2 Recent Buys

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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.

2 Recent Buys – SLW, VWOB

A quick update on a couple of recent purchases in my portfolio. Things have been busy, so this post is a couple of weeks late…but better late than never.

Silver Wheaton Corp (SLW.TO) – added 50 shares @ C$28.50…which it turns out I was too early to pull the trigger. I still see tremendous value and will continue nibbling although I am getting close to a full position on this stock. Not much has changed…the business is sound and the fundamentals are fantastic. In addition, the company announced a great quarter earlier this month followed by a dividend increase of 20% (forward yield is just a shade under 1%). You can read about my original SLW purchase here.

Vanguard Emerging Markets Govt Bond ETF (VWOB) – Ive been interested in emerging market bonds for a while (see this post from May 2015) and finally decided to initiate a position. The fund gives me an exposure to emerging market sovereign bond market and pays approx 4.4% in fixed income going forward. This is only a very tiny position of a few hundred dollars for now as I dip my toes and think more about this position before committing more capital.

Disclosure: Full list of holdings can be found here.

 

Emerging Market Bonds

Back in February, I shared details of one of our long term plans for my wife’s portfolio of moving funds from an expensive mutual fund to low cost diversified ETF portfolio. This was also one of our financial goals for the year, which we were happy to put behind us. The post Building an ETF Portfolio can be found here. The long term goals of the portfolio remain the same as discussed, which includes passivity (following the passive investing route), simplicity, diversification, expense check, and dollar cost average into the selected funds. One thought that I’ve been debating for that portfolio is adding diversification in the fixed income portion. The fixed income exposure, which makes 40% of my wife’s portfolio comes from a single ETF called the BMO Aggregate Bond Index ETF (ZAG.TO). The ETF consists of high quality bonds (43% of the fund is made of AAA rated bonds) – consisting of federal, provincial and corporate debt.

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Unilever (UL) Faces Some Headwinds in the Short Term

Unilever (UL) (UN) is a supplier of fast moving consumer goods with sales of its products in 190 countries. Unilever, along with Procter & Gamble (PG), is one of the most popular companies around the world in the consumer goods sector.Company Profile (from FinViz):The company operates through four segments: Personal Care, Foods, Refreshment, and Home Care. The Personal Care segment offers skincare and haircare products, deodorants, and oral care products. The Foods segment provides soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines, and spreads. The Refreshment segment offers ice cream, tea-based beverages, weight-management products, and nutritionally enhanced staples. The Home Care segment provides home care products, such as laundry tablets, powders and liquids, soap bars, and various cleaning products. Unilever PLC offers its products under various brand names, such as Axe, Becel, Flora, Ben & Jerry’s, Bertolli, Blue Band, Rama, Brylcreem, Cif, Clear, Comfort, Domestos, Dove, Fissan, Heartbrand, Hellmann’s, Amora, Knorr, Lifebuoy, Lipton, Lux, Omo, Pond’s, Radox, Rexona, Signal, Closeup, Simple, St Ives, Sunlight, Sunsilk, Surf, TRESemm, Timotei, VO5, and Vaseline. The company was founded in 1885 and is headquartered in London, the United Kingdom. Unilever PLC is a subsidiary of The Unilever Group.

To read the full article, click here.