Warren Buffett is a name that’s become synonymous with great investment ideas. It’s clear why. The billionaire finance guru came from nothing and is now arguably one of the best investors of the last century. Yet when it comes to some of his investment ideas, they can be quite simple.
Today, I’m going to give you the top mistakes to avoid, especially as Canadians continue to trade in a volatile market. Let’s get right to it.
Buffett: Avoid these dumb mistakes
When it comes to investing, it really comes down to humans being way too human. We go with our gut. We make emotional decisions. Ultimately, we stay away from data, wondering if we’re in the wrong and everyone else is in the right.
Yet Warren Buffett, again and again, states to avoid these types of mistakes. First, he states often that investors need to push fear and greed aside to make smart investment choices. Don’t be fearful that your stock might fall if you’ve done the research and worked with an advisor. Trust your research and hold long term.
But it goes further than that as well. Investors might see a pessimistic market and sell or an optimistic one and buy. Instead, stick to the data that will help you identify opportunities. Speaking of opportunities, though, there is also the fear of missing out (FOMO) in the investment world. We all know the one person who purchased a top growth stock at $1. But there’s a reason these stick out; it’s because it’s pure luck and chance — unless you have insider information.
Finally, don’t fall for the trap of panic and euphoria. You see shares dropping and sell in a panic, worried it will drop further and you’ll miss the opportunity to get out. Yet there’s just as importantly the chance to buy in a euphoric position, with shares at all-time highs leading to more purchases instead of waiting on a dip.
Instead, stick to the data. These are companies, not humans, and should be treated as such. This is why now we’re going to look at a company that investors can look into further.
Bank on it
Perhaps one of the best opportunities during a downfall is through Canadian banking institutions. There hasn’t been a banking crisis since 1840, providing investors with a strong option to get in when shares drop and all but guarantee a recovery.
That’s the case with Canadian Imperial Bank of Commerce (TSX:CM) right now. CM stock has been around for decades, going through multiple recessions and coming out strong on the other side. This comes from provisions for loan losses, of which it continues to use even now.
Granted, it’s been a difficult few years with a volatile market on top of a pandemic. Even so, the bank will persevere, as it has recession after recession. And right now, CM stock is a steal, trading down 8% in the last year but still up 50% in the last decade.
Plus, CM stock offers a solid dividend yield of 6.14%, one of the highest of the banks right now. Finally, it trades at just 11.11 times earnings, which is lower than its peers at this point as well. While the stock may take longer to rebound than the other banks with its exposure to housing, it still has a long-term growth path ahead of it for investors to consider.
So, don’t be fearful of the financial institutions trading down; instead, get in on the action. These are great deals that offer superior dividends for investors these days. Buy now, and you could have a portfolio that even Warren Buffett would drool over.
Tense diplomatic relations may not impact trade, investment ties between India, Canada: Experts
NEW DELHI: The tense diplomatic relations between India and Canada are unlikely to impact trade and investments between the two countries as economic ties are driven by commercial considerations, according to experts. Both India and Canada trade in complementary products and do not compete on similar products.
“Hence, the trade relationship will continue to grow and not be affected by day-to-day events,” Global Trade Research Initiative (GTRI) Co-Founder Ajay Srivastava said.
Certain political developments have led to a pause in negotiations for a free trade agreement between the two countries.
On September 10, Prime Minister Narendra Modi conveyed to his Canadian counterpart Justin Trudeau India’s strong concerns about the continuing anti-India activities of extremist elements in Canada that were promoting secessionism, inciting violence against its diplomats and threatening the Indian community there.
India on Tuesday announced the expulsion of a Canadian diplomat hours after Canada asked an Indian official to leave that country, citing a “potential” Indian link to the killing of a Khalistani separatist leader in June.
Srivastava said these recent events are unlikely to affect the deep-rooted people-to-people connections, trade, and economic ties between the two nations.
Bilateral trade between India and Canada has grown significantly in recent years, reaching USD 8.16 billion in 2022-23.
India’s exports (USD 4.1 billion) to Canada include pharmaceuticals, gems and jewellery, textiles, and machinery, while Canada’s exports to India (USD 4.06 billion) include pulses, timber, pulp and paper, and mining products.
On investments, he said that Canadian pension funds will continue investing in India on grounds of India’s large market and good return on money invested.
Canadian pension funds, by the end of 2022, had invested over USD 45 billion in India, making it the fourth-largest recipient of Canadian FDI in the world.
The top sectors for Canadian pension fund investment in India include infrastructure, renewable energy, technology, and financial services.
Mumbai-based exporter and Chairman of Technocraft Industries Sharad Kumar Saraf said the present frosty relations between India and Canada are certainly a cause for concern.
“However, the bilateral trade is entirely driven by commercial considerations. Political turmoil is of a temporary nature and should not be a reason to affect trade relations,” Saraf said.
He added that even with China, India has acrimonious relations but bilateral trade continues to remain healthy.
“In fact, bilateral trade is an effective tool to improve political relations. India must make special efforts to increase our bilateral trade with Canada,” Saraf said.
India and Canada have a strong education partnership. There are over 200 educational partnerships between Indian and Canadian institutions.
In addition, over 3,19,000 Indian students are enrolled in Canadian institutions, making them the largest international student cohort in Canada, according to GTRI.
According to the Canadian Bureau for International Education (CBIE), Indian students contributed USD 4.9 billion to the Canadian economy in 2021.
Indian students are the largest international student group in Canada, accounting for 20 per cent of all international students in 2021.
Benefits of educational partnerships are mutual and hence the current situation may have no impact on the relationship, Srivastava said.
Apple supplier Foxconn aims to double India jobs and investment
Apple supplier Foxconn aims to double its workforce and investment in India by next year, a company executive said on Sunday.
Taiwan-based Foxconn, the world’s largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China.
V Lee, Foxconn’s representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi’s 73rd birthday, said the company was “aiming for another doubling of employment, FDI (foreign direct investment), and business size in India” by this time next year.
He did not give more details.
Foxconn already has an iPhone factory employing 40,000 people in the state of Tamil Nadu.
In August, the state of Karnataka said the firm will invest US$600 million for two projects to make casing components for iPhones and chip-making equipment.
The company’s Chairman Liu Young-way said in an earnings briefing last month that he sees a lot of potential in India, adding: “several billion dollars in investment is only a beginning”.
Taiwan election: Foxconn’s Terry Gou taps star-powered running mate
Last month, Foxconn’s billionaire founder Terry Gou said he would run for the Taiwanese presidency in next year’s election, as an independent candidate.
He said the ruling and independence-leaning Democratic Progressive Party (DPP) was unable to offer a bright future for the island and left Foxconn’s board following his decision to run.
The firm operates the world’s largest iPhone plant, in the city of Zhengzhou in Henan province.
Foxconn to double workforce, investment in India by ‘this time next year’
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