option

An option offers its holder the right to buy or sell a particular security at a specific price within a specific time frame. Two kind of options are put options and call options.

Here’s Part One of the most-recent letter I sent to our Portfolio Management clients in August 2024:

“In July 2024, I commented in our weekly Inner Circle Question & Answer Report that a lot of changes are now going on in the world, particularly in U.S....

This month we focus on high-income, leveraged single-stock ETFs; one was launched by Harvest and another, focused on physical gold bullion, was launched by BMO.


HARVEST ELI LILLY ENHANCED HIGH-INCOME SHARES $12.04 (Toronto symbol LLHE) invests in the shares of Eli Lilly & Co....
Banks and insurance companies have performed strongly over the past year, easily beating the main market indices. However, banks, in particular, use a lot of debt to boost returns, and are prone to volatility when they encounter problems.


We’ve always said most investors should diversify within the finance sector by holding not just banks, but also insurers, fund managers and so on....
Companies that generate a lot of free cash flow (regular cash flow less capital expenditures) are generally in a strong financial position. For investors, free cash flow eliminates the distraction of non-cash deductions like goodwill, purchased R&D, depreciation and so on....
FORTIS INC., $60.33, Toronto symbol FTS, is a buy.

The company is the main supplier of electrical power in Newfoundland and PEI. Fortis also owns electrical utilities across Canada, the U.S. and the Caribbean. In addition, the company distributes natural gas in British Columbia, Arizona and New York State.

Fortis is now raising your quarterly dividend by 4.2%....
ResMed’s sales and profits got a boost during the pandemic with a sharp rise in demand for its ventilators and other respiration devices. Even as the pandemic eased, the gains continued as the company introduced more products and expanded its software offerings. Today, ResMed’s outlook remains attractive, and not just for its CPAP machines.

Those devices successfully treat sleep apnea, which gets far less media attention than other health issues such as high blood pressure, obesity, diabetes, depression, stroke and heart problems....
BUTTERFLY NETWORK INC., $1.58, symbol BFLY on New York, is a Guilford, Connecticut-based company founded in 2011. It has created a portable, pocket-sized ultrasound device that plugs into a smartphone or tablet.

The Butterfly iQ uses patented, miniaturized computer-chip technology to replace expensive cart-mounted ultrasound devices....
Investors crave cash dividends. At the same time, even some successful investors dismiss the value of stock buybacks. Still, in many ways, buybacks (or share repurchases) are almost as good as dividends.


Stock buybacks have three major advantages: First, stock buybacks raise earnings per share....

Despite the large number of ETFs already on the market, Canadian managers continue to launch new funds. This month we highlight an ETF from CI Investments that selects high-quality, dividend-paying U.S. companies. The second ETF comes from Hamilton Capital Partners....
Dear Client,

In July 2024, I commented in our weekly Inner Circle Question & Answer Report that a lot of changes are now going on in the world, particularly in U.S. politics and law. Some of these changes are good and others are bad. Some are trivial and others will have longstanding consequences.

At the time, I said that one of the most far-reaching and beneficial developments in U.S....