Then and Now – TransAlta
This post is a continuation of my series Then and Now where I revisit some older blogposts and either rip them to shreds (because my thinking has changed) or I’ll confirm my position on some personal finance topics or specific investments. This post is about TransAlta.
My previous post was about Enbridge where this stock has gained over 100%.
This post tells a very different tale, one of some regret. This was a great lesson in being overconfident in any one stock. Another good reason to diversify including into low-cost ETFs.
- I started writing about TransAlta on this site back in 2010.
- TransAlta stock was just over $20 when I purchased it.
- I purchased enough stock to start running a synthetic DRIP, whereby when the dividends are paid, the money is reinvested to buy at least one more full share each quarter commission-free.
- I ran the DRIP for a couple of years then stopped.
- Since early 2012, TransAlta stock has been a mess.
- TransAlta cut their dividend in February 2014 by 50%.
- TransAlta share price is just over $13.
- I continue to hold some TransAlta stock but I’ve lost money.
- I continue to collect the TransAlta dividends paid in cash.
My decision to buy (and hold) TransAlta was downright foolish.
I will probably continue to own** this company until a) there is a buyout and/or b) until I can use the money to offset capital gains incurred.
**Updated – I no longer hold this company – selling all my TA stock in late-2014** I moved all my remaining proceeds, selling at a loss unfortunately, into renewable stocks.
Not every individual investing decision comes up roses and this is my best example of a stock selection mistake in recent years.
Did you ever own TransAlta stock? Do you still own TransAlta stock?
What do you make of this investing blunder? What should I do?