Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

George Karaphillis, 55

Occupation: Director of the MBA in community economic development program at Cape Breton University.

Portfolio: BCE Inc., CIBC, Encana Corp., Enbridge Inc., Onex Corp., Rogers Communications, Research In Motion, National Bank of Greece, Hellenic Telecom Organization SA.

Story continues below advertisement

A search for yield

George Karaphillis is a big believer in growth stocks, but he's been moving more toward investments that have a yield. Saying he's becoming a bit more risk-averse, "There are quite a few stocks that offer very good yields combined with growth potential."

To combine the two, he looks for stocks where the price-to-earnings ratio is less than the growth rate, known as the stocks' PEG ratio.

Where he's finding opportunities

Just a couple of weeks back, amid the daily headlines about Greece's financial crisis, he bought shares in Athens-based telecommunications company Hellenic Telecom. And, in what I'd call a pointedly contrarian move, he picked up shares in National Bank of Greece, which has fallen from a high of over $8 (U.S.) to last close at $2.61. Not only was the P/E ratio appealing, he notes that last year the Economist said that the best run banks in Europe were the Greek banks. He also likes the growth prospects thanks to the bank's expansion plans. "They're doing well in Bulgaria and Romania, and they own the second-biggest bank in Turkey, and are adding 50 new branches there."

His ETFs

Why does he like exchange-traded funds? "We teach finance here," he notes. "The fees on regular mutual funds are too high, and as a group, they underperform the market, and it's too difficult to find a good one." He recently picked up an American junk bond ETF, iShares iBoxx High Yield Corporate Bond ETF (HYG-N). "The yield is very good," he says. "And because it's a basket of bonds I don't think the risk is that high, and I think the units will appreciate because right now the bonds are very cheap as there's a big gap between corporate bonds and Treasuries."

Story continues below advertisement



Investor Education:

  • All about ETFs
  • ETF picks for your RRSP portfolio
  • The bad boys of the ETF world
  • Are ETFs your cup of tea?
  • How do ETFs fit my investment strategy at this stage in life?


His tax-favoured favourite

Nova Scotia has its own spin on the tax-favoured labour-sponsored funds, called community economic development fund. "Any community group can put out an IPO [initial public offering]after registering with the securities regulators," he says.

The fund he's invested in focuses on mortgages, which gives him some safety, and the tax break combined with a dividend of 3 per cent gives him the equivalent of an annualized 10-per-cent return.

Best Move

Mr. Karaphillis' best returns have come thanks to oil stocks, along with Enbridge and natural gas producer EnCana. "EnCana has got brilliant management and they're very nimble," he says. "They know how to strategize, and know how to hedge and do contracts."

Worst Move

Story continues below advertisement

The only good thing he has to say about 01 Communique Laboratory Inc. is that it has a cool stock symbol, ONE. Founded in 1992, the company had technology for controlling PCs remotely over the Internet. "In those days BlackBerrys and smart phones weren't all that good, and the only choice was to go to a cyber café." He thought the company had a bright future, "But the space got congested, and other companies had better technology and better marketers." He paid $6.80 a share, and the stock last traded at 18 cents.

Advice

"New research says that stocks that have dividends have basically outperformed any other category of stocks over time."

Special to The Globe and Mail

Want to share your strategies? Email tony.martin@sympatico.ca

Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies