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Boring is the New Boom!
Published about 2 months ago • 3 min read
Here's your weekly helping of interesting investing information and insights.
Opinion
SCHD vs SCHG
Have you seen what SCHD has done vs SCHG? It's up almost 25% since the calendar flipped to 2026!
While SCHG is an ETF that bets on fast-growing tech companies and "the next big thing," SCHD is an ETF that focuses on steady, "old-school" companies that pay out cash to their shareholders every year. This massive flip is happening because investors are getting scared that AI will ruin many software companies, so they are pulling their money out of growth stocks and hiding it in "safe" businesses like grocery stores and energy plants that AI can't replace. It goes to show that many times in the market, what was broken for years can suddenly flip with what was working very well.
What I'm Reading
We stopped by a local shopping mall recently, and it's one that I've visited often since the early 1980s. Two of the big three anchor tenants spaces (Montgomery Ward's & Carson Pirie Scott) are still unused and boarded up. And the last remaining anchor tenant's store, J.C. Penny, felt outdated and like a sick person pretending to be healthy when we all know better.
Agree Realty has a great (not so much if you're a legacy general merchandise store) white paper addressing exactly this and why it's probably going to keep getting worse as the infographic above shows.
But, the future looks bright for companies like Costco (COST), TJX Companies (TJX), and Walmart (WMT). It's worth a read! [Link to article]
Quote I'm Thinking About
"Profit is an opinion, cash is fact." — Alfred Rappaport
Josh Brown created the acronym H.A.L.O. - Heavy Assets Low Obsolescence, and I think eh might be onto something. The guys go into greater detail, but the idea is that you want to think about what companies will it be near impossible for AI to make obsolete. PepsiCo (PEP) and Caterpillar (CAT) are examples...
I must be weird, because this "boots on the ground" episode about why beef prices are skyrocketing was quite enjoyable. And, that title brings back memories! "Where's the Beef?" IYKYK...
Disclaimer: This is not investment advice. Do your own research before making any investment decisions.
😁THANK YOU to all who responded to the last newsletter!!
100 Nike (NKE) | $63.00 / Sold off Zoetis and Nike as they are my current two biggest losers in the taxable "overflow/excess cash" account... Needed the funds to make a direct private equity investment into the company that I work for!
Stocks Bought (AVERAGE)
3 Amplify Intl. Dividend Income ETF (IDVO) | $42.50
6 Ares Capital (ARCC) | $19.40 / As usual, I'm adding dribs and drabs of Ares when it falls below its last reported NAV (Net Asset Value) of $19.94.
1 Visa (V) | $317.50 / The stock took a hit because politicians are ganging up on swipe fees again, and Europe is trying to build its own version of Visa to stop relying on U.S. companies. It's basically a 'regulation scare,' but the business itself is still printing money and I'll bet on them to survive this too.
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Each week you'll learn how to be a better dividend investor and follow the journey of a welder with a passion for passive income to $1,000,000 and beyond.
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