2 Responses to “July 23, 2013”

1. Nestor says:

   July 24, 2013 at 7:14 pm

   Mr. Hymas, i’m a new annual subscriber (so bear with me if i ask something stupid). I’ve tried to read as much information on your site over the last few weeks. I still have to watch the educational videos, so, i’m sure i have lots to learn.

   The monthly recommendations in your newsletter, are they intended to be buy and hold suggestions? Would i have to be trading between different issues often? are some of the recommendation long term buys?
   i understand pref shares will change value dependent on interest rates.

   for example, you recommend a few of the insurance companies shares (mfc.pr.c, slf.pr.d) if i buy one of these, can i expect (all things being equal) that they will be redeemed at 25$ some 12 years from now, and i can expect the dividend for that period of time?

   thanks for your time. I must add, your monthly newsletter is quite exhaustive. an absolute wealth of information.

   Nestor

2. jiHymas says:

   August 1, 2013 at 9:08 pm

   Sorry I’ve taken so long to respond to this; since this is your first post it got hung up in moderation, along with about 2,000 spam comments which I have just cleaned out. Now that you are an “Approved Commenter”, your comments will not be held for moderation and will be published instantly.

   The monthly recommendations in your newsletter, are they intended to be buy and hold suggestions?

   Yes. They are selected on the basis of their long term characteristics. That being said, it is always possible that they could rise in price relative to other issues quite substantially in the near term, which would make them candidates for sale.

   Would i have to be trading between different issues often?

   No, not often – large relative price changes don’t happen very often. When a recommendation changes, it is usually because the former #1 (say) in a particular class has fallen to (say) #5, and the difference might not be much at all.

   I recommend that you review your holdings against the recommendations on a regular basis – quarterly would be a good schedule, although “whenever there has been a large price movement” is also a good idea.

   you recommend a few of the insurance companies shares (mfc.pr.c, slf.pr.d) if i buy one of these, can i expect (all things being equal) that they will be redeemed at 25$ some 12 years from now, and i can expect the dividend for that period of time?

   Yes – although you should remember that the “redeemed at 25$” part is highly dependent upon my analysis of such issues as “DeemedRetractibles” and the “expect the dividend” part is dependent upon their not defaulting. Default is a remote possibility for the issues I recommend; and you should take your own view on the inclusion of Insurers as DeemedRetractibles, influenced, I hope, by my arguments in the DeemedRetractible section of each newsletter.

   I must add, your monthly newsletter is quite exhaustive. an absolute wealth of information.

   Thanks for your kind words!