Conservative Investing as an Investment Strategy

Conservative Investing as an Investment Strategy

A conservative investing approach means building a well-balanced portfolio gradually, over time
Conservative investing is an investment strategy that involves a focus on lower-risk, predictable and stable businesses. This strategy typically involves the purchase of blue-chip stocks and other low-risk investments. A conservative investing approach also… Read More

Power gains from IGM

POWER CORP. $29.65 (Toronto symbol POW; Shares o/s: 414.4 million; Market cap: $14.0 billion; TSINetwork Rating: Above Average; Dividend yield: 5.2%; www.powercorporation.com) holds its financial assets through its 65.6%-owned Power Financial. In turn, Power Financial’s holdings include 61.5% of mutual-fund provider IGM Financial (a recommendation of… Read More

How to profit from dual-class shares of Canadian stocks

How to profit from dual-class shares of Canadian stocks

When it comes to dual-class shares, voting shares have certain advantages over non-voting shares
Aside from specific investments (such as U.S. and Canadian stocks, income trusts or exchange-traded funds), our Inner Circle members ask us a wide range investment questions. For example, I’ve been asked in… Read More

Q: Hi, Pat. I recently read that Fairfax has increased its holdings in Torstar up to 40% of non-voting shares. There’s also the suggestion that Fairfax’s plan may be to take the company private. Can you enlighten me on what “taking a company private” entails? Are shareholders bought out? And if they are, at what price and how is the price determined? I appreciate your advice and I look forward to your response.

A: Fairfax Financial (symbol FFH on Toronto), now holds 40.6% of the class B non-voting shares of Torstar Corp., $1.56, symbol TS.B on Toronto (Shares outstanding: 80.8 million; Market cap: $126.9 million; www.torstar.com).

Torstar insiders own 100% of the class A voting stock. Those insiders are… Read More