Optimism #38 - January 20, 2022

Dear clients and friends,

Hopefully the media is correct and this pandemic thing is nearly over. 

I continue to see many dividend increases and insiders buying shares of their own company shares. Its always a good sign.  There are too many to mention this week.

I am working on a file for the National Post.  The couple has five condos, all rentals, worth 2.1 million.  After expenses, they generate income of $264 a month.  Help me please.  What should I tell them?

My Fortis natural gas bill came again.  If I wasn’t a shareholder I might cry.  $72.65 of natural gas for $359.93.  Wow. Much is tax, but still.  What a business.

I am currently reading Mark Twain’s autobiography.  In the 1820s, his father bought 100,000 acres in Tennesse for $400.  That’s 250 acres for a dollar or 2.5 acres, a hectare, for each penny.  Now we don’t even pick up pennies when we see them on the street.  This inflation thing is real.  The book details how Mr. Twain’s father went on endlessly about how the property would take care of the family for generations.  He was not wrong in theory, but I get the impression his ego got ahead of his wallet.  There is no mention of debt related to the transaction, but according to the book there was an economic crash in 1835 and sadly the property became someone else’s.

More about this inflation thing.  The cost of Broccoli is up 50%!  Thank you John. Who knew such entertaining charts even existed?

For those of you who have property in Arizona.  I have a great contact for anything to do with real estate ‘Legal Document Preparation’. 

I am not even clear on the scope of their work.

He was very efficient in assisting with a Beneficiary Deed alteration.

Scott Cunningham scott@azscottsdocs.com 480-586-0443

Super article about capitalism being less greedy.  profit with purpose.  I especially like this blurb …

“Stakeholder capitalism is not about politics. It is not a social or ideological agenda. It is not ‘woke,’” he says. “It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. This is the power of capitalism.”

Opinion: In a ‘woke’ and weary world, Larry Fink remains focused on a kinder, gentler greed - The Globe and Mail

I have spoken to the Portfolio managers and TFSA contributions are done or soon to be.  I am happy to discuss if you have questions.

Next month is RRSP stuff. Please reach out to us if you have questions.

I think my job boils down to convincing people to invest in top quality dividend paying stocks and then to distract them enough, through good and bad times, that they experience the magic of long-term ownership and the compounding of wealth that results.

Have a great week.