Today I'm interviewing Kanwal Sarai. Kanwal is an investor for more than two decades focused on dividend investing. And, today he's going to be sharing a 12-point system that he uses and teaches his students how to apply so they are able to skillfully invest in the stock market using these proven principles. I also love this conversation because Kanwal is sharing with us his own passive income journey not just with dividend investing but also with charging for membership, for a report that he sends out every month, for courses and, how he sets up his business, what happens behind the scenes. I know you're going to get a lot from this conversation. And it'll inspire you to think differently going forward. Enjoy... Kanwal Sarai helps people just like you to earn more money, save time, and reduce your risk. He has not always been an investor. In fact, he used to work in the software industry. But when he got married and started a family of his own, he started to have some of the same financial worries as you. His income was not going to be enough to protect his family’s financial future, and he had to do something about it. He did not want to work until he was 75. But he did want to be able to invest in his children’s education. From 9 years to 65 years old, since 2007 his course has taught people in over 30 countries how to create their own stream of growing passive income by investing in quality dividend stocks and, has helped them save thousands of dollars in fees. Kanwal said the following insightful notes: "As soon as I was done with school, I went out and got a job. This is what everybody taught me and what I was told - to go on and get a day job. Sit in a cubicle, 9 to 5, Monday to Friday and that's what I did. Around 2007, while I was still working, I kind of came to this realization that I couldn't see myself sitting behind a desk for the next 45 years like it wasn't for me. And, you know aside from winning the lottery I can't see any way out what am I going to do. I'm a bit of money nerd so I've got Excel spreadsheets and everything so I put my salary into the spreadsheet. Put all the numbers in there and I realized even if we both keep working, we're going to have to do this for the next 45 years. Just the way things are. And I realized I didn't want it - that was the path that wasn't for me. So in 2007, I decided, you know, a couple of years before that I've learned how to invest - I learned the Warren Buffet approach to investing - how do you invest responsibly, how do you do that without taking on too much risk..." --- "But in 99 and 2000 after the tech bubble burst that was a valuable learning experience for me. You know I didn't invest too much money, I think it was about 3 to 5000 dollars. And I pretty much lost all of it. But what I learned from that is that if you're going to invest, you have to get the education first. You got to learn how to do it properly. Well, it's kinda like when somebody gives you keys to the car and you've never driven a car before, I'm not sure you will get very far. So it's the same thing with investing. I decided to - this whole experience with NorthTel and these tech companies didn't go so well, but let me pick up a book. So, I picked up a book, started reading it. It leads to another book and, leads to another book. And so, they all had a theme in common, what they all suggested was, you know, if you want to be successful in life and we're talking about wealth, if you want wealth generation, you have to invest for yourself-by yourself..." --- "So I look for role models - these are people who didn't win the lottery, they didn't inherit a lot of money from their parents or they did make a lot of money and lost it all in 6 months. These were investors who were successful self-made and successful for 20, 30, 40, 50 years. So number 1, find out who these role models are. So that wasn't too hard to figure out who they were; Number 2, learn what they did and could just copy what they've just been doing. What I'm teaching is value-investing and that has been around for a long, long time..." --- "I didn't have any digital products, none of that, I was teaching in person. Now, I remember I have a day job, we had the first child on the way, married, so not a lot of free time to go out and teach. So it was a bit of a side hustle like a side business which I enjoyed doing and still enjoy to this day. So it was more of it started as a hobby and naturally turned to business over time. And then as we had our daughter 2nd child on the way so, in 2010, I packaged the course and put it online which made it a lot easier to deliver the course once it's online. Anybody in the world can access it. Since then it's sold in over 37 countries now..."
