Stocks - The Best Buys 2

[zamler]

Don't know anything about those companies why did you invest? Remember that last year around this time stocks were in the dumps as well.

[Muta]

The market has been volatile for the past 1.5 years to the point of pure confusion and irrationality. Things going down when they should be going up, and vice versa. Research your companies and do your proper due diligence on them. If you like what you see, invest. Almost every time, patience is key. If the company has good fundamentals, you'll see results in the long run.

Remember what Warren Buffet said: “The stock market is designed to transfer money from the active to the patient.”

[shermanator]

I sold FB in October at $325 USD and TSLA yesterday at $840 USD, putting both into TOU. Pretty happy with those decisions right now.

[zamler]

How long had you held those stocks?

[Iggy_12]

Originally Posted by zamler

Don't know anything about those companies why did you invest? Remember that last year around this time stocks were in the dumps as well.

They were some of the hot talk on this forum. I won’t lie I got carried away with the hype on here and blindly bought lol

[shermanator]

Originally Posted by zamler

How long had you held those stocks?

Bought both in June.

[Table 5]

Originally Posted by Muta

The market has been volatile for the past 1.5 years to the point of pure confusion and irrationality. Things going down when they should be going up, and vice versa. Research your companies and do your proper due diligence on them. If you like what you see, invest. Almost every time, patience is key. If the company has good fundamentals, you'll see results in the long run.

I'm just a lowly retail investor, but to me sector selection is even more important than company selection. It's always good to try to find the best individual companies regardless, but if you get the overall sector trend wrong, you're going to be fighting an uphill battle. Personally I think you have a much better shot at success investing in a good company in a sector with a bullish trend at the bottom of its cycle, than a fantastic company in a sector that's already firing at its peak. Personally, I don't need to find the best player on a winning team... I just need to make sure I'm on the winning team.

There is pretty strong sector rotation from Growth/Tech to Value underway. It doesn't meant that there aren't great companies in Tech right now (or a good time to start looking), but chances are it's going to be a much tougher slog over the next couple of years.

[Nabber]

I'm curious how people do proper due diligence on a stock?

Read about the company? Look at Financials? Message Boards? Websites? What are the best ways to gain insight into something you'd like to invest in?

I buy and hold the odd stock but haven't made the best decisions with things over the years, so I always revert back to ETFs and a general Questwealth portfolio. I would like to get better a picking individual stocks though.

[shermanator]

I look at financials to review things like net income and cash flows YoY, EPS, P/E ratios, beta, dividend yields. Not going to pretend I am an expert in reading financials, but it's better than dart throwing or following the hype as I have done in the past. As an example, my decision to invest in TOU was driven by overall industry sentiment, low P/E, and the company announcing that they want to share much of future free cash flows with shareholders.

When I moved my RRSP from mutual funds to individual stocks I actually watched various Youtubers over a year to get an idea of some of the companies I might want to buy. Not the hyped stocks but the "boring" ones like FTS or JNJ or PG or ABBV. One channel I found that gave good advice was Brandon Beavis Investing. And then I added a few dartboard throws like GOOG, FB, TSLA were added for growth potential.

I also frequent the CanadianInvestor subreddit and try and do the opposite of what is said on there.

[Enoch Root]

Originally Posted by Nabber

I'm curious how people do proper due diligence on a stock?

Read about the company? Look at Financials? Message Boards? Websites? What are the best ways to gain insight into something you'd like to invest in?

I buy and hold the odd stock but haven't made the best decisions with things over the years, so I always revert back to ETFs and a general Questwealth portfolio. I would like to get better a picking individual stocks though.

All information is built into a stock price.

And it is impossible for you (or anyone) to know all information about a stock.

Therefore you are playing against a market that will always have the advantage. You are playing blind, and essentially guessing, no matter how much information you think you have.

That is why it makes sense in the vast majority of situations, to simply buy the market.

[bluejays]

I have no idea where things are going short term, but I suspect some higher volatility in the next few weeks as rates rise.


I used to think FB was a major win in the metaverse, but after seeing some videos on it, I'm convinced the time for that is too early. The interface seems boring, and not like being immersed in the PS5 world. More like the PS3 world. So I can see 3 years minimum before it takes off, unless Apple does what it does and markets something over the top.


