Robert Orrock, 76, retired teacher and former sailing instructor in Point-Claire, Que.
What was your first stock?
I was in my 20s, living in Montreal, and decided it was time to invest. I knew nothing about investing, so I went to Place Ville Marie, a big office tower in downtown Montreal, to find a brokerage firm. I walked into the door of a firm called Shearson, where two brokers invited me to stay for the day and watch them work. They were very kind to me. This kind of thing would never happen today. It was around the time of the oil crisis in the 1970s, and they recommended I buy Ranger Oil. So, I bought 100 shares for $19 each. The commission was $39. I eventually did sell the shares for a profit. It was a great start to my investing career. These brokers showed me that investing isn’t a mystery; there’s nothing to fear.
What was your investing experience like after that?
I stayed with the brokerage for a few years. The company was eventually bought out, and the brokers I worked with moved to Toronto. I wasn’t happy with my new broker, so in the mid-80s, I started investing on my own through TD Direct Investing (formerly TD Green Line Investor Services) shortly after it launched. Then, one of the best things I did was take a local college course on investing. I learned a lot. Also, back then, Quebec had a stock savings plan where, if you bought a Montreal-based company, you would receive a big-time tax credit on your income taxes. So, at that time, I loaded up on shares of Bank of Montreal BMO-T, Bell Canada BCE-T, Canadian Pacific CP-T and Alcan. I eventually put them into a DRIP [dividend reinvestment plan]. I still own all of those stocks, except for Alcan; I took the cash when it was bought out by Rio Tinto in 2007. I’ve held a lot of stocks for many years and live off of the dividends. I am a better buyer than seller when it comes to investing.
How would you describe your investing style today?
My basic portfolio has always centered on blue-chip dividend-paying stocks in sectors such as financials, utilities and telecoms. I realized early on that the market fluctuates but usually rises over time and dividends can be a steady source of income despite what the market does. I regard my portfolio as a business in which I pay the employees (stocks) to earn income; anytime I can pay them less for the same amount of work, it’s a bonus. I’m a self-directed investor but have some money with an adviser at TD who also believes in owning quality stocks for the long term. We’re a good match.
What advice do you have for others buying their first stock?
Educate yourself, not just on the markets but also on what’s going on in the world that could impact your investments. There’s much more information available today than when I was starting out, so take advantage of it. Just make sure your information comes from a credible source.
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 email us at: globemyfirststock@gmail.com
