How To Invest

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.

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How To Invest Library Archives
CANADIAN PACIFIC RAILWAY LTD., $93.97, Toronto symbol CP, is your #1 Conservative Buy for 2022.

CP ships freight over a 23,700-kilometre rail network, mainly between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast.

The company is now in the process of merging with U.S.-based railway Kansas City Southern....
MCDONALD’S CORP., $249.16, New York symbol MCD, is your #1 Conservative Buy for 2022.

The company is the world’s largest fast-food chain with over 39,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french fries....
INTERNATIONAL BUSINESS MACHINES CORP., $132.21, New York symbol IBM, is a buy.

The company is one of the world’s largest computer firms, with operations in over 175 countries.

With the June 2022 payment, IBM will raise your quarterly dividend by 0.6% to $1.65 a share from $1.64....
BOSTON SCIENTIFIC CORP., $42.11, is a buy. The company (symbol BSX on New York) develops and markets medical devices used in minimally invasive procedures. Its products are used for angioplasty (blood vessel repair), blood clot filtration, cardiac rhythm management, catheter-aided ultrasound imaging, and many other surgical procedures....
GENERAC HOLDINGS INC., $219.38, symbol GNRC on New York, designs and manufactures a wide range of generators and other engine-powered products for the residential, light commercial, industrial, and construction markets. Its products are fuelled by natural gas, liquid propane and diesel.

Generac also pioneered the residential power washer category, putting the power to clean into the hands of homeowners....
Last week we published Part One of the text of the most-recent letter I sent to our Portfolio Management clients, in February this year.

Part Two appears below. It covers the hidden risks in the so-called “alternative investments” that have come on the market in recent years....
STEINWAY MUSICAL INSTRUMENTS HOLDINGS INC. has filed paperwork with U.S. regulators for an initial public offering (IPO) of common shares. The shares will trade on New York under the symbol STWY.

The company is planning to have two classes of shares with Class B shareholders entitled to 10 votes per share, versus the one vote for share assigned to Class A shareholders....
J.P. MORGAN CHASE & CO., $126.81, New York symbol JPM, remains a buy.

The stock lets investors tap the largest banking firm in the U.S., with total assets of $3.95 trillion as of March 31, 2022.

Morgan last raised your quarterly dividend with the October 2021 payment by 11.1%, to $1.00 a share from $0.90....
INTERNATIONAL BUSINESS MACHINES CORP., $138.25, New York symbol IBM, is a buy.

The company is one of the world’s largest computer firms, with operations in over 175 countries.

On November 3, 2021, IBM completed the spinoff of Kyndryl Holdings Inc....
YAMANA GOLD INC., $7.52, is a buy. The miner (symbol YRI on Toronto) owns and operates five gold mines, in Canada, Brazil, Chile and Argentina. This includes the Cerro Moro gold/silver mine in Argentina. It started up in mid-2018.

Yamana now plans to seek better terms from its lenders including Bank of Nova Scotia and Citigroup.

That’s after earning an upgrade from debt-rating service S&P Global Ratings....