Thursday, November 1, 2018

An October to Forget



Worst month for the S&P since 2011. $2T was shed alone in October. Both the TSX and S&P 500 lost 7% and 6.5% respectively.

Lots of money was wiped out but on the bright side we did close the month with consecutive days of triple digit gains.

Here's the thing, you probably were more likely to panic if you've never lived through this before. "In the last 10 years the S&P 500 has dropped at least 5% 23 times. That's an average of twice a year." So says Barry Schwarz of Baskin Financial.

If you are going to invest in equities then you have to expect and embrace months like we just had. I'm 100% stocks. US and Canada. No bonds, prefs and just a small amount of ETFs. That's just me and not a suggestion for you to do the same.

Even my wife's balanced fund lost money so there was nowhere to hide in October. I am looking to unwind that fund and buy some bargain based stocks during the tax loss selling season. I may wait until the new year, I haven't made a firm decision yet. It did tell me that the 40% bond allocation did nothing to save money during this past month. The fund shed almost $1K.

I did sell some stocks during the first week of the correction as I was holding them with borrowed money. I had used my HELOC for purchases. It turned out to be a good decision as my rate rose to 4.2% and the dip was followed by an even greater pullback last week.

I punted DOL, ATD.B, TOY, QSR, LNR and OTEX

The only stocks that I would consider buying back are ATD.B and TOY


QSR is mired in debt OTEX has been over hyped and is down 13% since I bought it. It is still digesting acquisitions and too many people like this stock. Probably why it's tanked. DOL is a disaster. Nothing sells for a dollar and now it's being heavily shorted by a US hedge fund. They claim it's overvalued. Why be there? LNR is suffering from the tariff war and my play on that did not even come close to working out.

I did not sell anything in my retirement accounts. As it turns out I bought Costco at a good time but Facebook, Amazon, Berkshire are all below my purchase price. I like them even more after the pullback.


Be Different

You only win this game by thinking long term and holding. The only reason I sold the stocks mentioned is because of leverage. With interest rates continuing to rise this is not a good strategy to continue. The dividend payments and or growth of the stock does not keep up with interest payments. It's just too hard to make some short term capital gains so I'm out for now.

Hunting for Value

Where to look? All the recommendations for the 'Dogs of the TSE' made in February are down a combined 7%. The worst performers and if I was looking to put money to work, look at BNS 11.7%, BCE 9.6% and TRP 10%.

Will this list get cheaper? I have no idea but after the sell off we just experienced, now is the time to start looking. If not now when?

Hunting for Growth

I like to stick to what's been working so far and how can you argue with old giants like CNR and CP. Low dividend sure but they continue to make money, beat earnings and rise in price. I just keep buying more when I have the money. I believe all portfolios should hold at least one of these rail stocks.

CP has an ROE of 37% and CNR 35%. These guys know how to allocate capital and in this era of crude by rail it should continue for years.

I also like food stocks just like Buffett does. I love and own MTY with it's 21% ROE. During this correction it has actually ended up higher than where it was 2 weeks ago. This is what's working and where I want to be. ATD.b should also be on your radar with it's 24% ROE. 

Dividends and Income

I use a combination of growth and dividend growth stocks to build wealth in my retirement accounts. It all depends on age and what your comfortable with. For me I love this combination. My core holdings include banks, telcos, utilities, food and pipelines that pay dividends. I have only sold ETFs this year and then bought stocks for our retirement accounts. I continue to add to positions as dividend income builds up.

Growth stocks I hold in these accounts include; FB, COST, AMZN, BRK.B, TFII, CSU and MTY. 

Buy businesses you understand and use. I'm looking at Netflix. Everyone I know uses it and has to have it. Don't you want to own something like that? It will always be expensive so who knows where it's going.


New Book and Recommended Reading

This is the second edition of Robin Speziale's book 'Capital Compounders'. I have just received a review e-book version that I am currently reading and will have a review posted here and on Amazon in the coming weeks.

