Stock Picks for 2019

Just a short post on my stock picks for 2019. 

Everything is just getting hammered in the last couple months of 2018 so it would be very easy to choose a lot of companies that have been beaten down mercilessly. Everything is on sale.

As a retiree I look for income stocks to supplement my pension income. As long as you stick with big stable companies that have at least a 10 year record of double digit total returns then long term you will do great. I could pick a lot more stocks from the bank, telecomm, utility and pipeline sector but I would have no problem starting with these in 2019. I own them all and in fact have been increasing my positions in the last couple of months.

I don't buy high yield junk that risks cutting dividends. Hello IPL fans. 9% yields are a warning sign and NOT a buying signal. Do your own research but I stick with around 4-5 % yields. Boring is great for income.

Income Stocks

BNS - Bank of Nova Scotia, down 12.5%, Yield = 4.7%
RY - Royal Bank, down 10.5%, Yield = 4%

TRP -Transcanada, down 5%, Yield = 5%

BCE - Bell, down 2%, Yield = 5.3%

FTS - Fortis, up 4% Yield = 4%

Growth Stocks

GIB-A CGI Group
MTY MTY Food Group
COST Costco
BRK.B Berkshire Hathaway
MSFT Microsoft

All of these growth stocks have held up fairly well in the latest purge of stocks on all the exchanges. I own MTY, COST and Berkshire.

"If you want to buy stocks why do you want them to go up in price" - Warren Buffett.

"The stock market just gets in the way of investing" - John Bogle

Stick with buying great businesses in 2019. I like big stable companies that make money and should be around for a long time. Just my take.

A lot of retirees believe in diversification and holding bonds or bond ETFs. I don't and have sold all mine. The yield on a 10 year government bond is 2%. The 10 year capital appreciation growth rate of Royal Bank is 8%. That's 4X the return of bonds. I don't rebalance or buy bonds. I'd rather own the bank and collect the dividends.

My only regret right now is I have run out of money and would have to sell something to buy something. I like my holdings so will have no choice but to sit tight.

The longer you hold great businesses the safer they become.

No crypto or weed.

All the best of investing success in 2019. 

How to Save Your Portfolio

I no longer trade stocks in the short term or buy bonds, mutual funds or ETFs. I basically stay away from anything in the investing marketplace that has an ongoing cost of ownership.

I like and prefer dividend growth stocks that pay me to own them. Focus on total return that is Yield + Growth = Total Return. I'm retired so I want and lust after stable and safe income combined with some modest growth of my money.

It has been a brutal 2018 investing year and a lot of what I own has been punished and taken out behind the wood shed and beaten to death.

I visit a lot of investing forums and FB investing groups and the sentiment is dark and the questions so many. Sell everything, go to cash, short the market. What the fuck should I do? Then the constant bickering and arguing.

You see, investors don't know what to do but they enjoy venting to anonymous people on the internet.

I listen to Buffett. Study the work of David Stanley and Mike Henderson. Beat the TSX portfolios or Canadian Essentials stock components and my value guru Tom Connolly. This is my circle of influence and how I now invest.

STOP jumping in and out of stocks and believing in the myth that a balanced and diversified portfolio will save you. I used to think this way too. I have since sold all my bonds, prefs share ETFs and anything indexed to the market. I pay no fees.

Just about every model portfolio you look at out there has dropped in value in 2018.

The Dogs of the TSX Portfolio is down so far 9.5% and Rob Carrick's Low Fee ETF Portfolio is down 4%.

Why pay someone to lose money for you?

Check this out for ideas. You CAN beat the market if you hold through the swoons and storms of the market.

My wife's portfolio is all invested in just these 10 stocks. My RRSP is very similar with some telecomm positions added in. I just believe we all depend on data so  Telus, Bell, Rogers and Shaw are pretty much essential to the economy too. Who knows but they have a shared monopoly in the space.

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!

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.

Why I'm My Own Financial Advisor

Just a short post on why you really need to manage your own money and if you don't you really should.

I have always found when I was involved with a mutual fund salesperson that you have the privilege of paying someone else to lose money for you.

So why not DIY?

If you lack discipline and panic easy then wait until you can control your emotions. Then dive in. Nobody will care more about your money more than you do.

