Initiated a position in CNR stock

This week I went shopping for some reasonably well priced stocks for the long run.

I have initiated a position in Canadian national railway.

why:

1) wide moat you can’t just enter the industry and start building your own railroads…. it would cost a fortune

2) very good capital and cash flow management see below numbers

capital mgmt cnr

3) dividend growth for the next couples of years will easily be on or above 10% a year, that coupled with a 1.9% current yield is a long term total return of 11.9% annually, I am satisfied with that.

T

 

ALGORITHMS REPLACING ANALYSTS

In Many areas in our economy machines have automated some of the once human tasks. The stock market operations is no different. I wanted to share this article about it.

https://www.cnbc.com/id/100685958

The role of the investor is not to try to anticipate or beat those algorithms, it’s just not possible. The real investor generate ideas that can lead to long term very good total return.

In my case, when I saw the stock price of AAPL reaching very very low levels in terms of p/e ratio in 2013, coupled with the fact that the company was already cash rich, and having the strong belief that their customer base would stay loyal to the brand, I decided to initiate a large position. it since then generate double digit return until today and will probably do so going forward.

if you had the same type of thought process for Tesla, Amazon, visa, mastercard, you would also be averaging tremendous results in 2018.

 

JUST ADDED TO MY ENBRIDGE POSITION

ENB 2018I just went shopping for another 25 qty of ENB stock. When I looked at the 10 year chart I figured it is very unlikely that price would become a lot cheaper with a whopping 6.26 dividend yield while the company raised it another 10 % recently.

T

 

BITCOIN RUSSIAN ROULETTE

BitcoinWhen you go to the casino hopefully you know that the odds are against you…. if you stay to long. The bitcoin price movement has just shown that this stays true via the recent phenomena of crypto currencies. It’s always easy to say who won once the ball on the roulette stops on a specific color and number. People who bought bitcoin at 20 000 $ a piece are probably watching its price every minute of the day. What nobody will tell you is that those who sold it at that price are probably enjoying a cocktail at the beach at your expense.

THERE IS NOT ENOUGH EXAMPLES TO PUT THE EMPHASIS ON THE FOLLOWING MANTRA:

RISK MANAGEMENT IS PARAMOUNT IF YOU ARE TO GROW AND PROSPER.

IF YOU LIKE GAMBLING JUST GO TO THE CASINO.

T

 

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