Hello Investors of Real Estate in Hamilton Ontario!!
I’ve been busy like all of you are and, admittedly, I’ve neglected my portfolio of equities for close to two years. I didn’t even know my online login to manage them but thankfully, they’ve gone up 60% so you’d think I’d be happy, right? Well, I’m not! When you dig deeper and analyze the mix of stocks and the context of the greater market conditions it doesn’t look as good as it sounds.
Some of you may know, I graduated from Business School, studied Portfolio Management, Managerial Accounting, Financial Markets, I had my Canadian Securities License, etc… etc… so I have some analytical skills at my disposal when I make the time for it.
A couple points:
- I could have simply invested in the S&P 500 for almost double the returns
- My average over 6 years is 10% a year. Not great for the level of risk I assumed (One of my stocks went to zero! Don’t forget that can happen…) and a good percentage of my gains are due to the weakening of the Canadian dollar.
- If I remove my top performing stock (MPEL), the rest of my portfolio is flat :/ and to me, that is highly disappointing.
- Don’t even get me started on comparing my stocks to my real estate returns and the passive investments available that contractually return 10% or more.
And if anyone noticed the meltdown of the stock market in China, you can blame that on me since I was planning on selling all but one of my positions (including stocks in 2-3 Chinese based companies) to invest these RRSP’s into real estate, something with more predictable returns in the 25% range and physical gold/silver.
Sorry for the 3.25 TRILLION in lost market value. I’ll give you all a heads up next time I make a trade. 😉
Anyways, I’m wiser and more experienced six years later. As a professional real estate investor, I am essentially an insider on how to maximize returns on real estate investments so I’m saying goodbye to diversification via the financial markets. To me, buying stocks is gambling. Mentally, I am prepared to lose 50% or more of my position as I have before because I know very little about the day-to-day operation of the companies I invested in. For my real estate, I can see it, touch, control it, renovate it to maximize rental income, etc… To me, it just makes sense as I’m guessing it does for you since you subscribe to my website 🙂
If you’re interested to know about what we are investing in and why please feel free to reach out and ask!
Thank you for reading and Happy Hamilton Real Estate Investing Everyone!
Erwin | MrHamilton.ca
PS: If you are just starting out investing, start by spending more time with like minded people and take guided tour of Hamilton by joining us for the next Mr. Hamilton Inner Circle by clicking here!!!