TJ Terwilliger

Get a FREE Dividend Growth and Reinvestment Calculator here to see the power in SCHD's growing dividends:https://compounding-dividends.ck.page/98a9a73607The ... STOP Comparing SCHD to the S&P 500 (You're Missing the Point)

Get all my thoughts on it here:
youtu.be/JVygTnz3CIo

$SCHD and $VOO have 6% overlap by market cap.

Yet I keep hearing people complain that SCHD is underperforming 'the market'.

Different funds, with different goals.

They should be measured by different metrics.

Cheap stocks don't make good investments.

Good companies don't make good investments.

Good comapnies bought cheap do.

"Don’t buy 'cheap' stocks just because they’re cheap. Buy them because the fundamentals are improving."

— Peter Lynch

Buying dividend stocks now can make work a choice later.

You don't have to quit your job, but passive income makes it possible.

"When it comes to investing, my suggestion is to first understand your strengths and weaknesses, and then devise a simple strategy so that you can sleep at night."

— Walter Schloss

Investing $50,000 once won’t change your life.

Investing $150 every week will.

Working out once won’t get you in shape.

Working out 100x a year will.

Consistency is key.

Old wealth:

• Big house
• Expensive car
• Spending to show off

Modern wealth:

• Control of your calendar
• Choosing what to work on
• Doing less of what you hate

177 Cannibal Stocks 177 Stocks Charlie Munger would have loved. They've bought back shares aggressively over the past 5 years, grown revenue and earnings, and have good ROIC.

Get the whole list of 177 Cannibals here:
compounding-dividends.ck.page/5869984bd2

Charlie Munger loved companies that eat themselves by buying back stock year after year.

Here are a few of the best “cannibals” I found, and how fast they're reducing share count👇

🍔 $JBS 16.1%
🚗 $AN 15.4%
🚙 $CAR 12.8%
🎓 $LOPE 9.3%
💰 $PAC 9.5%
🏢 $AXR 9.3%
📀 $DBX 8.2%
⛽️ $MUSA 7.9%

Paying off your mortgage early isn't mathematically optimal.

But do you want to optimize for math, or real life?

The optionality, peace of mind, etc. fro a paid off house is hard to put into a spreadsheet.

That doesn't mean that it doesn't have value.

We are all “long-term investors"...

That prefer our stocks to go up in price as quickly and in as straight of a line as possible.

Delayed gratification is the key to all investing 🙂

Capital One Financial $COF investors got a 33% raise.

Try getting that at your 9-5.

How to get rich:

- Buy businesses, not stocks.
- Give every dollar has a job.
- Master delayed gratification.
- Prepare for recessions before they arrive.
- Focus on ownership, not employment.

Invest to match your goal.

To BEAT the index, you'll have to look very hard for opportunities everyone else misses.

To BE the index, you can just buy an index fund.

For me, the goal isn't either.

It's to have dividends cover my expenses.

Everyone is a long-term investor... or at least that's what they say.

The data says different.

If I didn’t know where to start, I’d:

1) Open a 401k, brokerage account or IRA
2) Buy a globally diversified ETF
3) Turn on reinvest dividends
4) Automate contributions and buys
5) Make an incredibly complicated password
6) Forget about it for 20 years

Lots of people here like to argue about the besting investing strategy (value, growth, dividend, etc)

And there's a lot of talk about what's optimal.

But the truth is, the best strategy is the one you can stick to long-term.

Investing is boring…until it makes you rich.

Routine is boring…until it makes you successful.

Exercise is boring…until it makes you fit.

Consistent, boring actions are how you win BIG long term.

Most millionaires have multiple streams of income.

1. Dividends
2. Paycheck from 9-5
3. Rental income from Real Estate (or REITs)
4. Royalties
5. Capital gains from selling assets
6. Profits from owned businesses
7. Interest in savings, CDs, bonds

What other streams can you add?

Build A Cash Flow Machine

Dividend Kings:
🥤 $KO
💡 $ED
🧻 $KMB

Dividend Aristocrats:
📈 $FDS
🚜 $CAT
🍔 $MCD

Dividend Growth:
💳 $AXP
☁️ $MSFT
📡 $AVGO

High Yield:
📱 $VZ
💨 $MO
🛢️ $ENB

What’s your top pick form each?

Yogi Berra on inflation:

Financial freedom starts with a plan:

1) Have an emergency fund of 6 to 12 months of expenses
2) Be debt-free
3) Generate dividend income exceeding your annual family costs

Two decades of disciplined investing can make this a reality.

For now, Kenvue is off the watchlist.

But Kimberly-Clark might be next up for a deep dive.

And strategically? They’ve got a lot going on:

• Spinning off their international tissue business
• Acquiring Kenvue
• Managing cost pressures

It’s messy, but potentially interesting.

Revenue and profits are flat, but only because they’ve absorbed higher costs instead of passing them to consumers.

That’s compressed margins, but it’s also built goodwill and kept market share.

Here’s the interesting part:

Kimberly-Clark itself might now be worth a closer look.

The entire consumer goods sector is out of favor… but $KMB’s volumes
have actually held up, even as peers struggle.

The catch: $KMB stock is dropping pre-market, which makes it hard to say exactly what $KVUE shareholders will end up getting.

Still, $KMB can afford the deal. The balance sheet has room.

Now that question won’t matter — because Kimberly-Clark stepped in.

The reported price tag? About $21 per share, a mix of cash and stock.

I thought Kenvue was pretty undervalued.

The big question I was trying to answer was:

Can management return the business to growth now that it’s separate from Johnson & Johnson?

If yes → the stock was cheap.
If no → a dividend cut was likely.