Okay, we're gonna go over some resources here. Some of the resources I went through today, Yahoo Finance IRS website, I find it very useful for daily stock prices, you can also get option prices. Also historical research if you want to see what stocks cost in the past, accounting for dividends, and splits, Seeking Alpha, it's a really good site. It's free. Whenever I do stocks that are outside dogs for the Dow strategy that I talked about, I like to research it on Seeking Alpha. I find that the articles depending on the author range from very good to just okay.

Sometimes there's some bias, but I do enjoy reading the comments from other people that review the articles. And I find a lot of good information from the comments. So Seeking Alpha is free, you do have to register, but it's well worth it. I use as this kind of broker TD Ameritrade is their homepage. Of course, there's other discount brokers, if you google them, you can get a list. Schwab fidelity, they're all fine.

They're all about the same price or something. They're even cheaper. I just prefer TD Ameritrade only because they're convenient and where I live, I can actually go in person to their shop if I need to drop off money or pick up stuff. And I find that their customer service has been really really good. Share builder if you have less money to get started. As you notice in the beginning, of course, I said you could start with $500 minimum you could actually start with zero and build up from there.

I use shareholder before became part of capital one and you can buy shares of stocks and they do dividend reinvest it for free. And you can build it up over a period of years like I did. Initially, I moved in over to TD Ameritrade. So share builder at the ABA, small capital you want to get the program started with. I find this very useful. I did some numbers out of interest.

And first I'm going to talk about your expected returns. Warren Buffett said recently that because the market is so expensive now, especially the US market, that he felt that future returns will be single single digits less than 10% a year and you should be happy with that. Well, Warren Buffett also made the famous statement that last year a Berkshire Hathaway type of investor you should stick with index funds because index funds give you the most bang for the buck. The fees are incredibly low. And because you're buying entire indexes, baskets of stocks that represent a given stock Factor like small cap large cap us or foreign gives you the maximum exposure with diversity with minimal risk. And that is a very true comment.

And that's why I was talking about the 510 percent rule. never invest more than five or 10% of your total portfolio into any one stock. And whenever you make profits, try to diversify the index funds or ETFs. And of course, the other stuff I talked about Reed's closing funds, that kind of stuff. When you do diversify, you find the returns go down. So you may make like I have the last four or five years 20% of the dogs of the Dow strategy as I present it.

However, my overall return in all my accounts, has gone between anywhere from 10% to 15%. Overall, and not to get caught up in trying to hit that 20% return for everything. Because if you do you end up taking on too much risk. You also got to remember that when you benchmark yourself against Warren Buffett or against a major index like the spy, the s&p 500 you're competing in a field that most professional money managers for the funds fall short of In other words, over 80% of the funds never exceed or even come close to the s&p 500. And the bull market of the last eight some years the s&p 500 has been crushing everything in its path, maximizing return. But two things to remember in a down market.

If you have fund managers, if you choose that fund managers if you work with a financial person, a lot of times what you get in exchange for that fee is not so much a superior return is it keeps you from doing something dumb. That effect Return. In other words, deciding to get out of stocks all together when the markets going down, or trying to do other types of crazy trading when the market moves against you or moves against your trading methods, and that's where paying a fee to a manager can be very helpful because they keep you on the original game plan. As we mentioned earlier, even this strategy that I gave you in this course, can go through periods where it's down, and you actually do lose money and that downmarket can last six months, a year, two years, three years, five years, so on so forth, and that can be very trying especially to try and use a strategy.

Now, the strategy that I promoted in this course is a value based strategy meaning that because you're picking up stocks cheap, you're getting the dividends and you get a dividend reinvesting over time. Even if the market goes down. You can just sit tight and wait for the market to come. back even if it's several years, eventually you can recoup your losses and come out making money. At the far end of the game, if you strictly do momentum type training, trading, which is what the s&p 500, the top 10 s&p stocks because they're weighted by capital size, they move the market like apple, Facebook, Google, those stocks will suffer the most when the market goes down. And truthfully index funds ETFs and active managing funds as well.

When the market goes south and people want out, those stocks will become extremely cheap. And they end up becoming value stocks and that's the time to move in and pick them up as value stocks. So with the dog strategy, you're picking up the five out of the 30 dow stocks That are paying out maximum amount of dividends at the time. And what I wanted to do is just run some screens and I randomly choose the dates and choose the stocks that were the bottom of five for that year. just added curiosity. One of the criticisms of the dogs of the Dow strategy is cherry picking.

