My First Stock: Impulsive investment provides valuable lesson about market engagement

David Neice, 79, Stratford, Ont.

What was your first stock?

I was 28 years old, living in Toronto and wanted to start investing. I met with a broker downtown and he went over a few options for me to consider. I chose Power Corp. POW-T I didn’t know what the company did, but the name seemed impressive. I left feeling happy that I had completed a transaction.

Two years went by and I never made a dime on that stock, other than a small dividend. It was stuck in the same trading range. I sold it for roughly what I paid.

What did you learn from that experience?

I learned that you can’t understand the market without being actively engaged in it. It was after that transaction that I started to read the financial pages, and over time – and I mean a lot of time – patterns start to emerge. I started figuring out what made sense for me to invest in. So while I didn’t make any money, it was an invaluable experience that I’m glad I had when I was young. I also learned about the benefits of dividend-paying stocks, which essentially pay rental income on your investment.

How did you get into investing?

My parents were small-business owners who also took a strong interest in the markets. There were always books lying around the house about investing. At one point, my dad was even training himself to become a broker, although he didn’t finish the coursework.

How do you invest today?

I seek advice from a broker, but am a do-it-yourself investor. I manage my own fairly large personal portfolio of Canadian stocks and remain fully invested, through good markets and bad. I’m not an active trader. I look for out-of-favour stocks that I can hold for the long term. About 95 per cent of my portfolio is dividend-paying stocks.

What’s your advice for someone buying their first stock today?

The most important thing is to just buy something. Do some research, but then make a decision. Even if it’s just a couple of stocks, it engages you in the market. To me, there’s no substitute for having some direct experience with the markets. That’s one of the reasons I don’t think people should hand all of their money over to portfolio managers and just put their feet up. It’s your money and it’s my belief you should take some direct responsibility for it. Always seek any available advice, but keep your own counsel. At least, that’s what has worked for me.

This interview has been edited and condensed.

We all remember our first stock. The tip from a friend, the “can’t go wrong” bet on your favourite brand or the gifted securities from grandma. The Globe is looking for your first stock stories, including lessons learned and how that experience shaped how you invest today. If you’re interested in being interviewed for this feature please e-mail us at: [email protected].