Friday, August 30, 2013


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...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.

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