Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.
In addition, Pat thinks then beginner investors should cultivate two important qualities: a healthy sense of skepticism and patience.
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Investors should approach all investments with a healthy sense of skepticism. This can help keep you out of fraudulent stocks that masquerade as high-quality stocks. It will also keep you out of legally operated, but poorly managed, companies that promise more than they can possibly deliver.
If you are a new investor, you should also realize that losing patience can cause you to sell your best choices right before a big rise. All too often, investors buy a promising stock just as it enters a period of price stagnation. Even the best-performing stocks run into these unpredictable phases from time to time. They move mainly sideways in a wide range for months or years before their next big rise begins. (Stock brokers often refer to these stocks as “dead money.”)
If you lack patience, you run a big risk of selling your best choices in the midst of one of these phases, prior to the next big move upward. If you lose patience and sell, you are particularly likely to do so in the low end of the trading range, when stock prices have weakened and confidence in the stock has waned.
How Successful Investors Get RICHLearn everything you need to know in ‘The Canadian Guide on How to Invest in Stocks Successfully’ for FREE from The Successful Investor. How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger. |
ELI LILLY AND COMPANY, $818.93, is a buy. The drugmaker (symbol LLY on New York) discovers, develops, manufactures, and markets human pharmaceutical products.
This week, Lilly’s shares fell to as low as $770 or so this week—before rebounding. However, they are still down about 9%.
The decline… Read More
FASTENAL COMPANY, $78.23, symbol FAST on Nasdaq, is a leading wholesale distributor of industrial and construction supplies. It draws almost all its clients from the construction and manufacturing industries.
Those construction customers include general, electrical, plumbing, sheet-metal, and road contractors. In manufacturing, Fastenal sells to original-equipment… Read More
CANADIAN NATIONAL RAILWAY CO., $150.98, Toronto symbol CNR, remains a buy for long-term gains.
CN operates Canada’s largest railway. Its 30,250-kilometre network stretches across the country. It also travels down through the U.S. Midwest, connecting Canada to the Gulf of Mexico.
The company last raised your quarterly… Read More
MCDONALD’S CORP., $295.21, New York symbol MCD, is still your #1 Conservative Buy for 2024.
The company is the world’s largest fast-food chain with over 42,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french… Read More
CENOVUS ENERGY INC., $21.89, Toronto symbol CVE, remains a buy for the Resources section of your portfolio.
The company is now Canada’s third-largest producer of oil and natural gas after Canadian Natural Resources and Suncor (see next Hotline item). That follows its all-stock acquisition of rival… Read More
A: Nike Inc., $78.62, symbol NKE on New York (Shares outstanding: 1.5 billion; Market cap: $117.5 billion; www.nikeinc.com, is the largest seller of athletic footwear and apparel in the world.
Founded in 1967, the company designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and… Read More
As you’re no doubt familiar, as part of our three-pronged approach to investing, we recommend investors avoid companies in the media limelight. (The other two parts are diversifying your holdings across the five main economic sectors, and sticking to well-established companies).
A great example of an… Read More
SEZZLE INC., $212.96, symbol SEZL on Nasdaq, provides a platform for merchants in the U.S. and Canada that lets customers pay for merchandise through installments, better known as BNPL or “buy now, pay later.”
The company had 462,000 active subscribers as of June 30, 2024, up… Read More
CANADIAN PACIFIC KANSAS CITY LTD., $107.18, Toronto symbol CP, is still your #1 Conservative Buy for 2024.
The company took its current form in April 2023 when it acquired U.S.-based railway Kansas City Southern (KCS).
CP paid $31 billion U.S. in cash and shares for KCS. At… Read More
BOSTON SCIENTIFIC CORP., $84.73, is a buy. The company (symbol BSX on New York) develops and markets medical devices used in minimally invasive procedures. Its products are used for angioplasty (blood vessel repair), blood clot filtration, cardiac rhythm management, catheter-aided ultrasound imaging, and many other… Read More
GENUINE PARTS CO., $114.24, New York symbol GPC, is still a buy for long-term gains.
The company has over 10,800 company-owned and independent auto parts stores in North America, Europe, Australia and New Zealand. Most of them operate under the famous NAPA banner. This business accounts… Read More
MCDONALD’S CORP., $292.61, New York symbol MCD, is still your #1 Conservative Buy for 2024.
The company is the world’s largest fast-food chain with over 42,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french… Read More
You Can See Our WSSF Aggressive Growth Portfolio For November 2024 Here.
We designed our TSINetwork Ratings to give you an idea of the investment quality and risk in stocks we recommend, so you can build a portfolio that suits your needs and objectives.
Other rating systems… Read More
A: Empire Company Ltd., $40.37, symbol EMP.A on Toronto (Shares outstanding: 238.5 million; Market cap: $9.7 billion; www.empireco.ca), is primarily a food retailer and also invests in real estate.
The company operates through two segments: Food retailing, and Investments and other operations.
Empire’s Food retailing segment does… Read More
A: The Global X Seasonal Rotation ETF, $31.08, symbol HAC on Toronto (Units outstanding: 7.0 million; Market cap: $217.6 million; www.globalx.ca), aims to tactically spread and move around its holdings between stocks, fixed-income investments, commodities and currencies based on historical seasonal trends.
The managers believe that… Read More
Here’s Part Two of the letter I sent to our Portfolio Management clients in August 2024:
Modern bureaucrats at work
Max Planck (1858-1947) was a German theoretical physicist who originated quantum theory, for which he won the 1918 Nobel Prize. He also gets informal credit for a.. Read More
MODINE MANUFACTURING CO., $132.79, symbol MOD on New York, provides thermal management products and solutions to customers in the commercial, industrial, and building heating, ventilating, air conditioning, and refrigeration (“HVAC&R”) markets. In addition, it provides engineered heat transfer systems and high-quality heat transfer components.
In the… Read More
TORONTO-DOMINION BANK, $77.84, Toronto symbol TD, remains a buy for patient, income-seeking investors.
With the January 2024 payment, TD raised your quarterly dividend by 6.3%. Investors now receive $1.02 a share instead of $0.96. The new annual rate of $4.08 yields a solid 5.2%.
The bank has… Read More
BOEING CO., $154.99, New York symbol BA, is still a hold.
The aircraft maker now plans to raise new capital as it faces several challenges. Those include a strike by more than 33,000 machinists at its factories in the U.S. northwest, which began on September 13,… Read More
BARRICK GOLD CORP., $28.88, is a buy. The company (symbol ABX on Toronto) is the second-largest gold miner in the world after Newmont (symbol NEM on New York, and a recommendation of our Wall Street Stock Forecaster newsletter).
The company reports that it produced lower-than-expected gold… Read More
