Cutting Through the Noise
September 4, 2010
One of the joys of my day job is talking with smart, turned-on people from all aspects and levels of the investment business. My good fortune comes from having a long and diverse career (as Woody Allen put it, 90 per cent of life is just showing...
Read MoreAugust 21, 2010
Portfolio management is both a science and an art. The science can be learned from finance professors and investment books. The art part, however, comes from years at the school of hard knocks. Like every grizzled money manager who’s...
Read MoreAugust 9, 2010
In my last column I talked about fear and investors who wanted to get out of the market. My advice (don’t do it) was based on valuation, investor sentiment and the difficulty of timing the market. It was aimed at helping the investor make the best decision. But...
Read MoreJuly 24, 2010
In my quarterly letter to clients I used the word “discouraged” to describe investor sentiment. In the few days since we published it, however, I’m starting to think a better word is “despair.” Too regularly I’m being asked whether it’s time to get out of the...
Read MoreJuly 10, 2010
I’ve had a bias to owning higher quality companies since 2007. In a challenging economy with unpredictable credit markets, it seemed reasonable to pay a premium for stable profits, excess cash flow and strong balance sheets. I knew the companies...
Read MoreJune 27, 2010
There has never been more investment information available to investors, so it’s frustrating to see the release of the Morningstar Stewardship Grades, the most useful piece of research to come out in decades, slide by with little or no coverage from...
Read MoreJune 12, 2010
We’re starting to see stories about a softening real estate market in Canada. Listings are up, sales are down, and even the always bullish industry executives are predicting lower prices in the coming year. It reminded me of a quote I saw recently: “Real is...
Read MoreMay 29, 2010
I’m just back from a few days in Scotland. Sightseeing, golf and a meeting with one of our equity managers was the order of the day. For the golf, I stuck to convention and kept track of my pars, bogies and, unfortunately, the “others.” For my meeting with...
Read MoreMay 16, 2010
As we ride the market volatility caused by Europe’s economic turmoil, I can’t help but think back to Oct. 19, 1987, a date that will forever be imprinted in my memory. Black Monday saw the Dow drop 23 per cent, while the TSX was down 11 per cent...
Read MoreMay 2, 2010
Burgundy Asset Management sent a letter to its clients this week announcing changes to its management structure. Two years from now CEO Tony Arrell will step down and hand the reins over to the current Chief Investment Officer, Richard Rooney...
Read MoreApril 17, 2010
Four years ago my business partner Neil Jensen and I were sitting on Kits Beach contemplating a new mutual fund company. As we looked out at the competitive horizon, we could see a wave coming at us. It was called ETFs (exchange-traded funds), and...
Read MoreApril 4, 2010
"Tom, is now a good time to invest?" When I get that question at a party or reception, I freeze up. It's weird because I'm reasonably competent at social banter, especially when I have a cocktail in my hand, and I certainly have views on these kind of things. But I...
Read MoreMarch 21, 2010
There are more than a few money managers who, as large shareholders of the Canadian banks, harbour a secret desire to have a seat at the boardroom table. They've studied these institutions for years and feel they have something to offer. But in reality...
Read MoreMarch 8, 2010
With very few exceptions, the investment managers who did poorly when markets were melting down bounced back with a solid return last year. What didn't work in 2008 worked well in 2009. That wasn't the case, however, for one of Canada's highest...
Read MoreFebruary 20, 2010
Watching the Olympics, the notion of risk is very clear. Athletes need to push it to the limit in order to get to that top spot on the podium. But to obtain the advantage, they risk missing a gate, catching an edge or taking an untimely penalty. They may...
Read MoreFebruary 6, 2010
A consequence of being a non-benchmark manager and running a transparent shop is that we are asked direct and incisive questions. At a presentation last week, a client asked what criteria I would use for changing a manager on one of our funds...
Read MoreJanuary 23, 2010
There's no question about it. The defining feature of the capital markets right now is the search for more yield. Individuals are doing it. Institutions are doing it. And new product development is totally focused on it. I get an e-mail almost every day announcing a...
Read MoreJanuary 9, 2010
A lot is written about how to pick a money manager, but it's also important to know how to be a good client. A manager-client relationship should last a long time and be rooted in confidence, empathy and stability. Both sides are working toward a common...
Read MoreDecember 26, 2009
We'll be turning the calendar to a new decade in a few days and I've been asking people for their take on it. The response has been underwhelming. Seems nobody has thought about it and a few were even caught off-guard, saying only, “Has it really been 10...
Read MoreDecember 14, 2009
John Bogle starts his latest book, Enough, with a great story. Kurt Vonnegut and Joseph Heller were at a party hosted by a hedge fund manager. Mr. Vonnegut muses that their host makes more money in a day than Mr. Heller earned from his wildly successful novel...
Read MoreNovember 28, 2009
Note to reader: I have an axe to grind. I own and operate a low-cost mutual fund company – and I'm hopping mad about the HST. The impact of Ontario and British Columbia's harmonized sales tax will be negative for investors. No matter who you...
Read MoreNovember 15, 2009
Here I go again. Just when everyone is starting to enjoy themselves, I'm getting uneasy. It's time for investors to temper their expectations for returns and prepare for some bumps in the road. This doesn't mean the cycle isn't playing out as it should. The...
Read MoreNovember 1, 2009
When you're trick or treating, keep an eye out for mutual funds dressed up as closed-end funds. The latest innovation to take hold in the Canadian wealth management industry is “closed-until-open” funds. There has been a wave of new offerings that...
Read MoreOctober 18, 2009
Oh Canada! In the constant debate about whether this rally is for real or not, there is an underlying subtext. It relates to how much emphasis investors should put on Canada. In the discussion, there are many who are asking the question, why bother putting...
Read MoreOctober 3, 2009
One of the really fun events on the Street is the “Up the Down Market” dinner held annually in Vancouver, Calgary, Toronto and Montreal in support of the Down Syndrome Research Foundation. The focus of the evening is a game based on a stock market...
Read More