When he was in his 20s, Michael “Rooster” McConaughey nearly destroyed the business empire he built. “The biggest failure I had — monetarily wise, business wise — was I went bankrupt,” said McConaughey, a self-made millionaire who co-stars on CNBC’s reality pitch show “West Texas Investors Club.” After striking success in the oil and lead pipe business, McConaughey had nearly spent his whole bundle. “My biggest problem was I could make money, but I couldn’t hold on to it,” he said. “I was going around with all the big shots. I thought, hell, I’ll never see a poor day.” Rooster was making a lot of money, but he was spending it just as fast as he made it. Remember: It’s not about how much money you make, it’s about how much money you keep, and how hard that money works for you once you invest it. Rooster eventually had to go broke, go back to the basics and build a foundation the slow way. Along the way, the entrepreneur learned the value of business partnerships and having good mentors. “It’s amazing how that helps, just knowing someone has confidence and faith in you,” he said. “That’s a hell of a motivator.” The whole purpose of this blog is to present a different way of thinking, and encourage you to seek mentors.
Leading net-lease retail real estate investment trust Realty Income (NYSE:O) just declared its 556th consecutive monthly dividend, which translates to more than 46 years of steady income for shareholders. Just as importantly, the dividend has grown steadily over the years, and the stock’s performance has shattered the S&P’s returns since its 1994 IPO. Here’s why Realty Income is the biggest dividend stock in my portfolio and why you should consider it for your own. This stock has had been a good choice for a long-term investment for income seeking investors and investors who look for growth. This stock has paid 556 consecutive dividends since even before it was listed on the NYSE. Even more impressive are the company’s total returns. Since real estate makes money in two main ways (rental income and price appreciation), Realty Income has been able to deliver market-beating returns to investors. In fact, since the company’s public listing 22 years ago, the average annualized total return has been 17.9%. To put this in perspective, an investor who bought $10,000 worth of Realty Income in 1994 would have more than $340,000 today, assuming they reinvested all of the dividends. The company invests in retail properties that fit three criteria: discount stores, non-discretionary retail, and service-based retail businesses. Also, the company makes sure the lease structure is risk resistant through long-term “net” leases which requires the tenants to pay the property taxes, building insurance, and maintenance expense. One risk factor to consider is if interest rates rise, then it could affect the share price, however this stock isn’t to be held for a short term. The author recommends taking a long term hold of this stock. Personally, I have two different trading accounts. One I use for day trading, and the other I buy shares or ETFs of stocks to hold for the long term. Have an investment strategy that will allow you to have both cash flow and capital gains.
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For this week, I’ve included The Intelligent Investor – Benjamin Graham – Animated Book Review from PracticalPsychology YouTube channel.
“If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.” Proverbs 28:26 MSG