From $18 million to $14 billion...
10 principles to make your portfolio more profitable.
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Tweet of the Week
Personal Milestone 🎉
I recently hit $2,500/year in dividend income, which comes out to $211/month.
This is a big milestone for me as my current goal is $10,000/year in dividend income (25% of the way there).
I also have ~$32,000 sitting in a high-interest savings account (HISA). This money makes up my emergency fund and I’m also using it to build up a down payment on my first investment property, whenever the market starts to settle down.
On that money, I make around $950/year in interest, so adding that to my dividend income puts me at a total of almost $3,500/year in passive income.
I’m also $10,000 away from hitting the big $100,000 invested in the stock market.
They always say, getting your first $100,000 invested is the hardest and let me tell you, it’s been quite the journey. But the second $100,000 will come even quicker.
If I don’t make another contribution for the rest of my investing life, I’ll end up with $1,570,446.
Of course as my income continues to grow I will be making larger contributions, but seeing that number is reassuring.
The point of this is to show you the power of starting early.
As your money starts to grow, you make even more money.
Because a 5% return on $10,000 is a lot less than a 5% return on $100,000,
Weekly Market Update 🗒️💡
Tough week in the market.
The S&P 500 and Nasdaq fell Friday for the 4th week in a row, as both indexes notched their worst week performance since March 2023.
The S&P fell 2.3% for the week, while the Nasdaq lost 2.9%. The Dow also wasn’t off the hook, losing 1.1% this past week.
Are investors taking profits following shaky earnings releases and US job data? It looks like it.
It’s not all dark skies in the market, however, as the S&P’s energy sector is up 2.4% on the week and on track for the biggest gain of all the index sectors.
Are you investing in energy?
Jobs
Investors gained more information about the state of the labor market on Friday with the payroll report.
187,000 jobs were added in July, which is 13,000 less than what was expected by economists.
Unemployment however fell to 3.5% from 3.6%.
And the average hourly earnings rose 0.4% in July.
Good or bad sign?
Loans
Do you have student loans? Well, some things are going to change.
Student loan payments, which were on hold for the past 3 years, are about to resume.
This means investors are going to have even less money to pump into the market.
From $18 million to an astonishing $14 billion.
That’s the unbelievable growth of the Fidelity Magellan Fund from 1977 to 1990.
The man behind this exponential growth?
One of the most renowned American investors…
Peter Lynch.
While being the fund manager, he applied his unique investment philosophy and principles.
By doing that?
Peter Lynch managed to deliver an average annual return of 29.2%.
Which is consistently more than double the S&P 500 returns.
This was the magic behind transforming Fidelity Magellan Fund into the best-performing mutual fund in the world.
But now that you know who Peter Lynch is, let’s take a look at…
How you can apply Peter Lynch’s investment philosophy and principles to make your own dividend portfolio way more profitable: