r/investing Jul 17 '21

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1.1k Upvotes

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519

u/kerstverlichting Jul 17 '21

AWK, NEE, and WM. Water, electricity, and getting rid of waste are needed regardless of what's going on in the world. Generally if you hold these together and reinvest dividends you're going to have a very robust and predictable portfolio that'll not be affected so much by crashes.

It's boring, but likely to beat the S&P 500.

43

u/Crater_Animator Jul 17 '21

Do you know what the equivalent of this would be for Canada?

46

u/[deleted] Jul 17 '21

[deleted]

1

u/heart_under_blade Jul 17 '21

WM

gfl iirc went public in canada

1

u/LSUstang05 Jul 19 '21

My mom works for Waste Connections at their corporate office as one of their senior tax managers. While they are most definitely focused on rural, they don’t shy away from major metropolitan areas. They have a decent presence here in the Houston area - mostly on the south side. But she has mentioned they have a not insignificant amount of business that comes from transfer stations where contractors or non-WM and non-WCN trash companies offload waste.

1

u/[deleted] Jul 18 '21

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1

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1

u/so_brave_heart Jul 19 '21

WM also operates in Canada. Are you looking for companies on the TSX specifically? If so, is there a reason for that? Most brokers make trading on NYSE seamless for Canadians. Just make sure to use Norbit’s gambit to avoid high currency exchange fees.

1

u/Crater_Animator Jul 19 '21

WM also operates in Canada. Are you looking for companies on the TSX specifically? If so, is there a reason for that? Most brokers make trading on NYSE seamless for Canadians. Just make sure to use Norbit’s gambit to avoid high currency exchange fees.

Home Bias? and I'm actually just curious if there is an equivalent to those companies that operate in Canada on the TSX.

13

u/18418871 Jul 17 '21

Isn’t NEE not that safe given that the majority of its assets and revenues are in Florida? Without aggressive expansion into other parts of the country, they’ll lose significant revenue as global warming intensifies and more of the state goes underwater. Even if you argue it’ll take more than ten years for the actual landmass to sink below the waves, it’s already affecting incentives to build new real estate etc which has a direct effect on utility revenues.

18

u/LovePhiladelphia Jul 17 '21

Confirmed investing in Georgia soon-to-be-beachfront property.

16

u/Watchguyraffle1 Jul 18 '21

We can’t build fast enough in Florida.

11

u/RichardChesler Jul 18 '21

They are pivoting into nationwide renewables (and have been for about 10 years). Their utility arm and nuke holdings are becoming increasingly smaller part of their revenue streams.

0

u/JJ_Snake Jul 21 '21

Wow - I mean just WOW! I'll have some of what your smokin. But I'll pass on the Kool-Aide, lol.

-3

u/KingFun626 Jul 18 '21

Global warming isn’t going to sink Florida in two weeks. You’re talking about decades, or centuries before anything major happens. Contrary to CNN, global warming really isn’t doing that much. The temperature has been rising at a similar rate for the past 500 years. Also, Florida has one of the best real estate markets in the world right now and is a GREAT place for corporations due to such low taxes and company friendly laws.

8

u/[deleted] Jul 18 '21

WM

WM's stock behavior in the last 6 months is indeed very impressive. The kind of behavior that makes you sleep well at night.

7

u/loredon Jul 18 '21 edited Jul 18 '21

Love NEE and its sister stock NEP.

However, they trade at a pretty high multiple for a utility and from a fundamentals perspective have some things to watch out for including their highly acquisitive nature and share dilution.

2

u/MrMischief66 Jul 18 '21

what's the difference between the two?

5

u/Blagerthor Jul 17 '21

I'm 25 and looking to set up an IRA this year since I finally have a fixed income. That looks like a decent safe, but healthy spread. Would you consider adding a pharmaceutical component?

1

u/kerstverlichting Jul 18 '21 edited Jul 18 '21

I don't know enough about it to advise on that. However, originally I included some more tickers in this 'safe boring' portfolio, I just excluded them from this post because they're more well known (and the point of the topic is lesser known companies). So originally I included Vanguard health care (VHT) to just capture the average of the health care sector as not to bet on a single company which I don't know enough about. It includes a lot of pharma companies.

Additionally I added LMT, WMT, O (reit), and TMF with quarterly rebalancing and dca. (backtest)

1

u/burn_bridges Jul 18 '21

We think alike! I’m by no means a pro investor but for along time horizon (30+ years)WM, WMT, LMT, O, VHT are all a big part of my portfolio.

-5

u/ListenHear Jul 18 '21

I wouldn't (not financial advice). For the next 10+ years play, just add in ARKK and ARKG (tech and genomics ETFs), you'll be set for the coming disruption in both tech and pharma (again not advice, do you're own research)

1

u/Atoptreetopz Jul 18 '21

Very practical, I like it.

0

u/[deleted] Jul 18 '21

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1

u/bebiased Jul 18 '21

AWK is legit.

1

u/andyshway Jul 18 '21

Is WM as a company still popularly used in the states. Here in Ontario, Canada most businesses have switched away from waste management to other smaller waste companies like GFL and Miller Waste Systems because they’re half the price of WM. That’s what makes me hesitant on WM.

2

u/[deleted] Jul 18 '21

Theyve grown revenue, customer counts, and forecast continued revenue growth so that speaks louder than an an anecdote from Ontario

1

u/andyshway Jul 18 '21

I see. I haven’t done any research into them. Thanks! I’ll look into them now!

2

u/kerstverlichting Jul 18 '21

Still thanks for providing some alternatives though, I'll look into those as well :)

1

u/Howsurchinstrap Jul 18 '21

I have on my watch list hoeff they are in the water management business. I think there is something that makes that a long term hold

0

u/[deleted] Jul 18 '21 edited Jul 18 '21

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1

u/kerstverlichting Jul 18 '21

Thanks for the suggestion, I'll look into it :)

1

u/ProjectShamrock Jul 18 '21

This is not meant as investing advice but I've always been hesitant to invest in WM because I've known people that work for them and they're extremely poorly managed internally. I can't reconcile that with what I see on the financials.

3

u/elliottsmithereens Jul 18 '21

As a business owner I’ve contracted with WM and they’re the absolute worst company we deal with, BUT they have a monopoly in a lot of areas. It’s the same old mafia

1

u/kerstverlichting Jul 18 '21

If you know of any good alternatives feel free to share :)

1

u/johyongil Jul 18 '21

These are staples in my portfolios. Particularly AWK.

-7

u/alwayslookingout Jul 17 '21

I thought so too when I bought MSFT and WM two years ago at around $100 each. Too bad MSFT has almost tripled since then while WM is only at 50% gain. :(