In other words, if I bought and sold on January 1, as the instructions are, I can make these monster returns. But if I bought and sold them other days throughout the year, even if I wait a year to buy and sell, my returns, don't often come close to making that big jump. And that's called data mining. Or as they say, in the trade, you torture the statistics until you get the results you want. And that's a valid criticism of it. It doesn't mean that the strategy is bad, just means be aware of the pitfalls with that strategy.

So with that in mind, we're going to explore what I did here. It's just kind of an exercise. If I bought for example, January 2008 the dogs on the second day because New Year's Day is a holiday, these were the dogs at the time. This is the price. This is the current price. current price when I did this program and this is the amount of shares that you would have today if you never sold the stock if you just reinvested the dividends he does not account for Commission's want to see what kind of return long term you would have.

So, Citibank here, see, not necessarily in today's dollars, but using Yahoo Finance first okoda if I bought the stock back then accounting for all the dividends reinvesting and he splits cost me $32 today, it's worth 75 today would have approximately 62 shares. today. If I started with $2,000 all these are $2,000 10,000 total. What I would have today, so today people worth 4697, Pfizer. This stock went from $22 87 and I would have today 3184. Interesting enough GM is listed here, as we know they went bankrupt, so I lost $2,000.

Again, risk and money management never put more than five to 10% into anyone's stock just in case it goes against you. GE which has been in the doghouse forever it seems like back then they were worth $36 now it's at 18 and today I would only have $1,000 to show for it for tying up my money for about 10 years. Time this broadcast is January 2018 and Home Depot would have been the big winner $26 today's worth 191 14,692 total all these up 2163 which comes out to 116% return divided by the 10 year period. I'm looking at us returning about 11.6% a year. Not great, not fantastic but reasonable. Here, we bought some dogs in 2010.

Again, I just randomly choose the year 18 T was the big one. It rocketed from $16 up to 3643 73 is your profit Verizon from 27 to 51. So you get 37 Kraft was very strange. It actually got bought out by Warren Buffett merged with Heinz and became a new company. So it was too complicated. To figure out what it's worth today, I left it as 2000 your initial investment.

But realistically, this number would be higher because you would have own shares in the new company. And by the way, these numbers I'm giving you on the historical data is only based on dividends and splits, it does not account for spin offs. So spin offs is when one company splits into several or spins off factions of itself, for example of Philip Morris spun off Kraft at one time and if you own Philip Morris before the spin off, you would have gotten free shares the crap that later on, became worth money that merged later on and so on, so forth. So spin offs can add quite a bit of value to the overall portfolio with what you started with. But again, it's too complicated to figure this out. So I left this at 2000.

Pfizer Yeah. Not bad. 13 up to 36 5200. And of course, once again, Home Depot 16 grand profit. So you're looking at 31 grand profit 216% for eight years, 27.4% per year on average. So why this dog strategy this particular year didn't do so great.

This one really did well hear 20 1518 T, not much profit fries, not much profit. Pfizer, not much profit. GE still in the doghouse, you lost a few bucks, Coke, some profit. So not a banner year. In fact of all the years that did the worse. Here we're looking at 26% over eight years 8.7% return.

So two things to keep in mind on this theoretical strategy if I was a retiree, and I wanted to live off dividends, monthly dividends from these different companies, as well as everything else, I would own a portfolio that paid out dividends quarterly, or yearly. You could see how if I bought the dogs at several different years and hung on or did nothing else, I could get a reasonable return, an outrageous return and not a great return. The reason why I show this is if I have this kind of thing, I may reach in here and say this is a great return this year. I'm going to deplete the particular stocks if I need more than just dividends need to get in the principal because they had a great return. This was an okay return. I'm going to stay away from deplete it and let it build up over time so it's more reasonable and the same idea here.

So earlier in the program, I remember seeing the study They bought the stocks, and they bought the bottom 10 not five, but the bottom 10 and they held on to them. And they would keep reinvesting year after year after year and buying the new bottom 10 stocks every year, reinvesting and never selling. And I can't remember the author of the strategy I saw a number of years ago, they ran the numbers for a certain amount of years. It was between 15 and 18. I think in May, probably less than 20% I don't think it was 20%. And that's why I feel that my strategy of getting up around 20% would be pretty darn good.

This dogs at the bottom five, just on this little tiny sample. I could see you getting anywhere from 11 up to about 15 18% pretty consistently and of course depending on when you bought it bought out or sold out or lucked out the years. The results will vary. And again, risk stocks can go down and you can lose money for a number of years before the dogs catch up.