Robin invests in growth stocks and is the best selling author of 'Market Masters'

Robin has been saving, investing, and building his portfolio since the age of 18. Now, 10 years later, at the age of 28, he’s amassed a $225,000 stock portfolio. He lives in Toronto.


Besides following his blog he has a Capital Compounders Facebook Page well worth joining for learning where to better invest your capital.

Wednesday, October 17, 2018

Why I Just Bought Costco



Just a short post on a recent stock purchase of Costco shares I made for my retirement account.

I only took a small position in this giant American based retailer but very happy I found the guts to do it as I've watched this stock run away from me for the last couple of years. It's already up 42% YTD.

During a recent visit to Kelowna we decided to do a Costco run. First problem was circling the parking lot for a spot as the place was rammed with cars and people after only being opened for an hour.

Once we went inside the foyer there was not a shopping cart to be found. Seriously? It's only just opened and all the carts are taken? Yup, more waiting. The checkout lines were the worst I've seen in any Costco I've shopped at.

We kept jostling ourselves through the massive crowd and tried to enjoy the experience but all I could think of and ask myself is "Why don't I own stock in this company?" I've thought of it many times in the past but always thought it was too expensive and or I didn't have the money. 

Within 10 minutes of getting back home to unload the groceries I bought Costco. I also got lucky as the stock had just sold off on an earnings miss so to me it was on SALE!

A couple criteria I always use before I buy a company are; do I understand the business and do I use what they sell?

Yes, on both counts. Costco only marks up their products 15% and keeps it there so it's affordable. It only gives you one choice to ponder. You want mustard? no problem. It comes in a double pack of bottles and only one brand to choose from. Most supermarkets give you multiple choices so you linger in the aisle longer. NOT Costco - one choice take it or move on.

Their biggest income generator is selling memberships to shop at their stores. It's just a brilliant marketing plan and where Costco makes all their money. They also have the ability to raise these prices anytime they want.

Let's take a look at some of the numbers;

Market Cap: $99.7B
Beta: 1.1
ROE: 26%
Forward P/E: 33.4
EPS Growth: 13.5%
Revenue: $144.5B, growth per share 5%
Debt: $6.5B
Forward Dividend: 1%

Payout Ratio 30%
Price Paid: $217.88
52 week high: $245.16

Earnings and revenue are growing, low debt, low payout ratio and great return on equity. They do have a high p/e but it's always been expensive. I plan on holding Costco for the next 9 years when I have to collapse my RRSP and convert it to a RRIF. They operate 741 warehouse stores and growing.

This is a great company in the consumer staples space and more importantly I am a member and shop there regularly so why not own some shares as a hedge on my monthly fees?

How about that $1.50 hotdog?

The members just can't get enough of those cheap dogs. The CEO has said they make no money on the special of a hotdog and pop for a $1.50. In fact he said he's trying to find ways to sell it cheaper. Now, this is a man who takes care of and treats his members like owners.

Just don't visit Costco on pension payday unless you've packed a lot of patience. The store is more packed than usual. This day usually falls two banking days before the end of the month.

Do you own shares in Costco and if not would you buy it?


NEVER GAMBLE WITH MONEY YOU HAVE SAVED FOR RETIREMENT!

Looking for Saving Ideas So You Can Invest? 




If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.


If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 


If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.



If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with top money mangers in Canada using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!

I never invest in the stock market, I like to buy quality companies and hold for the long term. Stocks become safer the longer you hold them. I believe Costco is one of those companies you should buy and hold. My opinion and not advice for you to do the same. 

Tuesday, September 25, 2018

Del Vicario on Growth Stocks


This is just a short post on what I derived from watching a recent Market Call Tonight show.

