Recent banking experiences

[Buckhead]

Originally Posted by daveyn

As to the poster earlier who was asked for passport and bank account info at another institution, no way those questions came out of the blue, sounds very much like identity confirmation info from an on-line loan application to me. Banks don't care about your passport, unless you used it previously as ID to open an account. Again, my 2 cents.

Those questions did come out of the blue. And I have never applied for an on-line loan in my life. The facts are the facts, believe what you will.

I agree, banks should not care about my passport, unless someone is planning to or engaging in criminal activity.

[Dean2]

Originally Posted by flyrodfisher

Although I agree with everything Dean has said...I think the key quote is the one above,
Dean obviously knows the bank sector.

But... I know many who knew the energy sector...and they also held the best of the best, long term....only to find their investment either vanish totally or incur significant losses that they will likely never live long enough to recover from.

Many wished they had the safety of the GIC vs the 80+% losses they now see.

The market has it's risks...everyone has to decide their own risk tolerance.

The significant elements missing in this comparison is the part where I said invest in industries where the players are in control of the selling prices, controlled by oligopolies, and buy the best managed in that industry. The big problem in oil and gas is there is no company or market that controls prices and it is far from being an oligopoly. That is EXACTLY the issue with high tech stocks outside of the Fangs like Amazon, Google etc. It is why I own Fangs and none of the rest.

[Ken07AOVette]

Originally Posted by Dean2

Ken

You and I will have to continue to agree to disagree about this. Done correctly investing is absolutely NOT gambling. If you read this thread and looked at any of the 5 year investment periods, even buying one of the worst banks in Canada, you made money. Buying rental property, over a ten year horizon you would have made money every time, even in Alberta. Leaving your money in a mattress you would have lost a ton to inflation.

You buy and sell equipment because that is the business u know and understand but I doubt 60000 u started with in 1995 has turned into 3 million. If it has, congratulations. When I started buying Royal Bank in 1982 it was not a guess that it was the best run bank in Canada and one of the best run banks in the world. Always buy stock in the best. RBC, Coke, Visa etc. It really isn't hard to pick the best of the best. Where u lose your butt is when u start chasing what is hot and sexy, looking for home runs. Steady, buying the best in industries dominated by very few players, like banks, pipelines, utilities and telecom, and time always wins. Chasing the latest hot tip generally results in a bad outcome.

The only part I disagree with, is investing is not gambling.

That said, IF I had money to invest, you would be on the top of 2 people I would call.



$10,200,000,000,000.00 was lost overnight in 2008

Thats Ten Trillion Two Hundred Billion dollars.

56,600 suicides in the USA in 2008. It is said it was absolutely directly related.

The Federal Deposit Insurance Corporation (FDIC) closed 465 failed banks from 2008 to 2012.

With what you know, you must admit I am not completely out to lunch.

[Buckhead]

Originally Posted by Dean2

One last comment on the CIBC shares, when you see the share you paid 90 bucks for in May 2007, down at 30 bucks less than 2 years later, this is when most investors panick and sell. It is why so many have lost their AZZ in the market. If they had stuck it through and understood how it actually works, they would have been fine. The problem is, many financial advisors can't explain this stuff and they don't want to face a client that just lost 40 grand in a year.

How right you are. When people are complaining how they lost their behind in the market and sold at a loss, that is the time to go bargain hunting. It's funny how the stock market is a hot topic when stocks are making new highs but when equities are on sale hardly a word is spoken.

[Buckhead]

Originally Posted by Ken07AOVette

The only part I disagree with, is investing is not gambling.

That said, IF I had money to invest, you would be on the top of 2 people I would call.



$10,200,000,000,000.00 was lost overnight in 2008

Thats Ten Trillion Two Hundred Billion dollars.

56,600 suicides in the USA in 2008. It is said it was absolutely directly related.

The Federal Deposit Insurance Corporation (FDIC) closed 465 failed banks from 2008 to 2012.

With what you know, you must admit I am not completely out to lunch.

And an almost perfect buying opportunity.

