Slice & dice

DOUG  By Guest Blogger Doug Rowat
.

Thank god the US presidential election’s over.

Not because we now have a declared winner, but rather because I no longer have to suffer the endless TV network advertising loop. Tom Selleck hypnotically reassuring me about reverse mortgages, learning that mattresses can be like McDLTs—hot on one side, cold on the other, or watching grey-haired dudes pumped full of Ageless Male slinging kettle weights like balsa wood was becoming too painful to watch. But at least CNN and Fox News had one thing in common: a target demographic.

However, the other recurring ad that caught my attention during election night (or, as it turned out, election week) was one for Schwab Stock Slices. I have to confess, until I started watching the election coverage, I’d never heard of these products.

But a “slice” is simply a fractional share of some of the largest and best-known US companies: Netflix, Apple, McDonald’s, Amazon, Facebook, Alphabet (Google), Nike and so on. With Schwab you can buy as little as one fractional share or up to as many as 10 fractional shares. The service that Schwab provides, of course, is ease of ownership. On an absolute price-basis, many of these stocks are expensive. Amazon and Alphabet, for instance, currently trade at more than $3,000 and $1,700 per share, respectively. Fractional shares have become popular and are not unique to Charles Schwab. Many other firms, including Fidelity, Robinhood and Interactive Brokers, offer similar products.

Now making investing more accessible is not in and of itself a bad thing. But like Tom Selleck’s ad plugging reverse mortgages, you’re not getting the full story. “Slices” present concerns.

First, fractional shares aren’t portable. In the case of Schwab, you can’t trade them on any other company’s platform. Owning a fractional share of Amazon isn’t like owning a full share of Amazon. If you owned a full share you could move it over to another financial institution without difficulty. However, if you want to do the same with a fractional share, you’ll have to sell it first, which introduces potential tax consequences.

Second, fractional shares encourage more frequent trading, which is particularly problematic for inexperienced investors. And if you’re trading five-buck fractional shares because you can’t afford the full price of a single share, I would argue that you’re very likely an inexperienced investor. I’ve mentioned many times on this blog that frequent trading is a doomed approach to investing.

And finally, owning even the 10-company “slice”, while better than nothing, still doesn’t even come close to providing proper portfolio diversification.

When it comes to portfolio risk, there are two main types: systematic and unsystematic.

Systematic risk refers to the broad, overall events that, to varying degrees, take down all individual stocks. Systematic risk is often referred to as “market risk”. The 2008-09 financial crisis, 9/11, 1987’s Black Monday, 2011’s Japanese earthquake and tsunami or, more recently, Covid-19 are all examples of systematic risk: forces or events that will drive any stock lower regardless of its particular individual business model. There’s nothing a portfolio manager can do to diversify away systematic risk.

Unsystematic risk meanwhile, refers to company-specific risk. Unsystematic risk refers to the internal events that can crater a company’s fortunes. The fraud at Enron, the mismanagement at Nortel or the inability to adapt to changing technologies at BlackBerry are all examples of unsystematic risk. Fortunately, unsystematic risk can be diversified away. The difficulty, however, is that it takes an enormous number of individual stocks to do this. Roughly speaking, about 60 individual positions (see graphic below).

Proper diversification: it takes a lot

Source: Burton Malkiel, A Random Walk Down Wall Street

The further problem, of course, is the impossibility of having an informed, thoroughly researched, and ultimately accurate, outlook for 60 different stocks.

I worked many years on an institutional research desk and a hardworking research analyst might cover 10 or 15 different companies. And this analyst would be focused: working long hours studying the industry and company-specific fundamentals affecting their concentrated coverage list. But, in the end, and I can tell you this from witnessing it first hand, the accuracy of the analysts’ recommendations was inconsistent and often amounted to nothing more than a coin toss.

I presume my readers have regular jobs or at least busy lives, so imagine the impossibility of trying to successfully analyze not 10 stocks, but 60, and doing it with a fraction of the available time. However, building a portfolio with anything less than 60 stocks means taking on unsystematic risk. Schwab stock slices might appear to provide sufficient diversification, but they fall well short.

A concentrated portfolio can be devastated if even just a few of the positions collapse. And even if you hold what you perceive to be blue chips, which is how Schwab currently positions its “slices”, this will offer little protection if you hold too few positions. Remember: General Electric, Lehman Brothers, Bear Stearns, Nortel, Boeing, Nokia (the list goes on) either are, or were once, blue chips.

So it might be kind of neat to buy five or 10 blue-chip companies in a single transaction. But five or 10 fractional shares aren’t enough to properly control risk.

There are many ways to properly diversify a portfolio. A Schwab “slice” ain’t one of them.

Doug Rowat, FCSI® is Portfolio Manager with Turner Investments and Senior Vice President, Private Client Group, Raymond James Ltd.

 

104 comments ↓

#1 TurnerNation on 11.14.20 at 10:42 am

What’s really going on in North America. Province by Province, State by State is being locked down into this brutal cold winter. Everyone must submit to the new system. Cover up, stand 6-6-6 feet apart. No one gets a free ride in the New System. The global CV protocols – designed to rip apart your family, culture, and mind must be followed. New religion.
Thanksgiving, Christmas, New Years, all religious celebrations are canceled. The Old System must be torn down. Re-education, starting with children.
In my prefecture Halloween was banned by local Block Captains.

My take is UBI will be introduced in Q1 all over N.A. or globally. Lockstep afterall.
How to pay for this? Oh our ruling elites play the long game. Decades ago. DAILY changes will be uneased to keep us off balance. How many will still remember the Old System in a few years?
‘They’ll stone you just like they said they would; everybody must get stoned’

https://edmontonjournal.com/news/politics/the-timing-is-the-question-here-alberta-finance-minister-says-he-would-consider-looking-at-a-pst-after-the-pandemic-further-spending-cuts
“‘The timing is the question here’: Alberta finance minister says he would consider looking at a PST after the pandemic, further spending cuts”

#2 Love_The_Cottage on 11.14.20 at 10:46 am

…so imagine the impossibility of trying to successfully analyze not 10 stocks, but 60.
_________________
Cue the people who say ‘sure, but I have this system’… or some similar hokem’

#3 KNOW IT ALL on 11.14.20 at 10:50 am

It’s a sign of what lies ahead.
Many of the S&P 444 now have NEGATIVE equity.
The S&P 500 has been transformed into the S&P “6”.
That kind of skewness is spelling disaster.
The last time this occured was in 2000 just before…. yeah you guessed it.

“The BOND KING”

https://www.youtube.com/watch?v=zcEj4XkLn5w&t=1744s

#4 Andrewski on 11.14.20 at 10:55 am

Was recently reading about Schwab’s fractional share offer so it’s good to get your perspective Doug. Cheers.

#5 FreeBird on 11.14.20 at 11:07 am

Fun fact: Tom Selleck aka Magnum PI spends most of his time with his wife on their CA ranch. It incl a big avocado orchard which he claims to enjoy getting his hands dirty with. I believe it but not without a cigar and glass of something like good scotch watching the sunset. Yeah I was a fan.

#6 It's far from over on 11.14.20 at 11:10 am

Trump will not concede. There certainly does seem to have been at least some fraud. I believe all the ballot he said she said is a noise façade for what’s going on in the back. I suspect it will head for an illegitimate election and then follow a path set out by the constitution.

My portfolio is up huge under Biden. And I’ve more than recovered from the Covid crash. I’m willing to bet with all the lock down talk and election craze, that things go south again. I can afford to lose on the upside, but don’t want to lose again on the downsize. Cash?

#7 NoName on 11.14.20 at 11:11 am

i guess legislation abut camouflage underware is in works…

https://twitter.com/CharlieAngusNDP/status/1327323265401049089

#8 Kool Aid on 11.14.20 at 11:12 am

Schwab is here to compete, all brokers are.

The new “Robin Hood” & “Wealth Simple” platforms offering zero trade fees have great traction, ultra competitive, service models need to pivot, the need to differentiate and innovate is real.

Attracting and drawing in new clientele is part of that, share fractionalization will likely be sustained and expand.

You can buy a fraction of BTC, why not BRK-A?

Actionable solid investing advice, well, that will always command a premium.

#9 Prince Polo on 11.14.20 at 11:14 am

Nice post Doug! Cdn discount brokerages could go a step further and offer free transactions – c’mon guys/gals, be like the US discount brokerages!

Also, stock slices (as in pizza slices) are a good idea to get people interested in the stock market. I am sick and tired of most Millennials focusing on real estate as the only means of “investing”, whereas, the 20s are the time when one should be making bone-headed stock market moves, so that he/she doesn’t make the same mistake in 30s, 40s, 50s, when the dollar-values at stake really matter to your future financial wellbeing.

Lastly, I hope you guys had superior performance reviews with the bossman. Saw he was in GTA this week. Big Xmas bonuses around the corner, I hope! :)

#10 Penny Henny on 11.14.20 at 11:15 am

Hey Fartzy. It’s been a week, as far as I’m concerned you held up your end of the bet.
Oh, and Sara misses you.

#11 George Bloome on 11.14.20 at 11:17 am

Fractional shares have been around forever, first as existing products that some online trading institutionals offered some DRIP programs offered, or vice versa, chicken – egg. Honestly it’s been so long since I wrote a securities license I can’t remember which cane first. I guess you had to be an investor, rather than advisor to have been sent a prospectus.

Next step into the fractional share market

1) “Warrants”.

Get the thing about fraud though, far more rare today than yesteryear, still a concern. Easy to avoid by sticking to companies with history. But, Enron , n all it’s glory remember, was created by a guy from Edmonton.

#12 Prince Polo on 11.14.20 at 11:20 am

I have no idea how TurnerNation is so frequently the first poster. Is this Garth’s alter-ego?? An alternative theory is perpetually WFH and refreshing ad-infinitum (which is great practice for the PS5/Xbox refreshing Olympics).

#13 Penny Henny on 11.14.20 at 11:25 am

#5 FreeBird on 11.14.20 at 11:07 am
Fun fact: Tom Selleck aka Magnum PI spends most of his time with his wife on their CA ranch.
/////////////

Did you ever notice that in almost every episode he either had on a bandage, band-aid, cast or sling.

#14 justdeleteitifyoudontlikeit on 11.14.20 at 11:28 am

Bad idea:
– Watching TV

Worse idea:
– Watching TV, but ironically, because you feel you need to know what the booboisie is seeing.

Better idea:
– Reading fintwit, and knowing that Schwab is just copying the innovator, Robinhood, which first introduced fractional shares 11 months ago.

“It’s a bull market,” said Old Turkey.

#15 Sail Away on 11.14.20 at 11:32 am

#10 Penny Henny on 11.14.20 at 11:15 am

Hey Fartzy. It’s been a week, as far as I’m concerned you held up your end of the bet.

Oh, and Sara misses you.

————–

I miss Fartz too.

But… if you really feel strongly about it, maybe your friend coughz can fill in during the interim.

#16 Ace Goodheart on 11.14.20 at 12:02 pm

Sitting here for another day of watching the world burn.

I can’t be hurt by this situation, unless I actually catch COVID (but I take 3000 uI of vitamin D per day so that is unlikely).

We own the house. Have many diversified investments. Wife is in essential services. She walks around social distance lines, is not subject to quarantine or stay at home orders. I am independently wealthy.

I feel like that scene in “Hitch hiker’s guide to the Galaxy” where you can sit in the Cafe and watch the Universe end, over and over again, untouched by the experience but tragically participating in it.

I have a friend who is a pilot. He is now flying for free. He has to. If he does not fly, he will lose his type rating and his instrument rating. He has to take off and land so many times per month in order to be able to take passengers. Type ratings are limited duration. An instrument rating has to be used.

He is paying for fuel, to fly for free. He is borrowing money to do that. They give him “time” on the aircraft for nothing.

Can you imagine, having to borrow money so you can do your job for free? Welcome to the commercial pilot profession during COVID.

Have another friend who runs pubs. I guess you know where this is going. He is currently millions of dollars in debt. All three of his pubs are closed. Probably forever. But he can’t get out of the leases.

He has declared bankruptcy and gone to work for Amazon. They pay $19.00 per hour. He is able to feed himself while he lives with his parents.

He used to be a millionaire.

I know people who have killed themselves (or I used to know them).

Toronto is headed into a hard lock down that will probably be off and on, throughout the winter.

Watching the world burn. Still sane, but getting sadder.

#17 Dave on 11.14.20 at 12:11 pm

BoC has reduced its interest rates when covid started.

They stated that their rates will stay low for years….the real estate market went crazy again in the last couple of months.

Now BoC is stopping is mortgage bonds program and interest rates at your local bank is going to increase.

What is the purpose of this? How many rate increases in by end of first quarter 2021

#18 D.D. Corkum on 11.14.20 at 12:17 pm

#12 Prince Polo on 11.14.20 at 11:20 am

“[Are they first by…] perpetually WFH and refreshing ad-infinitum [?]”

—-

Maybe they just subscribe to the RSS feed, so they know when something’s been posted?

#19 Yukon Elvis on 11.14.20 at 12:20 pm

My strategy : buy dividend paying blue chips. Live off the dividends. Never touch the principle.

#20 Dr V on 11.14.20 at 12:31 pm

I would say that any of the big five Canadian banks is well diversified by Canadian standards, and could be bought as an individual holding of 1-5% in a portfolio
of moderate size say $250k. They are heavily regulated and protected at least to some extent by the
government/taxpayers. The trick is buying one on sale, which they all were several months ago.

#21 TurnerNation on 11.14.20 at 12:38 pm

What’s the purpose of the Atlantic Bubble?
Is it for our health Comrades OR is it owing to the fact of Amazon.com not having a big distribution or warehouse network out that way. Such that the global government cannot yet order local businesses shut?

With airlines canceling most flights out that way hull cargo capacity will be limited. The main cargo airline Cargojet (CJT.TO) is already at capacity for Canada Post and Amazon deliveries).

Would be a real shame of one day they shut down all Atlantic small business. People would starve.
For out health. We’ll know by late January.
By all accounts and people I talk with in real life Q1 will be really when this ramps up globally.
When what ramps up? Your choice: a public health campaign. Or total world takeover.
Whichever makes you feel better!

#22 DON on 11.14.20 at 12:48 pm

What bet is Crowded honouring?

