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 is up over 130% since we recommended it in March 2012. That was just after we made CP our “Stock of the Year” for 2012 in The Successful Investor, our conservative-growth advisory. CP’s CEO, Hunter Harrison, is now well into a major restructuring program aimed at improving the company’s efficiency and cutting its costs....
CRESCENT POINT ENERGY $44.59 (Toronto symbol CPG; Shares outstanding: 395.7 million; Market cap: $17.6 billion; TSINetwork Rating: Extra Risk; Div. yield: 6.2%; www.crescentpointenergy.com) continues to add to its production in southeastern Saskatchewan’s Bakken light-oil area.

The Bakken, which covers parts of Montana, North Dakota and Saskatchewan, could contain more than 500 billion barrels of oil.

Oil was first discovered in the Bakken region in 1951, but it has always been hard to extract from the shale rock....
Natural gas prices are now at $4.72 U.S. per thousand cubic feet, up 159% from their low of $1.82 in April 2012.

The long-term outlook for gas remains positive, but prices could move sideways, or even downward, in the short term. The best way to profit with less risk is to invest in companies that are steadily increasing their production and cash flows.

Here are two producers with strong growth prospects and attractive dividend yields.

ARC RESOURCES $32.52 (Toronto symbol ARX; Shares outstanding: 314.9 million; Market cap: $10.4 billion; TSINetwork Rating: Speculative; Dividend yield: 3.7%; www.arcresources.com) produces oil and natural gas in Western Canada....
LOBLAW COS. $47.65 (Toronto symbol L; Shares outstanding: 412.5 million; Market cap: $18.9 billion; TSINetwork Rating: Above Average; Yield: 2.0%; www.loblaw.ca) has closed its purchase of Shoppers Drug Mart, which has 1,253 drugstores across Canada.

Loblaw paid $12.4 billion, consisting of $6.6 billion in cash and $5.8 billion in shares....
We think conservative investors could hold up to 10% of their portfolios in foreign stocks. One way to do that is to buy carefully chosen exchange traded funds (ETFs) that have an overseas focus. The best ETFs offer very low management fees and well-diversified, tax-efficient portfolios of high-quality stocks. Here a look at six global ETFs:...
ENCANA CORP. $25.39 (Toronto symbol ECA; Shares outstanding: 740.9 million; Market cap: $19.0 billion; TSINetwork Rating: Average; Dividend yield: 1.2%; www.encana.com) has released more details regarding its plan to spin off its Clearwater oil and gas properties in southern Alberta.

The new company, called PrairieSky Royalty, will hold the oil and gas rights to 5.2 million acres....
BANK OF NOVA SCOTIA $66.60 (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $80.1 billion; TSINetwork Rating: Above Average; Dividend yield: 3.8%, www.scotiabank.com) has formally changed the name of its ING Direct subsidiary to Tangerine (www.tangerine.ca).

The bank bought ING Direct from its Netherlands-based parent, ING Group, in November 2012....
ISHARES AUSTRALIA INDEX FUND $26.45 (New York symbol EWA; buy or sell through brokers) is an ETF that holds the 72 largest Australian stocks. Its MER is 0.48%.

The fund’s top holdings include Commonwealth Bank of Australia, 11.1%; BHP Billiton, 10.5%; Westpac Banking Corp., 9.6%; Australia and New Zealand Banking Group, 8.3%; National Australia Bank, 7.3%; Wesfarmers, 4.3%; Woolworths, 4.2%; CSL Ltd., 2.9%; Rio Tinto, 2.3%; Woodside Petroleum, 2.3%; Telstra Group, 1.9%, Westfield Group, 1.9%; and Macquarie Group, 1.4%.

Australia benefits from its stable banking and political systems....
ALGONQUIN POWER & UTILITIES CORP. $7.88 (Toronto symbol AQN; Shares outstanding: 206.9 million; Market cap: $1.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.algonquinpower.com) has nearly tripled in size over the past two years through acquisitions.

Algonquin bought four companies in 2012, and seven more in 2013....
ENBRIDGE INC. $52.89 (Toronto symbol ENB; Shares outstanding: 831.5 million; Market cap: $43.9 billion; TSINetwork Rating: Above Average; Dividend yield: 2.7%; www.enbridge.com) has won approval to export some of the Canadian crude oil it ships into the U.S....