Weekend Review – Double down on shell!

Hands up! Who else is over this virus malarkey.

I am sulking a little bit this weekend due to the fact we had to cancel our yearly “Lads Only” trip to Malaga in the sunny Spain.

Every year, a couple of us from Ireland , meet up with a few mates from London and enjoy a few beers and catch up in person rather than over whats app.

Monkey See, Monkey Do

“I hear and I forget, I see and I remember, I do and I understand

Chinese Proverb

I have mentioned before about how my eldest son enjoys investing and picking his own companies. He also listens quite avidly to my podcast and has started asking lots of questions about dividend Investing. I bought him this book on Amazon called Dividend Made easy. To the Authors credit, it is written in such a way that a 10-year-old could understand and it seemed that EMF junior is discovering a lifelong passion in DGI

On our last podcast we analysed Diageo and EMF junior was curious as how we actually did this. I honestly did not want to take a 10 year through the mundane task of reading annual reports. Let’s be honest that would bore him to tears. But I did have a light bulb moment where I thought the best way to teach him about business is to actually run one together!

Family Business

The above quote was posted on my twitter timeline by @PacificOrient88 and it completely makes sense. I do and I understand. To my surprise, my youngest son was keen to get involved. And we also roped in Mrs EMF. Our Family business is Born

The idea is simple. We are going to run an Amazon Business together. From Idea generation all the way through to sourcing the product. To finally selling our first product on Amazon. The goal is to make our first $100.

I have made only two rules.

1. There is no bad idea. No matter how silly it may sound, every idea gets wrote into our journal and we discuss them once a week at our shareholder meetings.
2. Everyone has a single vote. It doesn’t matter if your 8 or 34, all of our opinions are equal.

We started our first meeting by writing down all our interests and figuring out a combined interest that we would all enjoy. After a few days, we decided the sports niche is a good place to start. I plan on documenting our whole journey to keep track of our success and failures. My goal is really to teach my kids about starting a business, running a business, and hence understanding the financial side if a business. I want them to know it’s okay to fail and that it is more important that they try even if they don’t know what they are doing yet.

I will also be learning along the way.

little disclaimer

BTW, the book link I posted above is an affiliate link from Amazon. I have set up a seperate amazon affiliate account for us to use as a way of “generating some cash” while we work on our own brand. If you do decided to buy a book something from amazon, we would appreciate if you use the link. It won’t cost you a cent more but will make my boys excited 🙂

Presidential election

The United states of America presidential race is starting to heat up as we enter the final stretch. As a European it is fascinating to sit back and watch how it all unfolds. Weather we like it or not the outcome of this election affects pretty much the whole world.

We are starting to see this in the markets with increased volatility. Most investors will expect this volatility over the next few weeks so if you are planning on trading or investing then please use some due diligence. One interesting concept came from my buddy, European DGI, where he discussed a trump premium being built into the market. It will be interesting to watch this thesis as the race unfold and if it looks like Biden will win, we see this premium dumped out of the market before the election date.

Either way, I hope that it provides some good buying opportunities in the near future

Double Down on Shell

$RDS.B have been in the news lately and have left alot of investors with mixed feelings. We had dividend cuts and Job losses while the company is trying to pivot into the renewable energy sector.

The energy sector is taking a beating right now there is no doubt and I know a lot of investors’ portfolios are down because of the impact on the energy sector. I am quite lucky in that I only opened positions in this sector this year during the crisis so my entry point is quite low.

I bought both Royal Dutch Shell and Exonn Mobile. Subsequently I have since sold $XOM. My reasons are as follows

1. Oil will not go away anytime soon. The demand is Low now but this won’t last forever
2. I don’t believe we saw the full effect of the oil crisis a few years ago, Band aids were put in place and we are starting to see know who will have the financial muscle to stay the course.
3. RDS have acknowledged the oil crisis and its need to diversify and are aggressively perusing a more renewable route. This may see them with lower returns and become more of a utility but I agree with their strategy now
4. XOM does not look to healthy financially and I am expecting them to cut dividends. Yields are in excess of 10% right now. I would be more happy if they cut their dividend to a more manageable level and gave a little indication on how it plans to navigate this crisis.

The bottom line is I still believe in the energy sector over the longer term.I still believe in Royals dutch shell over the next 5 to 10 years and the entry point looks good right now.

See my Review of Shell here – https://www.engineermyfreedom.com/royal-dutch-shell-review-a-company-in-transition/

As investors we quote all the famous saying religiously (particularly on twitter) . One of the most famous is ” Buy when there is blood on the streets”. I smell blood at the moment but the question remains are you brave enough to buy?

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