Includes shares in Royal Bank of Canada, Toronto-Dominion Bank, BCE Inc., Alimentation Couche-Tard Inc., Canopy Growth Corp., Spin Master Corp., Apple Inc. and Walt Disney Co.
Patrick Dooley is a recent retiree who does part-time consulting. His career was in retailing, where he last worked as an executive at Elizabeth Arden Red Door Spas in New York. He is a member of the Toronto Share Club, which is part of the chain associated with the Canadian Money Saver magazine. Members share their investing experiences, portfolio decisions and views on financial topics. This can be "very helpful and educational."
Several years ago, Mr. Dooley decided to manage his own portfolio. Some mistakes have been made, but, like any other endeavour, they are a necessary part of learning. "I remind myself that even successful investors, like Warren Buffett, have made mistakes," says Mr. Dooley.
How he invests
His portfolio consists mostly of large-cap companies paying dividends. They also need to be well-managed, and have a record of steady earnings growth and dividend increases. Purchases are made when the market is undervaluing company fundamentals.
Mr. Dooley "particularly likes companies with U.S. and global exposure." For one thing, they improve portfolio diversification.
Of note is his recent purchase of Walt Disney Co. shares. "Disney has an attractive forward price-earnings ratio near 18 to 20, and is well-positioned for future earnings growth," observes Mr. Dooley. The growth should come from "increased traffic to their parks" as a result of a number of company initiatives. They include the acquisition of the George Lucas film-production company Lucasfilm Ltd., the opening of a theme park in Shanghai, the release of Star Wars: The Force Awakens, and new theme-park attractions. Low oil prices and U.S. employment growth should also help.
A small portion of his portfolio is invested in "speculative growth stocks." One case is Canopy Growth Corp., which is positioned to benefit from the legalization of marijuana in Canada. Another speculative buy is Spin Master Corp., "a young, well-managed Canadian company with a history of developing innovative toy products and lucrative licensing deals."
Buying shares several years ago in Alimentation Couche-Tard Inc., a Canadian chain of convenience stores that is growing through international expansion. The stock is up about 300 per cent since mid-2013.
"My worst move was doubling down on Teck Resources Ltd. prior to the decline in resource stocks." The mining company's shares are down nearly two-thirds since the beginning of 2015.
"Get educated … and learn how to research a company's financials. Stock investing requires nerves and patience … Do not panic … the market always comes back over time."