Equities in page

All investors miss trades and make mistakes – what matters most is not losing sight of your goals. Consider these points to help you stay on track and feel confident in your portfolio:

investment icon
As a long-term investor, you don’t buy stocks, you own companies.

What really matters in the long run are the earnings and free cash flow that a company generates, along with the quality of the business, the valuation you pay and your expectation of future returns.

investment icon
Don’t forget the balance sheet.

Debt can be a friend, as it increases earnings, but it can also be a downfall. Too much debt can ruin companies along with their equity investors. Make sure you understand how much debt the company carries and its debt maturity profile.

 

investment icon
Do not beat yourself up over short-term performance or missing out on the “hottest stock.”

All investors miss trades and make mistakes – the best you can do is learn from those mistakes and not lose sight of what you are trying to achieve.

investment icon
Consider adding international markets.

The S&P TSX composite is heavily weighted towards pro-cyclical sectors such as financials, energy, industrials and materials. While this can be beneficial during certain economic periods, there are a lot of great businesses outside of Canada, too. These can complement the best we have to offer while helping to reduce risk in your portfolio.