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Saturday, October 22, 2011

Capital gains and capital losses in my non-registered investment portfolio

Non registered Investments:
Stocks and Units investment portfolio CAN$

Sprott Inc. (SII):
Initial value: 9 909.46$
Current value: 7 130.31$
- 2 779.15$

Timminco (TIM):
Initial value: 4 065$
Current value: 34$
- 4 031$

Blue Note Mining (BNT):
Initial value: 689$
Current value: 24$

Bank of Nova Scotia (BNS):
Initial value: 5 680.46$
Current value: 5 535.11$

Hanwei Energy Services (HE):
Initial value: 674$
Current value: 33$

Methanex Corporation (MX):
Initial value: 1 626.80$
Current value: 2 592.51$

Fortis (FTS):
Initial value: 2 710.73$
Current value: 3 606.12$

Pembina Pipeline Corporation (PPL):
Initial value: 6 790.23$
Current value: 11 771.10$
+4 980.87$

Just Energy Group Inc. (JE):
Initial value: 9 482.02$
Current value: 7 325.55$
-2 156.47$

Pengrowth Energy Corporation (PGF):
Initial value: 2 119.98$
Current value: 2 277.72$

Enbridge Income Fund Holdings Inc. (ENF):
Initial value: 5 860.50$
Current value: 6 073.85$

Corby Distilleries Limited (CDL.A):
Initial value: 1 544.99$
Current value: 1 660.36$

Davis + Henderson Corporation (DH):
Initial value: 2 898.55$
Current value: 3 435.60$

Premium Brands Holdings Corporation (PBH):
Initial value: 7 143.97$
Current value: 6 752.46$

EnCana Corporation (ECA):
Initial value: 6 030.13$
Current value: 4 304.40$
-1 725.73$

iShares S&P/TSX Capped REIT Index (XRE):
Initial value: 2 106.37$
Current value: 2 245.32$

Horizons Gold Yield Fund (HGY.UN):
Initial value: 2 009.70$
Current value: 1 945.68$

Canfor Pulp Products Inc. (CFX):
Initial value: 1 546.24$
Current value: 1 467.44$

New Flyer Industries Inc. (NFI):
Initial value: 2 444.59$
Current value: 1 248$
-1 196.59$

Capital Power Income L.P. (CPA.UN):
Initial value: 1 978.99$
Current value: 1 856$

Exchange Income Corporation (EIF):
Initial value: 6 820.37$
Current value: 6 380.85$

Rogers Sugar Inc. (RSI):
Initial value: 1 743.72$
Current value: 1 611.95$

Student Transportation (STB):
Initial value: 1 325.65$
Current value: 1 258.56$

Colabor Group Inc. (GCL):
Initial value: 2 514.08$
Current value: 2 129.76$

TMX Group Inc. (X):
Initial value: 4 285.69$
Current value: 4 253.40$

Data Group Income Fund (DGI.UN):
Initial value: 4 254.25$
Current value: 2 050.65$
-2 203.60$

K-Bro Linen Inc. (KBL):
Initial value: 2 034.99$
Current value: 1 895$

Westshore Terminals Invest Corp (WTE.UN):
Initial value: 4 631.99$
Current value: 4 670$

WesternOne Equity Income Fund (WEQ.UN):
Initial value: 2 061.99$
Current value: 2 401.60$

Atlantic Power Corp (ATP):
Initial value: 1 499.99$
Current value: 1 391$

First Majestic Silver Corp (FR):
Initial value: 1 943.99$
Current value: 1 544$

Kinross Gold Corp (K):
Initial value: 2 496.99$
Current value: 2 074.50$

TransCanada Corp (TRP):
Initial value: 1 016.74$
Current value: 1 093.75$

Canadian National Railway Co (CNR):
Initial value: 1 183.41$
Current value: 1 350.72$

Firm Capital Mortgage Investment Corporation (FC):
Initial value: 510.79$
Current value: 501.60$
- 9.19$

TOTAL: -9 988.38$

I find this exercise pretty interesting for many reasons. I published update of my investment portfolio on a regular basis, I post also a lot regarding the stocks I hold and a bunch of other thing. Posting update of my investment portfolio is for me interesting because that way I calculate everything and I can see how things are going. But it doesn’t really provide data on how well or how bad I am doing.

