Investing in mutual funds @ TD bank

[Zoot Allures]

Top 20 stocks in the TSX is my pick list, 4%-5% dividends, never sell and S&P500 when I can.

I am a novice but sounds good

Your claim that you beat 90% of professional money managers in Canadian stock
sounds possible as someone has to be in that percentile

S&P500 gets highest returns over time

Dividend companies are safe or they would not be paying dividends but you pay a premium for them
because everyone wants them even though dividend companies do not outperform solid non dividend companies. Dividend companies do well because they are good companies not because they give dividends. There is no corelation between buying solid companies with dividends and making profit but there is a corelation between buying solid companies and making profit. It makes no sense that solid dividend companies would outperform solid non dividend companies

Dividends are not free money. A dollar in dividends reduces stock value by a dollar so your practise of buying dividend companies means you are missing out on better companies who do not give dividends

"Top 20 stocks in the TSX is my pick list" top 20 what?

Taking the best of the top whatever and disgarding the rest is what fund companies claim to do.
It sounds good but but I call BS on their ability to make that strategy work

I agree with holding quality that were bought at a discount and hold but you need to buy a lot of companies as you have no idea which ones will make you rich

Your charges need to be subtracted from return, that is why mutual funds are bad idea, they need to beat index by over 2% {MER} to break even with index funds and that is half the profit and inflation eats the other half

Mutual Funds are now selling their own index funds at a much lower MER because that is what investors want


Warren Buffet says he can count investors who can beat the market on one hand

I believe him. I will stick with index funds

 

[speakercontrols]

@Zoot Allures

Your claim that you beat 90% of professional money managers in Canadian stock
My results compared to SPIVA claim that. I know that it could just be the results of 1,000 coin tosses. But I'll brag about it anyway

Dividends are not free money. A dollar in dividends reduces stock value by a dollar so your practise of buying dividend companies means you are missing out on better companies who do not give dividends
Yawn. This is a Youtube bro claim endlessly repeated ad nauseium.
Every investor has their OWN objectives. It's is NOT necessarily best total return. For some it's safety and less risk. For me, it's income. Thus, my population that I choose from is Canadian Dividend paying companies and I take the single-country risk. Given that Capital Gains are taxed much higher than Dividends in the income bracket that I'll likely be in (sub-$140K I think is the cross over?) , WHY would I invest in non-dividend paying companies when after tax I'll lose any supposed advantage of non-dividend paying companies?


"Top 20 stocks in the TSX is my pick list" top 20 what?
Like most indexes, the TSX is a list by market cap and they are ranked by market cap. Thus, it follows top 20 stocks by market cap.

I agree with holding quality that were bought at a discount and hold but you need to buy a lot of companies as you have no idea which ones will make you rich
Yes? Various sources (somewhere on the net) say you have to hold about 13 -18 stocks to mimic index to an acceptable degree. I have 18+ stocks.

Your charges need to be subtracted from return, that is why mutual funds are bad idea, they need to beat index by over 2% {MER} to break even with index funds and that is half the profit and inflation eats the other half
That's why index EFTs are popular. Vanguards are around the 0.09% range. To be super cheap, I just pay the 9.95 fee once and hold forever. I'm guessing I'm much less than 0.09%.

 

[speakercontrols]

"Great Plan"

I do recognize that, "it works until it doesn't".

 

[Zoot Allures]

@Zoot Allures

Your claim that you beat 90% of professional money managers in Canadian stock
My results compared to SPIVA claim that. I know that it could just be the results of 1,000 coin tosses. But I'll brag about it anyway

Dividends are not free money. A dollar in dividends reduces stock value by a dollar so your practise of buying dividend companies means you are missing out on better companies who do not give dividends
Yawn. This is a Youtube bro claim endlessly repeated ad nauseium.
Every investor has their OWN objectives. It's is NOT necessarily best total return. For some it's safety and less risk. For me, it's income. Thus, my population that I choose from is Canadian Dividend paying companies and I take the single-country risk. Given that Capital Gains are taxed much higher than Dividends in the income bracket that I'll likely be in (sub-$140K I think is the cross over?) , WHY would I invest in non-dividend paying companies when after tax I'll lose any supposed advantage of non-dividend paying companies?


"Top 20 stocks in the TSX is my pick list" top 20 what?
Like most indexes, the TSX is a list by market cap and they are ranked by market cap. Thus, it follows top 20 stocks by market cap.

I agree with holding quality that were bought at a discount and hold but you need to buy a lot of companies as you have no idea which ones will make you rich
Yes? Various sources (somewhere on the net) say you have to hold about 13 -18 stocks to mimic index to an acceptable degree. I have 18+ stocks.

Your charges need to be subtracted from return, that is why mutual funds are bad idea, they need to beat index by over 2% {MER} to break even with index funds and that is half the profit and inflation eats the other half
That's why index EFTs are popular. Vanguards are around the 0.09% range. To be super cheap, I just pay the 9.95 fee once and hold forever. I'm guessing I'm much less than 0.09%.

There is a term in probability called skewness which is a measure of the asymmetry
of the probability distribution of a real-valued random variable about its mean.

In stock picking it means ony a few stocks carry the market and only a few active managed funds
beat the market . I doubt that any such funds beat the market consistently, some appear to by beating marketr for 10 years but there are so many funds out there it is all random chance

 

[NotADcotor]

I do recognize that, "it works until it doesn't".

Yeah but it has good bones, Insulated concrete forms bones.

If that plan fucks up, we are all pretty boned and most other investing plans would probably get hit as badly or worse... except of course for Beans Bullion and Bullets, but I don't want to live like that.

I do something similar so let us hope it doesn't go tits up. Unless it's nice bolt on titays.

 

[speakercontrols]

Yeah but it has good bones, Insulated concrete forms bones.

If that plan fucks up, we are all pretty boned and most other investing plans would probably get hit as badly or worse... except of course for Beans Bullion and Bullets, but I don't want to live like that.

I do something similar so let us hope it doesn't go tits up. Unless it's nice bolt on titays.

Ya...everyone says, "too invested in banks". Look, if RBC & TD go under, as you say, we're fucked about everything else and should have bought gold right?

 

[NotADcotor]

Ya...everyone says, "too invested in banks". Look, if RBC & TD go under, as you say, we're fucked about everything else and should have bought gold right?

Can't go wrong with porn mags. Lots and lots of porn mags.

If I had excess funds I'd diversify a bit more, but I need to grind out that dividend income.

80 million, I'd back up my dividends with an annuity and some gold and a 30 year government bond ladder. A variant of that Harry Browne Permanent Portfolio.
Maybe tonight I win my single lotto max ticket. But I doubt it.