Thursday, November 20, 2008

added to IGM

I added to my position in Canadian wealth manager IGM Financial (IGM) today at $31.84. This purchase reduces my adjusted cost base on this stock significantly, and boosts my yield on cost significantly.

IGM was yielding 6.4% and trading at a P/E of less than 10x at my time of purchase. I was actually surprised how well IGM's earnings stood up to the market's recent dramatic down turn. Investor confidence is extremely bleak. I believe this is a good time to add to my position in this best of breed Canadian wealth manager. Most of IGM's customers should take the rational action during these volatile times and stand pat or only adjust their portfolios slightly.

1 comment:

Nurseb911 said...

Not a bad price MG. I think over the long-term you're going to look back and be upset that you didn't add significantly more. You'll still do very well with these purchases, but in hindsight I think we'll both wish we had had more fortitude when buying instead of being overly cautious. It's still too big of a portion of my portfolio to add again (this would be my 4th time) so I'm forced to sit and watch.