One of the best asset managers in Canada to listen to is Jason Del Vicario of Hollis Wealth. He says it like it is, to the point and invests in top quality growth stocks. This is another strategy I try and employ and mix in with some income stocks to grow my money

Jason Donville of DKAM has said the only person he would trust besides himself to manage money would be JDV. High praise indeed. I never miss an opportunity to listen to his latest comments when he comes on BNN. Monday was one of those nights.

Some of the stocks he made comments on included; Molson Coors, Spinmaster, The Stars Group, Sangoma, Open Text, Parkland Fuel, Shopify, Salesforce, New Flyer, Alibaba, Transcanada, Franco Nevada, Canadian Tire and Tesla.

He also commented on Canadian Banks and whether you should buy individual banks or the ETF ZBK. He would prefer the big cap names of Royal or TD. He doesn't buy banks because they are low growth names and he doesn't invest for dividends.

You can go to stockchase.com for more of his in depth analysis of what he had to say on each individual name or the BNN website and listen to some short clips of his appearance. Spinmaster is the biggest position in the fund he manages.

The point of my blog post is to highlight the growth names he recommends and has recommended in the past as advice to follow up on and possibly invest in.


Top Past Picks of 20 June 2018

Dollarama (DOL) @ $52.82 post split, Now $42.11 down 19%

Constellation Sotware (CSU) @ $1054.64 Now $950.76 down 10%

Spinmaster (TOY) @ $ 57.10 Now $53.45 down 7%

His top picks have not done that well but in fairness it's only a 3 month performance snap shot. He's down on average of 12% on just these 3 picks. If you had owned the index through XIU you would be even during the same time frame.

I own all 3 of these picks but purchased my shares at much lower prices.

Let's look at what picks JDV made over a year ago.

It always matters when you buy a company so take your time and study hard before putting your money to work.

Past Picks 1 Year Old (18 Sep 2017)

Boyd Group Income Fund (BYD.UN) @ $91.62 Now $129.01 up 41%

CCL Industries (CCL.B) @ $56.98 Now $59.10 Up 5%

Constellation Software Debenture yields 7%. The stock was @ $687.00 Now $949.90 Up 38% on the common stock.

His top picks from a year ago have done extremely well over the course of the last 12 months. They would have performed even better for the TV had he been on a couple months ago. This is a much better gauge of his stock picking prowess as he's up 27.6% on these 3 picks alone. If you had owned the index through XIU you would be up 8% during the same time frame.

I know his whole portfolio is not up 27% but you get a good idea of the quality of the companies he likes.

Jason looks for and invests in companies with a ROE growth rate of at least 20%. 

As you can see JDV smashes the index when he picks growth stocks. The point is to hang in for the long term and don't sell a good business because it's down.

He is still looking to buy more Dollarama and so am I. They only missed earnings by a penny yet the market absolutely punished them and again sold off today. This is another buying opportunity if you have cash to invest.

I do not own CCL or BYD.UN. I have owned Boyd Group in the past and my selling of this company is perhaps one of my biggest investing regrets of the past few years. You can paste this link in your browser if you would like to watch the clip.

https://www.bnnbloomberg.ca/video/jason-del-vicario-s-past-picks~1498069

His Current Top Picks as of 24 Sep 2018

  1. Dollarama (DOL) $41.82
  2. Facebook (FB) $165.41
  3. Viemed Healthcare (VMD) $6.45
I own both DOL and FB. Dollarama bought at much higher prices but Jason says at this level it represents great value and I agree. I will be looking to purchase more for all accounts.

I love Facebook and wrote more about it here and why I bought it before Jason recommended it. I paid $161.

He likes a smallcap Canadian healthcare stock VMD. Ever since I got burned on ProMetic Life I hate this space in Canada. Who knows but I don't think I'll be acting on this recommendation.


My Final Thoughts

You have to remember when listening to professional money managers recommend stocks that their goals are entirely different than yours. Make sure you investigate and research each company before you take a position. That's the responsible thing to do.