Anyway, back to markets, a lot of "experts" seem to think the fundamentals are here for another good year if invested in companies with a lot of cash and good basics. Many are advocating for buying on the dip and holding long term, and they're likely right. I think it's human nature to want to buy at a low, and that kills most of us (myself included). I'm still holding banks and CBDT, but I'm waiting for that unnecessary pullback on Apple to get in again (they have a ton of money). I'm skeptical on Amazon as I think with the economy opening their cloud has to pull the weight of the potential losses on their retail business, so I'm unlikely to invest there. The hard pullback on shopify is intriguing, for trading moreso than long term holding. If it gets to $700 on the tsx I may bite, but last year I got taken for a ride on speculative stocks (score, cbdt, uipath, lightspeed) losing some good money on the speculation where it seemed you couldn't lose. If the experts are correct, and logically they make sense, I'm taking a more cautious approach and going with the blue chippers. Not going to complain as the logic is there.

[Krovikan]

I have two plays, very safe plays like REITs, AC when it crashed, etc.

Then I have very speculative plays that are generally based on sector movement, for example between 2017-2019, I invested most of my TSFA (small at the time, but still) in cryptocurrency stocks.

My DD is companies I think in those spaces that I think will make it through a few years until that sector will gain transaction. While I've had very big gains on this, I've also had misses; luckily right now my gains outweigh my misses by a fair margin.

I think the comment that most of a companies ratios, etc. are built-in to a stock's price is true except in extreme circumstances. March 2019 was one of those circumstances, and we will probably see the same thing over the next week with Russia, where speculation and fear rule the market, but in my investing experience (very limited and small fry), these events tend to be short.

I'll probably move cash into my TSFA tomorrow.

And holy ####, I just looked at crypto... WOW -8% in the last hour on the big coins... damn... Ya, fear is going to rule tomorrow for sure...

[DoubleK]

Limit down tomorrow or is the Russia/Ukraine drama priced in?

[Johnny199r]

Stocks are going to tank in the near term due to the Ukraine conflict.

[Fuzz]

Felling better about transferring a bunch of money in the last week and being to lazy to put it in anything.

[Nabber]

Originally Posted by shermanator

I look at financials to review things like net income and cash flows YoY, EPS, P/E ratios, beta, dividend yields. Not going to pretend I am an expert in reading financials, but it's better than dart throwing or following the hype as I have done in the past. As an example, my decision to invest in TOU was driven by overall industry sentiment, low P/E, and the company announcing that they want to share much of future free cash flows with shareholders.

When I moved my RRSP from mutual funds to individual stocks I actually watched various Youtubers over a year to get an idea of some of the companies I might want to buy. Not the hyped stocks but the "boring" ones like FTS or JNJ or PG or ABBV. One channel I found that gave good advice was Brandon Beavis Investing. And then I added a few dartboard throws like GOOG, FB, TSLA were added for growth potential.

I also frequent the CanadianInvestor subreddit and try and do the opposite of what is said on there.

Thanks for the info Shermanator, lots of good points in here. I've paid attention to P/E ratios, dividend yields and all of that. I think Financial review is the next step I'm going to have to take if I want to get more serious. Look for debt items, cash on hand etc. Just wanted to make I wasn't missing something. I've used Zacks to enter a stock symbol and seeing what it's rated there. Same with Youtubes, I'll take a look at the one you mentioned. I like the comment about subreddit and doing the opposite. I read stocktwits and you could probably do the same there, but the advice is all over the place and I'm sure not reliable. I'm holding mostly just boring individual stocks too right now, dividend ones that pay 5-7%.

[Nabber]

Originally Posted by Enoch Root

All information is built into a stock price.

And it is impossible for you (or anyone) to know all information about a stock.

Therefore you are playing against a market that will always have the advantage. You are playing blind, and essentially guessing, no matter how much information you think you have.

That is why it makes sense in the vast majority of situations, to simply buy the market.

I keep telling myself just buy a S&P 500 index stock (I like VOO) and just doing it that way. I know I'd be way ahead where I'm at right now if I had done that in the past.

[squiggs96]

Originally Posted by Johnny199r

Stocks are going to tank in the near term due to the Ukraine conflict.

[zamler]

Originally Posted by squiggs96

This is why most of my money is in the long game trying to predict the markets is a recipe for failure and despair. Having said that I bought a few of my favorites this morning but as I always say your day trading has to be money you can afford to lose.

[Strange Brew]

At the end of the day, my portfolio is up and the only stocks that went down were my oil stocks.

Not what I saw happening last night.