Monday, February 5, 2007

Large Cash Position

As you can see from my last networth statement I’m very heavy on the cash side with about 20% of my portfolio in money markets (yielding about 3.4%). This is a position that I hate to be in. Ideally, I’d like to be 95% invested (keeping 5% of my powder dry for buying opportunities) but I just can’t find anything that I consider to be good value (especially in Canada). Most sectors seem to have historically high valuations right now (financials, utilities, telecoms, oil/gas and generally I don’t invest in either Canadian tech or medical companies because I think there is better value elsewhere). So where am I going to be looking for value in the coming month? Well here is a list of the stocks that I’m going to be reviewing over the next couple of days/weeks/(hopefully not months). As you can see most are boring old tried and true blue chip stocks. Some I’ll be waiting for a pullback, while others I will just be following and deciding if they are worth investing any capital into at current levels.

TLM <=hope to buy on a 10% to 15% pullback
MMM – purchased recently

I am also taking a look at a recently launched global mutual fund managed by James O'Shaughnessy (not to be confused with his international fund).

I might not be able to spot anything of value right now but… if you think you have leave me a comment or send me an email at and I’ll get back to you with my thoughts and opinions.


MM said...

What is the new mutual fund from James O'Shaughnessy? I've read his books and like them.

If I remember correctly they were instrumental in my buying a large chunk of Hennessey Fund shares. (Which haven't preformed wonderfully of late)

Anonymous said...

Through RBC, James O'Shaughnessy has recently opened two new funds.

1.RBC O'Shaughnessy All-Canadian Equity Fund

2.RBC O'Shaughnessy Global Equity Fund

The fund that I'm personally interested in is his Global Equity fund. I plan on reviewing it and posting it to the blog...but basically I'm interested in it because I don't follow international markets so... I am considering buying a well managed mutual fund to gain exposure to some non North American markets, and based on Mr. O'Shaughnessy's past performance and methodologies I would consider his fund.

The following link will give you some more information about the O'Shaughnessy approach as well as his funds.


MG (moneygardener) said...

What is min. yield you will accept when you buy a stock? Do you have one?

What is your goal yield for your portfolio? You must have one if you want to live on Dividends someday.


Cannot beat that

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