe in the company I did not and that's another one I tell everyone to get into like
to get they're gonna get it again and now have their fingers
and everything like the way better than Berkshire Hathaway. That's just what it reminds me of a baby Berkshire Hathaway. She's in sandwich which is a shipping company that ship the bat. Like I text her and said, I really feel bad about this one like it had it had a super high dividend because it was doing really well. And then I don't know what the hell happened. It literally went from like $50 A share down to a $7 a share.
Now this is the one you guys were talking about with whether she was going to cut losses and you told her just to hold on right I told her
to hold on see what happens it has like its balance sheets good. Its debt is not very high. And its revenues good. So I don't know why the hell it went from $50 down to seven I still don't to this day. I've researched it multiple times. It doesn't make any sense.
It sounds like manipulation. I don't know why it
went from like say $20 down to seven because they cut the dividend completely. But like how why it went from 50 down to 20. I have no idea. I still don't know she's an AFC G as well which is a marijuana REIT which she wanted the marijuana stock and then like this, she's an SL G which is a Manhattan REIT. And I got her into that one at like
$50 And it's only by a Manhattan.
I got her into that. Like I forget it was like $20 or something like that and it's already up to like city doors that one shot up a law that would
actually make sense. My cousin used to live in New York City and like we were up there visiting and my god the prices of rentals and the size of those places with like little itty bitty lofts and people crammed into buildings and hallways it smelled like pee. It's like oh by then
she wasn't quite sure about the entertainment Rei T of EPR. So I got her the EPR actually has a preferred shares preferred C it has a higher yield than the stock itself does. So you have the comfort of getting a higher yield and you wouldn't be held this the riskier stock quote,
are we any appear? Or DPR She's nice. My mom and you know,
was for a while and I got her. So that's her last investment that she only has like 15 or so. I think part of the reason that hers is down more than ours and your mom's are not up as much as yours. And your mom's is because she only has these few. Yeah,
she has she doesn't have any of
Max. I'm under the firm belief that like having too few stocks is good. For research purposes. But whenever you enter a bull market, like sometimes you're 12 your stock like to say you have 12 stocks like only nine unbranded go up here. So you have your you have your app more and more more eggs.
And what were you researching last year's mark or this year's market 2023 If you look at the actual What is it 12% gain, if we forgot when we took the 27%
game for the year, but like 73% of the game came from seven stocks, seven
stocks and how many are in the markets hundreds upon hundreds upon hundreds, right?
s&p 500 So
500 So there's 500 that well, I'm in like all the markets as a
whole but it's hard to measure the NASDAQ's up like 40% and 7500.
So if you look at your portfolio from that perspective, like having more hedges, your losses and it also helps you hit the odds of having one of the really good pop offs. So yes, it's a little more maintenance, but once you do this long enough, it seems like you get to know your kids as well as you know, your stock portfolio. I was telling her I said that backwards. I know what
I mean. I want more. I'm like because she has if you look at her like how it's broken up, she has like it's top heavy, like probably 60% of her money is like in tenant her 40% hers
so she doesn't have the allocation spread.
No. Okay, that's top heavy. Like she doesn't have it spread out. Like I would have it like I would have it all like 5000 and I have a few more I wouldn't have like this 20,000 And I wouldn't have this 10,000 I would have completely different
Yeah, that makes a difference to spreading out. And that's why we really don't like to have because you'll run into a situation like we have with IEP and camping world where they die like they literally fell off a cliff and luckily we only had five I mean, I think actually IEP we had more and it just there was before we really started narrowing down our strategy. And that's where we took a huge hit on that because it was like 10% of the portfolio and we're not making that mistake again because it's a locked, reward
our proof our portfolio is up 4% For the year so like if you look at the s&p is up 26 The NASDAQ's up to like 40% 37%, whatever you want to call it. So we're only up 4% But we've accumulated a 35 37.4%
increase in income and
our incomes went up a lot and we've accumulated a lot of share. So I'm perfectly like, again like obviously I don't care about the headline, the value of my portfolio I don't care about like it's the little details like how many shares do we accumulated? How's the dividend yield and those in the companies we hold? How's the financials? Like that's what I care about the actual overall portfolio. I don't care. Her mom's went up like 10% Her mom's actually did better than ours because it is more conservative. Like
I like to look at the whole income versus value as the same concept of like having rentals so you have like 10 rentals, and the total of the value of the rentals is like say a million dollars. Well, they may go down being worth $750,000 But your rent income won't change. And actually as inflation goes, your rent income goes up over time. So to me, I'd rather have the rent income versus the value of the asset because the assets what's generating it's because it's still money, but it's actually a different kind of money. So the money that's actually in the assets is the tool component or the vehicle that gives you the income portion of the money and the income portion of the money, the money you can actually go out and spend and buy and like live. You can't actually snap like use an asset to live you have to actually sell the asset off to then utilize the money that came from that. So we don't want to have to sell off shares of something well
