Stock buys for 17/01/20

In case you haven’t been following along, every two weeks I am contributing $1,000 into the 70/30 portfolio. About 20 weeks ago, I contributed the first $1000 into the 70/30 Portfolio with Questrade. Here is a recap from August 26th 2019:

Screen Shot 2019-09-11 at 2.06.53 PM.png

Now it’s time to contribute another $1,000 into the portfolio. I’m going to be buying just the right amount of individual index funds to keep my target allocations (+/- 1%) within my chosen range.  To start, in my Allocation Tool, I adjusted the unit price so that it is current. I then bought approximately $1,000 worth of index funds in a way that kept my allocations relatively close to my original target goals. Feel free to use my allocation tool: allocationtool17012020

Screen Shot 2020-01-24 at 5.30.11 PM

The 70/30 portfolio is up $602.84 including the $63.99 in dividends so far. Next $1,000 contribution will be around January 31st 2020. This portfolio was only started 20 weeks ago and already it generates about $1160 a year in passive growth at a 10% interest rate. So far the time weighted average return has been 30%! This is abnormal and we should not expect this kind of return going forward. Somewhere between 9-10% would be the expected long term average assuming we regularly dollar cost average. As an aside, dollar cost averaging increases our overall return because we buy more shares when prices are low and less shares when prices are high. Just think about this, if the price of a share is trading at $100 and the market dips 50% and goes to $50 a share, what percentage do we need to get back up to $100? We would need a 100% return not 50% as most people would have incorrectly guessed. We know the market always goes up (as long as you are invested in the whole market and not individual companies) with lots of bumps along the way called volatility. During our earning years volatility actually helps us increase our returns. If your are nerdy and want to play around with some historical numbers check out:


Happy Friday

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