Investing

"Safest" Canadian blue chips?

  • Last Updated:
  • Jul 25th, 2017 7:49 pm
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Deal Fanatic
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Jul 17, 2008
7174 posts
1154 upvotes
daverobev wrote:
Jul 17th, 2017 8:09 am
Huh?
Trying to time the market. Never try to time the market. When you are ready to buy and have the funds and wish to invest, buy it. Don't wait to buy hoping for prices to decrease or sell hoping for prices to increase. Never works, never will.

Unless you are a wizard or part of Steins Gate
[OP]
Deal Addict
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Dec 8, 2010
1922 posts
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Oh, I see.

I'm pretty much fully invested at the moment, no worries. I'm talking about supplemental investments.
Deal Fanatic
Feb 1, 2006
9190 posts
301 upvotes
Banks could get seriously hurt by fintech
Large parts of telcos business could be killed off by cable cutting/tech advances
Oil could be wiped out by renewables
Insurance companies could be damaged by climate change

Of course, I hold all these. And hope for the best. Other good bets are REI, BAM, EMA, VNR. I also like AW and BPF. Hard to see fast/casual restaurants getting too hurt by anything other than competition.
Deal Addict
Jun 3, 2009
3519 posts
399 upvotes
Montreal
Messerschmitt wrote:
Jul 17th, 2017 2:03 pm
Trying to time the market. Never try to time the market. When you are ready to buy and have the funds and wish to invest, buy it. Don't wait to buy hoping for prices to decrease or sell hoping for prices to increase. Never works, never will.

Unless you are a wizard or part of Steins Gate
OP is asking for individual stocks not index funds. Valuation does matter as most blue chips tends to be overvalued most of the time.
Jr. Member
Feb 26, 2017
138 posts
32 upvotes
FTS, Bam.a, and ENB look pretty good to me right now. I own Bam.a and ENB and bought when they were higher. I would consider FTS if I wasn't overweight already in Utilities.
Newbie
Jun 19, 2017
30 posts
33 upvotes
What about Fairfax. That's definitely one that I would look into. It's a long term compounder, respected management and international diversification. Last I heard they were also hedged against black swan events. I can't speak to the value of their current price though.
Deal Addict
Nov 9, 2013
1674 posts
514 upvotes
Edmonton, AB
Qrewpt wrote:
Jul 19th, 2017 6:11 pm
What about Fairfax. That's definitely one that I would look into. It's a long term compounder, respected management and international diversification. Last I heard they were also hedged against black swan events. I can't speak to the value of their current price though.
The 20 year annualized return for FFH is only 4%, dividends included. I agree management is respected, but I wouldn't necessarily say it's a long term compounder.
Newbie
Jun 19, 2017
30 posts
33 upvotes
treva84 wrote:
Jul 19th, 2017 9:51 pm
The 20 year annualized return for FFH is only 4%, dividends included. I agree management is respected, but I wouldn't necessarily say it's a long term compounder.
Treva, price matters. Fairfax and many other stocks were too expensive back in the late 90s, using a price from that era is not appropriate to extrapolate future performance. Compounders like Microsoft and Coke would have returned less than 2% and 1% since late 90s highs. Those rates of return clearly don't tell the right story about those businesses.

Using Fairfax 2003 lows would have returned over 15% compounded not including dividends or spin offs. I don't think that is a good value to use either for extrapolation.

Regardless of actual past performance, I think Fairfax is one of the safest Canadian Bluechips.
Sr. Member
Dec 5, 2005
556 posts
217 upvotes
Cambridge,Ontario
Qrewpt wrote:
Jul 19th, 2017 6:11 pm
What about Fairfax. That's definitely one that I would look into. It's a long term compounder, respected management and international diversification. Last I heard they were also hedged against black swan events. I can't speak to the value of their current price though.
How do you hedge against a black swan event?
Deal Addict
Nov 9, 2013
1674 posts
514 upvotes
Edmonton, AB
yyz64 wrote:
Jul 23rd, 2017 12:15 am
How do you hedge against a black swan event?
I don't know the specifics of what FFH has or hasn't done, but in general an entity can buy a specialized insurance policy through a reinsurance company to cover a variety of unpredictable events - terrorist attacks, natural disasters, government collapses, etc.

It's akin to adding a flooding clause to your home insurance - you don't know if it's going to happen at all and of course the event is not foreseeable, but if it happens you are covered.
Sr. Member
Dec 5, 2005
556 posts
217 upvotes
Cambridge,Ontario
A black swan event is something that happens that you can't predict or forsee coming.So short of hedging for every possibility how do you do that?

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