Stock Trading - Entry 50

One of the good things about a portfolio analysis, or even a simple high-level overview, is it makes it a whole lot easier to find out out if the level of diversification in one's portfolio is sufficient/suitable. Of course that means something completely different to every investor, which is why I am only imparting thoughts on my own investing journey - not financial advice. In this article I quickly show how my portfolio analysis drove me to analyse climate change to make my next stock purchase. (Fortunately I had help - and it was not A.I.)

To-date, my strategy has, in part, included dividend-paying stocks that conform with both my sell-out lines and fundamental analysis (which I have elaborated on in many articles). The market dip in spring 2025 made it clear how easy it is to invest heavily in one sector and even in only one company. While other investors talk about how diversification means not really knowing what one is getting into, for me it boiled down to making it easy to stay in the black.

Given how easy it is to put all of one's eggs in one basket, a portfolio snapshot comes in handy.

Initially, I found myself invested in the sectors of financials and industrials, so I expanded into REITs. Then I got into foods (although finding good deals is like waiting to find a coupon for just the very thing you want at the grocery store). Patience paid off.

I paid close attention to Maple Leaf Foods (MFI) as it divested it's Canadian Packers division. The latter, CPKR, was launched and nose-dived from $20-something per share down to a little over $14 per share.

I bought and it bounced back up to $16-ish. To be honest, I am very curious to find out if they will issue any dividends, so I am waiting.

Apparently, time will tell as I am still waiting for an answer.

In terms of natural resources, some stocks are in a dip in November 2025. After poking around a little, I decided to do a fundamental analysis on Acadian Timber (ADN). They appear stable, are investing in education (and new methodologies), and the Canadian government wants to buy only Canadian lumber. I had to remember that the primary product comes from trees, which are subject to soil and weather conditions. I can't know much about the soil conditions in New Brunswick, but if I could predict the weather for the coming year, I would know if ADN could continue to have stable inputs to feed operations. Sounds simple enough, right?

Well, the news of an lengthy water shortage doesn't exactly spell healthy forests from which to extract timber. That said, this article from the (Old) Farmers' Almanac says eastern Canada can expect a wet winter in early 2026 (for which it seems on track), thereby nourishing the soil and most likely topping up water reservoirs.

That left the question of summer 2026 - would the hot summer sun dry up all that rain, start forest fires, and hammer the timber industry's primary input (trees)? After a bit of research that included this article on the NOAA site , I settled on the notion that the push from northern moister air would bring at least a sufficient quantity of rain in the summer, especially now that La Niña is over.

That said, it Mother Nature is feisty, so I didn't go nuts buying ADN. And that's how I factored climate analysis in my newest stock addition to my portfolio.

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