May 16, 2017

On Tuesday, the S&P 500 was down 0.1% and Toronto was down 0.6%.

AutoCanada was down 2.3% and I grabbed a few more shares today. I always like to show the courage of my convictions when Buy-rated stocks decline. And, just as importantly, I like buying shares at lower prices.

Canadian Tire was down 2.2% to about $155. It’s been a great company. But based on my last update it seems a bit expensive.

The next update will be for TFI International (Transforce) and I expect it will be somewhere in the buy range as the price has come down since my last update.

Tomorrow I will deploy $10,000 in a new TFSA for a young relative. This will be a long term investment and is not money that in any way is intended to be used for spending within the next five years. Ideally, this could be the start of a very long term investment portfolio.

I am thinking of $2000 into each of five securities. On the one hand I like the idea of including something like Boston Pizza to yield about 6%. On the other hand making $120 in a year or $10 per month on $2,000 (assuming the unit price is unchanged) does not seem too exciting. I do like the idea of including some dividend stocks. But I definitely want to have growth potential.

Possible investments include AutoCanada, Melcor, Canadian Western Bank, Stantec, Couche-Tard, Boston Pizza, TransForce and CRH Medical.

In this situation of a young and new investor I see no need to get into American stocks. I could use market ETFs. But I think using actual companies will be more educational. I also don’t want to get too speculative since losing money early in an investment lifetime could turn a person off of investing.