Recent Buy – Pan American Silver Corp

Whenever I make a purchase, I like to share my buys to document my journey towards financial independence. As regular readers are aware, I have broken from the pack of DGI and sold some of my investments to move to a cash position. I shared details on my motivation to do so in this post. In that post, I have indicated that I am bullish only on one sector currently — the resource/materials sector, and more specifically gold and silver.

As part of my first moves, I had initiated positions in two silver-focused companies — a streaming company: Silver Wheaton Corp (SLW.TO) and a mining company: Pan American Silver Corp (PAA.TO). Unless you’ve been living under a rock, I’m sure you have noticed the meteoric rise in silver over the first half of the year. Silver still continues to perform very well and still presents the best investment outlook compared to other options. I reinforced my position by adding more shares last week.

Last week, I added to my position in Pan American Silver Corp (PAA.TO) with 100 shares @ C$24.00. The company yields 0.28% adding US$5 to my annual passive income. Nothing to write home about. But as I mentioned in earlier posts, this move is not about dividends.

I usually present my thesis on why I bought a particular investment security and present the risks associated in the Recent Buys posts. In this case, I will simply link to my last post on Pan American Silver purchase as nothing has changed as far as the outlook goes since my last purchase.

Recent Buy – Pan American Silver Corp

Full Disclosure: Long PAA.TO, SLW.TO. My full list of holdings can be found here.

Recent Sell – Qualcomm Inc

As most regular readers are aware, I have been liquidating some of my holdings lately. This has been driven by a few different reasons – driven by a combination of market conditions, complacency in the market, lack of belief in individual holdings, the yearn for simplicity provided by index funds etc. Some of these reasons have been summarized in this post. This post captures another recent sell in my portfolio.

As the market continues to hover around all time highs, I have been thinking more about investor psychology and introspecting my own mentality. Recently I posted an article entitled “Do You Love Your Investment Holdings?” detailing how investors can fall in love with a holding and try to justify it even when the evidence points to investors to come to different conclusions instead. This can be driven by familiarity and a bias that comes with ownership of shares in a company for a prolonged period of time. This is a common pitfall that investors fall for and I came to the conclusion that I was facing the same issue with this holding. Coming to this realization, I decided to sell my shares and exit this investment.

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Chatter Around the World – 159

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Home Country Investing Bias

Home Country Bias by Investors in Various Countries

chinainvest-capital-2300 Image Source: Schwab

Let’s dive into the links that caught my attention this week.

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Why Cash Flow is Better than Big Salaries: An Example from the NFL

This is a guest post by Passive Income Dude at www.passiveincomedude.blogspot.com

I don’t have millions of dollars of cash.  In fact, I’ve probably never seen more than a few hundred dollars of cash together at one time.

But I imagine this picture to the left is close to what MILLIONS OF DOLLARS OF CASH looks like.

Pretty cool.  I’d love to somehow receive a giant lump sum of cash all at one point one day and turn it into wads of bills like this.  I’m sure we all would.  But consider what I just read the other day:

NFL

Did anyone miss that?

78% of NFL players go broke within three years of retirement?  That seems ridiculously high.  And almost 16% file for bankruptcy at some point in the future?  How can that be? Again I ask, how can that be?  And here is specifically why I ask the question “how can that be”:

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Caring for a Sick Child or Parent in Retirement

The following is a 3rd party contribution.

About 43 million people provided care to a sick loved one during the last year. For these caregivers, retirement doesn’t mean the end of work—just the end of a steady paycheck. Leaving your job can ease some of the stress of caregiving, but retirement when you’re committed to caring for another person can be frightening. How will you have enough money? How will you know when you have enough? Here are the steps you need to take to care for yourself and your loved one.

Get Clear Medical and Financial Advice Before You Retire

A million dollars might sound like a lot of money, until you consider the costs of health care, in-home aides, and nursing facilities. Don’t set an arbitrary financial goal without first talking to a financial advisor. Equally important is getting competent medical advice from your loved one’s health care provider. It may be difficult to think about, but you need a reasonable assessment of how long your loved one might live, and how his or her needs might change over time. Providing your financial advisor with this information can help you set reasonable goals and steadily budget to meet those goals.

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