So to entertain myself, I decided to fully expose the performance of my non-registered portfolio. For each and single investment hold in my non-registered portfolio, I expose the initial amount of money investment and the current value of each and single investments.

So how am I doing? Good or baddddddddd? I am currently experiencing a lost 9 988.38$. Some investment I still hold today were made a very longgggg time ago, like that Timminco (TIM). I had proceed with some posts of the same kind before, initial value, current value, how much money was made, how much lost.

Well, turn out that most of the stocks I pick from Derek Foster are doing EXTREMELY well, at the exception of EnCana Corporation (ECA). The Derek Foster killer stocks, top performers are: Bank of Nova Scotia (BNS) (I am experiencing a little lost here but not that much), Pembina Pipeline Corporation (PPL), Pengrowth Energy Corporation (PGF), Enbridge Income Fund Holdings Inc. (ENF) and Corby Distilleries Limited (CDL.A). I started investing in Pembina Pipeline Corporation (PPL) when the company was still an income trust and the units were just of 12$! Currently, PPL trade at more than 25$ per stock!!! WOWWWWWWW.

So that’s for the wow! factor. And what about the lost? I am experiencing a close to 3 000$ loss with Sprott Inc. (SII). But following their news to get involved in the banking sector, I remain confident that the stock will eventually go higher in value. Also, Sprott had released some interesting new investments products. There’s always something going on with Sprott and it’s extremely interesting to follow that company. I can easily live with a 3k loss with this company without too much problem.

I always been a fan of Just Energy Group Inc. (JE) since I find out about this stock and ever since, I had trade and re-trade Just Energy. That’s why I am currently experiencing a loss of somewhere of the 2 000$ with JE. However, I still feel comfortable in my position. It’s just at a point, no matter how great is the stock, I had exposed myself a bit too much in Just Energy Group Inc. (JE). And in result, I had experienced a capital loss of a bit more than 2k. No regret however and chances are that once the stock market will get a bit more stable, JE will reach its old 13$ per stock, and if not even more. Why? Well, it’s just a general feeling.

The energy sector can only grow and when Rebecca MacDonald start her business, the energy sector was already in high demand. At this time, the weak economy is not playing in favor of Just Energy but it’s a great stock to hold for the long term as the company had acquired companies in the US and truly, the future can only be very bright for Just Energy. Under no circumstances should you sell JE at this time and experienced some capital loss. JE is a winner for the long term. Don’t be afraid of capital loss in your portfolio. There’s no reason to panic, not even while being close the 10k loss. That’s my impression at this time and there’s no reason to be afraid.

I had seen the stock market going up and down. I went through the 2008 stock market crash and been able to recover, even while experiencing a loss of 4k with Timminco (TIM). Nothing is impossible but it takes gorgeous good nerves to be able to support the volatility of the market in those difficult times. However, this is the key to success. I went through 2008 stock market crash and the 2011 ones, with its numerous crashes is much more complex but despite it all, I still believe I can go through this 9k loss because went through something similar – but very different at the same time – before.

So why keeping investing if it’s just in order to recover from a 9k loss? What’s the point of this? Well, the stock market is a very interesting place to be no matter what. No matter what, companies continue to pay dividend. After only 3 years of investment through my broker account, I wouldn’t imagine myself without my stocks, without investing. I certainly did plenty of investment mistakes among the way, but if I focus on blue chips, diversify and keep going, I may be able to transform the capital loss into a capital gain. And by the way, there’s no real on paper capital loss until a stock is being sell.

