06-02-2018, 08:02 PM
(06-02-2018, 04:45 PM)mattk Wrote: It also seems like I might save some time by studying others portfolios. In this space it seems there are always some companies that are included in all DG portfolios (Johnson & Johnson for example). Is there a need to do an in depth analysis there? Perhaps I'm trying to cut corners where I shouldn't.
At this early stage too, I wonder if I would be able to do any better than just investing in something like the Vanguard Dividend Appreciation ETF (VIG) (or something similar) which seems like it would get me 90% of the way there for what I might be able to pick on my own.
Definitely take a look at what others are doing. I would never directly copy someone as we all have different goals but it's a great way to get some new ideas. In fact I was going to link the post that Kerim already did, it's a good place to start looking for some companies.
I would never skip doing an analysis myself, no matter how well loved the stock is. Not only do you gain the information you need to make the decision yourself (it is your money after all) but you also learn in the process. If you take a look at how JNJ has been doing in the past you'll see why we like it so much. And it'll be a lot easier to continue monitoring it when you have a good understanding of the company.
Regarding the ETFs. I can see the appeal for someone like you who doesn't want to spend too much time. And I'd definitely recommend that you keep that option open. They do have some downsides such as fees, owning companies you might not want to own, very poor chances for customization to fit what you want etc. But they do save time. Also there is nothing stopping you from doing something like investing 75% of your money into a couple of well selected ETFs and then finding individual companies to put the 25% in.