Cutting Through the Noise
July 7, 2012
There’s one research report in my reading pile I’ve been avoiding, although it eventually worked its way to the top. Vanguard, the giant U.S. mutual-fund company ($1.8-trillion U.S. under management) produces some great research, particularly in the...
Read MoreJune 23, 2012
A greed moment? So here we are. The economic outlook is bleak. Systematic risk is high. Investors are scared. And Warren Buffett’s words are ringing in my ears, “We simply attempt to be fearful when others are greedy and to be greedy only when others...
Read MoreJune 9, 2012
The market had a good run for a while, but now it’s right back to where it was.” “I haven’t made any money in 10 years.” “Whatever it is, I don’t want any more downside.” “I give up.” These statements reflect the sentiment of investors today. The headlines...
Read MoreMay 26, 2012
‘[T]he market’ is rapidly becoming something of an endangered species. Your mission, should you choose to accept it, is to try and identify any asset of significance that isn’t experiencing huge and artificial distortion to its price by forces that we might...
Read MoreMay 12, 2012
A long-standing investment strategy is back in vogue. “Covered call writing” is designed to generate income from a stock by selling a call option against it (the right to buy the stock at a set price in the future). While the strategy has been around forever...
Read MoreApril 28, 2012
As your buy side correspondent, I make a point of reading a whole stack of investment manager reports each quarter. I particularly focus on managers who think long term (no frequent traders), are prone to non-consensus views and aren't afraid...
Read MoreApril 14, 2012
We’re celebrating our firm’s fifth birthday this week, which has brought on lots of reflection. Before we started up, I sought counsel from as many people as possible under the theory that if you want money, ask for advice. As it turned out, I got little money...
Read MoreApril 1, 2012
I’m wired to be a contrarian. That means I tend to be early getting on and off trends. I was worried about the U.S. housing cycle in 2004 and thought the Rolling Stones were over the hill two decades ago (was I wrong?). I’m still calling for Cheez Whiz to...
Read MoreMarch 17, 2012
As an active manager of stocks and bonds, we’ve always considered our biggest competitor to be the market indexes. Over time, our clients expect us to beat them. These days, however, we’re facing another formidable foe. It’s called real estate. Investors...
Read MoreMarch 3, 2012
Would you rather see your portfolio earn 3 per cent per year and provide monthly distributions of 5 per cent, or earn 5 per cent with irregular payments totalling 2 to 3 per cent? It may seem like a ridiculous question, but it’s reflective of the choices being...
Read MoreFebruary 18, 2012
The RRSP season ain’t what it used to be. In the 1980s and ’90s when investing was fun, it was a focal point on the investment calendar. You couldn’t open the newspaper or walk a block without seeing an advertisement. Banks stayed open late to...
Read MoreFebruary 4, 2012
Boyd Erman wrote an article before Christmas titled “Squeeze Is On For Smaller Investment Firms.” When I saw the headline, I shuddered a little. Was he going to talk about firms that don’t have billions of dollars under management? Was he going...
Read MoreJanuary 21, 2012
A meeting I had with a prospective client a few years ago has always stuck with me. She told me her adviser had done well for her in the previous five years, but had been letting her down more recently. After reviewing the data, we discovered the...
Read MoreJanuary 7, 2012
My holiday reading included two journal articles that challenge the notion that investing for the long term reduces risk. The message: It’s all well and good to recommend that an investor take the long view and not worry about short-term market dips...
Read MoreDecember 23, 2011
I came out of the “me” generation (have I told you about my latest injury?), so even though this time of year is about giving, I’m mostly into receiving. In our household, my wife Lori goes for quantity at Christmas, while I’m all about quality. When I wrote...
Read MoreDecember 10, 2011
It’s a remarkable time to be an investor and investment professional. After decades of overspending, we’re watching Europe melt down and the American empire decline faster than anyone expected. The debt burden has accelerated the power...
Read MoreNovember 26, 2011
A year ago, I wrote a column inspired by a holiday in Arizona (my in-laws have that effect on me). The piece attempted to level a rather tilted picture of the United States, one that was firmly focused on dismal economic and political news. I suggested that from...
Read MoreNovember 12, 2011
I recently watched a promotional video that outlined the reasons for owning dividend-paying stocks – tax-efficient income, lower volatility and you get paid to wait for markets to recover. I agreed with all the fund manager's points, but he failed...
Read MoreOctober 29, 2011
“Creep.” The dictionary defines it as a "slow and stealthy movement." To me, it’s something you don’t notice while it’s happening, but later when you do, you go "Wow!" If you think about our lifestyle, we've slowly moved to a place where jeans are...
Read MoreOctober 15, 2011
I’ve written in the past about the tension between the investment profession and the investment business. As asset managers, we need to find a balance between managing portfolios to achieve the best return for our clients, and making a profit for...
Read MoreOctober 1, 2011
“In calmer moments, investors recognize their inability to know what the future holds. In moments of extreme panic or enthusiasm, however, they become remarkably bold in their predictions: They act as though uncertainty has vanished and the...
Read MoreSeptember 17, 2011
“Isn’t it funny when you walk into an investment firm and see the financial advisers watching CNBC. It gives me the same feeling of confidence I would have if I walked into the Mayo Clinic and the doctors were watching General Hospital.” This little...
Read MoreSeptember 3, 2011
I got turned on to finance while stumbling through my MBA at the University of Western Ontario. I suddenly found myself reading Report on Business right after the Sports section (go figure). When it came to finding a job, I got lucky. There weren't many...
Read MoreAugust 21, 2011
In light of the recent weakness and volatility in the stock market, both statements are particularly poignant. It’s easy to agree with the logic and simplicity of Warren Buffett, but not so easy to behave like him. My former partner's shaking hand reinforces...
Read MoreAugust 6, 2011
“Hey Tom, how was your holiday? The weather’s been great – skiing conditions must have been calm?” “Oh Ralphie, it was amazing. Two weeks of Crystal Lake at its best. I’m totally decompressed. But what about you man? You’re looking pretty ragged...
Read More