Tuesday, November 06, 2007

Trading note

As discussed previously, I finally made my second RRSP purchase of the year. I'm now the proud, only marginally anxious, owner of $3000 worth of American Capital Strategies, a Nasdaq-listed diversified investment manager. I liked the the company's track record of steady performance in good and bad markets, so I'm confident of modest capital gains. Plus the firm boasts an impressive dividend yield of nearly 10% -- so I'll get paid while I wait.

I'm sure U.S. equities have a ways to fall yet as this subprime / real estate mess plays out, but I like ACAS's odds of standing up better than most (what was it Benjamin Graham wrote about a margin of safety?) and over the long term, the U.S. is going to remain a powerhouse of the global economy. Running away and hiding simply isn't an option.

The fact that my loonies go further than they ever have before is the icing on the cake.

1 comment:

Dividends4Life said...


I just added to my position in ACAS moments ago. Then I saw your post. I have been in ACAS since Feb/2004 ($31.44). I am a dividend focused investor, but I like to throw in a couple of high yield investments to help raise my yield while waiting for the yields of more traditional dividend plays to grow.

Regards, D4L