Financial Advice from a Comedian (redux)

About 7 years ago I wrote about Advice: Listen to a Comedian Sometimes, where I pointed out that you get financial ideas and advice in some very interesting places.

The exact quote that inspired my investing idea was:

I don’t remember the comedian, but I remember someone saying (maybe it was a financial advisor, I mix them up with comedians a lot :-) ), that said, you would do better to buy stock in Banks than it would to put your money in them.

Since that post, I have altered my investing methodology and gone with a mostly passive investing methodology, where I mostly own Index Funds and have introduced a few ETFs as well. I have however held onto the bank stocks that I bought back then, mostly because they keep:

  • Appreciating year over year value
  • Creating very nice dividends, which are now part of a DRiP set up with TD Waterhouse

I guess my investment method is a hybrid with both Passive and Active parts, however, given I don’t plan on selling the Bank stock that I have (i.e. following the old buy and hold investing idea, which is one of the tenets of passive investing) I still think I am a Passive Investor.

{ 4 comments }

{ 4 comments… add one }
  • Shawn James @ PipsToday January 18, 2013, 2:40 AM

    Financial Advice of a Comedian may be right in the cases of big banks but not for all. There are some big banks which is giving good dividend to their share holder year by year. On the other hand some banks are survival to run successfully so this financial tip does not work with all banks.

    Reply
  • Brian So January 16, 2013, 2:55 PM

    Banks make waaaaaay too much money. No wonder they can keep increasing their dividends year after year

    Reply
  • Jane Savers @ The Money Puzzle January 16, 2013, 10:50 AM

    I am going to put more money in to bank stocks this year. I also have a Drip with TD but mine is held in my TFSA.

    I have some money in Shoppers Drug Mart that may shrivel to nothing but I can count on my bank stocks. More bank stocks in my future once I get my debt under control. Transfering money to an investment account is much more satisfying than paying debt but I can’t do one until I take care of the other.

    Reply
    • bigcajunman January 16, 2013, 1:51 PM

      Actually that is a great idea, to buy some bank stocks in my TFSA, just need to find some extra money to do it with!

      Reply

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