Joe Sangl Investments

Joseph Sangl’s Current Investments – 2018

Full Disclosure: I am not a certified financial planner, nor do I sell investments, insurance products, or other similar financial products. My goal in sharing this information is to shed light on a topic that few people understand well. It is my hope that this information will help inspire more people to climb the I Was Broke. Now I’m Not. Ladder (download a free copy HERE) and become wise investors so they can live fully funded lives.

=| 2018 INVESTMENT UPDATE |=

It’s that time of year again where I review my current investments and take a moment to philosophize about the future of investing.

My investing activity is driven by a powerful truth: “There is no HARVEST if you do not INVEST.

Just as a farmer can not have any hope of a harvest if seed isn’t put into the ground, we can not expect to reap a financial harvest if we do not invest! In May, I will have been an active investor for 22 consecutive years. That is half of my life! For the first six years, I invested exclusively into market-based investments via a company retirement plan (401k), college savings plan (529), and a small stock trading account. Since that time, I have diversified into real estate and small business along with a dabbling in precious metals. This approach has yielded excellent results.

As I prepare this report each year, I always take time to review previous updates I have provided. A statement made in my 2007 update bears mentioning again: “Many people are diversified WITHIN the stock market. It is also important to be diversified OUTSIDE of the stock market.” I encourage all investors to invest within the stock market, but to also explore other investments such as real estate, small businesses, franchises, or precious metals.

One of the most common questions we receive here at I Was Broke. Now I’m Not. is: “What investments do you recommend?

My answer is always, “I don’t recommend specific investments. I can only tell you the investments I own, and they have worked well for my family. The investments you choose are up to you.”

Below is a chart of my current investments – click on the chart itself to download a printable version.

The market experienced amazing growth over the past year. From my last update on March 30, 2017, the markets have soared. Aided by decreased regulation, major business tax reform, increased consumer confidence, increased capital spending, a fully employed workforce, and an improving worldwide economy, all of the major market indices have experienced substantial growth. The Dow Jones Industrial Average has increased 20.01%, the S&P 500 by 16.90%, and the NASDAQ by 28.24%.

Throughout the year, I continued to actively trade stocks. I have sold several individual stocks while deepening my investment into others. Overall, my investment strategy has continued on a straight-forward path of maintaining a balanced portfolio with approximately 32.64% real estate, 27.01% small business, 24.66% stock market and 11.57% cash.

My views of the investing market place:

  1. Stock Market Strength  There has been significant earnings growth which has supported a substantial increase in company valuations. One key measure to track is the “P/E Ratio” – Price-to-Earnings. This is the ratio between share price and the earnings per share. Currently the DJIA is priced at 26.17 times earnings (it was at 21.12 last year!) and the S&P 500 is priced at 25.86 (it was at 24.68 last year). This is not sustainable. One of two things must happen: earnings must increase substantially or share prices will drop. My belief is that a combination of the two will happen. Earnings will indeed grow due to tax reform while share prices will moderate to achieve a more reasonable P/E. (Side Note: My weighted balance P/E Ratio for my individual stock investments is a more acceptable 14.58). While I could be wrong, it is difficult for me to see major growth within the stock market in the near future.
  2. Turmoil and Roiling  There will be deals available in public markets, but I suspect they will be related to companies that experience major breakthroughs in new products or services.
    • Amazon is one of those companies that seems destined to completely redefine consumer behavior in multiple industries. Most of my mutual funds hold a substantial position in this company. “The Investment Company of America” [AIVSX] holds it as their third largest holding (2.7%), “Fundamental Investors” [ANCFX] holds it as their second largest holding (3.8%), and it is the top holding (6.9%) for “The Growth Fund of Ameria” [AGTHX].
    • Interest rates will be going up which will create earnings pressure for highly leveraged (meaning: lots of debt) companies. You can see the debt load of a company by looking at their Balance Sheet.
    • Oil prices have been creeping up as well. This can create pressure on earnings also for companies highly dependent upon transportation of their goods or for delivery of their services (think: airplanes, freight companies).
  3. Deals will be found – but they will have to be looked for! As I travel throughout the nation, I still see enormous amounts of building activity. Cranes in the skyline of every major city, new subdivisions being constructed, and lots of activity in the mortgage industry. The travel industry is on fire with hotel, car rental, cruises, and air travel all issuing price increases. Will this be able to continue to grow? If the answer is yes, then we must ask the next question: will it be able to grow profitably?
  4. Tax Reform  With more money going into the pockets of an estimated 87% of tax-payers (figures vary), I’m confident that Americans will do what they do very well: spend more money. This will continue to stimulate the economy with a measure of growth.

I will continue to invest in both individual stocks, index funds, mutual funds, real estate, and small businesses. Occasionally, I might pick up some shiny metal (the silver-colored one) along the way.

I welcome your thoughts on the investing market place as well. What do you think? What are your strategies?