#23 FreeBird on 11.14.20 at 12:55 pm

More fun facts for what it’s worth at this point (arguable I’m guessing). I’ve had no dog in the race so just for interest on a quiet Saturday but then back to RE and the market and the virus.

https://lawandcrime.com/2020-election/trump-campaign-lawyer-admits-to-judge-our-search-for-evidence-of-fraud-produced-obvious-lies-and-spam/amp/

https://www.jurist.org/news/2020/11/federal-judge-dismisses-trump-libel-lawsuit-against-cnn/

On a side and prob more interesting note given Doug’s post today. Seems complicated but I’m far from an expert on memorabilia. Maybe Doug can sell fractional sales in his shoes (there was a post about them?) or cards if he has them.

https://www.sportscollectorsdaily.com/collectable-offers-fractionalized-ownership-of-valuable-sports-memorabilia/amp/

#24 crowdedelevatorcoughz on 11.14.20 at 12:55 pm

I’m (cough! cough!) Baaaaaaaaaaccccckkk!

Cough, cough, cough!! Mind if I squeeze into your elevator with you and head down to the Path to say hi to – cough! cough! – Garth?

The next wave should be – cough! – awesome!

Looking forward to spending indoors time with all – cough! cough! cough! – of you blog dogs!

#25 DON on 11.14.20 at 1:01 pm

#13 Penny Henny on 11.14.20 at 11:25 am
#5 FreeBird on 11.14.20 at 11:07 am
Fun fact: Tom Selleck aka Magnum PI spends most of his time with his wife on their CA ranch.
/////////////

Did you ever notice that in almost every episode he either had on a bandage, band-aid, cast or

***********

Will keep that in mind…and thanks for the remind. Love that show.

#26 FreeBird on 11.14.20 at 1:01 pm

#13 Penny Henny on 11.14.20 at 11:25 am
#5 FreeBird on 11.14.20 at 11:07 am
Fun fact: Tom Selleck aka Magnum PI spends most of his time with his wife on their CA ranch.
/////////////

Did you ever notice that in almost every episode he either had on a bandage, band-aid, cast or sling.
——————
He was always saving clients (women) so all in a days uh work. ; ) I never did see much of blue bloods but may watch a few now. Thx Doug.

#27 Big Guelph Fan on 11.14.20 at 1:05 pm

I agree with Yukon and Dr V. Blue Chip Canadian dividend growers is the way to go…specifically Connolly’s TULFs

#28 Prince Polo on 11.14.20 at 1:07 pm

#18 D.D. Corkum on 11.14.20 at 12:17 pm

Maybe they just subscribe to the RSS feed, so they know when something’s been posted?

============================
AMAZING!! Thanks for clarifying. I’ll stop refreshing like a loser now… :)

#29 Econ 101 on 11.14.20 at 1:08 pm

“I presume my readers have regular jobs or at least busy lives…”

Aww the subtle jabs at modern day socialism. How refreshing!

Thanks Doug, great post.

#30 Tommy on 11.14.20 at 1:10 pm

Can someone PLEASE answer my question. Why is it that Canadian conservatism is so indifferent and sometimes outright hostile toward Vancouver? I have been trying to walk away from the Left since before Trump became president, but I am not received well by conservatives. I try to speak about the hardships globalism, mass immigration, and loose monetary policy have caused for working people in Vancouver yet I am stymied by conservatives at every turn. I refuse to go back to the Left. But I don’t feel comfortable with the Right either.

Blog dogs on here may or may not like Rebel News. Whatever your opinion is towards Rebel News, there is no denying that it is a (far) right alternative Canadian media outlet. They feature daily updates from Melbourne, Australia but maybe only a handful of mostly underwhelming reports from Vancouver every week. They have more sympathy towards Melbourne than they do towards Vancouver. It can’t be because of oil politics because people in Melbourne are even more unhinged about climate change than people in Vancouver.

Similarly, I have noticed many Canadians are more aware of the social disorder in San Francisco than they are about the social disorder in Vancouver.

So why is it that Canadian conservatives consistently display more empathy to other parts of the Pacific Rim other than Canada? Why do they sympathize with people in Melbourne but not with people in Vancouver.

Melbourne does nothing for Alberta. Vancouver actually does a lot. Alberta would be in deep trouble if the Port of Vancouver shut down.

Rebel News has even been recognized by Australian parliament for its excellent reporting on Melbourne. Why are they so obsessed with Melbourne, Australia??? When will Vancouver get the same or even similar attention and empathy from Canadian conservatives??? I really want to know.

#31 James H on 11.14.20 at 1:16 pm

60 individual stocks to diversify away unsystematic risk? This doesn’t make sense. There are only 30 companies in Dow Jones. However, Dow Jones index performs about the same as S&P 500 or Russell 2000 in the past serval decades. And you are saying S&P 500 or Russell 2000 can diversify away unsystematic risk, while Dow Jones index can not?

#32 Penny Henny on 11.14.20 at 1:18 pm

#15 Sail Away on 11.14.20 at 11:32 am
#10 Penny Henny on 11.14.20 at 11:15 am

Hey Fartzy. It’s been a week, as far as I’m concerned you held up your end of the bet.

Oh, and Sara misses you.

————–

I miss Fartz too.

But… if you really feel strongly about it, maybe your friend coughz can fill in during the interim.
///////////////

Hey I’m all for getting Doug to the century mark in comments but what the hell are you talking about.

#33 tbone on 11.14.20 at 1:26 pm

Yep , blue chip dividend paying stocks are what i do.
I can live on the cash flow they produce and i have a balanced and diversified account with the [email protected] .
She actually keeps me from migrating to a more risky
situation. ( but i did buy 50K of a global small cap fund this week on my self directed account )
The principle may fluctuate with the blue chips, but no worries as the payout remains the same.

#34 Firsttimer on 11.14.20 at 1:28 pm

Although TD Eseries funds aren’t fractional shares and are mutual funds, what are your thoughts on someone using them like Canadian couch potatoe outlines?

#35 TurnerNation on 11.14.20 at 1:34 pm

The reasons for the lockdowns and economic reset and #stayhome (which they are doubling down on now) is training for us. The plan is clear. No mobility. No travel.
Only your open air UN “Smart City” tax fam kamp.
Remember all media now serves as predictive programming. There is no more news.

Our global elites are in the process of economically bom’bing his back to the stone age. Get out your rickshaws. The two new global religions set to implement the plan: CC and CV. Both are omnipresent, all-seeing and threaten you 24/7. One slip up in your daily protocols and people will dy!!

https://www.bloomberg.com/news/features/2020-11-12/paris-s-15-minute-city-could-be-coming-to-an-urban-area-near-you?

With climate change, Covid-19, and political upheaval all challenging the ideals of globalism, the hope is to refashion cities as places primarily for people to walk, bike, and linger
….
Named Paris Mayor Anne Hidalgo’s special envoy for smart cities, Moreno has become a kind of deputy philosopher at City Hall as it endeavors to turn the French capital into what he calls a “city of proximities.” His 15-minute concept was developed primarily to reduce urban carbon emissions, reimagining our towns not as divided into discrete zones for living, working, and entertainment, but as mosaics of neighborhoods in which almost all residents’ needs can be met within 15 minutes of their homes on foot, by bike, or on public transit. As workplaces, stores, and homes are brought into closer proximity, street space previously dedicated to cars is freed up, eliminating pollution and making way for gardens, bike lanes, and sports and leisure facilities. All of this allows residents

#36 Looking up on 11.14.20 at 1:45 pm

#16 Ace Goodheart on 11.14.20 at 12:02 pm
Sitting here for another day of watching the world burn.

