This page summary, takeaways, and transcript were generated
by AI from the video captions.
The video itself remains the source of truth.
The video details a portfolio update focusing on a barbell investment strategy, balancing high-growth stocks like Nvidia with high-dividend stocks like VICI, while also outlining plans for increasing savings and income through job changes and Roth IRA contributions.
This portfolio update focuses on recent stock additions, specifically Nvidia and VICI, as part of a barbell investment strategy. The host explains that Nvidia represents the high-growth component with potential for future dividend growth, while VICI, a real estate investment trust primarily owning Caesars and MGM properties in Las Vegas, serves as the high-dividend component. This approach aims to balance risk and reward by combining different investment profiles.
The video delves into the rationale behind investing in VICI, highlighting its substantial real estate holdings in Las Vegas and its role in the entertainment and gaming industry. Despite current perceptions of Las Vegas, the host believes in its long-term appeal as an entertainment destination. For Nvidia, the focus is on its rapid earnings growth and the expectation that it will become a significant dividend payer in the future, driven by the demand for its chips in data centers and other technological advancements.
The update also covers the current portfolio performance, noting a steady increase in dividend income to $2,300 annually, with a portfolio value around $68,000. The host mentions plans to add Smithfield Foods, a large pork producer, for its dividend potential. Future strategies include increasing holdings in VICI and Nvidia, and importantly, a new job and more economical living situation are expected to boost savings and contributions, with a goal to max out a Roth IRA by January.
Looking ahead, the host emphasizes the need to increase overall income, not just savings rate, to accelerate financial progress. While acknowledging the current job market challenges, the plan is to continue growing the investment portfolio after maxing out the Roth IRA, aiming for substantial dividend income over time. The update concludes with a reflection on steady growth and a thank you to the viewers for their support.
A barbell investment strategy involves balancing high-risk, high-growth assets with low-risk, stable income-generating assets. This video explains how to implement this by combining growth stocks like Nvidia with dividend-paying REITs like VICI.
Nvidia is chosen for its high-growth potential and future dividend prospects, driven by technological advancements. VICI, a REIT owning significant Las Vegas entertainment properties, is selected for its stable dividend income, balancing the portfolio's risk and reward.
To increase investment income, consider optimizing living expenses and seeking new job opportunities to boost overall income. This allows for higher savings rates and increased contributions to investment accounts, accelerating portfolio growth.
VICI is a real estate investment trust that owns substantial properties in entertainment hubs like Las Vegas, including major casinos. It is a key component in a barbell strategy for generating stable dividend income.
The video emphasizes prioritizing maxing out tax-advantaged accounts like a Roth IRA annually before investing further in taxable accounts. This strategy helps accelerate financial goals by leveraging tax benefits.
Dividend growth stocks, like the potential future of Nvidia, offer long-term capital appreciation alongside increasing dividend payouts. This dual benefit can significantly enhance total returns over time.
0:06 Hey, what's up everybody? Give me 1 second. Uh, it's a long day at work. How's everybody doing? I just wanted to do a portfolio update and we'll go ahead and share the portfolio here. Share screen.
0:41 Yeah, so this is what we're looking at as far as an update goes for today. Uh, this month I have added two stocks. Uh, by the way, this is not financial advice. Nothing in this video should be taken as financial advice. I am just sharing what I have purchased recently. It's not a suggestion for you to purchase any stocks. Uh, just sharing information for transparency. So, yeah.
1:12 We have two additions and that is Nvidia. You can see highlighted here. And uh, VICI. And so, why did I add Nvidia and why did I add VICI? Well, I added Nvidia for a few reasons. So, one of my strategies here is that I am approaching this with a barbell strategy.
1:49 Make sure my AirPods are working here. Let me know if the audio sounds off. Um, yeah, try chime in. I think we got one person watching. Chime in in the chat. If my audio sounds off or if not, either way.
2:14 So, I added Nvidia cuz we're talking about like a high growth stock with a low dividend, but likely a high dividend growth rate. Uh and I'm offsetting that with VICI, which is a high dividend stock, but a low uh dividend growth rate.
2:34 And so, my presumption is that VICI's dividend growth rate will be quite uh low. It's a real estate investment trust, so basically, it uh it holds a lot of real estate in Las Vegas and also in other parts of the United States, but primarily, it owns Caesars properties. It was a result of the Caesars bankruptcy. And it also owns, I think it's MGM. Let me just double-check.
3:16 Yeah, yeah. So, MGM properties as well. Uh 63 gaming destinations, 103 experiential assets, 40 non-gaming properties, and then four championship golf courses. So, the goal there is to collect rent.
3:28 And I know a lot of people are negative on Vegas right now. They think Vegas is done forever. I think Vegas is just going to shift. I think that the West Coast will always need a late-night entertainment destination. You could say New York City is that for the East Coast, uh but the West Coast is kind of sleepy after hours, late hours.
3:50 Even Los Angeles doesn't have a huge late night scene. I know there's something there, but especially post COVID, all the big West Coast cities are kind of you know, they they shut down kind of early. So, I think Vegas offers is something for a lot of uh you know, late night uh entertainment.
4:15 And I think Vegas is going to continue to develop into an attractions kind of a city like, "Hey, you may not want to gamble, but come here, have fun, go to sports games. Uh UFC is really big in Vegas. I've been a fan of UFC for a while. There's also uh new football team in Vegas. The Raiders moved down there. I mean, they're not new team, but they've somewhat recently relocated down there.