JDV buys stocks but also sells them to lock in performance gains and to re-balance clients portfolios. You and I have the advantage of hanging on longer and establishing smaller positions in a lot of stocks. We can ride out the economic cycle longer than Jason can afford to. We can and should neglect our portfolio for our financial health, he can't because he has to answer to other investors.

I won't sell Facebook for probably 10 years unless the company stops making money and stops growing. This for me is a long term growth story. Even when it gets overvalued I will still ride the stock where as I believe Jason will lock in gains as any good money manager will.

One stock he mentioned and owns, that I will look into further is CCL Industries.

Stocks he talked about or mentioned in the course of the show that I own include; Spinmaster, Dollarama, Alimentation Couche Tard, Royal Bank, TD and Constellation Software.

One stock I was really surprised he owned was Kirkland Lake Gold. It is one of the gold stocks that makes money and doesn't destroy shareholder capital like most gold companies. It has great margins and a 20% ROE. Great pick but he didn't recommend it today or mention it but briefly. With inflation picking up all over the world, this stock may pick up more traction. Insiders have also been buying lots of stock since August. I will be watching KL for a possible entry point.

Listen to Jason any time you have a chance and follow up by doing your own research before making a decision on what to buy as an investment. Great show and very informative. I learned a lot and got some new ideas to help me grow money.


NEVER GAMBLE WITH MONEY YOU HAVE SAVED FOR RETIREMENT


Looking for Saving Ideas So You Can Invest? 




If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.


If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.


If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with top money mangers in Canada using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!

Do you invest in growth stocks and if so who do you listen to for ideas?

Friday, September 21, 2018

Money Management





Just a short post today to cover some of my thoughts on how to manage your money in your trading or gambling account.

Knowing when to buy and sell stocks is pivotal whether you are going to make or lose money in the stock market. To ensure you hang on to as much of your capital as possible it helps to have a set of rules to follow.

I visit a lot of stock discussion boards and it still amazes me how long people hang on to losing positions. If you want to buy and sell stocks to make money you have to absolutely know when to sell and take your profits or losses.

Preservation of your capital and as much as you can is vital to success trading stocks or market speculation.

I set aside $20K and invest in no more than 5 stocks. Spreading your money around in this way allows you to easily monitor how your picks are doing and to spread out your risk to a manageable number of positions.


Identifying Your Stock Picks

  • look for stocks trading at least 50% below their 52 week high
  • stay on the TSX or Dow big boards for your picks until you hone your skills
  • I screen for possible stocks at the end of every trading day
  • look for unusual spikes up in volume and price
  • momentum has come into play but don't buy until you confirm the uptrend
  • eliminate all stocks making 52 week highs
  • don't buy the next day first thing, wait to see if the stock continues higher
  • I never commit more than $4K to each stock

When to Sell

  • when you are down 7-8%
  • when you are up 50-100%
  • when price and volume accelerate to the downside
  • when the price of the stock moves up on lower than average volume
  • when volume starts drying up and momentum has stalled


CUT YOUR LOSSES EARLY 

It is the best way to keep more of your money and then redeploy it into a stock moving back up. Selling losers is a must to win at the trading game. How long to hang on and wait?

You will hold some positions days, weeks or even months to see significant upside. Don't listen to TV gurus for buying recommendations. Become a student of the market and watch and see what's moving up to buy and what your stocks are doing on a daily basis.

If you've made a mistake just sell and move on. Look at it this way. You only have to be right 1/5 times on your stock picks to come out ahead if you limit your losses. If that one stock gains 50% it will be more than enough to cover losses of 5% each on the other 4 picks.

Only when you've gained more experience should you handle more than 5 positions.

This is NOT day trading. I don't do that or know anything about it. This is more or less my wonky way of momentum investing.

Final Trading Thoughts


Only use money you have set aside as excess and you can afford to lose.
Always use your non-registered account or TFSA for making these trades. Nobody gets rich investing for income, this is what my retirement account is for. I generate income through dividend growth stocks and just hold them and collect the dividends.

