# Stocks for portfolio - asking for input on what I should add



## Gumball (Dec 22, 2011)

I apologize in advance if I posted this in the wrong section, however I am looking for feedback/discussion as to what to what individual stocks to add to my portfolio. As you can see below I am not too diversified and heavy in Canadian stocks. I'm 33 yrs old and looking to add to TFSA and RRSP, so all sheltered investments.

After looking at the stocks I own today, can you recommend some stocks I should put on my watch list that would help me diversify? Thank you in advance for any feedback!


PPL
IPL
CHE.UN
NA
CNR
BCE
T
SBUX
GOOG


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## Edgar (Mar 24, 2014)

It seems like you are pretty light in financials and luckily, the banks are pretty affordable right now (most are trading in their mid-52s). I would recommend either TD or BMO in a TFSA. Depending on your preference, I would recommend TD as a long-term hold and BMO as a mid-term hold.

Also, I would recommend moving this to Investing instead of individual stocks.


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## My Own Advisor (Sep 24, 2012)

Personally, I try to use the TSX Composite Index as my guide for the CDN side of my portfolio:

I "rebalance" by buying new assets to align with the sector breakdown of the TSX Composite Index. Take the ETF XIC as an example of that. The TSX Index and XIC has a breakdown of roughly 35% financials (think big 6 banks and the top-3 life insurance companies), 20% energy (think Enbridge, Suncor, Canadian Natural Resources and more), 12% materials (think mostly mining companies) and a lesser amount of industrials and telecommunications companies. 

I don’t worry about rebalancing my U.S. assets very much since I’m mostly U.S. and international equities there and I'm buying more ETFs for the RRSP - I just try to buy more U.S. assets there when I can afford them.

I echo that Canadian banks seems to be a buy now...


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## leeder (Jan 28, 2012)

Consider if you want to buy individual stocks or whether you should buy the market (ie., index investing). My impression from OP's post is that he wants to diversify, and he hasn't put in the time to research the companies. Putting into low cost index funds or ETFs may address both issues.


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## Gumball (Dec 22, 2011)

leeder said:


> Consider if you want to buy individual stocks or whether you should buy the market (ie., index investing). My impression from OP's post is that he wants to diversify, and he hasn't put in the time to research the companies. Putting into low cost index funds or ETFs may address both issues.


leeder its not a matter of not putting in time to research companies,(infact I bought Chemtrade CHE.UN a few years back after I read a thread about the stock on here on a post called "what dividend stocks are you buying" it piqued my interest) I just find I have tunnel vision and the ideas I think are good value buys, etc are mostly in the oil patch right now and seeing as I am heavy canada and heavy midstreamers/pipelines Im just looking for others suggestions at this time thats all. For example right now Ive got Saputo and CSX Rail on my watch list, etc, etc, I would prefer to stay away from index funds or ETF's


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## londoncalling (Sep 17, 2011)

without knowing the percentage allocation for these positions it's hard to offer up much. I suggest you head over to the investing thread and read some of the allocation diversification threads. you can also look at the argo 5 pack as a template. It clearly explains the sectors one should own. at first glance I would say you should add financials (banks and lifecos). Sbux is a nice consumer discretionary which could be balanced with something like JNJ, Unilever, PG, etc .Although, I don't put much faith in Kramer (i consider it entertainment not information) He does a segment called "Am I diversified?" That may lead some insight into what to add. 

Cheers


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## crgf1k (Aug 8, 2015)

Get some Dollarama at the lower trend line.


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## Afp (Mar 19, 2013)

Gumball said:


> I apologize in advance if I posted this in the wrong section, however I am looking for feedback/discussion as to what to what individual stocks to add to my portfolio. As you can see below I am not too diversified and heavy in Canadian stocks. I'm 33 yrs old and looking to add to TFSA and RRSP, so all sheltered investments.
> 
> After looking at the stocks I own today, can you recommend some stocks I should put on my watch list that would help me diversify? Thank you in advance for any feedback!
> 
> ...


Among your list, I own IPL, CNR, T and SBUX. Reading your comments, I have no doubt you are a good stock picker. Don't worry too much about not being diversified enough, but rather focus on the quality of your pick.

I speak from my own experience. I made many mistakes buying companies that I should have never bought, darn... so much for diversification... Now, I tend to buy only stocks that I want to hold on to for the rest of my life. 

For a new Canadian investor, I believe one can do just fine, in fact will be more than just fine (probably beat most of money managers out there) by holding just 4 blue chips: RY (finance), ENB (utility), Telus (telco/tech) and Metro-MRU (consumer staple). Once you're comfortable, go ahead buying US Stock when the dollars near par. 

Don't believe, feel free to do any back test over 10 years, 20 years, 30 years and 40 years. 10k back then would make you multi millionaire many times by now. Of course, nobody can guarantee the future but my bet is 20 years into the future, all 4 companies above will still be around serving Canadian across our country. 

Don't chase yield, don't chase dream, don't try to go for getting rich quick. In our age of instant gratification, the concept of long term dividend investing is difficult for some people to grasp. It takes decades, not years or months or days, for the miracle of long term compounding to turn a modest investment in high quality dividend growth stocks into a substantial portfolio.

---------------------
hboy43 and Jon-Snow, 
You're my hero.


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## Synergy (Mar 18, 2013)

Afp said:


> Don't chase yield, don't chase dream, don't try to go for getting rich quick. In our age of instant gratification, the concept of long term dividend investing is difficult for some people to grasp. It takes decades, not years or months or days, for the miracle of long term compounding to turn a modest investment in high quality dividend growth stocks into a substantial portfolio..


All good points, but there's no harm in chasing / playing around with 1-2% of your portfolio - gotta have a little fun:biggrin:

I'd look into some US financials and maybe one of the Lifecos in Canada - one way to play a rising rate environment. As mentioned above you could pick up a consumer staple or even some health care to create a little more diversification. Your portfolio does look a little rate sensitive with the 2 pipes and 2 telecom stocks, but without knowing the percent allocation one is only making assumptions on that.


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## Brad911 (Apr 19, 2009)

Depends on how much capital you're looking to invest, but I would only include a few of those in a portfolio. Do yourself a favour and start first by setting goals and objectives of what you want your portfolio to accomplish. Read, read, read or get yourself a coach.


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## dubmac (Jan 9, 2011)

2 min portfolio takes 2 top stocks among 10 sectors - canada only. http://www.theglobeandmail.com/globe-investor/infographic-the-two-minute-portfolio/article22389562/


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## Gumball (Dec 22, 2011)

thanks fellas for the feedback, I will keep doing my homework and look to add high quality names to the portfolio, londoncalling I do like your idea of adding another consumer discretionary...so will look more into that. 
also myownadisor and brad I do follow both your blogs for information and find them pretty good.


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