4:42 There's talk of a basketball team in Vegas. They also own like 50 acres, I think it's east uh or behind the Paris casino in Vegas. So, they own some substantial real estate holdings in Las Vegas.
4:59 And I think Las Vegas will continue to evolve. I know a lot of people said, "Oh, nobody goes there anymore." I was at the airport, and it was slower than what I've seen in the past, but Vegas has always been boom and bust. I think they'll figure out a way to continue to attract people that want to spend money, have a good time, have a unique experience. Las Vegas is very unique in the United States.
5:23 And uh yeah, so Nvidia, they just did earnings today. Earnings were really good. They're of course growing their earnings really quickly. I don't expect Nvidia to pay me a lot of dividends in the immediate future, but I think 5 10 years down the line, they could be a substantial addition to my dividend portfolio.
5:45 Uh Uh, a lot of the chips are not really one-offs. I think that, you know, with the data center build-out, that companies will want to uh, replace chips. It's possible that they continue I think it's probable that they continue to develop more and more efficient chips. They'll replace some of the older chips with newer chips. And they could shift to a more mature business in the long term where, hey, maybe they're not growing rapidly like they are now, but they're still getting some repeat business and recurring customer revenue from companies that want the chips, but don't want to develop in-house. Maybe they feel like, hey, you know what? It's too costly for us to go in-house for that, so we'll just go to Nvidia even if they're not the cheapest solution. They are uh, more efficient and they have high-quality products.
6:38 So, yeah, not uh, not the most exciting update this month, but we are steadily growing. The dividend income is up to 2,300 per year. Uh, I don't know if I had a dividend cut. I need to go through and double-check because I noticed my dividend income dropped maybe 20 bucks uh, in my Chase app. Um, so that's coming in at roughly 68k of uh, portfolio value.
7:08 But, we're getting close to $200 a month, which is a pretty exciting number. It's not near where I want to be, but it's a solid start, right? I want to have pretty substantial dividend income. That's going to be a ways off, but I think that slow and steady is going to win the race here.
7:32 Yeah, and we'll continue to get hikes and and update that income and add to it. As far as what I'm going to be adding in the next month, I've been eyeing SFD stock, which is Smithfield uh pork products. They're the largest pork producer in the United States. I'd like to add some of that. Not a runaway growth stock, but a solid dividend payer.
7:53 They've been getting hit by some inflation struggles, you know, the economic uh situation we find ourselves in right now. But, I think the pork you know, I don't think it's going to totally disappear. I think they may have to shift and introduce some new products, maybe do some bulk deals, maybe try to get on with some wholesale businesses like Sam's Club or Costco even more so than whatever they've got going. I don't know if they're currently sold in those stores, but that could be a way they could have the business continue to go.
8:28 Um I'd like to add a bit more to VICI and wouldn't mind adding some more to Nvidia. So, those are just three that I'm looking at to add in the near future. I would like to make some of these holdings a bit deeper, you know, we've expanded the number of holdings quite a bit, but maybe doubling one of these holdings isn't the worst idea.
8:51 One where I have a smaller exposure, you know, um maybe getting VICI up to say 100 shares would be uh interesting as far as, you know, that's going to produce So, right now 50 shares producing $90 a year. Um at the time of making this video, having 100 shares would produce $180 of income per year, up to $15 a month. I don't have Netflix, but that kind of allocation would uh come close to covering a Netflix bill. I think they've got different offerings where if you take ads, it's cheaper. If you want no ads, it's more expensive, but yeah.
9:51 Ooh, yeah, it's the sun's starting to to really drop in the sky here in NorCal. Switched to a new job. Uh new job pays the same as my old job, so uh my savings rate uh would be the same, but I have also moved into a uh more economical living situation, so that should help increase my contributions.
10:11 Uh we're coming up to the end of the year here. I mean, we're like in the last third of the year, let's say. We've got September, October, November, December. And toward the end of December, I'll be looking to start to uh really December, get start to get the cash together to max out my Roth IRA. I'd like to do that in January. Once I have that maxed out, I'll go back to adding this, but it doesn't make any sense to leave that tax advantage on the table uh come January. So, I'm going to try to be maxing this out uh once or I'm going to be trying to max my Roth IRA out once this is um this year is over.
10:52 And then after it's maxed out, which for my age, current limit's $7,500, I'll go right back to putting ideally a thousand plus per month in this portfolio. Growing it um ideally I get uh promotions in the coming year or or new job opportunities that may offer more compensation. But uh yeah, that's just what we're looking at here. Feel free to chime in with any questions, any thoughts you have.
11:26 I don't know why my nose is runny. I I've kind of been in a dusty environment at work, so I've been sneezing a lot lately. Um Maybe it's just the time of the year, but uh Yeah, I just wanted to do a portfolio update. Not anything really crazy here.
11:45 We're um hoping to Yeah, hoping to just keep the ball rolling, growing. And uh Really at this point I need to increase my income. It's my savings rate for my income is pretty good, but I'm living pretty cheap. I could live cheaper, but it would I would take a hit to my quality of life. Really what I need to be doing now is try to figure out how to increase my income.
12:15 And I've got some solid ideas that may be several years before I can really make a solid jump in that. We'll see how the job market goes. Job market's not the best right now. It's not the easiest time to find a high-paying job or a new job. Um but, you know, I'm doing my best and uh thanks so much for bearing with me, everybody. Well, this time this may not be the best time. I'm going to go ahead and wrap the stream up and uh yeah, thanks so much for watching, everybody.
Follow the journey through expat life, travel experiences, and the realities of living abroad while exploring different places, cultures, and everyday life overseas.
