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moneysense.ca, 28/12/05
The 2005 Reportcard
According to Microsoft Money, my portfolio returned 13.5% in 2005. My target “Sleepy” portfolio composed largely of ETFs returned 12.6%.
I bought the following stocks over the course of the year:
Anheuser-Busch (BUD): Buy: $46.71. Now: $43.51.
AIG (AIG): Buy: $53.84. Now: $68.41.
Home Depot (HD): Buy: $38.26. Now: $41.09.
Bank of Nova Scotia: Buy: $42.07. Now: $46.84.
Bell Canada Enterprises (TSX: BCE): Buy: $28.36. Now: $27.84.
AGF Fund Management (TSX: AGF.NV): Buy: $16.40. Now: $22.20.
I also sold the following stocks:
Canadian Natural Resources (TSX: CNQ): Sold: $39.97. Now: $58.20.
Sears Canada (TSX: SCC): Sold: $23.72. Now: $17.85 (after a $18.64 dividend).
I track most of my buy and sell decisions through this blog and when I look back, I sold my winning positions too early. Sears Canada, for instance, was able to command a much higher price for its financial division than I had anticipated and its American parent also bought out its retail operations. But, as they say, hindsight is always 20/20.
moneysense.ca, 28/12/05
I wouldn’t own BUD. Its growth rate is maybe 6% long-term, its going to grow 2% this year, maybe 3-5% next year, and its trading at 17x O6 numbers. That’s too expensive, since you have a higher than market multiple for a lower than market growth rate. I know Buffett had bought it, but I don’t understand why people overpay for these so-called bullet-proof consumer staples companies.
I’d also be careful with HD. The real estate market is beginning to crack, and its hard to see that stock doing well if numbers have to come down. If numbers are fine, then at 14x 06 estimates, you probably won’t lose a lot of money.