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moneysense.ca, 26/09/06
This and That
- I learnt from bitter experience with JDS-Uniphase that the self-directed RRSP is not the place to put high-risk stocks or funds. If the stock plummets (as these stocks routinely do), valuable contribution room is lost and the capital loss cannot be used to offset other capital gains as explained in this Globe and Mail article.
- Derek Foster (author of Stop Working) is doing great in retirement according to a story in the Toronto Star. His self-published book has generated close to $100,000 in profits and his retirement fund is also in good shape.
- Did you miss out on Tim Hortons (TSX: THI) IPO? The shares closed today at $27.53, not far from the IPO price of $27.
- Rob Carrick suggests investing in income trusts for boosting returns in a sideways market. Personally, I prefer to own common stocks and index funds and have no exposure to the income trust sector. Some investors do make satisfactory profits in them.
moneysense.ca, 26/09/06
That Derek Foster article is interesting. I personally don’t view Derek Foster as ‘retired’. He wrote his book, he writes a column for Canadian Money Saver magazine and maybe some other things. He is financially indepenent though which I think is a great position to be in and is what I am trying to work towards. I am getting there but I’m not going to make it in the next 2 months and be able to claim the youngest Canadian retiree title from Derek.
And THI is up over 6% so far this morning… I was watching it yesterday and hoping it would go a little bit lower. I hope it does go lower in the next couple of weeks when all those extra shares from Wendy’s get put on the market but I don’t know if that will happen.
Yes, I noticed that THI is up. So much for the expectation that the huge over-hang of the distribution by WEN will depress the price.
Looks like THI is being added to the TSX. Article link is here. Maybe it’s better to buy WEN?
On a side note — why do you shy away from income trusts? There are some quality companies using the trust structure.
I’m still calling buyer beware on THI.. with the index funds in a buying frenzy to mirrot the TSX inclusion, the current displayed demand is very artificial.
Plus, the influx of the rest of the THI shares from the WEN distribution means a big imbalance between supply and demand.
It’s probably best to take this spin off as an opportunity to include the stock into the index, as in the long run, it does not distrupt the stock. But the current blip should correct itself very shortly
I guess the old adage is true – If you love what you do, you’ll never work a day in your life.