October 6th, 2014
On October 8th, earnings season officially kicks off with Alcoa reporting after the bell. Thousands more companies will follow in the coming weeks. After September’s poor market results — only the fifth month with a negative return in the past 21 months — investors will look to see how companies are coping with the macroeconomic [...]
October 3rd, 2014
Stock prices go up and down all the time, and for lots of reasons. Partly they are driven by real economic or company specific news. If a company makes more money than predicted, we would expect its shares to rise. If the economy is doing worse than forecast, we think that most [...]
September 29th, 2014
Gold bugs have been disappointed with the performance of bullion since the precious metal topped $1,800 per ounce several years ago. It closed at $1,220 on September 26th..
The USD has appreciated for eleven straight weeks, a streak unseen since 1967. This comes as investors foresee an end to the Federal Reserve’s QE3 money printing program [...]
September 22nd, 2014
As the market continues to appreciate north and south of the border, finding value becomes more difficult. This year alone, after including dividends, the TSX is up almost 15% while the S&P 500 has gained more than 10%.
Finding value is less difficult when searching for companies less closely followed by Bay Street. One good example [...]
September 16th, 2014
Market bears have been calling for a correction – in some cases, by as much as 20% – since the start of the year. So far, they have been wrong. Perhaps the best reason is that unlike past calms before the storm, this market isn’t that expensive.
The S&P 500 is currently trading at 14x next [...]
September 11th, 2014
GRADING OUR OUTLOOK 2014 FORECASTS
The proliferation of social media, blogs and others forms of self-publishing has swamped consumers with information. Most can’t remember where they read the last piece of data, and as new information floods in, old things are quickly forgotten. This works in favour of those who make predictions. If the predictions [...]
August 29th, 2014
Long term holders of Tim Hortons have now, counting dividends, about quadrupled their money.
Now that’s a double-double we can all love. So it is with regret that we have sold our holdings in this long-held core position. Here are our reasons:
1. The price is very attractive. We thought the stock was expensive in the $65 [...]
August 28th, 2014
As investors digest this week’s slew of bank earnings, slower loan growth appears to be a recurring trend. Last Friday, the Royal Bank of Canada reported its mortgage book grew an unexciting 4 percent year-over-year. More information about the state of Canada’s housing market will become known in the quarters ahead.
While Canadian housing prices continue to set [...]
August 8th, 2014
There are parts of the market that are frothy and there are parts that are extremely cheap. Bull market, bear market; this has always been the case. The names may change but the culprits are always the same. When you invest in pie in the sky, expect to get the pie [...]
July 31st, 2014
“If a fine business is selling in the marketplace for far less than intrinsic value, what more certain or more profitable utilization of capital can there be than significant enlargement of the interests of all owners at that bargain price?” -Warren Buffett
Shrinkage. Not a topic one usually brings up at the dinner table. But as [...]