diversification

Recently a member asked a question that you may have wondered about over the years.

“Hi, Pat. My question regards your philosophy of spreading investments out among ‘most if not all of the five main sectors’: I’m wondering where each of the 11 broad Global Industry Classification Standard (GICS) sectors commonly used for sector breakdown fit within your framework....

All of the major global stock markets fell at the initial outbreak of COVID-19. But many top markets have since rebounded. We think the outlook remains positive for quality stocks, and one way to profit from that—while cutting your risk—is to invest in quality ETFs....

“Buy land, they aren’t making it anymore”


—U.S. author/humourist Samuel Langhorne Clemens (1835-1910), who is more widely known by his pen name, Mark Twain.


We think real estate investment trust Gladstone Land lets you profit from owning U.S....

Smaller firms can sometimes generate higher returns than their larger counterparts, but they are often riskier, less liquid, and may underperform for long periods. One way to offset some of the risk is to focus on ETFs that hold top-quality small-capitalization companies....

Here’s the text of my latest letter to our Portfolio Management clients, sent in May:

“We’ve often written about an attractive market pattern that has paid off for us over the years. This pattern emerges when the following two factors come together to create what we’ve called a “double-barrelled buying opportunity”:

1. Investors generally are fearful and have low expectations for stock-market performance; and
2. There’s a lot of hidden value in the stock market—that is, value that is not widely recognized by investors.

These two factors work together to improve your chances of making money in the stock market....

Taiwan Semiconductor Manufacturing (ADR symbol TSM on New York), is the world’s largest dedicated contract semiconductor (computer chip) manufacturer with a market capitalization of $552 billion. In 2020, it had 510 different clients, manufactured 11,617 different products using 281 distinct technologies....

All of the major global stock markets fell at the initial outbreak of COVID-19. But many top markets have since rebounded. We think the outlook remains positive for quality stocks, and one way to profit from that—while cutting your risk—is to invest in quality ETFs.

Here’s a look at four international funds that we believe are well-suited for your new buying....

The United Arab Emirates is a small country in a potentially volatile region, with neighbours like Yemen and Iran nearby. Still, it has used its oil riches wisely to diversify the economy and become a major commercial hub in the Middle East.


Here’s an ETF that provides exposure to the top companies listed in the UAE.


ISHARES MSCI UAE ETF $13.42 (New York symbol UAE; TSINetwork ETF Rating: Aggressive; Market cap: $27.9 million) tracks the performance of the largest publicly listed UAE companies.


Financial Services account for 51% of its assets, while Telecommunications (15%), Real Estate (14%), Industrials (10%), and Energy (5%) are other key segments.


The ETF has a portfolio of 32 stocks; the top 10 holdings make up a high 72% of its assets....

BCE may have disappointed some aggressive investors in the past five years—it’s now roughly in the middle of its $50 to $65 price range for that period. However, income-seekers are no doubt pleased at the rise in its dividend, from $2.60 a share in 2015 to the current 2021 rate of $3.50, in the midst of an historic depression in bond interest rates and other sources that investors rely on for income.

While BCE’s payout has climbed, the company and its industry have made fundamental progress that’s likely to pay off with substantial gains in the next five years.

We’re used to—and quite happy with—the variable performance we’ve received over the years from BCE....

Whether it is by sector, geographic location, risk type or investing strategy, by diversifying, investors help minimize Risk and Power Long-term Gains