How To Invest

In addition, Pat thinks then beginner investors should cultivate two important qualities: a healthy sense of skepticism and patience.

[text_ad]

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.

[text_ad]

Read More Close
How To Invest Library Archives
CANADIAN PACIFIC RAILWAY LTD., $97.33, 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.

This is the fourth year in a row we’ve picked CP as our #1 Conservative stock....
A: We generally feel that most investors should hold the bulk of their investment portfolios in conservative securities from well-established companies. This means holding a total of 15 to 25 well-established, dividend-paying stocks, chosen mainly from our “Average” or higher ratings, and spreading your holdings out across most if not all of the five main economic sectors.

However, some investors choose to add more aggressive or speculative stocks to their holdings in their pursuit of bigger, faster gains....
CP Rail has been one of our favourite stocks over the past two decades. In fact, we made it the #1 Conservative Buy for our flagship newsletter The Successful Investor in 2019, 2020 and 2021. Our confidence has been rewarded: In the past three years, the stock has gained an impressive 88.9% compared to just 41.7% for the S&P/TSX Composite Index.

We feel CP’s merger with U.S.-based railway Kansas City Southern will push the stock even higher over the next few years.

While big takeovers like this always entail risk, the purchase will greatly extend CP’s reach in the U.S....
CROCS INC., $125.70, symbol CROX on Nasdaq, makes casual footwear for men, women, and children. It is best known for its molded shoes featuring Croslite, a non-toxic foam material that aims to give its footwear a soft, comfortable feel. Crocs have sold more than 720 million pairs of shoes in over 90 countries worldwide since its launch in 2002.

On December 23, 2021, the company announced the $2.5 billion acquisition of Heydude, a privately owned casual footwear brand based in Italy....
BANK OF MONTREAL, $143.11, Toronto symbol BMO, remains a buy.

Canada’s banking regulator—the Office of the Superintendent of Financial Institutions (OFSI)—recently lifted the restrictions on capital distributions it placed on banks and insurers in March 2020 due to COVID-19 uncertainty.

As a result, Bank of Montreal is raising your dividend by 25.5%....
CONAGRA BRANDS INC., $34.75, New York symbol CAG, is still a buy.

Through your shares, you tap the maker of some of North America’s most popular food brands. They include Chef Boyardee canned pasta, Hunt’s tomato sauce, Orville Redenbacher popcorn and Reddi-wip whipped cream.

The company is facing higher costs for ingredients and shipping, which is squeezing its profits....
GARMIN LTD., $130.95, is a buy. The company (symbol GRMN on New York) makes GPS devices and software for five different markets: fitness, outdoors, auto, aviation, and marine.

Garmin recently transferred the listing of its shares from Nasdaq to the New York exchange....
NUTRIEN LTD., $87.47, Toronto symbol NTR, remains a buy.

The company is the world’s largest producer of agricultural fertilizers. It took its current form on January 1, 2018, when Agrium Inc. (old symbol AGU) merged with rival Potash Corp. of Saskatchewan (old symbol POT).

Potash Corp....
A: Brilliant Earth Group Inc., $17.91, symbol BRLT on Nasdaq (Shares outstanding: 9.6 million; Market cap: $1.7 billion; www.brilliantearth.com), is a direct-to-consumer retailer that aims to provide customers with the best in ethically sourced diamonds and other jewellery....
A: BWX Technologies Inc., $48.96, symbol BWXT on New York (Shares outstanding: 92.2 million; Market cap: $4.5 billion; www.bwxt.com), has three main reporting segments:
  1. Nuclear Operations provides precision naval nuclear components, reactors and nuclear fuel for the U.S....