Recent Buys: A Mixed Bag Of Canadian Stocks

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Includes: BNS, CBWBF, ESV, KMI, NTIOF, PWCDF
by: Dividend Hustler

Hey buds. How are you? Thanks for stopping by. Wow, the markets are heading south huh? It's all good. I know we are in for a wild ride and it will head lower. It may be the beginning of a bear market or just one of those market dips. Whatever the case, I always invest consistently monthly and so I had to make some trades this morning. It's nice if you have cash now to pick up assets on the cheaper if you keep waiting for it. However, for myself, every month for the last 3-plus years, I have managed to buy consistently. So whatever the case, whether it's crazy up or crazy down, I'll buy.

There are lots of strategies out there, and some investors just want stocks to reach the absolute bottom and then pounce so they can make a killing. That is awesome, and I'm happy for them. That's how big fortunes are made. For myself, though, I'm happy with picking assets up here and there for good prices. I'm happy and content with that. However, moving forward when this bear market is over, I will bank up crazy amounts of cash and say set aside, $100k to 200k just straight up cash for another market correction like the one we are having if it really is one. You live and you learn. Cash is always important to have on hand for sure, but if it gets to those bargain prices like what we witnessed in 08/09, I say tap into your equity line of credit or home equity somehow if you really want cash. I have not tapped into my margin yet and could if I wanted to, but I don't want to borrow yet or ever, unless it's absolutely necessary.

Anyway, the bottom line is when the market is tanking, grow some cajones and buy the best assets at discounted prices. Warren Buffett said it best: "Whether it's stocks or socks, everyone loves a sale." Pick up the best and you'll be happy you did. I put my money where my mouth is and made some purchases this morning. NO FEAR.

One of my goals this year was not to buy any more than 2k a month for the first 6 months so we can build the cash reserves up, but unfortunately, I've failed in this goal 3 weeks into the year… LOL. Sorry buds. I couldn't sit on the sidelines yet, as I see so mcuh red, I have to strike. It's probably too early to make my move but it's all good. I'll always have cash coming in every day/week/month from my day job, so there's always cashflow for the next purchases next month and throughout the year. If it gets too crazy in the markets and we see even better prices, I will break my other goals and just go straight up hardcore and invest with the same intensity as the previous years so we'll see. Paying back my wife can be put on hold and the townhouse purchase can wait.

Here are the buys:

Canadian Western Bank (OTCPK:CBWBF) 100 shares @ 20.305 = $2040.49

Power Corporation (OTCPK:PWCDF) 45 shares @ 26.44 = $1199.79

National Bank of Canada (OTCPK:NTIOF) 30 shares @ 35.52 = $1075.59

Bank of Nova Scotia (NYSE:BNS) 20 shares @ 51.29 = $1035.79

I added fresh capital of $5351.66 and income added to our portfolio is $268.78

Total Forward 12 Months Dividend Income. All Accounts

$28002.52/$2333.54 per month

As always, thanks for stopping by. Investing is a personal subject, and what will work for me will not work for you. We're all in different stages of our lives with different circumstances. Therefore, do what is best for you. I am doing what I believe is best for me. I can't speak for anyone but myself, but I can share my experiences and my journey to reaching Financial Independence. I love stocks and they're my favorite vehicle to use to create wealth. I like the liquidity of them and as a Dividend Growth Investor/Income Investor, I like the fact that it's very minimal work after the initial due diligence and selection process. I own 2 properties and houses are not liquid at all. You can't just "tap" into your house and pay your bills. (I guess you could with a Line of Credit.)

Just a thought for you: I've been hearing some panic in articles and the news and they always blow things out of proportion. Ignore the noise, but know and understand the macro events. As investors, our only job is to buy low and sell high. That's the model of business: buy low and sell high. The lower we buy, the better! Buy low! The opportunities will come soon enough, so I hope you buy some stocks at low prices. As an income investor, though, I want to buy low and hold for the long term and collect my dividends. The quality of my Dividend Income stream is more important to me, and it's at $28k a year now. Portfolio value up or down, whatever; so what!? Stick with your strategy and don't panic sell or you're gonna lose money. This game we are playing is supposed to be fun. Investing is addicting and awesome. It's my hobby. I love it! Understand how the game works. Knowledge and information and experiences build confidence. You'll be more confident in this game as you progress. Also, don't invest with money you're not able to afford to lose. Get your ship tight first and bills paid before you risk it in the stock markets.

My 2 biggest losers are Kinder Morgan (NYSE:KMI) and Ensco (NYSE:ESV), which I will hold for a long time because I look at them and it reminds me of why not to buy lower-quality companies and only focus on the best moving forward. Together, they have close to a $40k book value in USD, but with a paper loss and now a book value of just under $14k. Yeah, brutal but all good; you live, you learn. As I get wiser and get more experienced in this awesome game, I will make better decisions. I was thinking, had I put that $40k that's in KMI or ESV into Coca-Cola (NYSE:KO) or Johnson & Johnson (NYSE:JNJ) or Procter & Gamble (NYSE:PG), I'd be much better off. Why bother with KMI ESV in the first place? Why even give them a chance?

Lastly, have fun guys. Enjoy the ride. What's the worst that can happen? In the end, death comes for us all. While we're alive, let's be the best we can be. We're lucky to be alive and healthy. Have a good time and don't be so damn serious.

For example, last Tuesday I paid $1,150 for my Acura to get serviced, and I waited about 5 hours. They always say this or that is wrong with the car, and in the end, that's the price you pay for driving a luxury car. I paid it but I wasn't happy and gave the service advisor a piece of my mind. While waiting, I walked around the dealer checking out the latest versions and learned that my 2010 MDX is now worth only about $20k to $25k, and a brand new one costs more than $55k. So there you have it, I've lost over $30k in price depreciation and the car will never regain its value. I like nice cars/SUVs, so I use an example of what I know. Some people spend $100k for a brand new Range Rover Sport or Porsche Cayenne, and it's only worth half that in 5 years. Terrible buys, for sure. So buying stocks, that's a no-brainer.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.