Quote:
Originally Posted by GP_Matt
Just for conversations sake I took a look at bank stock.
If you bought CIBC shares 5 years ago today it would have cost $97.70. Today that share is worth $74.09 and pays a quarterly dividend of $0.90. 20 dividends over 5 years works out to $18 (a bit less as the dividend has likely increased a bit over the years, but I don't think too much). That puts the value of your purchase at $92.09 for a small loss across "the worst recession since the great depression". If you had bought it 10 years ago it would have cost $54.70 and be worth $110.09. Not too bad considering that that still suffered through the same recession.
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I know someone who started investing in Canadian bank stocks since the 80's. He wouldn't buy a lot, but would try to buy some every chance he got. He's done hella well with that. His argument to me is that unlike banks in say the US, Canadian banks are usually backed up by a ton of regulations and by the government, so even if there are blips, in general over the long term, you come out on top if you stick with it. And he's been right so far.