So remember last weeks post where I
begged advised entertained you to not buy the iPhone 6? And remember how I told you that you could invest that money instead and let it compound for 50 years and end up with over $170,000? Time to separate the sharks from the sheep: who is a sheep? Common, admit it and raise your hand if you bought an iPhone 6. Ok, now, who here is a shark? Alright. Good. I’m a shark. And let me show you what I bought instead of an iPhone 6.
NO IPHONE 6
I warned that I was biased towards Berkshire Hathaway in my list of 4 investment options instead of an iPhone 6. Well I am. And I bought 8 shares of Berkshire Hathaway with the money I had earmarked for an iPhone 6 Plus + AppleCare + Case.
I eat my own cooking. Here is the proof:
I transferred out my iPhone 6 money to my TD Waterhouse account on the same day as my don’t-buy-the-iPhone-6-rant.
Then, I went ahead and bought the 8 shares from TD Waterhouse yesterday.
But rather than merely showing you the 8 shares I had bought, I figured I would satisfy all your snooping desires and finally reveal the investment portfolio.
This is by far my favourite stock. At the moment, it is the only stock I am fully convinced on buying outside of an index fund. I’ve researched the hell out of this company and Warren Buffett and I feel completely comfortable owning this for an investment time horizon of forever.
The only thing that annoyed me about walking the talk and buying the 8 Berkshire shares was the foreign exchange fee. The first time I bought Berkshire in April 2014, it was a sample buy while I was still paying off my student loans. However, I wanted to wait until I had much more than $5,000 to execute Norbert’s Gambit and minimize foreign exchange costs on my subsequent purchases of Berkshire. I guess I see the $26.02 I paid in FX fees as the cost of my big mouth in that previous iPhone 6
We plan to eventually fill up one of our tax-sheltered accounts with Berkshire. You’ll see much more of this stock in the future.
VANGUARD TOTAL US MARKET ETF
We might eventually switch to VTI. However, we figure after paying for the FX spreads on Norbert’s Gambits and then currency volatility throughout a lifetime of buying and selling, the MER costs of VTI and VUN might be a bit of a wash. We really appreciate the relative simplicity and ease of buying VUN on the Canadian side as opposed to going through Norbert’s Gambit FX moves and buying with USD just to save a few basis points with VTI.
Hey notice those $0.00 trading fees? Questrade is a great option for buying ETFs since you can buy them absolutely for free!
EQUITY INVESTMENT RETURNS
What have been the returns on these investments so far?
Vanguard Total US Market ETF
Total Equity Returns
Since we are just starting to build the equity side of our portfolio, the positions will start to grow as time passes. We kept a very large portion of assets in fixed income equivalents while I was paying off my student loans. Which I finished paying off in July 2014 (A post which I have yet to write… it’s coming… like the About page… for realz).
Here is a breakdown of Equities to Fixed Income Equivalents not including pension contributions into a pie chart just for fun.
Doesn’t that pie chart look like it belongs to someone who is just nearing traditional retirement age? If you stick around here long enough, you will see those values flip with equities eventually making up most of the pie. You should stick around while that pie bakes. Or grows. I’m getting confused with my own metaphors. Anyways, I wanted to demonstrate how I am a shark since I didn’t buy an iPhone 6 like most sheep and instead focused on building rather than spending wealth. Did you enjoying snooping around? Where are you currently investing your money?
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