I can’t be hurt by this situation, unless I actually catch COVID (but I take 3000 uI of vitamin D per day so that is unlikely).

We own the house. Have many diversified investments. Wife is in essential services. She walks around social distance lines, is not subject to quarantine or stay at home orders. I am independently wealthy.

I feel like that scene in “Hitch hiker’s guide to the Galaxy” where you can sit in the Cafe and watch the Universe end, over and over again, untouched by the experience but tragically participating in it.

I have a friend who is a pilot. He is now flying for free. He has to. If he does not fly, he will lose his type rating and his instrument rating. He has to take off and land so many times per month in order to be able to take passengers. Type ratings are limited duration. An instrument rating has to be used.

He is paying for fuel, to fly for free. He is borrowing money to do that. They give him “time” on the aircraft for nothing.

Can you imagine, having to borrow money so you can do your job for free? Welcome to the commercial pilot profession during COVID.

Have another friend who runs pubs. I guess you know where this is going. He is currently millions of dollars in debt. All three of his pubs are closed. Probably forever. But he can’t get out of the leases.

He has declared bankruptcy and gone to work for Amazon. They pay $19.00 per hour. He is able to feed himself while he lives with his parents.

He used to be a millionaire.

I know people who have killed themselves (or I used to know them).

Toronto is headed into a hard lock down that will probably be off and on, throughout the winter.

Watching the world burn. Still sane, but getting sadder.

———————

Real estate is still insanely hot though.

#37 Doug Redford on 11.14.20 at 1:50 pm

Apple went bankrupt before and now has reached 100 billion US in debt. Their debt, bonds are not at 0.35% to 1.63% like US treasuries. Most of their debt is 3.5% to 4%+. They will continue to borrow big in coming years.

They do have 300 billion US currently cash but a few bad years in business and that can easily be drawn down fast. People have to be careful about mid to longer term corporate bonds.

#38 Charity on 11.14.20 at 1:54 pm

#banApocalypse2020
#missSmokey

#39 Tommy on 11.14.20 at 2:00 pm

Stan Brooks commented under the previous post, saying:

The expectations of rapid revitalization of the big city living is a large stretch. People emptied Paris to flee to the country site just before the lockdown. But GTA will resist? I think we overestimate the ability of increasingly less intelligent and brainwashed populace to defy economic laws by sheer stupidity and persistence.
*****************************

That is pure gold. The last sentence says so much so concisely: We overestimate the ability of dumb rubes to defy the laws of economics.

ABSOLUTELY. That’s basically what the likes of Garth Turner and others are doing when they talk about getting back to normal with respect to urban living and working.

#40 Elon Fanboy on 11.14.20 at 2:08 pm

#16 Ace Goodheart “ Watching the world burn. Still sane, but getting sadder.”

Always enjoy your posts…

As #40 said yesterday, Governments have had 9 months to prepare for the next waves. They could have double/tripled/quadrupled medical capacity in those months so the 99.96% of us who will be fine can live a relatively normal life? But they haven’t.

Instead it’s all our fault. Constantly berated and scolded for not doing enough to avoid a virus a few microns wide, while entire industries are slowly imploding.

#41 FreeBird on 11.14.20 at 2:11 pm

I know someone who based on their advisor cashed out in Sept at the ‘top’ and waiting for a good low to buy back in. Hard to fathom based on gains from our 60/40 portfolio. I’m curious how the two methods compare returns wise. Can timing the market for avg investors esp w/help from an advisor payoff? Seems more stressful then just staying in. A 2004 study found “less than 20 percent of day traders earn profits net of transaction costs.” Maybe the number has changed w/trading apps? I’ve read only a small % of even professional/experienced traders are successful. Our advisor def isn’t in the cash out/time the market camp and it’s worked out nicely.

#42 FreeBird on 11.14.20 at 2:14 pm

Forgot to link the study on traders:

http://www.econ.yale.edu/~shiller/behfin/2004-04-10/barber-lee-liu-odean.pdf

#43 Barb on 11.14.20 at 2:20 pm

Like with any slice–pie or pizza–we always want, and need, more.

#44 yvr_lurker on 11.14.20 at 2:26 pm

#16 Ace
I have a friend who is a pilot. He is now flying for free. He has to. If he does not fly, he will lose his type rating and his instrument rating. He has to take off and land so many times per month in order to be able to take passengers.

——
I have a childhood friend who has been a 777 pilot with Emirates for about 15 years, and based in Dubai. Is now doing cargo runs all over the planet to recoup some of the lost income as he is the sole breadwinner and has big expenses. He is gone over 20 days a month and making much less than before, but is grateful to keep up the hours and skills.

In the spring we had a debate where you were adamant in comparing Covid to the Flu. Looks like you have even changed your tune. It is all playing out the same way as in 1918. The second wave for the Spanish Flu was the worst. Just have to make it to the spring when the vaccines starts rolling out. Even if they are only 50% effective (I do not believe the 90% figure) and need to be updated each year (most likely) it will slowly get better. The Spanish flu was around for 5 years, decreasing in intensity each year. This is likely to be the same way with COVID….

#45 Doug Rowat on 11.14.20 at 2:31 pm

#5 FreeBird on 11.14.20 at 11:07 am

Fun fact: Tom Selleck aka Magnum PI spends most of his time with his wife on their CA ranch. It incl a big avocado orchard which he claims to enjoy getting his hands dirty with. I believe it but not without a cigar and glass of something like good scotch watching the sunset. Yeah I was a fan.

—-

I think we can all hum a few bars of the opening. RIP Higgins.

—Doug

#46 Dogman01 on 11.14.20 at 2:32 pm

#30 Tommy on 11.14.20 at 1:10 pm

“I have been trying to walk away from the Left since before Trump became president, but I am not received well by conservatives. I try to speak about the hardships globalism, mass immigration, and loose monetary policy have caused for working people”
“But I don’t feel comfortable with the Right either.”

——————————————————

Welcome to my dilemma Tommy. Personally I am “White Cat, Black Cat – as long as it catches the mouse” pragmatist.

The Left has left me long ago on Social issues, the left are the only ideology (that the mainstream seems to accept) that is allowed to divide, categorize, and treat human beings differently based upon race, ethnicity, religion, and gender.
Their brand of racism and sexism is a Non-Starter and they seemed to have dumped Labour overboard for Green Issues.

Now the right, especially here in Alberta are a bunch of small minded ideologues, they had 40 years to turn Alberta into a Conservative Paradise and look at the mess we are in….Alberta Conservatives Bozos.

