Bitcoin: January 2018

On December 22, 2017, we said the following of Bitcoin:

  • “We believe that there is going to be limited upside in the near term.”
  • “We think that the conservative downside target ($6,884.31) will be achieved before a new high is seen.”
  • “In all prior booms, the subsequent bust AVERAGED –70% (data found here).”

Below is an updated review of Bitcoin and our thoughts for the price going forward.

Canadian Dividend Watch List: January 2018

Below is the performance of the January 22, 2017 Canadian Dividend Watch List:

symbol name %change
MRU.TO MetroInc. -1.41%
SJ.TO Stella-Jones Inc. 24.32%
FFH.TO Fairfax Financial Holdings 9.39%
PJC-A.TO The Jean Coutu Group 19.95%
ACD.TO Accord Financial Corp. 2.22%
EMA.TO Emera Incorporated 0.91%
ET.TO Evertz Technologies Limited 6.65%
BCE.TO BCE Inc. -1.58%
CUF-UN.TO Cominar REIT -0.48%

The average gain for the watch list was +6.66% while the gain for the Toronto Stock Exchange over the same period was +4.98%.  When broken down to the respective fundamental categories by only choosing the top three stocks, we get the following returns:

high p/b 1.22%
high yield 1.53%
high p/e 2.91%
low p/b 3.71%
watch list 6.66%
low p/e 8.69%
low yield 10.77%
   
TSX 4.98%

As we said in our December 13, 2017 Dogs of the TSX posting, “Note that all of the low categories performed better while all the high categories performed the worst.  This has been borne out in the few Canadian Dividend Watch List performance reviews that we’ve done so far.”  It appears that anyone buying Canadian stocks using the high yield methodology is underperforming when there are better alternatives.

Below is the January Dividend Watch List along with the our update on the Dogs of the TSX 60, the results are instructive.

Transaction Alert: VFC

On January 16, 2018, we executed the following transaction(s):

Work Smart, Not Hard

This is a lesson on compound interest.  Look at the table below to see what happens when a person puts away $2,000 a year for 7 years ($14,000 in total) and nothing more after that compared to a person who puts away $2,000 a year in the 8th year and every year after that for 42 years ($84,000 in total).

image

With the goal of getting to $1 million dollars, the amount of work that is needed by the late investor is more than obvious.  Notice that it takes the late saver (Investor A) 34 years (age 59) and $68,000 to exceed the growth of the early saver (Investor B).  Also look at the very bottom where it says “Money Grew”.  The late saver saw their money grow almost 12 times while the early saver saw their money grow by more the 74 times.

U.S Dividend Watch List: January 12, 2018

We've started the new year off to a strong as the bull market hasn't skipped a beat. This has made finding investments challenging. However, it hasn't slowed us down and we have taken our equity exposure to the highest level yet. The number of companies below is a good place for anyone to start their research for a long idea. Continue reading