Wealth Club is the premium, actionable tier of Cut the Crap Investing. It strips away financial jargon to deliver potential high-return stock portfolios and clear wealth-building strategies. Wealth Club is designed for self-directed investors who want straightforward, actionable strategies without unnecessary complexity. Rather than simply providing stock-picking alerts, Wealth Club focuses on helping members build, grow, protect, and eventually harvest their wealth through disciplined portfolio construction and long-term investing.
Wealth building should be one of the most simple and rewarding things we do in life. We can all find our version of “rich”.
You’ll discover the portfolio model that fits your temperament and goals. You’l then invest on a regular schedule. It is time and consistency that builds wealth. Wealth Club will help you manage the portfolio and your behaviour along the wealth building journey.
Outperforming Canadian Stocks
The good news is the Canadian stock market provides a unique opportunity. Boring works.
Market history shows that creating a portfolio of Canadian blue chip stocks outperforms the market. Sometimes simple wins. We’re owning mature cash flow rich businesses that often operate in wide moat (oligopoly) situations. You know all of these businesses from RBC, TD, Sun Life, Manulife, Enbridge, TC Energy, Powercorp, Rogers, Quebecor, Fortis, Emera, Loblaws, Empire (Sobey’s), CP and CN Rail, Couche-Tard and more from the sectors where these blue chip companies roam.
As always we should add that past performance does not guarantee future returns/outperformance.
Canadian Low Volatility Portfolio
We’ll look to a combination of BMO’s Low Volatility ETF and its holdings, plus the incredible low volatility portfolio research of Norm Rothery at the Stingy Investor and Globe and Mail. Dale’s own research and ideas on valuation will enter the mix.
We’ll keep a running track record of the performance and valuation levels for each company.
Here’s BMO Canadian Low Volatility ETF ZLB-TO from fund inception.
Canadian Wide Moat Portfolio
While there is a lot of cross over between the low volatility and Canadian wide moat approach, the wide moat portfolio is unique. There are a few sectors in Canada where two to several companies essentially own the sector. There is no competition. Of course that gives them pricing power and financial stability.
The wide moat oligopoly sectors are:
- Financials
- Grocers
- Utilities
- Pipelines
- Railways
In creating that wide moat portfolio we might simply buy enough stocks from each sector.
Here’s a Canadian Wide Moat model vs the TSX Composite
Canadian Blue Chip Portfolio
When we create the Canadian Blue Chip portfolio we will concentrate more on the biggest companies in Canada with the longest histories of successful profits and dividend payments. Think Canadian banks that have been paying dividends for over 100 years.
Canadian Buy Back Portfolio
We will also track the Canadian buy back index that has a history of out performance. Companies that buy back generous percentages of shares are cash flow rich. When they buy back (retire) shares, that increases your ownership of the company. It’s another sign of very successful and profitable businesses.
Canadian oil and gas stocks
Oil stocks don’t always find their way into Canadian stock portfolios due to the cyclical nature. They rely on a generous enough oil price and increasing demand. That can be too much uncertainty for many.
That said, Cut The Crap Investing put oil and gas stocks on the table for readers in October of 2020. Or as we like to joke – over 600% ago. It became ‘obvious’ that many of these Canadian oil majors were lean and efficient. They could be cash flow rich in a period of modest oil prices.
The return of the oil and gas index ETF XEG-TO has been incredible.
In any oil price shock the returns could be astounding. And you are hedged in case there is an ongoing energy shock.
We are big fans of oil and gas stocks. Natural gas is in favour as the power-generating source of the future. The world needs more power due to AI and data centre demands, plus ongoing electrification. There appear to be massive tailwinds for natural gas producers. Of course, many of the companies produce oil and natural gas. That said, we will also look at more pure natural gas producers. We’re fans of nuclear energy as well.
We’ve identified some good entry points for pipelines as well, including TC Energy from August of 2023. We’ve seen a 25.5% average annual return, besting the TSX.
Wealth Club will continue to monitor the Canadian and U.S. energy sector, offering ideas and research on valuation and entry points.
U.S. stock portfolios
Dale has the only long running public U.S. stock portfolio on Seeking Alpha. Created in 2014 and into 2015 it has a solid record of out performance with less volatility during times of market stress. It was a simple exercise in skimming (buying) 15 of the largest cap Dividend Achievers. Those Achievers were added to three existing picks in Apple, BlackRock and Berkshire Hathaway.
In ETF form it is Vanguard’s VIG.
Here’s a chart from an update post on Cut The Crap Investing.
It’s also a real-life portfolio, holding most of Dale and his wife’s U.S. assets. Managing that portfolio for 12 years has brought many lessons. Lessons and learnings that Dale will bring to Wealth Club.
We’ll continue to look for U.S. stocks that offer growth at a reasonable price – GARP.
U.S. and International equity ETFs
For those who prefer to use ETFs to cover off U.S. and international markets, we’ll offer up many options from core broad market ETFs to value, quality, growth, dividend focused ETFs and more.
We will do the same for international ETFs as well, for developed and developing markets.
Quarterly Zoom Calls with Dale
We will have quarterly Wealth Club Zoom calls. We’ll go over the portfolio action for the quarter, identify opportunities and look at the major economic and financial events for the period. Club members can add their thoughts and bring their questions. We will also address risk and investor behaviour.
We’re stronger and smarter in greater numbers.
Retirement Club has taught us that there is incredible value in the ‘Group Think”.
Sign up for Wealth Club
We hope you’ll join us. The cost is $200 (taxes included) for a 1-year membership. There is no obligation to sign up for year 2 or beyond. But of course, we hope you’ll stay with us. And we think you will, as we will offer incredible value that helps you build incredible wealth.
Who is Dale Roberts?
If you’re following Cut The Crap Investing you likely know the back story on Dale, one of Canada’s leading voices and champions for the self-directed investor. He’s the Chief wealth builder at Wealth Club. But just in case …
More about Dale – a former advertising writer and creative director and long time index investor. In 2013, he followed his passion to become an investment advisor, and then trainer at Tangerine Investments. He won Advisor of the Year in his first year. It was a wonderful experience that deepened his understanding of investing, asset allocation and risk. He was able to connect with so many Canadian investors. Dale left Tangerine in 2018 to start Cut The Crap Investing where he helps investors learn how to use ETFs, build simple stock portfolios and use Robo Advisors to full advantage. A ‘hyper-focuser’ Dale has spent thousands of hours studying investing and stock models – from the financial planning aspects to the portfolio models that make it happen. He wakes up at 4 am to read investment stuff, so that you don’t have to.