When I was writing the blog entry on "A Few Good Companies", I wondered how I would have done on this stock if I had just left it alone after I bought it rather than mucking about with it because of reports I read. The beauty of spreadsheets is that you can look at "What if" scenarios.
I originally bought TransAlta Corp (TSX-TA, NSYE-TAC) stock in July of 1987 (1200 shares after split of 1988). Because there were adverse reports on this stock in June of 2000, I sold some shares (400) which would be about a third of my holding. It was being again suggested as a buy in February of 2009 and I bought some shares (600). In August 2008 it was being panned again so I sold some shares (200).
I am again at 1200 shares. So, what did all buying and selling do for me? Well, I have a total return of 6.92% per year on this stock. If I had just left it alone, I would have had a total return of 7.43% per year or 0.51% more per year. This works out to around $6,866.00 more return if I had left it alone.
Can there be any other conclusion but that I should have just left it alone? See my spreadsheet at transalta.htm.
On my other blog I am today writing about Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF...continue...
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