AFTER PARKING MOST OF MY NEST EGG IN VERY CONSERVATIVE INVESTMENT ACCOUNTS THERE WASN'T MUCH TO WRITE ABOUT. TPCI IS BACK WITH SOME THOUGHTS AND IDEAS, OTHER THAN INVESTMENT IDEAS, TO SHARE WITH CANADIAN BOOMERS, RETIREES AND SNOWBIRDS.


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Wednesday, May 22, 2013

May be time to cash 'em in...

Looking back, my first investment in an individual stock was in January of 1997 when the Manitoba Telephone System (MBT) went public. The excitement surrounding the IPO enticed many passive investors into opening trading accounts. I cashed a GIC from my perfect GIC ladder for that one. My MTS shares are long gone but my success with that purchase had me hooked. Watching the markets, buying and selling stocks, what a great hobby!

Sometime later I cashed another GIC and added the proceeds to my trading account. This was for a sure thing and I promised my better half that as soon as the stock doubled I'd sell half the shares and put the money back into a GIC where it belonged. Sadly, the double never happened. The successful Phase 2 drug study was followed by a Phase 3 flop. I've never written the story of my Medicure investment, it's just too painful.

Be that as it may, my overall trading account hit a double a few years ago. The total value has been well over the double from time-to-time and I had many a chances to take the double and run. Alas, greed kicked in as I convinced myself to hold for the triple that never arrived. Up & down, down & up but never reaching the triple.

The return on the TSX for the past five years has been a negative 14.33%. Five years ago I bought a GIC that paid 5% annually. Compounded, it's now up 27.62%.  Are you getting the point? Yup, I think the time may have arrived for an orderly sell off of the basket of stocks in my trading account. I don't intend to bail overnight, rather, I'll pick an exit point for each stock with an aim to be divested by year end. I believe that my message in Who Should(n't) Be In Funds?, goes double for individual stocks.

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