Comments on: August 2009 Net Worth Update (+1.70%)

By: MR

MR — Thu, 17 Sep 2009 17:07:56 +0000

FT – do you have a spreadsheet template that you could post for tracking net worth? I would like to start tracking, and if i don’t have to reinvent the wheel, I won’t :)

By: MikeG

MikeG — Wed, 02 Sep 2009 21:37:34 +0000

I have quite the penchant for calling top of markets (at the time that I decide to go buy big lots). So you all should be worried if your prices are higher than July 27th prices :P

By: cannon_fodder

cannon_fodder — Wed, 02 Sep 2009 21:21:19 +0000

I meant to say (I had it right the first time) “I was convinced that the banks would come down again.”

By: cannon_fodder

cannon_fodder — Wed, 02 Sep 2009 21:07:23 +0000

I’m shorting HNU since Monday (up about 17% in 2 days) and shorting the financials by buying HFD. That was a long term play and, if I had have studied the way these derivatives worked, I would have shorted HFU instead of buying HFD.

I took the position in HFD because I wasn’t convinced that the banks would come down again. So, I’m certainly below water with my HFD but because of the positions I have in the banks, I’m net positive.

I think we might finally see a retracement – and when it happens, I will be pouring everything I have left in to the market. I keep hearing there is still a lot of money on the sidelines and they must be gnashing their teeth that the missed so much upside. Thus, one has to think that when we finally get a pull back (nothing like March 9 lows) that this will be what a lot of that money has been waiting for.

By: FrugalTrader

FrugalTrader — Wed, 02 Sep 2009 13:43:25 +0000

Are you shorting HXU or long HXD in your leveraged port?

By: cannon_fodder

cannon_fodder — Wed, 02 Sep 2009 13:22:57 +0000

FT,

No, I don’t own it, but of the 5 mentioned (not sure why they forgot to mention the sixth stock) that was the only one that stood out. I don’t like any stock which has a great history of dividend growth and low payout ratio of there is a loss in capital appreciation (e.g. Pfizer).

Corus Entertainment is also quite far afield from commodity linked or financial stocks.

I’ve put a note to alert me if it gets below $14 so that I can look at it more closely. Analysts are typically averaged around hold for it right now. More and more analysts are expecting we are at, or near, the beginning of a pull back in the next couple of months.

I’ve put some money in my SM portfolio towards a down trend so that not only can I profit on a downturn, but also then have more money to pick up some further or new positions in stocks I want to own long term.

By: FrugalTrader

FrugalTrader — Wed, 02 Sep 2009 00:46:21 +0000

Thanks for the link CF. CJR.B looks interesting… do you hold it?

By: cannon_fodder

cannon_fodder — Tue, 01 Sep 2009 19:07:35 +0000

Sorry… forgot the link (I notice that I am not offered the option to edit a post within 5 minutes anymore!)

http://network.nationalpost.com/np/blogs/tradingdesk/archive/2009/08/24/true-yield-nice-complement-to-payout-analysis.aspx

By: cannon_fodder

cannon_fodder — Tue, 01 Sep 2009 19:06:53 +0000

FT,

If you are looking to expand your investment portfolio with dividend payers, then take a look at this article. Could help diversify your holdings. I haven’t done any analysis yet (just got back from vacation) but I will.

By: DoneToZen

DoneToZen — Tue, 01 Sep 2009 16:52:00 +0000

I hope there will only be a small correction, but I’m expecting a big correction.

Nice job with increasing your net worth.

By: Olivia

Olivia — Tue, 01 Sep 2009 12:09:44 +0000

well this is a informative post and i agree with one of the above commenters that the hike in the market can cause skepticism in the minds of the people and can make the situation intense. and i will look forward for the excel graphics :)

By: FrugalTrader

FrugalTrader — Tue, 01 Sep 2009 11:22:55 +0000

Hey Bill, thanks for the kind feedback. I will look into doing some kind of excel graphic to visually show the asset growth and liability decline. Congrats on the new place!

By: Bill

Bill — Tue, 01 Sep 2009 03:07:57 +0000

FT: I must say, I admire your discipline. We have just paid the deposit on a new construction, our first house. We both have gotten good jobs with the feds, and have been biding our time renting until we really thought we were ready. We managed to get a pretty good deal from the builder here in Ottawa – it’s true that resale prices haven’t dropped at all here over the past few years, but builders with a glut of inventory are willing (even eager) to negotiate when they think you are serious – we walked in pre-approved and knowing what we wanted, and it worked out well from there with ~10% off the purchase price, AND upgrades thrown in. I got some great negotiating tips from your posts – buying a car or house, the same principles apply: Research, and don’t fall in love before you buy.

Just a thought, have you considered going graphical on these numbers? I like seeing all the bad coloured lines dropping and the good coloured lines climbing. I always find the raw numbers tough to really visualize.

I’d love to see (yet another) fixed vs variable mortgage debate, under current conditions: to throw out some numbers, we’ve been offered 4.09% fixed, or prime+0.3 variable (both 5-yr closed).
Thanks for all the great info – keep up the good posts!

By: Mark in Nepean

Mark in Nepean — Tue, 01 Sep 2009 00:25:32 +0000

Nice gain FT….slow and steady wins the race!

By: FrugalTrader

FrugalTrader — Mon, 31 Aug 2009 22:56:12 +0000

James, the pension is a DB and is valued at the contributed amount over the years (not the employer matched value).

Henry, Yes, i can see what you’re saying about the CAD banks, however, I’m in it for the dividends, so I will be keeping my positions.

By: Ms Save Money

Ms Save Money — Mon, 31 Aug 2009 22:49:41 +0000

Looks like you’re doing very well – increase on savings and decrease in liabilities. Congrats :)

By: Henry

Henry — Mon, 31 Aug 2009 20:55:10 +0000

FT: Have you thought about selling some your Canadian bank stocks? They seem to be priced as if the recession have never happened.

What do you think about utilities and telecoms? I am long on them instead of TSX Composite Index.

By: The Reverend

The Reverend — Mon, 31 Aug 2009 20:52:09 +0000

for simplicity, i’ve always assumed our cars are worth the same as the outstanding loan on them for a net worth value of zero. this may not be appropriate if you have extended payment periods, but we’ve traditionally amortized our car loans over 3 years so i think its reasonable.

By: James

James — Mon, 31 Aug 2009 19:49:19 +0000

Is your pension a DB or a DC pension. If it is a DB I am curious as to how you are valuing it as an asset.

By: FrugalTrader

FrugalTrader — Mon, 31 Aug 2009 16:03:54 +0000

sampson, i’m not sure why either, perhaps it’s because I didn’t add to much to my positions during the down turn?

dnaman, I use the “Canadian black book” to do my appraisals. Truth be told though, I’m deprecating the vehicles rather quickly to get them off the books.