In this episode I interview Henry Mah, an 81 year old who has been investing for more than 30 years, and author of 4 investing books. We discuss dividend investing in today’s economic climate. We also cover the following topics in this wide-ranging interview:
– How Henry got started in dividend investing
– Why Henry does not focus on capital appreciation
– ETFs didn’t provide the income Henry could get from owning individual stocks
– Henry’s focus on income rather than growth
– Typical holding period for owning dividend stocks
– Avoiding cyclical stocks
– Henry only wanted to invest in stocks that he could own forever
– Why Henry is not interested in owning term deposits or bonds
– Why stock markets don’t effect his income at all
– What effect the financial crisis of 2008 had on his dividend income
– The importance of getting your kids to start investing early
– Educate yourself before you start investing
– Why you are not going to learn anything about investing if you only buy ETFs, mutual funds or index funds
– What is the safest and simplest method of investing
– Almost anyone can learn dividend growth investing
– The hardest part for most investors is getting over their fear of the market
– How not to panic when stock prices drop
– Do your homework before you invest in any stock
– Finding good stocks from within the TSX 60
– How to get started with investing
– How a $10,000 investment is now generating $2,000/year in dividend income and is projected to generate $30K to $100k in the future
– Compounding of dividend income is incredible, but yet most people still focus on capital growth
– When it comes to investing keep it simple
– Henry’s 4 rules of investing
– When to sell
– Why diversification is not a concern for Henry even with his 12 stock portfolio
– Don’t be a fan of diversification be a fan of owning quality companies
– The importance of re-investing your dividends
– How much time does investing take?
– How do you have any confidence investing in dividend stocks when dividends are not guaranteed
– Any concerns about the current economic environment?
– Henry’s approach to draw down from his RRIF in retirement
Here’s a list of 4 books published by Henry (available on Amazon):
1. Your Ever Growing Income (2018)
2. Your TFSA Compounder (2019)
3. Income Investing Explained (2020)
4. Salary for Life (2021)
