Sunday, November 9, 2008

The Old and the New, investing in GE and CHL

I made my first stock picks this week. I used my RBC Access USA chequing account at BNY Mellon to open two stock accounts. One with General Electric (GE) and the other is an ADR (American Depository Receipt) with China Mobile (CHL).

Why GE? It's a good dividend paying stock, it's trading around its 52 week low, Warren Buffet bought into it, and over the long term it should do well, it appears well positioned to take advantage in new technology and renewables, along with its other strong businesses.

Why CHL? China Mobile is one of the largest telecoms in China, it's dividend policy is to pay 45% of profits to shareholders, trading at a 52 week low, and it's growing a huge subscriber base. More and more of China's people are moving into the middle class and CHL is a company that's poised to meet those needs. I've bought into an ADR, which is basically stock of a foreign company that's traded on the NYSE.

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