OPTIMISM #27 - April 22nd, 2021

Financial planning is a puzzle. Some of the of pieces fell out of the box and are missing.

Others are blank. We have to colour them in ourselves.

To make it more difficult, the picture that emerges once we have the pieces put together, is dynamic and evolving.

It makes for interesting work.

According to Guardian Capital Analysts, the Canadian stock market actually outperformed the US market over the last 12 months in C$ terms – the US market certainly gets most of the attention (and deservedly so as it has done well for the last decade) but patience is indeed rewarded, and we expect better returns on the Canadian side over the coming years simply on better overall valuation (cheaper stock prices relative to earnings).

An increasing dividend is usually a reliable indicator of higher earnings and share prices ahead.

Tourmaline oil increased its dividend 14%.  And in late March of 2021, insider, Mike Rose, Chairman and President, bought 30,000 more shares for $715,000 for a total of over 8.8  million shares.

Only an optimist would do this.

Same thing at Suncor.  Early in March, Joseph Vetrone bought 10,000 shares and Bruno Francoeur bought 8000 shares.

SIR Royalty Income fund.  Lembit Janes bought 94,400 shares.

Primo Water Corp.  Tom Harrington invested $508,000 in 35,000 shares.

From the New York times March 12^th.  “Optimism can help people to get through tough times and make sacrifices, in the belief that better days are ahead.”

Get rid of one year of income tax files.  We have to keep six years, so anything dated 2014 or earlier may be recycled.

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/where-keep-your-records-long-request-permission-destroy-them-early.html#kp_yr_rcrds

I just received a first call from a nice lady.  She said that sadly her husband passed away six years ago.  However, she did not know until very recently that forty years ago he bought $1800 worth of Royal Bank shares.  I asked what is it worth today… maybe $75,000?  She said slightly over $100,000.

Have a great week.