The issue in Canada is the declining standard of living due to:

• Wage earners Competing against more labour supply, via Globalization & Immigration
• Less global demand for “workers” – via Technology
• The “Red Queen” problem of wages up against Inflation

Add in the Security threat of the totalitarian trajectory of China

Recently I saw Erin Otoole speak about some of this but in general Globalist Free Trade conservatives have had little attraction for me.
https://nationalpost.com/news/politics/otoole-calls-for-better-conditions-for-workers-slams-outsourcing-to-china-in-speech

Red Tie Blue Tie – they don’t address the fundamental foundational issues of increasing per capita prosperity for citizens.

#47 baloney Sandwitch on 11.14.20 at 2:36 pm

Good article on diversification. Diversification is one of the few “free lunches” offered in the financial markets. Stock slices do look like a dumb idea. There is also the risk of a slice sponsor going out of business or suffering from a computer malfunction.

#48 Doug Rowat on 11.14.20 at 2:42 pm

#31 James H on 11.14.20 at 1:16 pm

60 individual stocks to diversify away unsystematic risk? This doesn’t make sense. There are only 30 companies in Dow Jones. However, Dow Jones index performs about the same as S&P 500 or Russell 2000…

—-

Performance is not risk.

—Doug

#49 Penny Henny on 11.14.20 at 2:53 pm

#34 Firsttimer on 11.14.20 at 1:28 pm
Although TD Eseries funds aren’t fractional shares and are mutual funds, what are your thoughts on someone using them like Canadian couch potatoe outlines?
///////////////

That’s how I got started.

#50 The Great White Socialist North on 11.14.20 at 2:57 pm

In the spring we had a debate where you were adamant in comparing Covid to the Flu. Looks like you have even changed your tune. It is all playing out the same way as in 1918. The second wave for the Spanish Flu was the worst. Just have to make it to the spring when the vaccines starts rolling out. Even if they are only 50% effective (I do not believe the 90% figure) and need to be updated each year (most likely) it will slowly get better. The Spanish flu was around for 5 years, decreasing in intensity each year. This is likely to be the same way with COVID….
=================================

OMG…comparing Covid 19 with the Spanish Flu, after 9 months of real data available.

Did some people actually finish primary school? Are they numerate, I wonder ?? ROTFL

There’s no hope for intellectually challenged people or for humanity…I feel sorry for the human species.

This is what GOOGLE0=GAGGLE..lol says.

“Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.
Most people who fall sick with COVID-19 will experience MILD to MODERATE symptoms and recover without special treatment”

Spanish Flu MY ASS.

#51 Born in Hamilton on 11.14.20 at 3:01 pm

#31 James H

All 30 companies in the Dow are also represented in the S&P 500, but with the additional 470 companies added obviously have a smaller weighting in that index. As Martha Stewart would say.. “That’s a good thing”.

#52 Dan Munson on 11.14.20 at 3:12 pm

I think the perfect song for the this year 2020 is everybody wants to rule the world. This is especially true with power hungry, control freaks, left leaning, socialist, communist, marxist, liberal, NDP, Green Party, Democrat, Labour party etc.

#53 LesserApe on 11.14.20 at 3:16 pm

Funny that the Y-Axis isn’t labelled on that chart. It makes it meaningless because, if you own 20 companies today, it’s unclear whether owning an additional 40 companies will reduce risk by 0.1% or 50%.

The actual answer is that 20 stocks in different sectors is roughly what you need to eliminate most systematic risk: 56% of risk is eliminated by owning 20 stocks, and you can only up to 61% by owning 200+ stocks:

https://icfs.com/financial-knowledge-center/risks

So, Doug’s argument isn’t actually a strong justification for using ETFs. You can get almost all of the benefits of diversification by owning 20 stocks (in different sectors —that part is important). There are great reasons for owning ETFs, but this isn’t one of them.

(I don’t like it when information is presented in a way that encourages people to form incorrect views of how the world works. I think life gets better for everyone if we all try to presents accurate information fairly.)

#54 Steerage on 11.14.20 at 3:39 pm

That’s not a terribly informative graph…. looks like something Trump drew with his sharpie.

#55 Homer from the Simpsons on 11.14.20 at 3:42 pm

The best part of Toronto is when the plane leaves the tarmac:

https://www.youtube.com/watch?v=hIHz8ZuG2dI

#56 Bill on 11.14.20 at 3:47 pm

Im pizzad out ate it all week!
Ive got a a bullish turn in the Weekly Indicator, with a new and far higher pivot now at 28930 for the DOW. Rarely wrong. PM stocks will go far higher starting nowish.
Im up 100 to 200 points on these since March.
The most corrupted election ever.
Market sure not pointing at a fully controlled Demo setup.
Its far from over the senates close to a tie.
Better hope so ss the Dems socialist adgenda is bad for business period.

#57 JSS on 11.14.20 at 3:52 pm

I have the TD e-series S&P500 hedged mutual fund. TDB902. Had it for a few years now. Has done well with around 13% annual return. Reasonably low mer and diversified in the US. This fund allows fractional share purchases through TD direct investing. No fees to buy. The trick is to buy monthly regardless of the price. Over the years, the return is decent but you gotta play the long game. The fractional share purchase help.

#58 SOMETHINGS UP! on 11.14.20 at 4:00 pm

WHO THE HECK is Tom Selleck??

Some washed up actor from the 50s?

#59 justdeleteitifyoudontlikeit on 11.14.20 at 4:17 pm

“The actual answer is that 20 stocks in different sectors is roughly what you need to eliminate most systematic risk.”

Yep. And, if you buy the super-duper-diversified S&P 500, Apple, at 6.5% weight, is 1/15th of the index, or what you’d own if you had an equal weight 15 stock portfolio. Unsystematic risk… with fees! True diversification probably means owning an equal weight index — but I pity the financial advisor who’s selling THAT advice this year… The S&P has been walloping the performance of its equal weight counterpart.

#60 yvr_lurker on 11.14.20 at 4:17 pm

#50 The Great White Socialist North
——————

675K died in the U.S. from the 1918 epidemic over the entire period, out of a population of around 105Million. Projections are for between roughly 450K — 580K deaths by the end of the winter in the US out of a population of 325Million (even with all the advances in medical care and knowledge since 1918). True, for most younger people it may not be so bad, but the scale of all in the US and worldwide certainly warrants a comparison to 1918. Let’s see where we are in April…

#61 westcdn on 11.14.20 at 4:46 pm

Imo, the American pollical system worked as it was designed to do. Yes, razor thin results and many complaints. I do not wish Toronto and a compliant Cdn
Senate on them. In my view, abolishing the electoral college is dumb. I don’t think Texas will stand having Cali/NY telling them what to do. Our neighbors are called the United States for a reason and a Federal Republic. I have faith in the people.

Good to hear people are doing well with their investments. I got wacked, Patty, last spring. I am working my way back and the road ahead still remains. I will put it behind me.

#62 Ace Goodheart on 11.14.20 at 4:47 pm

RE: #50 The Great White Socialist North on 11.14.20 at 2:57 pm

“Spanish Flu MY ASS.”

The Spanish flu was way worse than this.

This virus kills old people. Over 80% of the deaths in Canada come from LTC homes ie octogenarians.

The smart way to deal with this would have been firewall the LTC homes and everyone else goes about their lives.

Then when a vaccine arrives, just vaccinate the LTC folks. They don’t go out much anyway, so they would not really notice having to “stay at home” that is kinda what they mostly do.

