Friday, September 19, 2008

this is what i wish i had bought

A reader left a comment on my last post, the credit crisis of 2008, "How about a post like " this is what I wish I could buy now". I'm always a sucker for requests like this because I like thinking about which companies I should buy when the market is down hard, also I enjoy when readers make this blog interactive. Considering the S&P 500 index is up 10% over the last 30 hours, this post becomes "this is what I wish I had bought"

Husky Energy (HSE)
Towards the start of the week I thought Canadian oil and gas firm, Husky looked pretty good at around $40. The stock was yielding 5% and oil is likely not going to $60/barrel for a sustained period. Since Monday though, the stock is up over 16%.

General Electric (GE)
What a week for GE! Overall this was the stock I was most attentive to through the past panic-filled week. GE traded as low as $22.16, where it yielded 5.6%. I already have a large position in GE, so I would have been hesitant to add to my position too much anyway. GE is now up 21% off of that low.

Sun Life and Manulife Financial (SLF & MFC)
Both of these insurance/financial firms traded down really low and were interesting to watch. I still really like insurance as an area to invest in, even after AIG's fall.

Everything else...
Let's face it this week was out of control and valuations got ridiculous. Most stocks that I watch on a regular basis were really put on sale. There were exceptions though as several stocks including the following did not get my attention during the last week: Clorox, Procter&Gamble, UPS, J&J, Automatic Data, Pepsico, Colgate, Reitmans, and IGM.

Lots of volatility usually means long term investors can take advantage of some bargains. All of these companies pay growing dividends, so if you can buy them on sale you can enjoy a nice high starting point for a growing pay out on your investment.


Anjo said...

Coincidentally, I picked up Royal Bank, Sun Life, and Husky Energy near the lows this week. The one I was watching and just missed out on was Barrick. I was planning to buy some later this week, but then gold went boom. It may correct yet if gold continues to drop.

Dividend Growth Investor said...

I wish I had bought STT below 48 - at one it was yielding close to 3%, which is something that this stock hasn't done for more than one decade(if not longer). But i was out of money and out of free trades until october, so i guess I have to be happy I bought FDO at for a small gain instead.

Potato said...

I had a near-miss on HSE, had my bid in but missed the dip and decided not to chase it up... I kind of regret that now. GE I also watched and debated with myself about buying more but decided to stay out since I couldn't wrap my head around why it was down so much so fast, I started to wonder if the concerns about its money division really had merit... But, as usual, I could make a killing on the market if I only had a time machine.

Sarlock said...

Almost bought some HSE on Tuesday, kind of wish I had... though what I bought instead went up nicely as well, so I guess it evens out.
I still plan to buy some HSE if it hits another dip to around $40.

Matt said...

Looks you and I think alike. Picked up and sold HSE and GE for a tidy profit. If they're down again next week I may do the same again.

Jake said...

I also wish I picked up GE. I did grab BAC @ $27.04 though. Up 37% in a few days, not a bad buy I would say. Now I'm just waiting to see if I'll get to keep the near double digit yield.

Anonymous said...

The stocks that didn't grab your attention, any reason?

MG (moneygardener) said...

stocks are either not current cheap, or the last week's events had little effect on them.