I looked for Oct 31 2010 to Oct 31 2020 period (https://www.theglobeandmail.com/investing/markets/funds/FID265.CF/full-chart). XIU is a bit large and invest in larger companies. It also has lower systematic risk (beta=0.9), and, hence, lower expected return. its MER is 0.15%. VCN is truly Canadian market index as it invest in wider portfolio for companies (not just large cap companies), has beta=0.99, and lower MER=0.05%. It has smaller capitalisation, so, with lower trading volume, you may see bid/ask spread of 2-3 cents on its shares while XIU always has 1 cent. Both are OK, but since I am a greedy bastard, I want to save an extra 0.1% MER per year, which is $300 per year on my $300K portfolio. Why pay more if you can get the same for less?
Dividend
- Thread starter Bigdaug
- Start date
Enbridge absolutely ripping. Oil (WTI) headed back to 50/bbl. Oil is cyclical, it will be back in a big way. green energy is not going to be ubiquitous in our lifetimes. World still runs on oil. Enbridge my favourite stock in the TSX right now, Shopify and banks are great but are all fairly priced. ENB still down because of the liberal fossil fuel haters spreading fake news. I dont care about climate change as long as my Enbridge keeps paying me 8% yearly dividend + capital gains. Cheers.
So you are saying these investment companies with deep pockets did not figure it out but you did so the Enbridge is underpriced. I have a news for you: there are lots of smart investors with billions to invest and you are not smarter then them, so, there are no underpriced stocks
thats exactly what im saying. you sound likes someone with a very limited knowledge in finance. Investment companies have different strategies. They manage so much money their primary goal is to preserve capital while for many of us its to grow capital. For example they may have a limit on how much money they have invested in equities first off, say its 60% stocks, 30% bonds, 10% gold, for example. Then the 60% stocks needs to be split from US/Canada/Asian/European equities. Then say 40% US/10% Eur/Asia/10% Canada. Then out of that 10% they invest in blue chips like banks and e-commerce king Shopify leaving like a couple % for beaten down sector like Energy/Hoospitality/Travel. So say they can only allocated 1% of their capital to Enbridge despite knowings its undervalued. Those are just rough numbers but you get the idea.
Whereas I see this price discrepancy and can put 100% of my account into ENB, because I have no shareholders and risk management tenets to abide by.
Dont be so naive man. Its not as cut and dry as you think. Where were all the smart investors with billions when Tesla had a 30B market cap? Now they are tripping over themselves to buy at at 600B market cap 1 year later. There are alot of smart rich people and just as many dumb rich people. Seems like you have a major inferiority complex.
When you do undergrad, you think you can beat the market. When you do MBA, you think you learn how to beat the market. When you do PhD, you learn that you cannot beat the market. At which part did you stop? Do you know that 90% drivers think they are above the average? Hedge funds pray on such behavioural biases of the crowd of self-proclaimed educated investors.
Fund Managers are kind of useless as I understand it. Most fail to match the performance of the S&P. I prefer to buy selective stocks and ETFs.
www.cnbc.com
Active fund managers trail the S&P 500 for the ninth year in a row in triumph for indexing
Investing in low-cost, passive funds remains the soundest long-term investment.
Enbridge raising dividend next year again, as expected. without utilizing a larger % of their cash flow, no extra debt or anything. They are up again today over 43. Comical how its down from 58 n Feb when nothing has fundamentally changed about their business. Just dumb money selling it because it is seen as an 'oil company'. ignorance. 8% dividend to watch it gain another 20-30% in the next couple of years. Been riding this blue chip since the vaccine announcement, laughing at the suckers buying in EV and solar power companies that do nothing but lose money. Oh and Enbridge is quietly investing billions in green energy too, but they get no credit for it because they are still an oil pipeline company. Just like blackberry is seen as a phone company when they dont make phones anymore. Im mainly in US equities but will always hold a significant amount of my CAD portfolio in primarily Enbridge and Barrick Gold (ABX.TO). I see Enbridge as the top Canadian energy/dividend stock for my entire lifetime. Their pipeline business is solid as a rock, and by the time that starts to falter i believe their green energy division will have taken off.
