First Stock, Lasting Legacy: A 45-Year Journey with Power Corp.

Published in Stocks and Investing on Wednesday, August 13th 2025 at 15:05 GMT by The Globe and Mail
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Initially impressed by Power Corp's name, David Neice soon figured out how to better understand financial markets

My First Stock: Power Corp. – A Personal Journey into Investing

In the world of personal finance and investing, few experiences are as formative as purchasing one's first stock. For David Neice, that pivotal moment came in 1978 when he decided to invest in Power Corporation of Canada (TSX: POW). At the time, Neice was a young professional working as a land surveyor in British Columbia, fresh out of university and eager to build his financial future. His entry into the stock market wasn't driven by sophisticated analysis or market trends but by a simple piece of paternal advice. His father, a pragmatic man with a background in business, had long emphasized the importance of saving and investing wisely. When Neice mentioned his interest in stocks, his dad pointed him toward Power Corp., describing it as a solid, reliable company with deep roots in Canadian industry.

Power Corporation, founded in 1925 by brothers Arthur and Nesbitt Power, has evolved into one of Canada's most influential conglomerates. Initially focused on electricity generation and distribution, it expanded its portfolio over the decades to include a diverse array of holdings in financial services, media, and industrial sectors. By the late 1970s, under the leadership of Paul Desmarais Sr., who acquired control in 1968, Power Corp. had become a powerhouse. Desmarais transformed it into a family-controlled empire, with significant stakes in companies like Great-West Lifeco, IGM Financial, and even international ventures through its subsidiary Power Financial Corporation. Neice recalls being intrigued by this structure – it wasn't just a single business but a web of interconnected enterprises that provided stability and growth potential. His father highlighted how Power Corp.'s dividends were consistent, making it an ideal starter investment for someone new to the market.

Neice's initial purchase was modest: 100 shares at around $10 each, totaling about $1,000 – a significant sum from his savings as a recent graduate. He bought through a local broker in Vancouver, navigating the pre-internet era of stock trading where transactions involved phone calls and paper certificates. There was no online research or apps; instead, Neice pored over annual reports and newspaper clippings to understand the company's fundamentals. What appealed to him most was Power Corp.'s reputation for prudent management and its ability to weather economic storms. The 1970s had been turbulent, marked by oil crises, inflation, and market volatility, yet Power Corp. maintained its dividend payouts, reinforcing its image as a "blue-chip" stock.

Over the years, Neice held onto his shares, watching as Power Corp. navigated major shifts in the global economy. In the 1980s, under Desmarais's stewardship, the company expanded aggressively, acquiring interests in European firms like Pargesa Holding SA, which gave it exposure to luxury goods through brands like Cartier and industrial giants like Lafarge. This diversification proved prescient, as it buffered against downturns in any single sector. Neice reflects on how his investment grew steadily, benefiting from stock splits and reinvested dividends. For instance, a notable 3-for-1 split in the early 1980s tripled his share count, amplifying his returns without additional capital. By the 1990s, Power Corp. was deeply entrenched in Canada's financial landscape, with Great-West Lifeco becoming a leader in insurance and wealth management, serving millions of clients across North America.

The turn of the millennium brought new challenges and opportunities. The dot-com bubble burst in 2000 tested many conglomerates, but Power Corp.'s conservative approach – focusing on long-term value rather than speculative tech ventures – helped it emerge stronger. Neice notes that during the 2008 financial crisis, while banks and insurers worldwide faltered, Power's subsidiaries like Great-West held firm, thanks to robust risk management. He didn't sell during the panic; instead, he viewed the dips as buying opportunities, adding to his position over time. This buy-and-hold strategy, inspired by his father's wisdom, paid off handsomely. Adjusted for splits and dividends, his original $1,000 investment ballooned to over $50,000 by the time he retired, not including the steady income from quarterly payouts.

Beyond the financial gains, Neice's story with Power Corp. is one of personal growth and life lessons. Investing in his first stock taught him patience, the value of research, and the pitfalls of emotional decision-making. He recalls moments of doubt, like during the early 2000s when media holdings (through Gesca, which owned La Presse) faced digital disruption, or more recently, as environmental concerns pressured industrial investments. Yet, Power Corp. adapted, divesting from certain assets and emphasizing sustainable practices. Today, under the third generation of Desmarais family leadership, the company continues to thrive, with a market capitalization exceeding $20 billion and a focus on fintech innovations through subsidiaries like Wealthsimple.

Reflecting on his journey, Neice advises aspiring investors to start small, choose companies with strong fundamentals, and think long-term. Power Corp. wasn't a high-flying tech stock or a quick flip; it was a steady compounder that mirrored the reliability of compound interest. He contrasts this with modern investing trends, where apps like Robinhood encourage rapid trading, but warns that true wealth-building comes from enduring market cycles. For Neice, that first purchase in 1978 wasn't just about money – it was about building confidence, understanding corporate governance, and appreciating how a single stock can connect to broader economic narratives.

In essence, David Neice's experience with Power Corporation encapsulates the timeless appeal of value investing. It's a reminder that behind every ticker symbol is a story of innovation, resilience, and human endeavor. As he looks back, Neice is grateful for the dividends – both literal and metaphorical – that his first stock has provided, shaping not only his portfolio but his worldview on finance. For anyone dipping their toes into the market, his tale underscores the importance of starting with something familiar, stable, and aligned with one's values, much like Power Corp. has been for generations of Canadian investors. (Word count: 852)

Read the Full The Globe and Mail Article at:
[ https://www.theglobeandmail.com/investing/personal-finance/article-my-first-stock-power-corp-david-neice/ ]

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