that's the whole point of income investing is you never have to sell you live off
you hold your assets and your assets keep producing milk to that's
the whole point of it. Like I don't believe in selling some like say you have a I don't know like a doctor is like our dentist or something like that where you need $3,000 Like that's that's a different circumstance where you may have to like liquidate a few a few shares at some point. If you have both shares and you won't have to you can literally just liquidate your butcher to pay for your emergency medical. Keep your other report and stuff
well that's why we still also appreciate the the emergency fund worthy and we have a number which you do not have to actually cut into your assets that are giving you that consistent income and consistent income growth. That is the whole goal of our entire career. We're
actually trying to come up with how are you going to pay for our first couple years on the road because I want this stuff to compound some more
when we're in a situation of like, I'm sure you guys know we've hinted at it like five or six times. We're like we're in the process of renovating the condo that we're living in to liquidate all of our assets so that we can get back on the road full time and with no like ties down and burdens and we were just looking at the equity that we have in this thing. I think we were banking on like $50,000, we're going to be able to have than to dump into our investment account to spread around, which is going to give us a significant bump in income but because we're running into a bull market, we don't really want to tap things. I don't know we're still trying to figure out the whole situation of what we're going to invest in our strategy. It's a little it's a couple of months in advance, but Tim likes to think about things.
I think I came up with an idea we'll discuss it whenever we discuss your max because I think of like like it's going to be
it's going to be a little risky, but it might actually benefit us because it might we might be getting more money for this than we expected.
Well it's going to I'm going to put like a good portion of that money into yield Max I'm gonna spread through a different view of Max's because they generally they're they're they're generating like 20 to 30% per year. We should be we should be able to live off of the dividends that the yield Max is provide. While dumping in a little bit more into our into our good investments. Learning that compound for a couple of years and who knows. I do the reason I say should is because we don't know the yields on the yield Max because they've changed from month to month. And
because they're so new typically the stuff that's new tends to either lose its value or lose its payout as they get popular. That's been consistent with like so many different things in so many different areas. So there's always that risk too. So that's something we're still discussing.
We'll have that for you. We do the
more we do the maximum for and I think that's actually next week's episodes
on next week. So I'm pretty sure by next week I've come up with a plan that will like generate probably $2,000 A month using yield Max
and I said our fallback strategy is literally to just park it in a national forest for a couple of weeks and like not spend any money on gas and I don't know eat rice and beans and ride bikes around for a while. But I mean, to be honest, I'm gonna need a break right after we move out of this anyway because I am just like if you guys have ever renovated a house and you've run into mold under your toilet, I literally just had to cut a 43 inch by 32 inch piece of sub floor out of the bathroom. That was right above the main electric breakers, which was a huge sketchy pain in my butt to replace the the sub floor to be able to actually put things back in without having mold contamination and all sorts of happy horse hockey. So Jesus ah, like I'm definitely gonna need time to recoup after this because I just love renovating the kitchen when I have a bathroom that I have to like rebuild stairs and but I have to write the whole frickin living room so we have drywall missing. It's a hot mess. While Tim is laying in bed researching stocks,
I do what I do best and you do you do that? Exactly. That's that and I hope some point in 2024 will actually be back on Frankie and Alex's podcast. Yeah,
we've been discussing that. I don't know exactly when, probably after I get back from Greece because in January.
I last changed since we were on there and I think what I have going on now is way better than what I had going out and then to grid. So I've never been on a podcast before so like or even had a podcast or even talk to the microphone. So that was like my first time and
my diary about kind of like the come out so that was epic, epic disaster. I
think we're gonna go on there again and hopefully spread the word to more nomads. So I want I want all the nomads to have more money than like the people that have the shoots suits and tires.
Yeah, we want you guys to be able to travel more if that's what you guys want to do because it is awesome.
This portfolio so take what you owe from that. I would definitely sign up for the email though the email actually gives you 10 Different ideas every week to invest in that have good values and that teams
already vetted and given you the metrics to figure it out yourself. So hopefully this is a good Christmas present for you guys. We will say Merry Christmas,
Merry Christmas and kiss. Kiss Keep It Simple Stupid.
That's what my chart does. keeps it simple.
So we'll see you guys in the next episode we discuss 
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