Brian Auty, 52
Includes Toronto-Dominion Bank, Bank of Nova Scotia, JPMorgan Chase & Co., MetLife Inc., Visa Inc., Apple Inc., Qualcomm Inc., Total SA and Dream Global REIT.
After 32 years of building up his family printing business (merged with RP Graphics Group in 1999), Brian Auty decided it was time to sell his share of the company. He will receive payment in stages and help with the transition until he retires in five years. But how does he invest the funds "when the stock market is at new highs?"
How he invests
Mr. Auty started investing in the 1980s. Since 2009, one of his main objectives has been "to buy large-cap dividend payers and growers that have been mispriced by the market."
However, there aren't many good values these days and his cash is piling up. One exception he found was Dream Global REIT (formerly Dundee International REIT), trading under book value and yielding more than 8 per cent. It's focused on German real estate, which should gain in value as Germany's export-oriented manufacturing base "leads Europe out of its troubles."
Besides hunting for value plays, Mr. Auty is rotating out of his existing Canadian holdings into U.S. stocks. The Canadian holdings were 90 per cent of his portfolio, so this move enhances diversification and hedges against a weak loonie. Plus, he sees better value and growth in U.S. financial companies such as JPMorgan Chase and MetLife.
His Qualcomm holding reflects a belief in the growth potential of mobile communications. The purchase was made when the company's price-earnings ratio was substantially below its historical average.
Total SA is a French oil company with a growing dividend, currently yielding 5 per cent. It provides exposure to higher oil prices in Europe.
"Buying Apple last July – I'm up about 40 per cent."
His first stock, Hemlo Gold, bought just before the market crash of October, 1987.
"It's very hard to stick it out when the whole market goes down but if you choose the right companies at the right values, you will do much better than almost any fund."
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