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.