Dividend Value Investing and the 12 Rules | Kanwal Sarai
The FI Show
Today's episode features Kanwal Sarai from Simply Investing.Kanwal shares with us his unique investing style.This style is a combination of value investing like Warren Buffet and a focus on dividend payouts.Kanwal takes our questions in stride and makes some really great points.Listen, learn, and let us know what you think about this awesome episode.Episode SummaryKanwal's Background Kanwal graduated with a computer science degree at age 24 in 1996 About three years in, he realized traditional work couldn't be a forever path This was before anyone was calling it "F.I.R.E" His first side hustle attempt was purified water Long story short...the side hustle was a flop Neither of them knew anything about marketing/salesBuilding His Own Investment Method In 2003 Kanwal started developing his own investment strategy His son was just born and was keeping him up all night One of those sleepless nights he grabs an investing book and was hooked At the time he was paying 2.5-3% fees for advisement His main focus came down to strong dividend-paying companies He calls it "Dividend Value Investing" This is a combination of undervalued companies that also pay dividends12 Part Checklist of Dividend Investing 1. Do you understand the product or service 2. Will people still be using the product/service in 20 years 3. Do they have a low-cost lasting advantage (think Coke's secret recipe) 4. Would you use the product that people would use during a recession 5. Do they have consistent earnings growth 6. Do they have consistent dividend growth 7. Do they have a low payout ratio (dividend vs earnings) 8. Do they have low debt % 9. Do they have a good credit rating 10. Do they actively buy back their shares 11. Is it under or overvalued P/E 25 or less The current dividend yield is higher than the 10-year average Price to Book ratio <312. Keep your emotions out of investing Kanwal publishes 227 companies that meet these criteria as part of his Simply Investing Report Even with all these rules, you still may find a dud That's why diversification is still so important Kanwal recommends 25-50 fundsWhy Dividend Investing Over Index Investing Holding the total market (index funds) means that you're going to own some poor quality stocks Getting cashback in your pocket to diversify instead of simply seeing appreciation in one company Kanwal reinvests dividends across all his dividend stocks and not right back into the company that originally paid itThe average annual yield Kanwal sees from his dividend stocks are 3.5-5%Key Takeaways Take The Emotion Out: Kanwal's 12 rules help create a systematic process without being clouded by human emotion Set Goals, Be Patient: Don't get sucked in to get rich quick schemes, find quality companies and make continual progress.Call to ActionLeave a review on iTunes, share it with us, and then we'll select two lucky listeners for a prize. One listener will get a year subscription to the Simply Investing Report and the other will get full access to the Simply Investing Course. That's $500+ of value!Join the CommunityWe’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] comIf you like what you hear, please leave a rating/review!The FI show on iTunesThe FI show on AndroidCheck out our Partners Looking for a low-cost cell phone service provider with great coverage? Look no further. Mint Mobile provides the same premium coverage you're used to, but at a fraction of the cost because everything is online. All their plans come with unlimited talk and text and you can choose...
How to Invest in a Volatile Stock Market, with Kanwal Sarai
The MapleMoney Show
In recent weeks, the arrival of Coronavirus in North America has wreaked havoc on the stock market, bringing with it fears of a sustained economic downturn, including talk of a possible recession. And while no one really knows how it will all play out, there are steps investors can take when faced with a volatile stock market. With everything that’s going on, it felt like the perfect time to have this week’s guest join us. A dividend value investor for more than 20 years, Kanwal Sarai is the founder and editor of the Simply Investing Report. At the end of the episode, stay tuned for a special offer Kanwal has extended to MapleMoney Show listeners. You can find the show notes for this episode at https://maplemoney.com/kanwalsarai Our sponsor, EQ Bank, has partnered with TransferWise, to give Canadians a better way to send money overseas. The result is fully transparent and remarkably quick international money transfers that are up to 8X cheaper for EQ Bank customers. To find out more, visit https://maplemoney.com/eqbank
How to Burn Your Mortgage Faster with Dividends with Kanwal Sarai
The Burn Your Mortgage Podcast
Kanwal Sarai is the founder of Simply Investing and publisher of the Simply Investing Report. Kanwal's straight-forward, no-jargon approach helps everyday people to grow their net worth by investing in dividend value stocks. With a passion for investing and teaching, he demystifies the complex world of investing for those seeking to invest for themselves. In my interview with Kanwal, we discuss how he was able to pay off the mortgage on his first home in only 5 years, how to use dividends to help pay down your mortgage faster and how quickly someone could burn their mortgage using dividends.