Search found 79 matches

by CathyF
19 Mar 2012 13:16
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Apple Corp (Symbol-AAPL)
Replies: 689
Views: 56651

Re: Apple Corp (Symbol-AAPL)

Blackberry was Apple in the smart phone business a few years ago. Trends change. It's true that Apple has a bit more product breadth than RIM, but not a whole lot more. And it's also true that RIM is run by complete idiots, which Apple so-far hasn't had the misfortune of. I don't think Apple will go down the toilet like RIM, but I do see their stock price falling as margins come down. The only way Apple deserves their high stock price is if they can keep innovating, so they can keep their margins high. But what have they delivered lately? Just small tweaks to their phone and tablets. The fan-boys are eating them up, but once the mainstream consumer sees better value elsewhere, Apple will have to either come out with a new product (maybe it ...
by CathyF
19 Mar 2012 10:12
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Apple Corp (Symbol-AAPL)
Replies: 689
Views: 56651

Re: Apple Corp (Symbol-AAPL)

On a growth and/or fundamental analysis how is Apple over valued? Last time I checked it had a PE of 12, 40 billion in cash ,virtually no debt and people sleeping out to buy the next version. It's not overvalued, as long as it can maintain sales with large margins. I don't think it can indefinitely. Apple is "cool" right now, but that could easily change. If/when the consumer decides it no longer wants to pay a premium for Apple products, then the stock becomes overvalued. The 14 year old today that desperate needs an iPad to remain relevant in their social circle, could just as easily need a new Galaxy tablet tomorrow. I put Apple into the same category as Lulu Lemon. Great business while it's fashionable. But how long will that...
by CathyF
18 Mar 2012 14:34
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

I suspect something similar affects DIY investors. It's not the only factor, but it's there -- avoiding the regret when you make your own decisions and they occasionally turn out badly. How much more comforting to absolve yourself from all responsibility by abdicating delegating these decisions to an adviser. George I am thinking of any DIY activity. When I first did copper piping I remeber the rush when there were no leaks. Or when the electrical work did not blow any fuses and worked as designed (especially my N-way lights). Even the replacement alternator from the junk yard. Each of the activities required that initial willingness to try anything once. And many of my friends don't do anything because they would rather pay someone to do ...
by CathyF
18 Mar 2012 14:24
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Apple Corp (Symbol-AAPL)
Replies: 689
Views: 56651

Re: Apple Corp (Symbol-AAPL)

Well that is an interesting opinion so I guess you ought to be bearish. You are not alone. Many naysayers are short Apple (although the number is shrinking). But until we actually see some behaviour I am reserving judgement. I agree. While I think Apple is way over-valued, I think you'd be crazy to short it. Better to wait for it to drop 10% or 20%, then get in on the party. It could easily go up another $200 from here. Just as it could easily go down $200. There's as little logic in the market as there is in fanboys that buy their new overpriced gadgets every 3 months. Apple may continue to perform until their consumers are finally kicked out of their parent's basements and forced to live on a budget. Were you one of the naysayers when ev...
by CathyF
18 Mar 2012 08:43
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Apple Corp (Symbol-AAPL)
Replies: 689
Views: 56651

Re: Apple Corp (Symbol-AAPL)

But 10% share is less than they have now. Also, I don't think they'll be able to maintain their huge margins, even with the dedicated fan-boys. What are their margins like on Macs? That will probably be their margins on the rest of their stuff. I think shrinking market share + shrinking margins will = lower stock price. It will still be a good profitable company, but it's way overvalued at these levels. Yes, they have a lot of cash. But it worries me that they don't distribute it back to shareholders. Either they're worried about their future and need the cash, or (more likely) they're planning on making some ridiculous acquisitions. Or (quite possibly), management doesn't give a damn about their shareholders, and are arrogantly running the...
by CathyF
17 Mar 2012 12:49
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Apple Corp (Symbol-AAPL)
Replies: 689
Views: 56651

Re: Apple Corp (Symbol-AAPL)

