Recent Buy – Brookfield Asset Management

A new purchase in Baby R2R‘s portfolio this time. Regular readers may be aware that I started a two-part portfolio for Baby R2R earlier this year. The first part is related to her education fund that is invested in index funds and I make regular monthly contributions to that fund and dollar-cost average over time. The second part of the portfolio is what I call her Nest Egg Fund.

The Nest Egg Fund

The idea behind the Nest Egg Fund is simple and straightforward. Contribute $100/month and let the investment compound over the next few decades. Instead of going with a taxable account in her name, I have earmarked a portion of my tax free investment account, so that I can avoid paying dividend and capital gain taxes.

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2 Recent Buys – KL, AQN

BuySell

A quick update on a couple of purchases in my portfolio adding to my existing positions.

  • Last week saw some tumultuous time in the resource sector and almost all gold miners took  a hit. The fundamentals havent changed for most of these companies and have in fact improved significantly for some. A 5% drop in share prices provided me with a decent valuation to add to my already largest stock position in my portfolio. I added 100 shares in Kirkland Lake Gold (KL.TO) @ C$11.30. For people who arent familiar with the space, KL is the newly merged company and is on track to become a heavyweight in the mid-tier space of the gold mining business. The company is headed by none other than the legendary Eric Sprott and is sitting on some amazing resources. The Fosterville project has proven to be a literal goldmine as better results keep coming month after month improving the prospects. KL has been on a tear this year and the YTD performance has been approx 65%. Nevertheless, I am so bullish on this company that I do not intend to sell and take profits but looking to add to my position on any pullbacks. KL also recently initiated issuing dividends and announced a buyback program.
  • Yesterday, I also made a purchase adding to one of my long term dividend growth stock holding. I added 100 shares in Algonquin Power & Utilities Corp (AQN.TO) @ C$13.00. I have owned shares in AQN for a few years now and have been extremely pleased with the performance. The company yields approx 4.7% and adds US$46.6 annually (dividends are paid in US$). I am a big fan of this business, which owns assets in all three major subsectors – electric, gas and water…which as far as I am aware, is the only utility company that provides exposure in all three subsectors. AQN also has a renewable energy division, which is a nice growth area to gain exposure in.

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

2 Recent Buys – BBB, KL

BuySell

A quick update on a couple of purchases in my portfolio adding to my existing positions.

  • On Friday, I added 4,000 shares in Brixton Metals Corp (BBB.V) @ C$0.52. Couple of weeks ago, I initiated a position in this microcap silver/gold/cobalt exploration company. Following my purchase, the stock prices shot up, but finally pulled back last week after it was disclosed that $4M was raised in a private placement. The PP deal consists of shares at $0.50 and flow thru shares at $0.55, in addition to warrants exercisable at $0.70 for 24 months. That sounds like a decent floor price for me and I decided to add on the pullback bringing my total position to 9,000 shares with an average price of $0.46.
  • Yesterday saw a huge reversal in the precious metal (and base metals as well) miners performance. It turned into a bloodbath at the end of the day and the GDXJ (junior gold/silver mining ETF) fell close to 10%. The space has been acting extremely that is confounding everyone as there is a disconnect from the metal prices — gold and silver prices have been climbing as the equities fall. This was too great an opportunity to pass up and I decided to add buy 230 shares in Kirkland Lake Gold (KL.TO) @ C$8.79. I put in a low-ball offer at $9 after seeing a 8-9% fall in shareprice, but managed to get executed even lower — I love flash crashes! 🙂 For those unaware, this is a newly merged company between Kirkland Lake and Newmarket Gold forming a new mid-tier company with approx 500K oz in annual production. The jurisdictions are as secure as they can come – Canada and Australia, has a fantastic management in place and the board is chaired by none other than Eric Sprott. New discoveries and extensions of mineralization show nothing but great news for the company and this pullback was a great opportunity for me to add shares. After this purchase, Kirkland Lake becomes one of the largest holdings in my portfolio.

Full Disclosure: Long BBB.V & KL.TO. Our full list of holdings is available here.

Recent Buy – Brixton Metals Corp

Another new position in my portfolio. Regular readers are aware that I have been bullish on the precious metals space since mid-2016. The new bull market started last year after a painful 4-5 years and provided investors with lucrative returns over the year. 2017 doesn’t seem to be much different — and investors are seeing almost identical performance through the start of this year as they did in 2016. My top investment pick for the year, a junior gold miner ETF (GDXJ) is up 30% YTD. You can see the live tracking of the top picks on this page.

Earlier this week I initiated a position with 5,000 shares in Brixton Metals Corp (BBB.V) @ C$0.42. Brixton Metals is a gold/silver/cobalt exploration company that operates in Canada.

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Recent Buy – Baby R2R’s New Portfolio

At the beginning of January, I set the following goal for the financial well being of our baby daughter. I am happy to report that I have started putting this plan into motion.

> New portfolio for our daughter – In 2016, my wife and I welcomed our daughter. Time to set things in motion for the financial well being of our baby daughter.

  • We have opened up a new RESP (Registered Education Savings Plan) account, which allows us to save and invest for her post-secondary education. The plan allows us to get education grant money from the government and is tax-deferred on the income generated. We intend to start investing this money soon and will post an update on which stocks/ETFs we chose.
  • In addition to the RESP plan, we intend to start a DRIP plan to put away a small amount of money each month (starting off with $100/month for now) that will be her nest egg when she is an adult. Time is one of the most powerful weapons in an investor’s arsenal and starting off a DRIP plan allows us to let the investment compound over the course of 20-ish years. I’ll post an update soon on which stock I am picking for this plan.

The Education Plan

A quick background on the Registered Education Savings Plan (RESP). RESP is an account type available to Canadians to save, invest and grow funds for post-secondary education. While not only limited to kids, it is generally targeted to help parents save for their kids’ education. The best part of this plan is that the government matches the contributions via the Canada Education Savings Grant (CESG). The grant amount is 20% of contributions to a max of $500 per year. So, to maximize the benefits, we would contribute $2,500 per year into this account.

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