Beating The TSX (BTSX)

I share in this video the Beating The TSX (BTSX) system. David Stanley’s Toronto Show Money Show ‘Beating the TSX’ presentation: https://www.canadianmoneysaver.ca/files/www/David_Stanley/David_Stanley.pdf Buy Destination Early Financial Independence: https://www.amazon.ca/Destination-Financial-Independence-Ross-Grant-ebook/dp/B00MX37VMW/ref=sr_1_1?ie=UTF8&qid=1471487060&sr=8-1&keywords=ross+grant Buy Market Masters: http://a.co/78lJGFq Visit my blog: http://robinrspeziale.com/blog *** When I attended the Toronto Money Show in 2014, this session caught my eye: “Beating The TSX – It Works!”. I was skeptical but decided to check it out anyway. The auditorium was packed with investors. And at the front stood David Stanley – the originator of the ‘Beat the TSX’ system. Mr. Stanley, a retired University Professor, gave his audience the necessary backround before revealing how ‘Beat the TSX’ (BTSX) worked and its strong performance (12.47% compound annual return): “After I took early retirement I looked at the stock price and total return data for the TSE35 bluechip index (predecessor to the TSX60). I was struck by how much the total return index with its reinvested dividends had outperformed share price appreciation. [Then I read] Michael O’Higgins book called “Beating The Dow” (BTD). His ‘Dogs Of The Dow’ uses an emotion-free method to select high-dividend stocks. From 1974 till 2012 (38 years) BTD has averaged 11.7% vs. 9.1% for the S&P 500 index, a difference of 29%. O’Higgins’ book became an instant investment classic and served to get me interested in dividend investing. I adapted the structured decision-making process of BTD to the TSE and wrote my first ‘Beating The TSE’ (BTSX) column in 1996.” How BTSX Works: David Stanley explained that “the list of S&P/TSX 60 stocks is ordered from high to low by dividend yield. The top 10 [highest yielding] stocks are purchased in equal dollar amounts and held for 1 year. Investors build up a portfolio of high quality stocks purchased at a reasonable cost. No secret sauce, hocus pocus, animal spirits, etc.” But he added that “former income trusts are not included in the list from which I select the portfolio. Why not? For BTSX, BTD, or any similar method to work, the index must be composed of only ‘blue-chip’ stocks”. BTSX Performance: Over a 27 year period (1987-2013), BTSX deliverd a 12.47% compound annual return vs. the TSX Index’s 9.89% return. That means $1,000 invested in 1987, using the BTSX system, turned into $16,915. The TSX would have only turned that initial $1,000 sum into $9,607. But please note: history does not guarantee the same future performance. If you’re interested you can take a look at David Stanley’s Toronto Show Money Show ‘Beating the TSX’ presentation here. Read More About BTSX: I was obviously impressed by ‘Beat the TSX’. So I interviewed Ross Grant, David Stanley’s successor, for my book, Market Masters. While it’s the last chapter of my book I probably get the most