Yet another month of record highs in the financial markets. I hope everyone had a great November. 🙂 In terms of changes to my balance sheet I’ve added 100 shares of Enbridge stock to my portfolio, creating more passive income for future months. Part of this purchase was financed from a margin loan at 2.3% with IB. Borrowing… Read More »
According to businessman and author Seymour Schulich, investors should ask themselves 5 questions when screening a potential deal. 🙂 Here’s an excerpt from his book, “Get Smarter.” How much can I make? How much can I lose? How do I get my money back? Who says this deal is any good? Who else is in the deal? I… Read More »
For long term investors, earning 5% to 7% annual return (after tax) is a suitable target to aim for. But this is difficult to pull off today. The current expected returns of the financial markets are extremely low by historical standards. Traditional asset classes such as stocks and bonds are generally overvalued now. Stock Market Expected Return = 3.2% The… Read More »
Why Do Governments Target 2% Inflation? The Bank of Canada maintains an inflation rate target of 2%. The official websites of Central Banks in the U.S., in Europe, and in Japan all appear to target this magical number when deciding how to conduct their monetary policies. But why? Inflation isn’t necessarily a good thing. There are ways to grow the economy and generate… Read More »
tl:dr. The answer is yes, Enbridge is a good buy. 🙂 Fair Market Value of Enbridge (ENB) Canadian pipeline company Enbridge is currently trading at around $47 per share. But based on Benjamin Graham’s formula for valuing stocks, which I’ve discussed before, the fair market value of Enbridge should be around $62. Enbridge stock’s EPS is $1.96. The growth rate (g)… Read More »
This was one of the best months of the year in terms of investment gains. The stronger U.S. dollar and farmland rent income were very helpful for me. Furthermore, Amazon.com reported its financials last week and the results were stronger than expected. AMZN stock shot up 13% that day. Hurray! 😀 Check out the stock market performance since… Read More »