An example of “you can’t afford it unless you can buy it twice.”

[Thread] Let’s say you’re a financially responsible person not wanting to eat $10k in depreciation as soon as you drive a new car of the lot.

So you chose a used Audi for $20k

I'm a VP of Engineering which means I do hiring and management of lots of smart people.

Here's a quick thread on things you can do if you're an engineer or knowledge worker to start getting faster promotions and raises.

[Thread] 1. Ask your manager or their manager what their biggest problems are

Anyone can look at JIRA to take tickets off of a sprint board.

Anyone can also ask their manager to solve their hardest problems, but this is surprisingly rare.

Simply asking this question make you stand out

How much you pay yourself first determines how quickly you can reach financial independence.

Let's say you're making $60k per year at a job.

Your salary grows at 4% per year.

Assume 8% growth on your investments.

Let's see what happens

👇🏽
[Thread] Let's say you pay yourself 5% first.

This is entirely doable by contributing to your 401(k) up to your employer's match.

You become a millionaire at 58.

Your nest egg will grow to $2.3 million by age 67

Why real estate investors legally get financially ahead of everyone else.

[Thread] Real estate is a business.

Every business can deduct a portion of the replacement cost of assets they purchase.

Real estate is an asset heavy business so depreciation costs are very high.

You can also front load this deduction with accelerated depreciation.

Buffetology

Warren Buffett may be a world famous billionaire investor, but his philosophies and approach to life are what have made him successful.

Here are 4 of Buffett's Non-Investing Philosophies

[Thread] Make Friends with Smart People

'You will move in the direction of the people that you associate with. So it's important to associate with people that are better than yourself. The friends you have will form you as you go through life.

Today I added FFO and AFFO Payout ratios for REITs into my web application to help people identify payout risk.

Here's a sprinkling of them.

Lower is safer

👇🏽

Realty Income

Dividend Yield: 4.6%

AFFO Payout Ratio: 77.3%

FFO Payout Ratio: 82.4%

Shit Parents Say

And how it applies to personal finance

[Thread] “IfJohnny jumped off a bridge, would you jump off it too?”

“If Johnny got a $80k car loan on a $40k salary because the bank said he could afford it, would you do it too?”

Some nice REITs with high projected 10 year yield on costs

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🏥 *
📦 *
📦 *
🎭
🏥 *
🛍

Disclosure: I own *
[Thread]

CoreSite Realty Corporation

Current Yield: 4.2%

3 year dividend growth: 9%

10 Year Yield on Cost: 15.7%

🏋🏽‍♂️A Barbell Investing Strategy 🏋🏽‍♂️

People might be surprised that a dividend investor like me invests in technology stocks.

But first, I'm a software engineer too, and two it makes mathematical sense.

For absolute returns growth stocks are the best overall investment. Aside from individual stocks, is the tech ETF I've invested in.

Since inception in 2011 it has returned 20% per year.

on the other hand has returned 15% over a similar period.

The 5% difference over time may seem insignificant.

But over 30-40 years it's huge.

In 2012 I was a banker building cash flow models for real estate deals.

In 2013 I quit banking to pursue my dreams of writing software.

I took a $20k/year pay cut.

It was worth it though.

👇🏽 My career progression has gone from:

Junior Engineer

Senior Engineer

Startup CTO / Cofounder (sold)

Director of Engineering (sold)

VP Engingeering

And I've earned well over 7 figures doing it.

Money follows your passion.

Robert Kiyosaki said that REITs are great savings accounts for Real Estate Investors.

Below are the REITs that are currently in my portfolio.

👇🏽

[Thread] CubeSmart



Current Yield: 4.15%

5 Year Dividend Growth Rate: 11.93%

10 Year Projected Yield on Cost: 10.05%

6 Electronic Technology Companies

Sorted by the highest to lowest yield













[Thread] NetApp



Current Yield: 4.37%

5 year dividend growth rate: 21.34%

Projected 10 Year Yield on Cost: 20%+

8 Tech Dividend Stocks

Sorted from highest to lowest Projected 10 year Yield on Cost

$IBM
$ADP
$PAYX
$CSCO
$ORCL
$OTEX
$MSFT
$FDS

[Thread] $IBM

Current Yield: 5.21%

5 year dividend growth rate: 4.13%

Projected 10 Year Yield on Cost: 7.12%

REITs are great!

They typically have one or more of leasing and development operations.

Development is typically more risky since it's speculative.

I like to look at total revenue and AFFO Payout.

Revenue to make sure they're growing.

AFFO to make sure the dividend is safe.

https://twitter.com/JeremyInvests/status/1294010383192260611

I also like to invest in non-cyclical sectors.

Hospitality and Retail will always scare me because in my banking experience they're the highest risk of default.

Medical, Data Center, Towers, Storage, and Residential are my favorites.

https://twitter.com/DivCultivator/status/1283782874743939072?s=20

Calculating Expected Returns on Stocks

I've been writing an article on the Art and Science of Valuation.

There's so many components to it so I'll start with getting to cost of equity.

[Short Thread] Analysts use the Capital Asset Pricing Model (CAPM) to determine the components of a company's cost of capital.

As equity investors we're interested in the company's Cost of Equity.

There are three components:

1. Risk Free Rate
2. Beta
3. Market risk Premium

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Evaluating a Company's Moat with the Apostle Model

Customer Satisfaction isn't the end-all-be-all of a moat, but it can show if a company has potential for disruptors to take share in a market.

In SaaS I've used the Apostle Model internally but it's useful externally too. The Apostle Model classifies customers into 4 quadrants based on Net Promoter Score and Likelihood to Repurchase.

The 4 Quadrants are:

Loyalists
Mercenaries
Hostages
Defectors

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gum.co/CSdwG If you already have the book and are looking for tools to help you find and research great dividend stocks, check out my web app.

It’s built to save you time.

I use it constantly for research and Twitter content.

gum.co/mHSuK/earlybird

I paid off the last of my student loans with dividend income.

There's some good reasons for doing this.

1. Student loan interest is tax deductible so it isn't always advantageous to pay off quickly

2. Dividend income is tax advantaged (return of capital, qualified)

👇🏽 3. Student loan interest rates were low making the interest costs cheap.

4. Dividends grew over time meaning I could pay more without investing more

5. Capital appreciation made my stocks worth more money.

6. I didn't need the cash flow savings from paying off immediately

🚀 Twitter Growth 🚀

It's kinda crazy, but I'm nearing 10k followers.

I'm truly grateful for everyone that I've interacted with here.

So below is a thread on what I've done to get here.

Read on 👇🏽 Niche down to start

Being in a niche is super helpful.

So many people start with some variation of mindset, physical health, or finances.

That is cool but very broad.

I have specific knowledge in a few things, but I started here with dividend investing.

Investing Thesis

The most asked question I get is:

"What are your top X dividend stocks?"

These change constantly, but the themes that I use to select investments don't change often.

So here's a thread on what I'm thinking about the future... Software will continue to eat the world.

Industries that serve software will have to continue to grow because software begets more software.

That means more data centers, growing software companies, hardware to support the software, etc.

Underlying industry growth lowers risk.