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Bias For Clarity

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Bias for action. Gets things done. Go-getter. Traits companies big and small look for. And for good reason, you're being hired to do things! However, action is a secondary step that often overshadows the primary step, direction.   Clear direction is the foundation that enables our actions to takeoff. Without it, we're stuck in the mud.  Striving for clarity is an underrated skill. Having the courage to ask ( seemingly ) obvious questions, and to check in, making sure we're all on the same page. "O bvious " questions are a low risk, high reward way to add value. At worst, you'll add confidence to our actions. At best, you discover a misalignment that saves us from a dead-end.  The more people, the more clear we need to be. The bigger the initiative, the bigger the risk of reaching the finish line, only to realize expectations were off.  Success is always uncertain. But we can be certain about what we want and what everyone's job is. Things that can be clea
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Norbert's Gambit: How To Convert Money For Cheap

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Most places charge 2% to convert currency. If you're a Canadian investor with Canadian Dollars, purchasing US stocks can be costly. Luckily there's a solution.

Norbert Gambit 

Norbert's Gambit is a strategy where you can convert money for cheap using ETFs. Many ETFs only trade under one currency, some trade under multiple.

 Horizons US Dollar Currency ETF has two versions, one that trades in Canadian Dollars (DLR) and one the trades in US Dollars (DLR.U). Both ETFs represent the same asset, so they're interchangeable. You can easily swap one out for the other, all you need to do is instruct your broker.

This is what makes Norbert's Gambit possible and DLR was made for the job.

Norbert Gambit Step-By-Step

CAD to USD

1. Buy DLR.TO
2. Instruct your brokerage to journal your DLR.TO to DLR.U.TO
3. Wait 1-2 business days for the journaling process to complete after the trade settles
4. Sell your DLR.U.TO

Bam! You have US Dollars. The process can also be flipped to get Canadian Dollars if you have US Dollars you want to convert.

USD to CAD

1. Buy DLR.U.TO
2. Instruct your brokerage to journal your DLR.U.TO to DLR.TO
3. Wait 1-2 business days for the journaling process to complete after the trade settles
4. Sell your DLR.TO

Should You Use Norbert?

Depending on your brokerage, you'll still face fees for buying and selling (typically $5 to $10). So ensure you're converting enough currency for it to be worth it. If you're only converting a few hundred bucks, paying the exchange fee might be cheaper. For larger sums, Norbert's Gambit is a great way to convert money for cheap.








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  1. Camille FavreauApril 4, 2020 at 3:16 PM

    Great article, super clear, as always. Absolutely love the step by step, I know what to do now. Exactly what I needed. Thanks Herman for writing!

    ReplyDelete

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Bias for action. Gets things done. Go-getter. Traits companies big and small look for. And for good reason, you're being hired to do things! However, action is a secondary step that often overshadows the primary step, direction.   Clear direction is the foundation that enables our actions to takeoff. Without it, we're stuck in the mud.  Striving for clarity is an underrated skill. Having the courage to ask ( seemingly ) obvious questions, and to check in, making sure we're all on the same page. "O bvious " questions are a low risk, high reward way to add value. At worst, you'll add confidence to our actions. At best, you discover a misalignment that saves us from a dead-end.  The more people, the more clear we need to be. The bigger the initiative, the bigger the risk of reaching the finish line, only to realize expectations were off.  Success is always uncertain. But we can be certain about what we want and what everyone's job is. Things that can be clea
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