This is investing for capital gains and is pure gambling. If you can't handle taking a loss don't try this.

You will be able to claim your trading fees and gains/losses on your income tax return. This is a beautiful thing here in Canada. Losses are not deductible for RRSPs.

Keep a trading log of your trading wins and losses.

Once a year treat yourself with the winnings by taking a well deserved vacation.

My Current Trading Account

ATD.B flat
ACB 37%
LNR 7%
OTEX 2.5%
QSR 5%
TOY 6%

As you can see I am one position over my limit of 5 stock picks. I am looking to lock in my ACB gains soon to get down to 5.

4/6 stocks are winners and this represents a dollar gain of $2125.

I am going to update all my trades at the end of the third quarter on all buys and sells I have made.

This is gambling, don't do it if you can't afford it. This is just what I do as another investment strategy to grow money.

Don't we all want to get to a position of 'FUCK YOU'? 


Wednesday, September 19, 2018

Buying Facebook Amazon and Berkshire Hathaway



When I have the money I buy stocks in quality companies. It's not more complicated than that.

Yesterday afternoon I established small toe tester positions in FB, AMZN and BRK.B

I really needed to buy some quality US companies that have a wide moat and that I believe I can hold for the next 10 years and will continue to grow.

We all know the trouble Facebook has gotten into lately with security of user information. Does that mean this company is on the down trend to oblivion?


Why Buy Facebook Now?


I believe it's a buying opportunity. To buy FB now you have to be a believer in the long term ability of this company to make money and explode in value. It dropped to a low of $149 on the Cambridge Analytica breach then rose to back over $209 and I just bought some at $160 after falling back down again.

Privacy concerns are laughable when it comes to FB. How about all the personal info we volunteer up for free on a daily basis? This is no more dangerous than any company out there we interact with. I like the Instagram acquisition and once FB figures out how to collect even more revenue once Instagram turns into a selling machine for a lot of stuff, well BOOM! This will happen and why this for me is a 5,10 and 20 year story.

Everybody uses FB. All ages. My 88 year old father uses Facebook and all the millenials in between use this social media platform. We use it to talk to family and friends, join like minded groups, start our own group, sell our shit on a group and post videos.

Anybody telling you this is going to die anytime soon is just plain nuts. Don't listen to them in my opinion. FB is the dominant way we use the internet to connect with the human race. FB messenger will only grow in it's use and get more common for chatting with each other. 

Every year revenues and earnings just continue to grow. P/E of 24 and ROE of over 24%. This company just continues to spit out cash of $11B a year. Amazing stats and after the drop in price FB is still flashing the BUY signal and by all fundamental aspects it's cheap. Technically the stock has broken down under it's 200 and 50 DMA, but to me it looks like it is getting ready to rocket higher. Nobody knows anything but I'll take my chances here. Technology just keeps advancing for me not to be here.


Why Amazon?

It's just the go to place for all our cheap shit and books. I don't buy a book anywhere without checking out the price on Amazon. It's where we get all our bargains, don't we? We just bought a coffeemaker for $12 delivered. Can't beat it. They have taken over our whole mindset and for that matter the world. They continue to grow bigger and more influential every day.

Yes it has a monster P/E ratio of 150 and needs to keep hitting earnings and revenue numbers in the short term for the street to keep buying that value number. Do all high priced stocks have to drop lower? Can they keep going higher? Nobody knows shit. They have been wrong for a very long time. I've read about lots of investors on discussion shorting AMZN since it got above $1000.00

They have continued to short it all the way up and I'm guessing will do so until they are dead ass broke.

They generate $11B a year in free cash flow. EPS growth of 1100% YOY. Revenue growth of 38% YOY. ROE of 21%.

