July 7, 2023 Stock Market Basics I recently purchased the 7th edition of Graham and Dodd’s Security Analysis. A quote from the book is very revealing. “Public buys issues that are sold to it, and the sales effort is put forward to benefit the seller and not the buyer”. Differing from what many investors believe,… Continue reading Why do most buyers of low priced stocks lose money?
June 28, 2023 In a bear market there is nowhere to hide in an index fund Fundamental valuation parameters that one normally uses to value individual companies are not nearly as transparent and available for index funds. Recommendation Use index funds for broad diversification and to invest sums of capital up to $10,000 Once you… Continue reading Index Investing vs. Buying Individual Securities
June 21, 2023 My monthly investment newsletter includes tactical investment advice including Asset Mix and Equity Sector Recommendations and Two Model Investment Portfolios consisting of individual Canadian and US companies and some fixed income ETF’S. Also includes purchase and sell recommendations and the rationale for making changes. My blog is updated periodically and its content… Continue reading Difference between my free blog and my monthly investment newsletter by subscription
June 21, 2023 Determine your overall investment objectives, and investment constraints– including time horizon, income needs, risk tolerance, tax considerations and maximum exposure to each security and each equity sector. Consolidated Asset Mix – Add up all your securities in all your related accounts. Convert all US and global investments to Canadian dollars simply for… Continue reading How to Set up and Build an Investment Portfolio
June 17, 2023 Do not simply purchase the highest yielding securities Analyze the financial condition of the company to ensure that their dividend is sustainable Compare the current dividend to the free cash flow. If it is above 100%, the company is borrowing to pay their dividend. Review the current and projected growth in operating… Continue reading How to pick dividend paying stocks
June 15, 2023 Many nervous investors are purchasing 5 year GICs instead of buying the common stock of banks. Their rationale is they think there is no risk in doing this. Unfortunately there is a great deal of risk. Domestic bank stocks are relatively cheap currently after the recent US Regional Bank issue has negatively… Continue reading Stock Picking Dilemma- Invest in a Canadian bank common stock or purchase a bank 5 year GIC
June 8, 2023 Incorporate this objective into your long term goals by following these strategies: Save regularly every month. Save investment management fees by managing your own capital. Get rid of high cost mutual funds, but make sure to minimize any remaining deferred sales charges. Create your own personalized investment portfolio consisting of a combination… Continue reading Financial Independence – Retire Early
June 4, 2023 Day Trading is not recommended. This is a form of gambling Minimize the use of leverage Do Not buy stocks simply on a takeover rumour Complete your due diligence by reviewing a company’s fundamentals including Revenues, Earnings, Cash Flow and Balance Sheet Diversify your investments to reduce your risk Do not purchase… Continue reading Stock Market 101
May 19, 2023 Many of these securities include both leverage and return of capital, making these returns extremely misleading. Something that seems too good to be true usually is. It is critical to do your fundamental research and not be misled by the marketing hype.
May 8, 2023 Achieving financial independence is not as hard as you may think. Below are some steps you can take to start the process Stop investing in high cost mutual funds now. The last monthly investment you made may involve DSC’s for up to seven years. Minimize Mutual Funds DSC’s by redeeming fee free… Continue reading Achieve Financial Independence by Managing your Own Investments