RE:RE:RE:RE:RE:Head and Shoukders!The reason many people would want to diversify within a sector is so that they don't have too many eggs in one basket. This is especially true for emotional investors who have a hard time stomaching the ups and downs.
Also, it is incredibly difficult to predict which companes might have issues, whether it be self-inflicted or external and this seems to change from year to year.
I think that I'm a very calm investor but I still like having multiple companies in the sectors we invest in.
Just to illustrate how this works for us, here's our list by sector: (note each of the 17 have the same book value - which is what we use for allocating and never trim based on current % of the portfolio):
Banks - BMO,BNS,RY,TD
Midstream: ENB,KEY.PPL.TRP
Utils: AQN,CPX,EMA,FTS
Telcos: BCE.T
REITs: DIR.UN,GRT.UN,NWH.UN
This is an absolute "sleep like a baby every night" portfolio. I never, ever, ever fret about stock prices. I might get a little p*ssed every now and then when a CEO makes a bone-head move (but that's another story)
Ciao
Sarge
Quintessential1 wrote: Totally agree BUT why would anyone want to diversify in a sector without holding the nunber 1
earning, safest and most reliable stock in that sector?
And....how could you possibly know which stock that is without a comparison? I also previolsly posted 1 year and precovid comparisons of what I think are the 1 and 2 stocks in this sector. Sorry if you missed it. As expected Enbridge came out ahead.
If I appear to be favouring my own stock on its own BB so be it. I'm an Enbridge fan.
Go Enbridge! ;-)
SargeX wrote: Totally agree BUT it sure seems odd that you would post the one day comparison of pipelines for yesterday. Sounds a tad contradictory/
As a long term dividend income/investor, I sure do like having some diversification not only across sectors but within those sectors (17 companies across 5 sectors). We never, ever worry about day to day or month to month stock price fluctuations. What we really care about is consistent dividend payers and love those dividend growers even more. (looking forward to an ENB divy bump on Tues :-)
Ciao
Sarge
Quintessential1 wrote: Short term flucuations in share price mean nothing to long term investors.
Big divies and and the long term up channel growth is all we need. Plenty of that here.
Go Enbridge! ;-)
FiddyFiddyOddz wrote: June 7 2021 ENB closed at 47.71, & that's where we're at now. Wiping out 6 months of gains in three weeks is hardly a reason to uncork the champagne...
Quin wrote:"Knees and toes, knees and toes, knees and toes.
Head and shoulders knees and toes, up the Enbridge goes....
...but not the oil...<Jazz Hands> That razzle dazzle finish is for you fiddy!
Go Enbridge! ;-)"