EP #173 | Learn more about the importance of Macro and Dividend Investing with Leo Nelissen | & our thoughts about Bayer's 1.5 billion court ruling
Nov 25, 2023
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In this episode, special guest Leo Nelissen, a leading Author on Seeking Alpha, discusses the importance of macro and dividend investing. Topics include financial news, consumer sentiment, and manufacturing PMIs, as well as Bayer's $1.5 billion court ruling. Leo shares his story around dividend investing, his strategy, opportunities in the market, and his stock pick of the week. The hosts also touch on pronunciation and accents, rapid-fire questions, investment preferences, compounding, renewable energy, closed-end funds, and management fees.
Long-term investing and sticking to a proven strategy is key to navigating market fluctuations.
Incorporating macroeconomic factors into investment decisions helps identify value opportunities.
Gradual investing and focusing on dividend growth stocks can provide a steady income stream and potential long-term returns.
Deep dives
Long-term investing and focusing on great companies
The biggest lesson learned is to focus on long-term investing, buying great companies at great valuations, and not to worry too much about short-term market fluctuations. The key is to stick to a strategy that works and avoid getting caught up in the noise of the market.
Incorporating macroeconomics into investment decisions
Incorporating macroeconomic factors into investment decisions is crucial. Understanding the bigger picture, including economic cycles, inflation, and industry trends, helps inform investment choices and identify value opportunities. By analyzing the macro environment, one can make more informed decisions about where to invest.
Gradually building positions and focusing on dividends
A gradual approach to investing is recommended, buying small positions and adding over time. This allows for averaging down on price declines and reduces the risk of mistiming the market. Focusing on dividend growth stocks, particularly those with sustainable dividends, can provide a steady income stream and potential long-term returns.
Investing in Value Stocks and Incorporating Macroeconomics
The speaker discusses their investment strategy, which involves buying value stocks based on macroeconomics. They highlight the importance of understanding company narratives and market trends to make informed investment decisions. An example given is their purchase of Apple stock when it was trading at a low multiple due to negative sentiment surrounding the iPhone. They also emphasize the need to understand the factors that move different stocks, such as interest rates and consumer demand, to make successful investment choices.
Opportunities and Challenges in Investing in ETFs and Dividend Growth Stocks
The speaker shares insights on the advantages and limitations of investing in ETFs and dividend growth stocks. They mention that while ETFs can provide broad market exposure, they suggest that investors also invest strategically in companies they understand and have affinity with. They caution against focusing solely on high-yielding dividend stocks without considering the company's financial health and growth potential. Additionally, they discuss the limited selection of dividend growth ETFs in Europe and recommend alternative investment options for European investors, such as S&P 500 or global ETFs.
We kick off with the latest financial news, consumer sentiment, and manufacturing PMIs. We also discuss Bayer and their recent order to pay $1,5 billion to 3 claimants.
After some quick fire questions with Leo, we dive into Leos's story around dividend investing where we touched on topics such as macroeconomics and dividend investing, the basis of his strategy, ETFs and where are the opportunities at the moment.
We finish with some listener questions along with Leos's stock pick of the week
Companies mentioned, are Nvidia, Walgreens, Vici, Realty Income, Caterpillar, Apple, Public Storage