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Sunday, June 25, 2017

The extraordinary Warren Buffett is investing in Home Capital Group Inc. (HCG)!

Oh, and I should not forgive: Welcome in my non-registered portfolio Home Capital Group Inc. (HCG)!!!!

WOW, summer is red hot this year. And summer is always busy with all kind of things going on like drinking and stuff on and it make it even harder to post anything at all. But currently, the weather is turning a bit cold so I decided to stay inside and post on about my latest investment adventure, with a little glass of Cuban Legendario on my side. Its too bad, but Legendario liquor can only be purchased in Cuba, and you can only bring 2 bottles, so got to drink with love. Legendario is really good - it has an in deep taste of Cuba in it, its quite hot hot stuff.

This time of year is usually really great for me, that I am drinking or not. I remembered last year around the same time, I shake up a bit my portfolio by adding on great stocks like Morneau Shepell Inc. (MSI), Keg Royalties Income Fund (The) (KEG.UN), Thomson Reuters Corporation (TRI), just to name those few. And I also remembered dumping some old stuff too that I wasn't in anymore, like saying good bye to old lovers.

I guess for this past week, the biggest news was to learned that Warren Buffett was investing in Home Capital Group Inc. (HCG). That was back on June 22. On that special day, I didn't know what my day was about to be up too, but I was wearing one of my most beautiful dress, and I had my nails and hair done. I had no idea what was going to happen, but it was almost like I knew that something was about happen. I rarely do my hair properly these days because of lack of time, but on June 22, I was as pretty as I could possibly be and on June 22, a news took the TSX by stormed: Berkshire Hathaway Inc.was about to invest massively in Home Capital Group Inc. (HCG): 2 billion dollars! WOW. SOOO exciting! Could this be the first time that THE Warren Buffett invest in my fabulous TSX? (I really don't know, but not that I know of). Anyway, this is the kind of things that really turn me on. And I was not going to turn my back on it. Oh no! No money to invest? No problem. It doesn't matter, I have a margin account baby.

Bad bad girl.

Before the TSX opened, I was aware of all that. And it sound like pretty exciting deal to me! There was going to be some great money to be made and the money was just waiting for me, that I had some or not to invest. So as 9:30 am was slowly kicking on, I immediately bought some HCG stocks. I got in at $17.25 per share. Following my fabulous move, HCG shares price went... down. I started worried, what is going wrong?? And I wondered if all investors where still in bed or haven't heard about the great news yet. I understand that Quebec investors might not be smart enough to understand the ultimate treasure of what this deal really mean, but what about the rest of Canada? And what about Americans who can invest on the TSX? Anyhow, later on during the day, HCG moved all the way up, just like it was expected to be. I could had quickly sell off my shares and I would had made a couple hundreds that would had made me very very happy, but this time, I am in for thousands in profit, not just a few hundreds. And for that to happen, I am ready to use all of my bright patience and wait.

This deal had to be approved by the TSX first and maybe later on by HCG shareholders, but who can say no to Warren Buffett? I certainly won't refused anything to Warren Buffett. Fact that Buffett is getting involved in HCG is really good for the image of the company and its an extraordinary sign of trust. I am sure that both the TSX authorities and HCG shareholders - and that's including myself - will approve the deal. After all, we are smart Canadians.

If everything go well, I truly believe that HCG can hit back its old $32.78 value. And that's what I am expecting. It could be a slow mover process, but it could happen.While waiting, its quite exciting to be holding on to the same stocks that Buffett himself will soon acquire - at a much better bargain price, but still...

On other news, my annual dividend income (excluding RRSP, as always) is at $7 981.08, an average of $665.09 per month. I am only missing a $420 to hit on the $700 per month. Its just very unfortunate, but Home Capital Group Inc. (HCG) doesn't pay a tiny cent of dividend cash.

I suspected my net worth to be of $207 000 right now, which is not too bad. Its still possible for me to hit on the 250k net worth before the end of the year, but I will need a good market situation and little angels carefully watching my back. And my plan for Home Capital Group Inc. (HCG) will have to work out.

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