vendredi 22 mars 2019

The usual names

The main reason why I don't read analysts opinions anymore or have any interest in various investment forums on the Internet is that these places are full of people that talk about or suggest exotic and esoteric stocks that only surf on a very recent momentum and have very little chance of keeping the pace. 

I'm much more faithful to my stocks and to my "50-60 great stocks to follow" than to anything else. 

What came to mind after some recent results is that the usual names that everybody knows are the best place to look. 

Have you seen the last results of Couche-Tard (ATD-B.TO)? They were great. However, they didn't meet analysts expectactions, so the stock didn't surge. 

Have you seen the results of Boyd Group (BYD-UN.TO)? They were great too. 

Yet, those two names are not new to anybody. Five years ago, a lot of people knew these two stocks. They were great then, and they're still great now. These stocks may drop by 10-15% on a specific year, or they may stall for 2 years, but eventually, they go back on track. You don't experience catastrophes with that kind of stocks. Worst case scenario, you'll lose your time and a few bucks. But your retirement won't be threatened like it would be the case with so many other stocks. 

If you're an analyst or an investor seeking attention and don't follow or talk about that kind of very strong names (Couche-Tard, Boyd Group, Constellation Software, MTY, etc), you don't deserve to be followed by anybody.

So, my advice to any investor would be to find a selection of that kind of stocks and stick with them. When they're too pricey, keep your distance but follow them. When they become cheaper, buy them. Forget the rest of the market.

Repeat until you die. 

2 commentaires:

  1. Good article. So... where is that list of 50 or 60 great stocks to follow? I know for sure that Constellation Software is on that list. I'm guessing that stocks like Visa and Mastercard would also make the list.
    I also wonder if a stock like Amazon deserves to be on such a list when it has always appeared to be over-valued but whose performance has been amazing over the years and they seem to be taking over the world.

    RépondreSupprimer
  2. I follow Amazon but it’s not at the top of my list. Google fits more than Amazon with my style.

    RépondreSupprimer