My favorite investing information I’ve encountered over the past year:

Warren Buffet’s annual letter to shareholders (2016 lettertakes a few seconds to download, but well worth it)

  • I found Warren’s discussion of comparing hedge fund investing with index funds to be very compelling.  I dare you to go read it. It begins with the last paragraph on page 21 and continuing through page 24. I found it to be both wildly entertaining and tremendously enlightening.
  • In his 2017 letter, Warren writes the concluding piece to this discussion and “the bet.” I triple dog dare you to go read it. It begins with with the third paragraph on page 11 and concludes on page 14.

Read previous installments of Joe Sangl’s “Current Investments” posts HERE.

Joseph Sangl’s Current Investments – 2017

It’s that time of year again where I review my current investments and take a moment to philosophize about the future of investing. I’m a fundamental believer in this statement: “There is no HARVEST if you do not INVEST.

Without putting seed in the ground, a farmer cannot expect a harvest later. Even if you are not a farmer, the same is true for you! If you do not invest money, you have no hope of achieving a financial harvest later. In May, I will have been an active investor for 21 consecutive years. For the first six years of this journey, I invested exclusively into market-based investments. Since that time, I have diversified into real estate and small business along with a dabbling in precious metals. It has worked well for me.

Full Disclosure: I am not a certified financial planner, nor do I sell investments, insurance products, or other similar financial products. My goal in sharing this information is to shed light on a topic that very few people understand well. It is my hope that this information will help inspire more people to climb the I Was Broke. Now I’m Not. Ladder (download a free copy HERE) and become investors so they can live fully funded lives.

One of the most common questions we receive here at I Was Broke. Now I’m Not. is: “What investments do you recommend?

My answer is always, “I don’t recommend specific investments. I can only tell you the investments I own, and they have worked well for me. The investments you choose are up to you.”

Below is a chart of my current investments – click on the chart itself to download a printable version.

Yet another year has passed, and you will see that I have continued to actively trade stocks. I have sold several individual stocks while deepening my investment into other stocks. Overall, my investment strategy has continued on a straight-forward path of maintaining a balanced portfolio with approximately 35% real estate, 30% small business, 25% stock market and 10% cash.

My views of the investing market place:

  1. Stock Market Strength  There has been significant earnings growth which has supported a substantial increase in company valuations. One key measure to track is the “P/E Ratio” – Price-to-Earnings. This is the ratio between share price and the earnings per share. Currently the DJIA is priced at 21.12 times earnings, this is not sustainable. One of two things will happen: earnings will indeed grow or share prices will drop. My belief is that a combination of the two will happen. Earnings will indeed grow while share prices moderate to achieve a more reasonable P/E. (Side Note: My weighted balance P/E Ratio for my individual stock investments is a more acceptable 15.39)
  2. Speculation  Mark Twain once famously stated: “OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The other are July, January, September, April, November, May, March, June, December, August, and February.” Rather humorous and spot on for short-term investors. This is why the majority of my investments are being held for the very long term. Notice that my individual stock investments only comprise 3.74% of my overall net worth.
  3. Deals will be found – but they will have to be looked for! A lot of the great and easy investment choices are gone from the market. Real estate prices have recovered. Businesses are doing well. Precious metals have stabilized. Finding a great investment opportunities will require diligence and focus.
  4. The wildcard: Tax Reform  Who knows where potential tax reform will take us?! Some investments made attractive due to special tax advantages could fall out of favor with investors if they sense that those tax advantages are in jeopardy.

I welcome your thoughts on the investing market place as well. What do you think? What are your strategies?

Read previous installments of Joe Sangl’s “Current Investments” posts HERE.

Joseph Sangl’s Current Investments – 2016

Anyone who has hung around the I Was Broke. Now I’m Not. team for long has surely heard the following statement:

“There is no HARVEST if you do not INVEST.”

And it is true. A farmer knows this intuitively. A harvest is impossible without investing seed into the ground.

The same is true for your finances. If you do not invest money, there is no chance of an abundant harvest.

In fact, one of the most common questions we receive is: “What investments do you recommend?

My answer is always, “I don’t recommend specific investments. I can only tell you the investments I own, and they have worked well for me. The investments you choose are up to you.”

Occasionally, I update everyone on the investments I currently hold. Below is a chart of the current investments we hold. If it is publicly-traded, I have included the ticker symbol. Click on the chart itself (or HERE) to see a larger version.

JSInv2016

It’s crazy that yet another year has passed and if you look at my 2015 update, you will see several investment changes. This is due to several trades in individual stocks as well as the continued acquisition of real estate and growth of our business holdings. You can click the pie chart below to see a larger version.