IMO, you're going to make a killing by shorting Apple. I don't have the risk profile to do this myself, but it has all the signs of a bubble. Astronomical stock growth, everybody and their dog wanting to own it, everyone saying it's going to continue to go up. All it will take is one slip in sales, and it's done. The hedge companies will go from long positions to short positions overnight. Apple is a closed company, like RIM. It does great as long as it's innovating and can make ridiculous margins, but what's next? Smart phones are rapidly becoming commodities, and the tablet isn't far behind. I see Mac vs. PC, and they lost that battle. The open platforms are going to kill them for their arrogance all over again. My call is $300 by the end...
by CathyF
16 Mar 2012 11:27
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

kcowan wrote:
Wife: Well, if you're going to be like that, I'm not talking to you any more.
At least something good came out of it all! ;)
:) I really hope that story was made up!
by CathyF
15 Mar 2012 21:29
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

mike.bayer wrote: I think 50% is a pipe dream based on the data I have seen but I'm not sure what your definition of a successful investor is.
I said 50% of people are capable of doing it, not that 50% are doing it. It's not rocket science, despite what advisors try to make us believe.
I guess if you are happy with the 4.5% equity returns that Dan estimates. That is certainlly not what I would consider to be a successful investment experience.
You're putting words in my mouth. I'm happy with a market-return for a balanced portfolio. I know I can't consistently outperform the markets, so I don't try. I don't think you can either. I understand you're pumping your own company here.
by CathyF
15 Mar 2012 19:13
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Stupid question time: How to buy a "Preferred" share?
Replies: 84
Views: 4195

Re: Stupid question time: How to buy a "Preferred" share?

kombat wrote:
BRIAN5000 wrote:ATL5000 is this the symbol?
I don't have my brokerage account in front of me, but yes, that looks very familiar. I'm fairly certain that's the one.
Can you buy ATL5001 from a discount broker account? It pays an extra 0.25% interest over ATL5000.
by CathyF
15 Mar 2012 18:45
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

I am definitely not saying that his wife and kids are stupid and I really do hope he can teach them to be successful investors. My experience has been that very few people have what it takes to be serious long term successful investors. It seems that the human brain is simply not wired that way (in most cases). I think that a little less interest in investing is better than too much. In my own case, I know I have become a better investor over the years, as my interest in investing has waned. I do much less "stock picking" now, and am much less prone to watching the market and reacting to it on a weekly or monthly basis. Buy and hold, along with diversification, has been much more successful for me than trying to beat the market. ...
by CathyF
15 Mar 2012 11:51
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

Sure, here are a few things you will need to teach them. Your hyperbole erodes your argument significantly, in my humble opinion. Here are a few concerns: 1. A confirmed DIY-er has already taught him/herself sufficiently despite the odds (otherwise one would not consider oneself 'confirmed')..so, it can be done. 2. You only appeal to the most arrogant confirmed DIY-er if you say that person is 1-10,000. 3. You are saying you, yourself, are one of those 1-10,000 (holy-cow!). 4. A maintenance manual requires only instructions to maintain (and it may only be a couch-potato portfolio as mentioned by Brian) not, for example, the emotional and historical acumen to avoid purchasing tulip bulbs at crazy prices. 5. Are you saying my wife and kids a...
by CathyF
15 Mar 2012 08:28
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Stupid question time: How to buy a "Preferred" share?
Replies: 84
Views: 4195

Re: Stupid question time: How to buy a "Preferred" share?

westinvest wrote: Sticking with our example of RY common vs RY.PR.C for a moment, I would argue that the preferred does not necessarily have all the downside of the common. That may be true for catastrophic or near-catastrophic events, but less so for normal market volatility. Let's look at the last year for these two securities - which would you rather own?
You can pick and choose a time-frame to suit your argument (I could come back and compare performance since Feb 2009), but I don't think a 1-year time frame is relevant. If I was investing for a single year, I'd buy a GIC or leave it in a savings account. Equities have at least a 5-year investment horizon, preferably 10+ years.
by CathyF
14 Mar 2012 12:04
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Stupid question time: How to buy a "Preferred" share?
Replies: 84
Views: 4195

Re: Stupid question time: How to buy a "Preferred" share?

like_to_retire wrote:
They have all the downside risk of common shares
No, the dividend will not be reduced with the preferred share - a huge difference. You should be far more worried if your income is derived from a portfolio of common shares than with a portfolio of preferred shares.
I meant the downside risk is the same if the company files for CCAA, or gets close to doing so. I'm betting these prefs (both the cumulative and non-cumulative) aren't worth much right now, nor are they paying any dividends: http://www.prefblog.com/?p=3885
by CathyF
14 Mar 2012 11:11
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Stupid question time: How to buy a "Preferred" share?
Replies: 84
Views: 4195

Re: Stupid question time: How to buy a "Preferred" share?

