Tuesday, October 8, 2019

Money Show 2019 – Peter Hodson

Peter Hodson spoke in the opening remarks. His talk was called “Is Your Portfolio Set Up Properly”. He is the owner and editor of Canadian Money Saver magazine and CEO of i5 Research. His company’s site is here.

His magazine and i5 Research give conflict free advice. Some common mistakes are:

Portfolio Analytics
  • Keeping losing stocks too long.
  • Too many stock positions.
  • Inability to accept losses
  • Looking where a stock has been
Sector Issues:
  • Way too much cash (everyone is worried)
  • Need to have 2 to 3% position in each stock
  • Less than 1% in a stock is meaningless
Other Issues:
  • Not considering your time frame
  • Not considering huge value of your pension
  • Inaccurate expectation of risk.
Why do you even care about the index? You cannot spend the index. Your goals are not the Index’s goals. You should ignore the index as there are truly awful stocks in any index. Indexes changes after an event has taken place.

What he likes is small companies with large insider investment. His index keeps out resource stocks. They are doing well at present but this is because of Saudi Arabia. Generally, indexes have over price stocks included. Indexes do not care if a company is making money or not.

If you buy Mutual Funds, watch out for over diversification. An RB Mutual Fund has 31.5% financial and 21.5% energy. Most MFs have inadequate International diversification. Most Canadian MFs have the same stocks. The Canadian market is only 4% of the international market. Currency itself is a diversification. Most large companies have offices all over the world.

Are you still working? You could have excess income over expenses. Why do you need a cash cushion? Why do you need high fixed income exposure? Investors love this sector too much. You need dividend stock. You can overestimate risk. Most recessions are short and shallow. The industry wants you to be worried. When you buy a stock someone else did not want it.

It is almost impossible to lose money in the market over 10 years. You cannot lose money over 15 or 20 years. If you are in the market for 100 years you only need stocks. Do not do too much trend following. Cannabis stocks are last year’s news. Gold is this year’s news. If you have a pension it is probably a huge asset and is equal to fixed income.

On my other blog I wrote yesterday about Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more. Next, I will write about Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more on Wednesday, October 09, 2019 around 5 pm.

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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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