Instead, we have these “rotating lockdowns” that are destroying people’s finances, mental health, and causing all sorts of problems, like suicides, career and business destruction, broken homes, there is a ton of domestic violence now, much of it alcohol fueled, that didn’t exist before the lock downs started.

And still, we have mass deaths in LTC homes. Like, that is the only place where people are at risk, and they ignore that.

#63 Bill on 11.14.20 at 5:03 pm

Doug did you build that model all by yourself?! Lol
Ya Sick of pizza the wifes on the low carb diet so that only exacerbated my problem. Thank god for slices eh!? I would have had to eat the whole pie in one sitting rather than piece mailing it from the fridge all week.

Thanks I was unaware of sliced shares and No bloody thank you.
If you cant afford a share then maybe one should not be in the game.
I guess regulators will do pretty much anything to get the unsuspecting involved.
Reminds me of BNS ad propagand. “Your richer than you think”
Shows someone in the overpriced condo probably maxxed on their mortgage day trading on their laptop. Ya that works…not.
Were in for some volitility but things are pointing higher.
If we get smack be thankful and add. Always keep some cash!
Have a good weekend i just mowed my leaves with the rideon. I hate raking!

#64 Doug Rowat on 11.14.20 at 5:05 pm

#53 LesserApe on 11.14.20 at 3:16 pm
Funny that the Y-Axis isn’t labelled on that chart. It makes it meaningless because, if you own 20 companies today, it’s unclear whether owning an additional 40 companies will reduce risk by 0.1% or 50%.

The actual answer is that 20 stocks in different sectors is roughly what you need to eliminate most systematic risk: 56% of risk is eliminated by owning 20 stocks, and you can only up to 61% by owning 200+ stocks:

https://icfs.com/financial-knowledge-center/risks

So, Doug’s argument isn’t actually a strong justification for using ETFs. You can get almost all of the benefits of diversification by owning 20 stocks (in different sectors —that part is important). There are great reasons for owning ETFs, but this isn’t one of them.

(I don’t like it when information is presented in a way that encourages people to form incorrect views of how the world works….)

—-

You don’t like incorrect views of how the world works? This comment section must drive you insane. Such a masochist.

I’ve seen the competing views on diversification, but even if you split the difference and make it 40, Schwab still comes up short.

Then, of course, how do you create a global portfolio? Hand pick your Japanese, Chinese or European equities as well?

—Doug

#65 Phylis on 11.14.20 at 5:29 pm

#58 SOMETHINGS UP! on 11.14.20 at 4:00 pm
My goodness, he’s a manly hunky man with a cute stash and shorts.

#66 Phylis on 11.14.20 at 5:35 pm

And yuck, who took a bite of the pizza and put it back on the board. That’s just gross.

#67 Oracle of Ottawa on 11.14.20 at 5:37 pm

Nice blog Doug. I saw those ads from Schwab and I think it’s genius. Get people who know nothing about investing to think they can get rich by buying slices of stocks. Just another version of Robin Hood investing and making money off the masses. Which we’ve already mentioned on this site are financially illiterate.

#68 wallflower on 11.14.20 at 5:44 pm

yep I’m up over prepandemic level in portfolio with only two minor coincident changes late spring… dumped half the bond holdings and all the US focus/direct holdings… bought global platform not too conservative mixed bag fund

yep thinking is now a good time to dump some more to cash? and hang in cash for a bit

let’s see how I sleep

#69 Sceptic on 11.14.20 at 6:19 pm

The current death rate in Canada from Covid is 0.000286 percent. Trudeau says if we act now we can still have a shot at Christmas. Am I missing something or is my math wrong.

#70 Nonplused on 11.14.20 at 7:22 pm

Isn’t an ETF essentially “slices”? Not that I am a proponent of “slices”. Just one more financial product they conjured up with a margin embedded in it.

The FIRE economy is just 2% on 2% on 2% on everything. Maybe you can find a fund that is only 1% but there it is.

But nobody who cannot afford a single share of Amazon should be playing with shares. Berkshire maybe but you are looking at $342,000 a share. Funds that sold “slices” of Berkshire were some of the first in this area I believe, because Warren just won’t do a split. Berkshire might actually be considered a mutual fund all on its’ own, but $342,000 is a big chunk for most retail investors to put in a single ticker symbol.

#71 Dr V on 11.14.20 at 7:31 pm

57 JSS – 2 different things. Are you referring to fractional units of the fund?

#72 the Jaguar on 11.14.20 at 7:36 pm

‘Thank god the US presidential election’s over.’ -Doug.

Oh Doug, it’s never over until it’s over and I have not yet heard the fat lady sing.
Never in recent history has it been so incredibly important to examine the lessons of the past. The problem, or perhaps the ‘advantage’ for some is that there are so few among us who remember the past or even pay reasonable attention to the present.

What a magic carpet ride. Not the usual ride, but one that really represents the proverbial ‘fork in the road’.

Those who have been paying attention, ear to the rail, listening to the signals above the rabble, strategic planning, etc., will emerge from the crisis.

‘It is only with the heart than one can see rightly. What is essential is invisible to the eye.’ You know the quote. The Little Prince guy………..

#73 Re: Tom Selleck on 11.14.20 at 7:41 pm

Quigley Down Under was perhaps his best work.

“I said I never had much use for one. I didn’t say I didn’t know how to use it.”

And how do this topics come up?????

#74 KAC on 11.14.20 at 8:01 pm

“ Thank god the US presidential election’s over.”

Sorry, but the Electoral College has not voted yet. Despite Biden’s assumed lead, the election outcome remains to be determined and yesterday’s events suggest that everything is about to undergo a sea change.

I’m guessing you haven’t seen the comments from Trump Legal Team lawyer, Sydney Powell, about “releasing the Kraken”, or Congressman Ghomert’s revelations about the reports of yesterday’s mystery shrouded raid on the Frankfurt offices of Scytl.

Here’s a bit of the early information:

Did the US Raid European Software Company Scytl and Seize their Servers in Germany? — Our Intel Source Says YES, IT HAPPENED! | The Spectator |

Here’s a link to the story which is currently lighting up the internet. It may well be false, like Biden’s “Office of the President Elect” silliness, but if it’s true it’s the end Biden and his election hopes.

https://thespectator.info/2020/11/14/did-the-us-raid-european-software-company-scytl-and-seize-their-servers-in-germany-our-intel-source-says-yes-it-happened/

#75 mrmomar on 11.14.20 at 8:02 pm

Doug – why didn’t you mention ETFs as a viable alternative? Seems like you missed an opportunity to educate less-savvy readers on how to attain a BDP without 60 stocks.

#76 Goalies a Crazy on 11.14.20 at 8:15 pm

#55 Homer from the Simpsons on 11.14.20 at 3:42 pm
The best part of Toronto is when the plane leaves the tarmac:

https://www.youtube.com/watch?v=hIHz8ZuG2dI

————————————–

Ya, Pareto applies to dating too.

https://en.wikipedia.org/wiki/Pareto_distribution

Sorry folks you can’t get away from these exponential curves in nature and no we were not all created equal (except under the law and in the eye of Dog).