Many lifeco prefs were down 50% at the same time. If a store has a 50% sale - is that not a good time to buy? The beauty of that type of situation is the ability to create capital loses by swapping like issues, and the fact already mentioned that prefs don't reduce dividends when the share price dips. That's an optimistic way of looking at it. :wink: I can see there are some reasons to buy prefs. (Obviously there are, or there wouldn't be a market for them.) I just wonder if the retail investor is adequately considering the risk. (Do institutions even buy preferred shares?) It seems that many people compare them to guaranteed products, like GICs, and say what a great bargain they are. But they are very, very different products. IMO, pref r...
by CathyF
13 Mar 2012 19:17
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Stupid question time: How to buy a "Preferred" share?
Replies: 84
Views: 4195

Re: Stupid question time: How to buy a "Preferred" share?

A lot of your argument is built around a company suffering a bankruptcy. This is not a likely occurrence with companies of highly rated preferred shares. More often you would see a reduction in a dividend of a common share when a company is hurting, while the pref share dividend is untouched (as it's not allowed). Yes, I realize that is possible, but how likely is it? Out of all the financial and utility companies in Canada, the only one I can think of that has slashed its common share and not touched prefs, is Manulife. Is it not far more likely that (1) the company will grow and raise the dividend of the common share, or (2) the company will suffer and be forced to cut all dividends? IMO, (1) is the most likely scenario, and hopefully is...
by CathyF
13 Mar 2012 16:22
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Stupid question time: How to buy a "Preferred" share?
Replies: 84
Views: 4195

Re: Stupid question time: How to buy a "Preferred" share?

I don't understand why people invest in preferred shares. For example, Royal Bank preferred shares (I picked "C" because it was mentioned earlier) gives about a 4.5% dividend. The common stock gives a 4% dividend. So for a measly 0.5% more yield, you get: - * Half a percent in fixed income is huge. I think you'd be better off going into slightly more risky bonds to get that half-percent, if it's that important. Besides, dividend increases over time in the common shares will more than compensate for that half-percent. - Virtually no upside in capital appreciation - * Weigh this against the downside in capital depreciation of the common that the preferred share won't likely be subject to. Much less volatility in the pref. Sure, but...
by CathyF
13 Mar 2012 14:31
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Stupid question time: How to buy a "Preferred" share?
Replies: 84
Views: 4195

Re: Stupid question time: How to buy a "Preferred" share?

I don't understand why people invest in preferred shares. For example, Royal Bank preferred shares (I picked "C" because it was mentioned earlier) gives about a 4.5% dividend. The common stock gives a 4% dividend. So for a measly 0.5% more yield, you get: - Virtually no upside in capital appreciation - No chance of an increase in dividend - You may NEVER have it come due! (Unlike a bond.) So you're stuck with the same dividend forever even when interest rates rise. - You run the risk of the dividend being cancelled (just like the common stock), which would make the share almost worthless. (It's non-cumulative, so they never have to pay you back.) - You run the risk of losing everything in bankruptcy. (I've never heard of a bankrup...
by CathyF
08 Mar 2012 18:06
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

BRIAN5000 wrote:
CathyF wrote:A few hours work, to save you $10,000 per year. Sounds like a good deal to me.
So I was wondering if this is so easy maybe CathyF can give me some ideas on if I need a to incorportate or not?
Also my assets produce way more income then my wife's any idea's for income splitting CathyF?
Well, you could continue to give your favourite investment advisor $20,000/yr for some uneducated guess on the matter, or you could spend a one-time $1K or $2K on a tax accountant and get some real advice, as well as get them to do the work for you.