If there’s just one (few) thing(s) you need to learn from this it will be: never invest too much at the same spot, diversify, consider blue chips high quality stocks, don’t focus too much on dividend yield, investing on a regular basis, even small amount of money, will play in your favor on the long term, don’t be disappointed too much by capital loss, move on, be brave, and happily cash in the dividend and enjoy the cash, ok?

Et voilà how to bring super powerful taught of success for yourself and really rock it all.


Frank said...

Finally, all those who think that Sunny is a star trader and who have been following her, you can see that she talks a big game, but there is nothing to back it up. I've been saying this for the last 2 years.

A sizable loss of $10 000, that's pretty much what she has been able to get to. And this doesn't include her registered accounts, which likely show a good loss too.

If this blog shows anything, it's HOW NOT TO INVEST! Chasing yield, buying low quality stocks, over leveraging. Buying names rather than companies. Trying to make a quick buck. Having limited knowledge. All mistakes that the typical stock picker makes.

Sunny, you could be a case study.

If I had to make 1 recommendation to you, it is this: Do not invest any more money, sell everything you have and just put your net capital into a slow growth, average dividend paying utility company, or basic service provider company. Get on the DRIP and leave it alone for the next 30 years. You won't be wealthy, but you will make good overall returns with little risk. In 30 years, your starting capital of $50 000 will probably be worth $400 000... that is better than you will be able to do on your own. Guaranteed!

As it stands, from looking at your portfolio, the biggest risk is not the stocks, not even the leverage, but YOU!

Anonymous said...

Don't forget to add the loss you suffered on stocks you sold like HZD, SPB, FTN, etc...

Anonymous said...

Are you still planning to invest in US stocks in the near future.

I am assuming you have some books of Derek Foster that list the Recession proof US stocks such as JNJ and WMT. Some have increased dividends more over 25 consectutive years.

donald said...

very interesting indeed. let's revisit this post at the end of the year and benchmark it against he TSX index.

the interesting idea out of this is to see as a stock picker - can you outperform the index and by how much. this shows how good or how bad you are as an investor. after this exercise, you should rethink your strategy.

TSX = 11,949.49 as october 21, 2011

Dividend Girl = current market value = 105,925.87 current total cost = 115,914.25

as the end of the year, i need the market value of your td waterhouse account and how much more money in total you have invested.

Crystal said...

My pension plan (PEPP) is losing more than that.

Anonymous said...

Sunny, most people (around 90% of investors) get worse than the market return when they try and pick stocks instead of investing in the market portfolio through an ETF (or a mutual fund, but they have ridiculously high fees in Canada and are a waste of money). You are part of that 90% population who tries to pick stocks and ends up worse off than the index. But don't feel too bad because most mutual fund managers with degrees in finance are also in that group (another reason to never buy a mutual fund).

The lesson for you here is to stop trying to pick stocks. Your portfolio should be divided between a risk-free asset like a low-growth utility fund with an average dividend, and the market portfolio (through an ETF with very low fees, not leveraged). Also, you should understand that if you continue filling your portfolio with dozens of random stocks, you are not getting any more diversification benefits than you already have. A random selection of about 13-15 stocks has almost exactly the same variance as holding a portfolio with every stock in the entire index. The difference in risk between holding a dozen random stocks and holding five-hundred different stocks is negligible.


Anonymous said...

Sunny: IMHO FC is too risky. FC is a boutique lender & in this world: Real property is not collateral, the developer's business is. The developer goes bust..well. Everything depends on FC's ability to risk control & spread that risk. FC is not transparent about who they've loaned to & the terms. They highlight that they've loaned for one multi=million residence. What is the tipping point? I'd like to hear Gordon Pape's reasoning on this.

Ruth said...

one fortunate aspect for sunny is she is young..yes , she has some bad stocks and if they get near what she paid for them , get out,,,i feel that you must retain capital to make dividends count as if you dont, your paying yourself. BCE, Bell Aliant , Enbridge and Pembina....good solid ones but have to wwatch the letters and give credit to Sunny for being upright and honest on her investments..we can only learn from each other.


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