Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.
In addition, Pat thinks then beginner investors should cultivate two important qualities: a healthy sense of skepticism and patience.
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Investors should approach all investments with a healthy sense of skepticism. This can help keep you out of fraudulent stocks that masquerade as high-quality stocks. It will also keep you out of legally operated, but poorly managed, companies that promise more than they can possibly deliver.
If you are a new investor, you should also realize that losing patience can cause you to sell your best choices right before a big rise. All too often, investors buy a promising stock just as it enters a period of price stagnation. Even the best-performing stocks run into these unpredictable phases from time to time. They move mainly sideways in a wide range for months or years before their next big rise begins. (Stock brokers often refer to these stocks as “dead money.”)
If you lack patience, you run a big risk of selling your best choices in the midst of one of these phases, prior to the next big move upward. If you lose patience and sell, you are particularly likely to do so in the low end of the trading range, when stock prices have weakened and confidence in the stock has waned.
How Successful Investors Get RICH
Learn everything you need to know in ‘The Canadian Guide on How to Invest in Stocks Successfully’ for FREE from The Successful Investor.
How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.
MKS INSTRUMENTS INC., $84.96, symbol MKSI on Nasdaq, is a leading global developer, manufacturer, and supplier of instruments and components used to measure, control, and analyze gases used in semiconductor manufacturing.
The company also produces instruments for manufacturers of fibre optics, flat-panel displays, gas lasers, and… Read More
PFIZER INC., $40.39, New York symbol PFE, is a buy.
The company is one of the world’s largest makers of prescription drugs. Its top-selling brands include Enbrel (arthritis), Ibrance (breast cancer) and Prevnar (pneumonia).
Pfizer has increased its dividend rate each year since 2011. Starting with the… Read More
CGI INC., $127.47, Toronto symbol GIB.A, is your #1 Aggressive Buy for 2023.
The stock lets investors tap Canada’s largest provider of computer outsourcing services. It helps its clients automate certain routine functions like accounting and buying supplies. That makes companies more efficient and lets them… Read More
A: Freeport-McMoRan Inc., $38.07, symbol FCX on New York (Shares outstanding: 1.4 billion; Market cap: $53.6 billion; Resources sector; TSINetwork Rating: Average; www.fcx.com), is one of the world’s largest publicly traded copper producers. As well, it also produces gold, molybdenum, and other commodities. The company… Read More
A: Xylem Inc., $98.05, symbol XYL on New York (Shares outstanding: 180.3 million; Market cap: $17.6 billion; Manufacturing & Industry sector; TSINetwork Rating: Average; www.xylem.com), is a manufacturer of water technology and equipment for construction firms, utilities, farmers, food and beverage companies, and many others… Read More
A: Trimble Inc., $49.42, symbol TRMB on Nasdaq (Shares outstanding: 247.0 million; Market cap: $12.1 billion; www.trimble.com), mainly provides advanced GPS positioning systems for auto fleets and other business clients. It also sells connectivity, modeling, analytics and autonomous driving solutions.
A: Definity Financial Corp., $34.96, symbol DFY on Toronto (Shares outstanding: 115.9 million; Market cap: $4.1 billion; www.definityfinancial.com), is the new name for the holding company of Economical Insurance, Family Insurance Solutions, Petline Insurance, and Sonnet Insurance.
Definity was created as part of Economical Insurance’s demutualization… Read More
Short answers to current issues of importance for Canadian investors:
Q: Pat, do you think this Silicon Valley Bank (SVB) collapse is powerful enough to set off a broad slump in the North American or even the world banking industry, something like the 2008/2009 downturn?
STRATASYS LTD., $15.00, symbol SSYS on Nasdaq, is an Israel-based maker of 3D printers, software, and 3D-printed parts on demand. It has been involved in 3D printing for more than 30 years.
3D printing, or additive manufacturing, is a process of making three dimensional solid objects… Read More
CALIAN GROUP LTD., $62.60, is a buy. The stock (symbol CGY on Toronto) lets investors tap the Ottawa-based company’s four main operating segments:
Advanced Technologies offers products and engineering services for the space, communications, nuclear, agriculture, defence and government segments. This includes supplying communication systems and… Read More
PFIZER INC., $40.10, New York symbol PFE, is a buy.
The company is one of the world’s largest makers of prescription drugs. Its top-selling brands include Enbrel (arthritis), Ibrance (breast cancer) and Prevnar (pneumonia).
Pfizer has agreed to acquire Seagen Inc. (Nasdaq symbol SGEN), which specializes in… Read More
CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST, $14.22, is a top pick for 2023.
Choice is Canada’s biggest REIT, with 702 retail, industrial and residential properties totalling 63.9 million square feet of gross leasable area. Its occupancy rate is a high 97.8%. George Weston Ltd. (Toronto symbol… Read More
You Can See Our Current Power Recommendations For April 2023 here.
Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now. We feel each currently offers the best combination of fundamentals (earnings, sales, cash flow and so on) plus external factors (industry… Read More
You Can See Our Spinoff Stock Portfolio For April 2023 here.
Why we like spinoffs so much
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:
1) The management of a parent company will only hand out shares… Read More
A: Worthington Industries Inc., $54.71, symbol WOR on New York (Shares outstanding: 49.7 million; Market cap: $2.8 billion; Manufacturing sector; TSINetwork Rating: Extra Risk; www.worthingtonindustries.com), is an industrial manufacturing company that provides value-added steel processing as well as consumer, building and energy products.
UTZ BRANDS INC., $16.64, symbol UTZ on New York, is a Pennsylvania-based maker of salty snacks. Its brands include Utz Original potato chips, On the Border Chips & Dips, Zapp’s, Good Health, Boulder Canyon, Tortiyahs, and others.
Founded in 1921, Utz began trading on the New… Read More