In 1994 Amazon launched and Whole Foods was already a $220M company. What happened? Amazon eventually went on to buy Whole Foods. Wouldn't you think it would have been the other way around? That is the sheer raw purchasing power Amazon has in the marketplace. This is a huge company. HUGE! They will continue to eat companies gong forward. Innovation always wins so pay attention to what these monster companies are doing.

Prime plus and paid subscribers = huge revenue stream and growing. Will they buy a pot company? Will they find a way to penetrate the pharma industry? So many possibilities and opportunity for entrepreneurs and investors. I'm buying Amazon for the next 10 years. I am looking at it's macro impact on capitalism and NOT short term warnings from money managers warning of a global meltdown and getting out of high p/e stocks. I'm not betting against Bezos and what he can do.

Amazon gets close to you, the closest of any company to it's consumers. The closest to the shopper always wins. Don't you think? I for one am investing with Bezos so I bought a few shares and will buy more when I can. Think Alexa, Fire TV, Movie making, Kindle, are these going away or are they the future? It's just unbelievable what this company has done and continues to do. Their runaway is clear with nothing stopping them. The stack of products is deep!


Berkshire 'B' Shares

Why buy Berkshire? Warren Buffett enough said. I just wanted to invest in the greatest investor of our generation. It took awhile but I finally pulled the trigger. It does mimic the whole US market so I figured why not. I like the stable of companies he holds so it's just a small investment in his massive holding company. Another, at least 10 year hold.

P/E of 11, ROE 14% and revenue and earnings growth all rising year after year. Buffett knows how to invest and grow money. This is a sleep at night stock and most suitable for retirement accounts where I tucked it away.

In Sum

I ended up selling 55 units of ETF XAW which I am slowly winding down so I could make these 3 buys. I just want to be exposed to the US and Canadian market. The rest of the world (besides Trump) is too unstable for me so I'm slowly getting out. US companies will weather any storm and the US dollar is the currency everyone seems to run to.



 NEVER GAMBLE WITH MONEY YOU HAVE SAVED FOR RETIREMENT


Looking for Saving Ideas So You Can Invest? 


If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.


If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with top money mangers in Canada using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!

Do you own any of these 3 great American growth companies?

Tuesday, September 18, 2018

Coke and Aurora Playing Together



Just a short post about what went down or up on the markets today and the latest earth shattering news on Aurora Cannabis.

Aurora Cannabis popped almost 17% today on news it is in talks with Coke to supply a cannabis infused beverage. This was the move I was hoping for and just recently wrote about. This was not a surprise after Canopy Growth agreed to get in bed with Constellation Brands so they could gain a foothold in the weed market and diversify it's company offerings. 

The question now is who's next?

The news is lots of beverage companies are looking at forming strategic relationships with cannabis companies. I suspect we'll see more consolidation and mergers in what will be a multi-billion dollar industry of the future. 

The medical and recreational markets will have to grow into their market caps and prove to investors that they can make money.

How many search engines do we have besides Google, Yahoo and Bing? It took awhile to flush out the small guys but they soon did. Remember Blockbuster? Before they became the big guy they whacked all the small mom and pop shops so you basically had no choice but to walk to the strip mall and rent movies from Blockbuster. Now we have Netflix, streaming and cord cutting is the future of home entertainment.

The same thing will happen in the pot industry. Many companies will just not be around tomorrow. One other company making money is CannTrust Holdings (TRST). I will be watching this company closely as an investment in medicinal marijuana.

Another huge area of potential will be delivery systems and how about companies that supply packaging and the immense amount of hardware used to grow the plants. Those are another couple potential areas of investment.

My growth stock picks are now up over 3% with, 5/6 of the companies in my open account now in the green. Today was a good day for ACB and DOL also gained back just over 2% so that was a nice bounce back day for Canada's favourite Dollar Plus Store.


