Wednesday, January 20, 2016

Second round buys of 2016

For the past three years I have been holding on to cash like it was going out of style (it almost did -- hello bitcoin!). 

Mr Market kept on climbing to higher grounds as months and years passed and I kept tucking away my hard earned money.

As the Market is suddenly falling off of his late pedestal, I thought I'd be happy to have been so patient throughout the years. 

But was I? Not so sure If you remember a post that dates back to October intitled : How I deployed 20K$ into the Market.

There you have it : I completely mistimed the Market correction. Why? Because no one can. Not you, not me, not even Warren Buffet. 

I guess, as a consolation, I have to be thankful to my new nibbling approach of buying stocks : a little bit a the time. (On the subject read this good post by fellow blogger Dividends in Hand).

This means I still have some cashflow to work with. Again, since I can't time the Market I will keep on nibbling and averaging down my existing positions making sure I keep myself a little bit of cash on hands since we don't know when we will hit rock bottom. 2017?


So far this week I purchased the following stocks:
  • 25 shares of Enbridge (ENB) @ 40.43$. This adds 53$ in dividends to my passive income. I now hold 100 shares of ENB. 

  • 30 shares of Suncor (SU) @ 27.57$. This adds 34.80$ in dividends to my passive income. I now hold 250 shares of SU.
  • 20 shares of Alimentation Couche-Tard (ATD.B)  @ 57.31$.  This adds 5.40$ in dividends to my passive income. I now hold 80 shares of ATD.B. ( I will get to 100!)
Overall, my buys total 2 984$. The new shares will add a total of 93.20$ annually to my Passive Income.

Various
  • I'm thinking more and more about getting back to holding less than 20 stocks. This was my original plan (holding 12-15 great companies). I have 22 now and I find it hard to track all of them. Do you? I might sell TransCanada Corp (TRP) and transfer the money to Endbridge. The latter is superior in my view and more involved with oil than natural gas. What do you think? 
  • Also, my Jean Coutu (PJC.A) position could be transferred towards BCE (BCE). My stake in this telecommunication giant (and the sector in general) is very small. I reckon my stake in both Johnson and Johnson (JNJ) and in Alimentation Couche-Tard (ATD.B) already cover pretty well my health and consumer staple sectors. What do you say?
  • I sold my position in a small-cap pharma in Montreal called Knight Therapeutics. I still like the stock, but I need to focus more on dividend paying companies. I already own some companies like Canadian Pacific (CP) and Couche-Tard (ATD.B), to name these two, that pay a meagre dividends. I need fresh money coming in regularly (don't we all!).
2016 sure looks like an interesting year, doesn't it? ;)


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3 comments:

  1. Great purchases MD. Awesome. I like nibbling a bit at a time as well but I always have this addiction to buy all the time... :) Keep hustling it up my friend and thanks for sharing.

    ReplyDelete
  2. Hey Thanks DH! The key is to buy on a regular basis (and especially during bear market) One day I will have a portfolio like yours! ;-)

    ReplyDelete
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    ReplyDelete

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