In contrast to the woes of the mortgage and banking sector, our defensive companies are performing well, up over 7% on the year. American Growth is up 15%, and the Income Portfolio is up 12% on the year. With purpose we have avoided most companies on the TSX and especially the banks. Instead we’re focusing on unique opportunities where we can demonstrate our edge in judging intrinsic value and business quality. Our strategy of buying good companies on the cheap continues to work, and I expect more runway ahead for our ideas.
Although it is true we’ve taken a more defensive tone than usual, and that defensive tone has cost us a couple points of upside relative to the general market this year, we also believe that taking excess risk just because everyone is doing it is not a good idea long term. While bull markets cause the average investor to sacrifice things like quality and value for the mirage of short term gain, quality and value form the very bedrock of what we do.
Company-specific notes and target estimates are available for clients only.
Possibly the best half hour investment lesson ever recorded: https://www.youtube.com/watch?v=bZfPJCAVQg0
How to make better decisions: https://www.farnamstreetblog.com/2017/04/get-smart-brian-tracy/
54% of Canadians think house prices will never drop: https://twitter.com/jamesmcuddy/status/851445900161556482/photo/1
The truth about investing: https://www.cfasociety.org/india/Newsletters/Howard%20Marks_The%20Truth%20about%20Investing.pdf
High risk mortgages are growing too quickly: https://betterdwelling.com/sorry-vancouver-toronto-king-risky-mortgage-debt/