Important Investing Points

  • remember the wide moat philosophy of Buffett. ACB is starting to gain more of that moat with a partnership with Coke
  • think long term 10-20 years with cannabis. This industry is just getting started in spite of legal medical marijuana since 2003
  • look for big stable companies in this industry you believe have a chance to make profits well into the future
  • research the other companies that will support and make the delivery of cannabis to patients and consumers readily available
The US market was down on more trade friction with China. FAANG stocks all down with AMZN dropping $61. I am seriously looking at buying into AMZN, Facebook and BRK.B.

BAT stocks still dropping, the bottom is not in yet but who knows. Wait for that base to form. Alibaba is getting tempting for those of us who missed the AMZN rocketship. I doubt I go into any emerging market stocks, as I don't like the instability of those markets. I'd rather buy Tesla which is becoming a turnaround story pretty quick. The selling continues.

All the DOCKS stocks also had a bad day with CSU giving back all of my gains. I'm up only $5 on my position. I really didn't think it would see these levels again. It's in my retirement account for at least the next 10 years. I love the company.

 NEVER GAMBLE WITH MONEY YOU HAVE SAVED FOR RETIREMENT

Looking for Saving Ideas So You Can Invest? 


If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with top money mangers in Canada using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!

What do you think about the Coke and Aurora partnership?


Saturday, September 15, 2018

My Growth Stock Portfolio Update

Just a short post on how a lot of the growth stocks I've recently purchased have performed. I know short term performance means nothing in the long run but I keep all these stocks on a short leash.

I hold to my 7-8% loss rule to keep any potential losses small.


My Growth Stocks

ACB - 4.3%
ATD.B -0.89%
CSU - 0.73%
DOL - 12%
LNR - 4.8%
MTY - 3.7%
OTEX - 1%
QSR - 1.8%
TOY - 5.7%
TFII - 1%

All of these companies have been purchased in Aug/Sept. Just in the last 6 weeks so they are doing quite well. DOL has been hit hard after NOT meeting analysts expectations. Same store sales went down and the stock got punished by the market. I hold only 90 shares all in my RRSP. If I had more money I would buy more Dollarama. I consider it a quality company and a core holding. My average cost is $47.16, the stock closed today at $41.65. the stock has shed 15% in 2 trading days. 

My Thoughts On The Week

All the chatter and wailing on most discussion boards and social media platforms is about a stock market meltdown or recession. If you can't take the losses you have two choices. Sell everything and go to cash or ride it out when it happens.

I believe based on the strength in labour markets, low unemployment and strong earnings reports that we are not there yet. Oh sure the market will pull back no matter what you are holding. Bonds won't save you and neither will traditional diversification tactics. Stick with quality companies and hold. That's my plan because markets always recover and always rise more days than they fall.

The Week That Was

Another roller coaster ride that saw more big swings in the Pot stocks. My ACB was up as much as 6% Wednesday before swinging wildly to a loss by week's end. My position on LNR is starting to pullback as the market is now getting jittery again over NAFTA talks and more threats to trade with China. I've lost quite a few percent there. Spinmaster is roaring ahead and Restaurant Brands is really picking up some momentum. I'm 6/10 or 60% picking winners so far. That would make me a 'B' student.

Growth Stock Watchlist

I always like to keep a list of high quality growth companies in case I have enough cash to buy some. They include;

GIB-A, CFX, PLC, RBA, DSG, TC, SHOP, KXS, RCH, SIS, PBL and PHO.

In the US I like all the FAANG stocks plus BRK.B, GD and TSLA.

Summary

Canadians now owe $1.69 for every dollar they make. We are addicted to debt. Most Canadians have all their money tied up in a house. This is also known as the one asset strategy. No savings and no investments will lead to a bleak retirement. Diversify within companies and industries, buy what appreciates and lease or rent what depreciates. Collect assets and NOT debts. This is the currency of slaves.

 NEVER GAMBLE WITH MONEY YOU HAVE SAVED FOR RETIREMENT


Looking for Saving Ideas So You Can Invest? 


If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with top money mangers in Canada using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!

What growth stocks do you own and what would you buy?


An October to Forget

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