The Line 3 construction is also HUGE. They finally get this going after 5+ years of litigation. Which is extremely bullish. As we move to a greener future it's going to be borderline impossible to get permits/approval to build new pipelines. Hell Enbridge just barely was able to do it. Now imagine a competitor trying to enter the game to compete with Enbridge? Just laughable, not going to happen. Its only going to get exponentially harder. For Enbridge to secure the approval and buildout is absolutely massive. Talk about a moat.
The Line 3 construction is also HUGE. They finally get this going after 5+ years of litigation. Which is extremely bullish. As we move to a greener future it's going to be borderline impossible to get permits/approval to build new pipelines. Hell Enbridge just barely was able to do it. Now imagine a competitor trying to enter the game to compete with Enbridge? Just laughable, not going to happen. Its only going to get exponentially harder. For Enbridge to secure the approval and buildout is absolutely massive. Talk about a moat.
Ill revisit this post in a year if I remember. Lets see who's right. Im holding all Enbridge now, for the recovery. Once it hits 60 or so I will go back to being fully diversified. This is a unique opportunity to have a black swan event for the oil market, that im going to take advantage of. I fully believe in being diversified across sectors though, im definitely not holding 1 stock my entire life. im talking short term.
There are many top hedge funds bleeding more this year. Bridgewater is down 20%. These guys are just regular people LOL. Its sad you worship them so much.
Do you understand the concept of risk and expected return? Of course they will be sometime yup sometime down but on average they do a bit better than individual active investor. Hence, the expected risk adjusted ranking: hedge fund > passive investor > active investor.
You just reinforced my point of don't take advice from someone who invests their life savings in one stock.
I know nothing about Enbridge. That wasn't my point.
Do you? Im being serious. HF's dont do what you think they do. They often lag the indexes because they try and preserve capital during down cycles, rich people try and preserve capital primarily. As an individual investor I have different goals. Its much harder to make 10%/yr as a hedge fund than as an individual investor. Hence, youre wrong.
LOL. For fucks sake man im arguing with someone who doesn't know anything about Enbridge. If you don't know anything about Enbridge, top 5 stock in the TSX by market cap (and one of the top pipeline stocks even including the NYSE), you probably dont know a damn thing about stocks in general.
So, what we will see in a year. I did not check beta for Enbridge, but if it is around 1, with 50% probability you will over-perform the market, with 50% you will under-perform. Either way, it will prove nothing.
Of course it is much harder, HF do not want to piss of their capital, so, they do not risk too much. Taking on more risk you will have larger chance to make high return but also larger chance to lose tots of money.
It may be news for you, but most asset pricing models are purely mathematical and "knowledge" of specific companies are rarely needed. You are just one step away from suggesting to make money on Forex and showing off as a real clown.
I don't but I do know investing life savings in one stock is the worse advice ever. Ever heard of Bre-X? Nortel? Investing is not one size fits all. There's individual risk tolerance. You're not even guaranteeing success. Your response is wait a year to see what happens.
If you jumped on the banks in the spring/summer you're sitting pretty now, especially if you got BMO/RBC/TD. Banks are as sure as sure can be, and with great dividends.
Incidentally, COVID vaccine stocks are where I've been dumping money into since the summer. Pfizer was in a malaise for the past several months but has been doing well in recent weeks. My big winner has been Moderna. I bought it after the election when it was $71 (USD). Then it soared in mid November when a 95% success rate was reported. Its about $170 these days.
Incidentally, COVID vaccine stocks are where I've been dumping money into since the summer. Pfizer was in a malaise for the past several months but has been doing well in recent weeks. My big winner has been Moderna. I bought it after the election when it was $71 (USD). Then it soared in mid November when a 95% success rate was reported. Its about $170 these days.
I own lots of shares of SBC which is preferred share of all Canadian Banks. I got in at 8.60. The good thing about split funds that distribution is return of Capital so very little tax implication. This is one way to play the banks. I also recommend all pipeline, BCE and I have few Reits like smart center that are not doing much.
https://www.bromptongroup.com/product/brompton-split-banc-corp/
https://www.bromptongroup.com/product/brompton-split-banc-corp/
Similar threads