Chris Pratt will always have more dating opportunities than I could ever imagine. Jennifer Lawrence will run out of dating opportunities soon, although she has lots now. It is just how it works. Men aren’t attractive until they have money and power. Women aren’t attractive after the baby cycle is over. Nature is nature.

So don’t worry about them dating apps. They aren’t doing anything that hasn’t gone on since time immortal. I got rejected lots before you could swipe left or right. It was more hurtful because I had to get rejected in person, by girls that turned out to have made a poor decision.

A particularly crazy goalie I played with (soccer, not sex) explained it to me at a particular soccer tournament. He was English. And crazy as a bat. But a good goalie. I think they go together. But anyway, his method was pure. “If you want to get laid, start with the prettiest woman in the bar, and every 5-10 minutes go down 1 on the 1-10 scale. Eventually you will get a hit.”

He did get a hit and the woman dropped him back at the hotel the next day. Most of the rest of us, actually I think all of the rest of us, struck out.

I think the major problem with online dating is that it makes you feel like you can custom order your perfect sex doll, without considering all of the other factors that make a relationship work. And yes men you are doing it too when you get frustrated that the 9’s and 10’s and complete smokeshows won’t date you. Date Penny if the 10’s aren’t lining up. Socialism can never fix this. Socialism will never mean we can all have a 9.

#77 Out Of Work CEO, Will Travel on 11.14.20 at 8:17 pm

The up side to trading ETF’s using a broker can be the “no commission”. Of course, your ETF’s plant you where you need to be. The American discount brokers are the best for “no commish” as Schwab and TD Ameritrade are soldiering together with the now new Hip no commish. TD in Canada has not warmed up to lifting their skirt above the knee.

#78 Ronaldo on 11.14.20 at 8:41 pm

My 62/38 Balanced Fund is up 11.03 YTD net of fees. No rebalancing necessary, stress free, low fee. Just sit back and let the managers to their magic.

#79 TurnerNation on 11.14.20 at 8:53 pm

Good news for Toronto small business owners, Last Call was to become 9pm but suddenly it’s back to 11pm.
The science JUST now changed.
Isn’t science a-m-a-z-i-n-g.
By now you should know why this is happening. The
New System is prison-slave rules. Harsh, contradictory and ever-changing. Keeping us confused, weakened and off balance. There is but one driver to your life now: The #s on the telescreens. We no longer need democracy.
Small business owners might have a heart attack over all this. Call 911 and you might be put on hold, I know people who’ve called; add in the nightly mass shooting in the GTA and you’ve got time to spare.
Please leave a message at the beep.

#80 Spectacle on 11.14.20 at 10:01 pm

For some reason, I looked into the blog and felt comfortably reassured that Doug Rowat was at the helm this evening.

A nice exloration , on a them, to define risk to a portfolio. It’s truly an amateur move to make an investment “complicated”. Thanks for the slice of extensive wisdom ( & risk management) Doug.

Thanks Garth & Doug.

#81 Sara on 11.14.20 at 10:09 pm

Donald Trump claims Biden and Democrats are stealing the election and suggests to state legislatures to literally steal the election for him. You can’t make this stuff up.

https://www.cbc.ca/news/world/trump-biden-states-senate-electors-1.5802587

#82 Rexx Rock on 11.14.20 at 10:20 pm

Down here in Puerto Vallarta and its great. No cruise ships and way less tourists. Still lots of Americans ,no quarantine for them. Lots of business are suffering.
Found a 1 bd for 650 usd.Good area and a 10 minute walk to Los Muertos beach. Tall cans a beer for 1 cad,gotta love it.
I’m still a little afraid of covoid but I’m careful and have insurance. A young British guy upstairs from me got covoid in Guadalajara. He got over it in 5 days. Not going there. PV is a nice place to escape the winter quarantine !

#83 Also in Cowtown on 11.14.20 at 10:44 pm

#70 Nonplused

Berkshire might actually be considered a mutual fund all on its’ own, but $342,000 is a big chunk for most retail investors to put in a single ticker symbol.
———–
Actually, you can buy the “B” shares – BRK.B which closed Friday at $227 and change.

#84 calgaryPhantom on 11.14.20 at 10:52 pm

It goes something like this…”when your barber is talking about investing in stock market and recommending stocks, it’s time to sell”

Lots of people around, me who had no idea about markets, are now all of a sudden talking about buying Amazon,Tesla and fastly stocks..

After recovering from Covid losses and making decent % return for the year, i am slowly selling into this rally…. things are just way too disconnected from reality…

Going to sizeable cash position until February next year

#85 Stan Brooks on 11.14.20 at 11:01 pm

Portfolios are up. But why when we are apparently in the biggest health crisis of a century, with huge economic contraction and major business disruptions?

Is it organic growth or simply flight away from the ‘close to junk’ the currency has become?

And how exactly is that portfolio different than the housing mania ‘investments’, how can we expect to continue getting something from nothing /or a very little/ given the current economic trends: automation, outsourcing, move towards green energy and less consumption.

Where will the growth and expected post-virus boom come from, where are the future consumers and where would the demand for highly paid white color jobs come from?

Are we near the end of a larger economic cycle with revolutionary economic changes sold to the public as something normal, part of the normal business cycle?

Judging by the trend with the interest rates, the key driver of economic activity from the past, it certainly seems so.

It seems the policy of giving abundant credit to the debt slaves, showing them the carrot, the dream and then to beat them to death to pay it back has exhausted it’s capacity, especially in the environment of resource constraints that are now becoming more and more evident.

When the smokescreen disappears and the music stops
many will be surprised of how life that we are used to would have changed irreversibly and the impossibility of moving ‘back to normal’ becomes clear.

Sure, for a very few it will.
Like going back to normal life after the revolution in Russia. With entirely changed economic system.

———————————————

Is the constant uncertainty due to intentional policies as Turner Nation implies or just the tremors notifying us of the coming collapse of the building that was poorly built and maintained and can not withstand major storms any more?

Hard to tell, but when it happens the reasons won’t really matter.

And the collapse does not need to be sudden, one day you will just wake up and realize that all you get in exchange of your taxes and long years pension contributions is gas money at times when gas consumption is taxed prohibitively, some GMO crap courtesy of the powerful dictator/politician of the moment + endless fees and penalties to discourage you from consumption that can pollute the clean environment of the rich who sail on their eco yacht and enjoy their French villas in the Mediterranean.

Nothing new under the sun, just the times of extensive labour demand are over.

Suck it up and move on.

Oh boy, didn’t that feel good.

Cheers,

#86 JSS on 11.14.20 at 11:03 pm

#71 Dr V

Yes, referring to fractional units of the mutual fund. Sorry

#87 Stan Brooks on 11.14.20 at 11:18 pm

Typo. White collar jobs.

#88 My name is Mudd on 11.15.20 at 12:33 am

#19 Yukon

Good plan. Next question, how do adjust your beta? There are times when issues in my quiver have doubled , tripled etc, and I say to myself ” Why didn’t I just put it all in that”? Well, I know why. But to adjust your holdings accurately, tis a mindfooker. I am Beta 1-1, and some days are more spectacular than the days that aren’t.

My wife has often said “Why not just buy the stocks that go up”? Now there’s a plan.

