Benj Gallander spoke in a Saturday, September 21, 2019 morning session. His talk was called “How to Increase Financial Returns by Doing Almost Nothing”. He is President of Contra the Heard. His company’s site is here.
There is going to be a recession and a stock blow-off. There is lots of debt. Canadian personal debt is at the highest level. The amount of Canadian debt is awful. People will pull back on spending and this will cause a recession. Other problems are Trump’s trade wars and Brexit.
Negative interest rates make no sense. We are seeing things that make no sense. Passive investing is better than active investing. People who trade a lot earn less. It is good to buy in December because of tax loss selling. You increase the supply and stocks go down in price. To buy on sale is the key.
Hedge funds charge too much money. They charge 2% and also over a certain amount, 20%. ETFs cost less than Mutual Fund and savings can add up. ETFs charge .5% and on $100,00 it is $500 each year. Instead buy their top 10 stocks. It is bar better to chose your own stocks. Buying stock is simple. You should read a lot and you will get a better return.
You need to look at the after tax results. Invest in a tax efficient way. Using TFSAs and RSPs is more tax efficient. How many max out their RSPs? About 20%. It is great for people with lots of money. If there is too much money in TFSA’s this will cause a bubble.
You need to diversity, but do not over diversity, especially with too many EFTs or Mutual Funds. ETFs are doing well but now is the wrong time to buy because they will be a reversion to the mean. The bloom has come off of Marijuana stocks. They are talked about every few weeks on BNN.
Dividends are a great way of making money. You make money by not buying crap. Think about what you want to buy. Do not practice dollar cost averaging. He likes companies that have been around at least 10 years. With Bitcoin, what is interesting is block-chain technology. Bitcoin will continue to be around because people want currency not controlled by any government.
Real Estate, pictures and antiques are a great way to diversify, but only buy what you love.
You should look at the management of your stock company. You want management that tell it like it is. You do not what ones with rose coloured glasses. He likes companies where the management stays around for a while.
Fracking has benefited consumers but the industry has not figured out how to do this in a profitable manner. They do not take a realistic value of all the costs of fracking. Like their machines wearing out quickly.
On my other blog I wrote yesterday about Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF) ... learn more. Next, I will write about FirstService Corp (TSX-FSV, NASDAQ-FSV) ... learn more on Friday, December 13, 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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