[Ken07AOVette]

Originally Posted by Dean2

So as an example, 60,000 invested in Royal Bank in Apr 1995, with dividends re-invested, the value at the end of each 5 year period would be;

1. 2000 $230,500
2. 2005 $746,200
3. 2010 $1,932,000
4. 2015 $2,350,000
5. 2020 $3,028,000

I can not wrap my head around your figures.

the interest on the $60,000 to reach your figures not even compounded is 56% per year.

~230,000 - 60,000 / 5 = 34,000 which is 56%

what am I missing?

[flyrodfisher]

Ken
He's investing $60000 into RBC stock!...not GIC

[KC1]

Originally Posted by Ken07AOVette

I can not wrap my head around your figures.

the interest on the $60,000 to reach your figures not even compounded is 56% per year.

~230,000 - 60,000 / 5 = 34,000 which is 56%

what am I missing?

Glad you asked.
Couldn't figure it out either

[flyrodfisher]

Originally Posted by KC1

Glad you asked.
Couldn't figure it out either

Guys...if he invested $60000 into RBC stock in 1995 and reinvested all the dividends...he would have $230,500 in 2000...and so on...

[Dean2]

Originally Posted by Ken07AOVette

The only part I disagree with, is investing is not gambling.

That said, IF I had money to invest, you would be on the top of 2 people I would call.

$10,200,000,000,000.00 was lost overnight in 2008

Thats Ten Trillion Two Hundred Billion dollars.

56,600 suicides in the USA in 2008. It is said it was absolutely directly related.

The Federal Deposit Insurance Corporation (FDIC) closed 465 failed banks from 2008 to 2012.

With what you know, you must admit I am not completely out to lunch.

Everything u say is true. In fact if you look at April 2020 it was actually way worse in terms of the trillions lost, jobs lost, companies gone bankrupt etc. In 2008 it took 5 years to recover more than the loss. This time it took less than 12 months to well surpass the highs of Feb 2020 and reach new records. That truly is the art of perspective in investing. Short term everything bounces up and down, long term the trend is always upwards.

[Ken07AOVette]

Originally Posted by Dean2

Everything u say is true. In fact if you look at April 2020 it was actually way worse. In 2008 it took 5 years to recover more than the loss. This time it took less than 12 months to well surpass the highs of Feb 2020 and reach new records. That truly is the art of perspective in investing. Short term everything bounces up and down, long term the trend is always upwards.

Every once in a while I think I am smart, that I have a handle on things, then someone like YOU starts typing lol.

Greek, latin, what a beautiful language you speak but way beyond my realm of i=prt

[urban rednek]

Originally Posted by Ken07AOVette

Every once in a while I think I am smart, that I have a handle on things, then someone like YOU starts typing lol.

Greek, latin, what a beautiful languange you speak but way beyond my realm of i=prt

Stocks are not calculated by i=prt, their value can change exponentially. Funds are not stocks.
Have a look at the graph on this site to help make sense of it. It goes back 26 years to October 30, 1995 when RBC stock was $2.6172. The value as of April 16, 2021 was $93.8367.
https://www.macrotrends.net/stocks/c...-price-history

[daveyn]

Supercub

Could not agree more, all they really need to do is acknowledge that your concerns are legit and provide an explanation as to why. After that you get to decide if thats a satisfactory explanation or just crap to make you go away. But someone needs to actually talk to you. Sometimes all it takes is for you to feel like somebody gives a hoot about your concerns. Pretty basic stuff. Sorry about your experience.

[Ken07AOVette]

Originally Posted by urban rednek

Stocks are not calculated by i=prt, their value can change exponentially. Funds are not stocks.
Have a look at the graph on this site to help make sense of it. It goes back 26 years to October 30, 1995 when RBC stock was $2.6172. The value as of April 16, 2021 was $93.8367.
https://www.macrotrends.net/stocks/c...-price-history

gotcha, did not know Dean was talking about stocks.

If only we had a crystal ball, huh?

All of the Lehman Bros and etc investors likely thought the same, luck of the draw.