May 2019 Update

Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard. – Warren Buffett

When everyone believes something is risky, their unwillingness to buy usually reduces it’s price to the point where it’s not risky at all. - Howard Marks

I am pleased to report continuing performance improvement for the Growth and Income portfolios. Firstly, we are benefiting from improving operating results of our businesses. Portfolio-level cashflows are growing. Secondly, investor sentiment is turning from negative to positive for our core sector holdings. Thirdly, the improvements made to our entry and exit timing system in November (the machine learning project) continue to bear fruit.
 
I am looking forward to the months ahead and urge clients to add additional capital to the portfolios. We are embarking on a new chapter of growth with a strategy that is unique, yet focussed on the fundamental principle of buying low and selling high.

Recommended reading

Experience is the best teacher https://www.collaborativefund.com/blog/you-have-to-live-it-to-believe-it/

An important consideration for today’s market https://www.thestreet.com/investing/stocks/will-the-real-pe-ratio-please-stand-up-14923577

Cordially,

Ben W. Kizemchuk
Portfolio Manager & Investment Advisor
Wellington-Altus Private Wealth