Jerome Santa, 54, Lake Louise, Alta.
First stock: Philip Services Corp., a former Hamilton-based metal recycler and environmental services company.
I was born and raised in France and, in my mid-20s, I moved to Canada and took a job as a chef de partie at the Hotel Beausejour in Moncton. I asked an older colleague how to make more money because I knew that earning $10.23 an hour at the time wasn’t going to get me very far. He was passionate about the stock market and suggested I start investing. I had about $1,000 in savings and, with a mix of innocence and naivety, I went to a broker to invest in it. The broker I met with looked at me with a smirk and said clients needed about $250,000 to be eligible to invest with his firm. I remember saying, ‘Well, I need to start somewhere.’ He helped me open an account and gave me a list of stocks to choose from. He also warned me the commission came to $85 per trade, so I should pick something I planned to own for a while. I picked Philip Services (which at the time was called Philip Environmental) because I felt it was the kind of business that would be around for a long time. I didn’t want to buy two stocks because I didn’t want to pay more in commission. That was 1997.
What happened to the stock?
I checked the stock price every day. After six months, the price doubled. I thought that went too high, too fast, so I called my broker and told him I wanted to sell the stock. He asked me several times, ‘Are you sure?’ I kept saying ‘yes’ until he agreed to sell it. Six months later, it was revealed that the company had an accounting issue, and the stock dropped. Eventually, it declared bankruptcy, and the stock disappeared.
I had another experience where a broker from another firm told me I should buy Bre-X Minerals Ltd. It was around the time the media was reporting possible tampering with the gold samples. Thankfully, I didn’t take his advice. We all know what happened to Bre-X.
What lessons did you take from those experiences?
They’ve made me cautious about the stock market and taught me not to believe everything a broker tells you. Also, when a stock surpasses your comfort level, it’s time to get out. I’m a do-it-yourself investor through my defined contribution pension plan and personal investment account. I’ve had more winners than losers. I’ve found that if you invest in companies catering to human needs and flaws, you will make money. Today, I own stocks such as Baker Hughes Corp. BKR-Q, Costco Corp. COST-Q, Northrop Grumman Corp. NOC-N and RTX Corp. RTX-N (formerly named Raytheon). I doubled my investment in The Bitcoin Fund Class A in a few months and recently sold it. I only put in $100. I’m not a Bitcoin believer, but I wanted to make a bet while it was low.
What advice would you give someone today buying their first stock?
To be comfortable investing, you should understand the company you’re buying so you’re not surprised if something bad happens. Also, consider buying stocks from companies whose products you use. For instance, instead of just complaining about how much your bank or phone company charges, buy their stocks. Also, diversify your holdings so that if one stock goes down, the others can keep your portfolio from losing more money.
– As told to Brenda Bouw. This interview has been edited and condensed.
The Globe is looking for Canadians to share their 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