#89 Sara on 11.15.20 at 1:15 am

Now, this has got to be one of Mr. President’s most idiotic moments(discussing COVID-19): “And then I see the disinfectant where it knocks it out in a minute. One minute. And is there a way we can do something like that, by injection inside or almost a cleaning? So it’d be interesting to check that.”

Pointing to his head, Mr Trump went on: “I’m not a doctor. But I’m, like, a person that has a good you-know-what.”

#90 justdeleteitifyoudontlikeit on 11.15.20 at 1:26 am

I’m guessing you haven’t seen the comments from Trump Legal Team lawyer, Sydney Powell, about “releasing the Kraken”

*400 billable hours later*

Sir, our kraken [craven? ed.] strategy was shot down in court in 7 states. I suggest we pivot to JUXTAPOSE THE NARWHAL. Do you concur?

#91 Nonplused on 11.15.20 at 1:56 am

#83 Also in Cowtown on 11.14.20 at 10:44 pm
#70 Nonplused

Berkshire might actually be considered a mutual fund all on its’ own, but $342,000 is a big chunk for most retail investors to put in a single ticker symbol.
———–
Actually, you can buy the “B” shares – BRK.B which closed Friday at $227 and change.

—————–

Agreed, but how does that detract from my point?

I guess the overall point of the conversation is that partial shares, whether they be useful or not, is just a way of getting retail investors or speculators into these things when they otherwise could not afford it. It is when the sled dogs figure they can ride the sled that the scam is up. The sled won’t go any further.

#92 Jim Lutz on 11.15.20 at 6:07 am

worst looking pizza ever

#93 Junior on 11.15.20 at 7:32 am

#82 RexRock

Interested in hearing more about what’s happening on the ground in Mexico. Dangerous ? secure complexes? broadband , shakedowns? etc. Any info appreciated. Any really good honest community blogs ? What are the best areas. I’m not looking for cheapest. Residence req?

#94 Dharma Bum on 11.15.20 at 10:25 am

Mmmmmmm….pizzzzzzzaaaaaaa……

I’ll have a tranche, or three, please.

Just pick those disgusting olives off first, though.

Thanks.

#95 The Totally Unbiased, Highly Intelligent, Rational Observer on 11.15.20 at 10:35 am

“Trump lost. That conversation is over.” – Garth

The FACT is that the final official USA election result is not yet in.

Like a US Navy SEAL, the great Commander in Chief Donald J. Trump is never out of the fight.

The Philosophy of the U.S. Navy SEALs:

I will never quit. I persevere and thrive on adversity. My nation expects me to be physically harder and mentally stronger than my enemies. If knocked down, I will get back up, every time. I will draw on every remaining ounce of strength to protect my teammates and to accomplish our mission. I am never out of the fight.

#96 Dr V on 11.15.20 at 11:18 am

86 JSS – you did get me thinking. Is it possible that a fund could be created that only owns stock in one company?

#97 Oakville Rocks! on 11.15.20 at 11:29 am

@95 Like 45 you are equally delusional.

How ironic that you would compare cadet bonespurs to a Navy Seal. A president as impudent as bonespurs, disrespecting McCain, gold star families and all who choose to serve in the military by calling them suckers is hardly the material of a Navy Seal. As Trump said himself.. public service what’s in it for me?

For the Seals it is called tenacity. For bonespurs it is called petulance.

I love that your blog name is so aspirational… keep trying, one day one of your posts might achieve one of the three.

#98 Doug Rowat on 11.15.20 at 11:32 am

#75 mrmomar on 11.14.20 at 8:02 pm
Doug – why didn’t you mention ETFs as a viable alternative? Seems like you missed an opportunity to educate less-savvy readers on how to attain a BDP without 60 stocks.

—-

That’s frequently what I do here.

I feel like Billy Joel being called on to play Piano Man.

—Doug

#99 justdeleteitifyoudontlikeit on 11.15.20 at 12:51 pm

Rowat posts 99th comment, hopes some sympathetic reader will put him over the line.

#100 Bill on 11.15.20 at 1:05 pm

#81 Sara on 11.14.20 at 10:09 pm
Donald Trump claims Biden and Democrats are stealing the election and suggests to state legislatures to literally steal the election for him. You can’t make this stuff up.
——————–
CBC and their billion dollar subsidy is a clear and present danger to the health and fredoms of our nations. No real accurat reporting of the news.
On radio they parade the leftist through non stop..After years of bias reporting they are shut down in my house hold.
Think not you say…check out their track record of reporting on Trudeau.
Pathetic. Find an independant not a state owned outfit.
The truth will set you free. Epoch is a good start.
To bad i get no say where they piss away my tax dollars.

#101 Bil l on 11.15.20 at 1:35 pm

Asias markets are outperforming some hitting all time highs.
Our resources have been outperforming the last month.
Markets looking ahead at recovery. Asia needs our copper wood ect.
A crushed sector showing signs of life…New up cycle i do believe.
China has been buying up gold big time.
And Canada Central dumped their gold reserves back in 2000 at $350 when i was buying. Idiots, I LMAO….$2,500 CND now.
Just finished 8 cords of fir the rest is going to my saw mill. Fir price offthe chart!

#102 Faron on 11.15.20 at 2:03 pm

#91 Nonplused on 11.15.20 at 1:56 am

#83 Also in Cowtown on 11.14.20 at 10:44 pm
#70 Nonplused

Brokers that offer partial shares and the entities that operate the exchanges perform arbitrage on the minute price fluctuations in share price. They make enough money doing so to offer commission free service. There’s nothing nefarious about selling frac shares at no comission if it makes it easier to get into the market when you are starting out. Note that you can buy fractional shares in ETFs. If you only have $1000 to start you can build a balanced portfolio and add to it at no cost even if your monthly additions are a couple hundred. This is reality for many many people. Frac shares enable a brokerage to expand their market share which is what any business tries to do.

#103 Faron on 11.15.20 at 3:01 pm

#101 Bill on 11.15.20 at 1:05 pm

CBC reflects the views of the majority of Canadians. Your distaste for it implies a distaste for how the majority of the country consumes media. That’s fine, but doesn’t mean it should be replaced with a service beholden to advertisers. Maybe your perception of leftward bias has more to do with the fact that commercial media has become much more polarized (not unlike cloven rounds of fir) to appeal to specific audiences and target ads to them. Thus centrist views appear left to you. It’s not hard to find CBC interviews with Trudeau that are critical of his policy. If you dont like the content you have a much better likelihood of steering the content there than you would commercial.

#104 Bill on 11.16.20 at 5:08 pm

#104 Faron
So yes telling people what they want to know in general rather than what they need to know is part of the issue. Keep us safe from ourselves.
Their was really very little real reporting of Trudeau and his many scandalous situations and blocking of the investigations of these. Just like how CBC soft balls questions at him in likely the most challenging times in a a century?
Maybe they can query cost benefit analysts on many policies implemented due to CV. No bloody likely. Maybe because hes ill equipped to answer them? Their told how to pitch…more likely. Any media outlet that is subsidized to the tune of what CBC gets from the tax payer should be questioned in a big way.
Guess we will figure out how to pay for the $600bill debt cause that’s where we are heading so what a bill among friends? No leadership here…
Also Shocking how the media covered the US election. I thought we became the 51st.
Cheers