My 3 Best Investments so far – Lessons Learnt

I started dividend investing sometime around end of year 2011. Now, I’m taking stock of all of my securities in various portfolios, including a fun portfolio that I do not track over this blog (due to its small amount) and how they performed in this duration from beginning to to-date so that the readers can see what have been my best investment bets so far, lessons learnt and hopefully a dose of inspiration for some 🙂

As the saying goes, hindsight is 20/20, so, you never know what securities are going to perform best in future, it’s only after years of investing, you’ll see the performance. Some securities will outperform others and some will lag behind, in-spite of all the analysis we do.

Without much ado, below are my 3 best investments so far:

#1 Hewlett-Packard Co. (HPQ):

Hewlett-Packard is a multinational IT technology company with varied interests in hardware, software and services and was founded by Bill Hewlett and Dave Packard in 1935 in a car garage. HP has many marquee products under their belt like printers: Deskjet & Laser, PC, Palm, and many others.

+89.67% Up: Average cost: $18.04 and currently trading at $34.22.

#2 ConocoPhillips (COP):

ConocoPhillips is world’s largest independent exploration and production company, based on proved reserves and production of liquids and natural gas. They have operations across 27 countries with over 18K workforce and a truly diversified company across globe.

+40.97% Up: Average cost: $60.55 and currently trading at $85.36.

#3 Johnson & Johnson (JNJ):

Johnson & Johnson is a consumer & healthcare company and lot has been written about it by many over decades in fact. This company has 30 consecutive years of increasing adjusted earnings and 52 consecutive years of dividend increases.

JNJ has an amazing set of products in various segments: baby care, skin & hair care, wound care & topicals, oral heath care, OTC medicines like tylenol, motrin, benadryl, etc., nutritionals, vision care, medical devices and diagnostic products, prescription pharmaceutical products, that are used daily by millions world over.

+36.44% Up: Average cost: $77.16 and currently trading at $105.27

Lessons Learnt: All the above 3 companies are top notch in the segment they operate , have growing earnings and hence growing dividends that are distributed to shareholders over the years, in-spite of the great recession or wars in between.  They were bought at the price when they were fairly valued and therefore had margin of safety. Wish I had bought them more 🙂

Full Disclosure: Long on all securities mentioned here.

What have been your best investments so far in your DI life ? Please do mention in comment below as it may help our community readers to see any other hidden diamond(s).

Thanks for reading.

6 thoughts on “My 3 Best Investments so far – Lessons Learnt

    1. Hi DivHut,

      Wow! Those are great returns and I would love to have them 🙂

      YUM is a great brand and I’ll take a look at other companies also.

      Thanks for stopping by!

      Cheers.

    1. Hi DividendMongrel,

      In 6 months, 13% returns on INN are fantastic. Dividends are great as well.

      I own many REITs and would need to take a look at INN.

      Thanks for stopping by!

      Best wishes,

  1. PIM,

    Great lesson to learn. I see people chasing yield and low-quality stocks all the time, but the best risk-adjusted returns over long periods of times are typically found with high-quality businesses that reward shareholders with rising dividends on the back of rising profits.

    I think my biggest gain thus far is PSX, which is up more than 180% from my cost basis before dividends.

    Best wishes!

    1. Hi Jason,

      I’m glad that you like my lessons as well. It’s great to hear confirmation from like-minded investors like you who have been investing for a while 🙂

      I hear you on great-quality stocks and totally agree. In long term, these blue chips and dividend champion companies are a way to go like CVX, MCD, JNJ, XOM, PM, KO, CLX, PEP, NSRGY, PG, WMT, KMB, etc. I would also like to add few financial companies into the mix but was little reluctant due to last recession, but, I guess that was the best time to purchase them.

      180%, Its awesome! Almost double. I’ve thinking about adding PSX when Warren added into his list of mega-portfolio 🙂 It has moved quite a lot since then. Its a great buy.

      Thanks for stopping by! Appreciate it.

      Best wishes.

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