After a major loss with my first experience in the stock market, I was in the search for a company that I knew how they make their money in general. I have decided on the 11th of November to buy 100 shares of Bombardier (BBD-B.TO).Bombardier is an aerospace and transportation company. Their headquarter is in Montreal, Quebec.
Before I bought any stock of Bombardier, I knew they were struggling as a company with the C Series Jet. Despite this, I had an optimistic view about the company and it is a quite popular company with a big impact in history here in Quebec.
As time passed, my stake at Bombardier grew, I had 850 shares at one point in time. Last week, I sold 750 of my shares with a positive return, to diversify my portfolio. So my investments are not settled only to one company. If it was not the diversification of my portfolio I would’ve never sold my shares for a long time because I believe it is a good long term investment. I also think the company will perform better with the help of the government of Quebec who Invested $1 billion to help the company and from Caisse de depot et placement du Quebec‘s help.
With this investment, I have learned that airplane companies quite depend on airline companies. If an airplane manufacturer wins a contract against its competition, the stock of the airplanes manufacturers will rise. For example, on January 21st, the news came that Boeing (BA) won a contract against Bombardier for United Airlines with a decline of Bombardier’s stock by around 16% and Boeing stock increase by 5%. I think that airline companies influence quite a lot for airplane manufactured companies. Every time, when Bombardier loses a contract their stock decreases especially when their C Series Jet is involved.
Compared to my first encounter with the stock market, I was very satisfied with the purchase of Bombardier’s stock and I hope it will stay in my portfolio for a long time. I also hope Bombardier will perform better so the company gets out of any struggle and participate to the growth of the economy of Quebec and Canada. During this week, I have increased my steak in Bombardier.
Disclaimer: I am not an analysis. This is my purest opinion and it’s completely related to my experience. Before you buy any stock, you should do your own research.