Cutting Through the Noise
October 13, 2012
"It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” – Mark Twain. As investors, we need to be wary of what we’re absolutely, positively sure about. We may be flat out wrong. Economies, markets and...
Read MoreOctober 2, 2012
In last Saturday’s Report of Business, Rob Carrick wrote an article about low volatility mutual funds (The Hidden Dangers in Playing it Safe). The Steadyhand Equity Fund was one of six funds he highlighted as having a positive return over the last five years...
Read MoreSeptember 29, 2012
Last week in Toronto, I had back-to-back meetings that provided an intriguing juxtaposition. I first met with Joe Sirdevan, the former head of research at Jarislowsky Fraser, who is starting a new firm, Galibier Capital, and then spent some time...
Read MoreSeptember 24, 2012
As we do every year, we’ve updated our figures on co-investment (the practice of investing alongside our clients). We feel there’s no better way to illustrate our commitment to our investment philosophy, approach, and ultimately our clients, than to put our...
Read MoreSeptember 16, 2012
Big changes are in the regulatory winds and they’re going to be good for Canadians. The new rules that are coming down relating to cost disclosure, performance reporting and client statements are likely to have more impact on individual investors...
Read MoreSeptember 10, 2012
While I was cleaning out the cottage last week, I found a few old items that brought back memories. The Clarkson Bantam hockey jacket with the black leather sleeves was a beauty, although it doesn’t seem to fit anymore. Fortunately, neither does the Speedo with the maple leaf pattern. I found a pair of flip flops that were so old they were called thongs. And to my great surprise, my wooden toy box was...
Read MoreSeptember 6, 2012
There was an article by David Berman in the Report on Business yesterday pointing out how bearish Wall Street strategists are these days (Time to Buy as Pros Turn Bearish). As a group, their recommended stock weighting is 44.4%, which is near its lowest level since 1985. This compares to a long-term average of 60-65%. In the...
Read MoreSeptember 1, 2012
Just as the baby boomers brought us free love and rock ’n’ roll, they’re also leading the way into pension-less retirement. Those who are near or just into retirement are in a tough spot. They have a long time time horizon and need investment returns that are...
Read MoreAugust 22, 2012
“Stock rally defies fears of a slumping economy.” That was the title on an article in today’s Report on Business. To me, it’s further evidence of the macro mania that I wrote about in last weekend’s Globe article. Investors are looking at the big picture (Spain...
Read MoreAugust 21, 2012
We try to limit how often we write about fees because we have an axe to grind (is more than 50 times a year too much?), but … David, Chris and I have come across a few situations in the last two weeks that caught our eye. In each case, the investor had a...
Read MoreAugust 18, 2012
After some extended dock time, I’ve been re-engaging in the realities of the capital markets. I put aside my summer reading list and am back on the hard core investment stuff. With the benefit of a fresh set of eyes, three things jumped out at me...
Read MoreAugust 3, 2012
As a young analyst at Richardson Greenshields, I worked with a big guy with an unusual name, Pentti Karkkainen. After years as a highly regarded oil analyst, Pentti now plies his trade in Calgary at KERN Partners, a private equity firm he co-founded. I introduce...
Read MoreJuly 22, 2012
If you really want to delve into someone’s personality and character, take them golfing. There are few pastimes that are more revealing. Golf takes four to five hours to play, is laden with emotion and is mankind’s greatest equalizer - it humbles...
Read MoreJuly 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 MoreJuly 6, 2012
June 28, 2012
There is lots to worry about these days. Rob Arnott, of fundamental indexing fame, talks about the 3D hurricane - debt, deficits and demographics. As part of the hurricane, I’ve been questioning how sustainable U.S. corporate profit margins are, given...
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 21, 2012
It was announced this week that Yamana Gold is buying Extorre Gold Mines for $395 million. Yamana is one of the power houses in the mining industry, while Extorre is a smaller company that’s struggling to finance and develop a large silver mine in...
Read MoreJune 15, 2012
A friend of mine forwarded me a quote today from Credit Suisse (allegedly) that says it all: "The market is currently like a strapless bra; half of us are wondering what is holding it up and the other half are waiting for it to drop so they can grab the opportunity...
Read MoreJune 11, 2012
As a follow-up to my last Globe column, which focuses on return expectations, I want to update our guidance to clients on asset mix. I’ll use the Founders Fund as a live example. The fund has a long-term asset mix of 60% stocks and 40% fixed income. (All the...
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 28, 2012
May 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 23, 2012
I find the kerfuffle about the Facebook initial public offering (IPO) interesting. I don’t know if anything nefarious went on behind the scenes, but it seems to me that what played out on this overhyped and highly priced IPO (the $38 issue price equates to over 20x revenue) fell within the range of possible outcomes. Facebook...
Read MoreMay 17, 2012
In this space, we talk a lot about transparency, and we try our best to walk the talk. There was a piece by Barrie McKenna in the Globe and Mail this week about the Federal government’s transparency around financial reporting. The conclusion: If the...
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