Why Professional Management Sucks

• they love the efficient market theory. The concept is flawed having you believe the best you can do is what the market gives you.
• pros are too active and trade in and out of stocks at a dizzying pace.
• they tell you to focus on the long term when in reality they are fixated on short term performance.
• buy stocks at the wrong time.
• always under pressure from clients on portfolio performance.
• instead of buying the best companies they use an equal weight formula.
• they try to beat a benchmark with so many bad companies in them
• most NEVER beat the market.

To Win Focus Instead on This

• hold your stocks and never trade in and out.
• focus on the cash flow your stocks will give you.
• ignore missing out on the next Apple or Netflix stocks.
• invest for income and not capital gains.
• you are building for retirement so cash flow matters.
• own the BEST and not the most stocks.

Where to Start

To get that cash flow and grow that income you just need to own a bank, utility, telecomm and a rail stock like CNR. That's 4 stocks. Start there and then add 4 more. My choices are CN, CP, TD, RY, BCE, FTS, ENB and TRP.

Nothing wrong with other financial stocks, utilities or pipelines just have a safe mix and concentrate your money there.

I believe this is the best buying opportunity to come along in the last 10 years. When markets are down 20-25% consider it a sale. If you don't buy now when would you?

My Final Take

Professional money mangers don't have to pay the price when they're wrong. They're NOT invested where they put your money. Go ahead and ask if they are invested in the high fee fund they have put you in.

Too many conflicts for me.

I don't use low cost ETFs as there are too many really bad companies in them. Check out TSX index ETFs. Lots of resource companies that drag the index down. I don't invest in them or own them.

Never invest in high yield stocks. You risk the cash flow being cut and the dividend never growing. You invest for the future cash flow the stock will give you in retirement. This is what I've learned as a DIY investor. Make 2019 your year and buy quality companies that have a history of growing their dividend.

You can beat the professionals hands down.

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!

Baby It's Hot Inside

Just a short post on my general feelings about what's been happening on the markets and inside my own portfolio.

It's been a crazy month and a half on the markets. Portfolios are melting everywhere and no matter where and what you're invested in.

So what to do? Forget focusing on the markets. Huh? But I like to look every day for deals and then buy stocks when they go on sale. Yes but just focus on quality big stable dividend growth companies and buy them when you can afford to.

Just simply watching what the markets are doing sucks you into believing in efficient market theory. When you do that you'll sell your stocks and buy bonds or worse yet prefered shares. Maybe you'll just believe the new hype that CASH is an investment and sit there. Maybe you'll believe in balance and diversification and load up on ETFs and or MFs.

The longer you hold stocks in stable companies the SAFER they become!

Bonds and cash won't save you from anything. The goal is to grow your money and not get scared out of your positions.

What's really been pissing me off lately on all the discussion forums and financial blogs is the day to day calling of bottoms. You constantly are subjected to "this is a great buying opportunity, OR "I believe it's safe to jump in here".

Nobody knows anything definitive and NEVER take advice from ghosts on the internet including me. I'm just telling you what I'm doing and how I'm living.

I have a different perspective because I'm retired and use dividend income to supplement my retirement. I'm actually doing it NOT just writing about it or even worse yet posting endless useless content about monthly dividend income. Why post that without total portfolio growth? I have better things to do.

Are you Selling?

Bad idea if you ask me. You should only sell if you need the money or sell on up days to rid yourself of some bad mistakes. Lately all the days have been down. You can thank Brexit, Trump, China and Central Bankers. There's always something s f*ck IT! Never act on it.

Own quality companies and hold long term. My Costco shares are thriving even while the markets are tanking. Why? Because Costco doesn't give two fucks about what the markets are doing and neither should you. People will continue to shop and spend because of the experience. I will die holding my Costco shares. There are many companies out there that fit this criteria.

The odds are always in the favour of those who invest for the long term. The market goes up 78% of the time decade after decade.

There have been some great buys in 2018 and NOT a time to panic.

My Final Take

No crypto and NO weed. Stay the course and stay invested. Ignore the fear mongers, they're everywhere. Just wait it out. If in doubt then don't even get started just sit there.

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. 

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.