2 Recent Buys – KL, FIH.U

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A quick update on a couple of purchases in our portfolio.

First purchase: I added to my position with in Fairfax India Holdings (FIH.U.TO). I added 100 shares @ $17.50, bringing down my average cost basis slightly lower. This is a company that I initiated a position in early September and provides me with an exposure to the Indian market. I wont repeat and will simply point to the other post for details.

Second purchase: Last week’s move down also gave me an opportunity to add more shares in one of the strongest performers in my portfolio and my largest holding overall. I added 100 shares in Kirkland Lake Gold (KL.TO) at C$16.75. So far, this stock has been on fire and I have more than doubled my initial investment, which I started about a year ago. Although I am tempted to sell and take some profits off the table, the good news just keeps rolling and I cant help but just buy more on this promising company. Some highlights on why I continue to buy Kirkland Lake Gold

  • Chaired by none other than Eric Sprott, KL has top notch leadership. The company is now well on its way to become the top mid-tier company in gold producing space
  • The Fosterville project has turned into a behemoth and the grades just keep improving. In addition, the Macassa mine also continues to deliver some great results
  • The strategic investments keep coming — buying equity interest in companies like Novo Resources (NVO.V). Novo is a company that slipped through my fingers and has seen some explosive returns lately, but atleast I can take refuge in knowing that as KL shareholder, I am still seeing some benefits from Novo’s move and resources in Western Australia.
  • Eric Sprott still continues to buy shares in KL hand over fist. His last purchase was 200K shares at $15.71. So, more great news on the way? I bet it is.
  • The company is also maturing and shareholder friendly with dividends (this purchase adds $4 in annual dividends — nothing to write home about) and share repurchases. CEO Tony Makuch has continued to reiterate over and over in every presentation that the management and board firmly believes that even at these prices the stock is severely undervalued.

What do you think about these purchases? Share your thoughts below.

Full Disclosure: Long KL.TO, FIH.U.TO. Our full list of holdings is available here.

8 thoughts on “2 Recent Buys – KL, FIH.U

    • Hi PCI, I think discarding an investment just because it doesnt pay dividend is imprudent. Theres lot of like in companies that put capital to better use. Dividends have a place in the portfolio, but it shouldnt be the end-all for everything.

      R2R

  1. Jan says:

    Hello Roadmap, our Hive investment is doing well. I wonder what the future holds.
    Are you researching any more blockchain or crypto investments? I am reading a lot about it. I am focusing on this area for now.

    • Hi Jan,
      HIVE is doing great no doubt. Glad to hear you bought in. Theres a few more that pop up, but I am skeptical.

      BLOC.v — looks like an interesting team, but not sure if they can execute and make the right calls. They have lots of plans. Looks interesting nonetheless.
      BTL.v — lots of fluff, but I cant find any real execution. But the stock is doing great because it is associated in the blockchain industry. Again, I remain skeptical.
      NC.v is the other one that keeps popping up, but I havent looked into it yet.

      R2R

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