On this U.S. election day, the TSX closed the session at 24,387.90 points. My non-registered portfolio stands at $155,443.90, my U.S. portfolio at $6,071.54 USD, my RRSP stocks-only portfolio at $72,673.06, and my TFSA portfolio at $151,523.78. My numbers remain strong; today, my stock portfolio gained over $1,300. It will be interesting to see how the TSX reacts tomorrow following the U.S. election results. So far, Trump is slightly ahead, but it’s still early in the evening, so this doesn’t indicate much yet. It’s been announced that Trump won Louisiana. It’s a bit unsettling to realize that Trump might win this election. It’s going to be a very long night. It’s not something that stresses me too much, but I know we’ll be in for quite a volatile market if Trump becomes the President of the USA for the next four years. We’ve experienced it before.
I recently received significant dividend distributions, which helped me reduce my margin debt to $4,984. Thanks to my DRIP investments in Bank of Nova Scotia (BNS) and Power Corporation (POW), my annual dividend income (including RRSP) is getting very close to $14,000.
U.S. stocks are only a small portion of my portfolio since I mostly hold Canadian stocks. However, I do collect dividends in my U.S. portfolio, similar to my Canadian portfolios. I prefer to reinvest these funds whenever possible, letting the dividends accumulate until I can afford to purchase at least one share of a desired stock. Here are the stocks I currently hold in my U.S. portfolio (in USD): Berkshire Hathaway Inc. (BRK.B), General Mills Inc. (GIS), Vanguard Russell 1000 Growth Index Fund (VONG), Pfizer Inc. (PFE), CSX Corporation (CSX), and Brookfield Infrastructure Corporation (BIPC).
I recently received a dividend from General Mills Inc. (GIS), bringing my U.S. portfolio’s cash balance to just over $20. Though it’s not a large amount, I wondered what opportunities might be available around $21 USD per share. After some research, I may have found a promising stock: Nu Holdings Ltd. (NU). Nu Holdings doesn’t pay a dividend, but its overall chart has shown impressive growth, which caught my attention.
Nu Holdings Ltd. (NU) operates in digital banking services in Brazil. The fact that it’s currently trading below the $20 mark is intriguing. Warren Buffett has invested in NU, as has another notable investor, Cathie Wood. While I don’t follow Cathie Wood closely, I’m aware of her influence. In terms of investment philosophy, I’ve learned everything from Derek Foster, who, in turn, learned from Warren Buffett. My investment approach aligns more closely with Warren Buffett's conservative, value-focused ideology rather than Cathie Wood's high-growth approach. That’s why I was surprised to discover that both Buffett and Wood had invested in Nu Holdings Ltd. (NU). Since NU operates in Brazil, there’s an element of potential volatility, but I’m comfortable with it since I’m only making a small investment in NU.
In my early years of using Stockopedia, I was given free access to the platform, allowing me to browse both Canadian and U.S. stocks. During that time, I conducted numerous searches, often looking for stocks with a strong overall chart as a key factor in my investment ideas. One thing I discovered is that it’s quite challenging to find U.S. stocks with a consistently strong chart.
For example, I wouldn’t invest more in Nu Holdings Ltd. (NU) than I have, because NU hasn’t been on the market for very long, so its “overall chart” is limited. Without a long trading history, it’s hard to assess its resilience during significant market events, like the 2008 stock crash. Nu Holdings went public in December 2021, so its trading history is still short. I’ll be keeping an eye on this small investment in my U.S. portfolio to see how it performs over time.
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