How my investment portfolio held up after the TSX lost 803.65 points

I had a very fun and interesting weekend, as you could see from my previous post, but this past Friday was not an easy one for the TSX. The index closed at 34,413.45 points, down 803.65 points, or -2.28%. A loss of more than 800 points in a single session is quite severe.

I didn’t have time to look at my numbers until this evening, and I have to say that I was surprised, in a good way.

My non-registered portfolio closed Friday’s session at $201,380, my US portfolio at US$5,483.46, my RRSP stocks-only portfolio at $107,951.20, and my TFSA portfolio at $180,194.06. Compared to June 4, when I reached my most recent highest net worth ever at $607,647.44, I am actually not that far from that value, despite Friday’s 800+ point loss on the TSX. My guess is that my net worth is probably somewhere around $604,000, $605,000, or even $606,000 right now.

And for that, I have to thank my heavy exposure to the energy sector.

I have discussed this before, but I want to come back to it again and add a few more elements to explain myself better. If my non-registered portfolio is currently worth $201,380, it is largely because of my heavyweights: Pembina Pipeline Corporation (PPL) and Enbridge Inc. (ENB). This past Friday, PPL closed at $68.07, down $0.36, or -0.53%, while ENB closed at $78.54, down $0.29, or -0.37%. In other words, the damage was quite limited for two of my most important holdings.

When you have heavy lifters inside a portfolio, meaning greater exposure to certain stocks, sometimes it works against you, and sometimes it works in your favour. This year marks my 20th anniversary as a blogger, and probably my 19th anniversary as a stockholder. I have been holding some of my precious PPL and ENB shares since my early beginnings as an investor. The dividends I earned from those two stocks have always been set on a DRIP, right from the start.

My entry point into PPL and ENB was super cheap. Back in the day, if I am not mistaken, both PPL and ENB were income trust-style investments. ENB may even have been ENF at one point, or at least connected to that structure. Anyway, it has been a very, very long time. Both of those stocks were Derek Foster stocks, so I naturally followed the lead. They felt like very secure investments back then, and 19 years later, I don’t think anyone can really say otherwise.

I don’t feel insecure about holding a lot of money in PPL and ENB because that growth happened over time. And for nothing in the world would I sell a single share of PPL or ENB simply to “rebalance” my investment portfolio. I would never do that.

There are many reasons for this. First, PPL and ENB are now part of my personal history as an investor. Second, if I were to sell part of my PPL or ENB positions, where could I possibly reinvest that money, especially in this market and in this economy? It would almost feel like an impossible mission. For some investors, respecting a strict balance is important. But I have always preferred to listen to my heart. And undertaking a rebalancing act involving PPL or ENB is simply impossible for me.

Of course, this comes with risks. If PPL or ENB were to experience a serious downturn, I would pay the price. It would be extremely hurtful. But this is a calculated risk, and I believe in my chances of succeeding with my portfolio exactly the way it is right now.

The stock market is a brutal game. You need to be at ease with yourself and with your choices if you want to face the downturns with grace. In this case, Friday’s 800-point loss on the TSX did not cause too much damage to my portfolio, but every stock market correction is different.

To be invested in stocks, you need to accept one basic truth: the value of your stocks can go down at any time, for any reason. And when it happens, it hurts. But you need to be solid enough to remain grounded when the hits come — because they will come. At times, your heavy lifters may not always work in your favour, so you need to be ready to live with that reality.