PortfolioDistribution2016-03JDS

My views of the investing market place:

  1. Stock Market turmoil  I believe the stock market will continue to experience a “roiling effect” due to the continued re-balancing of oil supply, China economic transition, political election cycle of the United States, as well as P/E (Price-to-Earnings) being appropriately priced. Until real sustained economic growth is proven over several consecutive quarters, it is difficult to see rapid growth of stocks.
  2. Dividends rule – Right now, there are many companies who have chosen to increase their dividends because company leaders apparently see few opportunities to better use the money.
  3. Entrepreneurial spirit  Individuals who choose to grow will be the ones who experience substantial and sustained growth of their investment portfolio. There are fewer “passive” growth opportunities right now than in the past ten years. Those who choose to lean into “risk” will be the ones rewarded with returns.

I welcome your thoughts on the investing market place as well. What do you think? What are your strategies?

Read previous installments of Joe Sangl’s “Current Investments” posts HERE.

Joseph Sangl’s Current Investments – 2015

Anyone who has attended a Financial Learning Experience has heard me say that it is important to INVEST money and to do so every single time you are paid money. At the end of our live events, I am regularly asked or emailed the following question:

“What investments do you recommend?”

My answer is always, “I don’t recommend specific investments. I can only tell you the investments I own, and they have worked well for me. The investments you choose are up to you.”

Occasionally, I update everyone on the investments I currently hold. Below is a chart of the current investments we hold. If it is publicly-traded, I have included the ticker symbol. Click on the chart itself (or HERE) to see a larger version.

JSInv2015

It is hard to believe that another year has passed by! If you look at last year’s update, you will see quite a change in the allocation of my investments. This is most noticeable in our real estate holdings. This is due to acquisition of more properties as well as the appreciation in the value of other real estate holdings. You can click the pie chart below to see a larger version of the chart.

PortfolioDistribution2015-02JDS

My views of the investing market place:

  1. I anticipate the stock market will continue to grow at a moderate pace. While the current Price-to-Earnings Ratio (P/E) for the overall market is at nearly 18, there are are many reasons to believe that we will see some growth. These include:
    • (a) cash rich companies – I believe we will see a hastening of the investment of these monies through 2015,
    • (b) low interest rates – while the Federal Reserve Board has ceased QE3 and are clearly signaling an increase in interest rates, these rate hikes are going to be low for the foreseeable future, and
    • (c) oil price collapse – while this certainly affects Big Oil stocks, it has an overall economic stimulus effect as it puts substantial dollars back into the pockets of consumers
  2. I continue to believe there will be ample investment opportunities within the real estate markets in 2015. I travel throughout the U.S. and Canada and rarely have I seen construction – both large-scale commercial and residential – at the levels I’m observing right now. It’s only a matter of time before this shows up in the profit statements of the largest contractors.
  3. I also believe there will be ample investment opportunities into new business start-ups and purchase of existing businesses
  4. Worldwide instability has existed since the beginning of time. It exists today. While the problems may change names tomorrow, I’m convinced we will still face worldwide instability tomorrow as well. I believe a great risk is in not investing at all. I will continue to be an investor!

I welcome your thoughts on the investing market place as well. What do you think? What are your strategies?

Read previous installments of Joe Sangl’s “Current Investments” posts HERE.

Joseph Sangl’s Current Investments

Anyone who has attended a Financial Learning Experience has heard me say that it is important to INVEST money and to do so every single time you are paid money. At the end of our live events, I am regularly asked or emailed the following question:

“What investments do you recommend?”

My answer is always, “I don’t recommend specific investments. I can only tell you the investments I own, and they have worked well for me. The investments you choose are up to you.”

Occasionally, I update everyone on the investments I currently hold. Below is a chart of the current investments we hold. If it is publicly-traded, I have included the ticker symbol. Click on the chart itself (or HERE) to see a larger version.

JSinv2014

It has been a year since I last updated my investments. 2013 was obviously a great year for equity stock investments. As I mentioned then, I suspected the market would continue to grow. Of course, I was very happy to see this come to pass as I continued to purchase individual stocks. Due to the growth of the market, my stock investments grew from 2.2% to 3.0% of my overall portfolio. We continued to grow our small businesses and real estate holdings. This is part of our continued to effort to diversify BEYOND the stock market. As a result of the continued growth of small business and real estate investments, we have seen them push our market investments into a smaller piece of our portfolio. We are close to a 33%-33%-33% split between small business, real estate, and market investments.

JSinv2014pieMy thoughts:

  • I believe we will see continued growth of the U.S. Economy. This is based in part to my unscientific research of traveling the entire United States with our business activities. There are cranes in the air building skyscrapers in every major metropolitan area and shovels in the ground in the suburbs for new homes. You might notice that I’m investing in major home builders stock as a result of this belief.
  • Keeping cash and cash equivalents as financial margin is still essential to every person. This provides money to take advantage of opportunities.
  • I think it is a great time to continue investing in new businesses and existing ones. Our team will continue to investigate potential business acquisitions.