But it's your money. If you like to give it to a financial advisor, I'm not stopping you. I'm sure he and his sailboat thank you for it.
by CathyF
07 Mar 2012 20:52
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

kcowan wrote:One of the problems is the ignorance of shareholders.
Retail shareholders don't have much power, anyway. When I get proxies to vote on issues, they have a default position of what management recommends. If you don't vote, it counts as a vote FOR management's position. I'd guess that management gets a lot of "votes" simply from people not voting. In any case, institutional shareholders often vote with management anyway. It's normally a boys club, and they all stick together and give each other positions on their boards.
by CathyF
07 Mar 2012 12:34
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

I stand by my beliefs that the financial service industry is NOT working in the client's best interest Please name a single industry that does work in the client's best interest. Wake up: life means to be constantly among wolves ;) Okay, you have a point. But many service industries are generally working in the client's interest, either because of a fiduciary obligation, or an incentive model that discourages abuse. Most financial advisors have neither. For example, a plumber doesn't have much incentive to rip off a client. He's at your house working, and you can see how long he works and how hard he works. He doesn't charge you 1% of your house value to install a toilet; he charges you what it's worth. It's the sales industries that are c...
by CathyF
07 Mar 2012 07:46
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

I guess it all depends on how much you trust (or mistrust) management. If you mistrust them, then yes, getting as much money away from them as possible in the form of large and increasing dividends is a good idea. (But why did you invest there in the first place?) But if you trust management, then a dividend strait-jacket limits their flexibility and may lead to inferior results, long term In particular, it may greatly limit future capital gains. It's not a matter of mistrusting management, it's a matter of keeping them focused on the shareholder. If they have to give out regular dividends, they're more likely to focus on aspects of the business that generate income, and not go off on half-baked schemes that serve their egos more than the ...
by CathyF
06 Mar 2012 16:15
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

If you want to replace your income with dividends, why don't you have more money in Canadian equities where the dividend tax credit will do you some good? The dividend tax credit has to be weighed against OAS clawback. Dividends on US stocks are not grossed up. Ah, okay, your income must be fairly good, then. Does getting some OAS clawed back result in a net loss, even with the dividend tax credit? I guess that depends on income... IIRC the tax credit is better for low incomes, in which case the OAS wouldn't be clawed back anyway. In any case, I have always avoided equities in public companies that pay dividends. I want to control when and how much I get -- and I can do that much more precisely with stocks who pay off in capital gains (upo...
by CathyF
06 Mar 2012 08:05
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Standard Life - Ethically challenged?
Replies: 7
Views: 1044

Re: Standard Life - Ethically challenged?

This is normal. The OP probably forgot about a letter or notification that he got 5 years ago about group plans. He left the company, so his group plan discount was cancelled. Sounds ethical to me. The mutual funds fees are a rip-off, but he'd get charged those no matter where he transfers his money. Instead, he should transfer his money to a discount broker and buy ETFs. I'm not sure if that's possible with the RPP, but it is with a DPSP and RSP. The RPP probably needs to go into a LIRA, but that can be a broker account too (just separate from the RSP).
by CathyF
06 Mar 2012 05:18
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

ghariton wrote: Currently 62% fixed income (RRBs), 25% U.S. equities (SPY, VTI, MDY, IWG, QQQ), 5% EAFE (XIN), 5% emerging markets (VWO) and 3% Canadian equities (XIU).

This will be replaced next year by dividends,
If you want to replace your income with dividends, why don't you have more money in Canadian equities where the dividend tax credit will do you some good? The Canadian stock market should do well in an inflationary environment, and you must think we're going to have some inflation if you have so much in RRBs. (Otherwise regular bonds would be better.)
by CathyF
05 Mar 2012 16:15
Forum: Financial Planning and Building Portfolios
Topic: High Net Worth? Get Thee To An Advisor!
Replies: 271
Views: 14952

Re: High Net Worth? Get Thee To An Advisor!

CathyF, part of your position is close to mine (Financial management and investment is not brain surgery but within the ability of most people if they "try"). I agree with DavidR, though, that DIY is not realistic for many Canadians because they won't "try" because of lack of interest, lack of time, lack of money to invest and fear of screwing up. And unlike you, I don't get worked up about the fees advisors charge; it's not an essential service -- they can charge what the market will bear. On a personal level, I don't care, because I no longer deal with any financial advisors. I saw the light years ago, and haven't looked back. And I agree with you, that even if they're selling snake oil but people want to pay for it, ...