From the blog

Each week, our team publishes a blog and webcast.

Jesse's: We’re holding CWB Despite the +65% Surge Last Week

We’re holding CWB Despite the +65% Surge Last Week

We’re holding CWB Despite the +65% Surge Last Week

About two years ago, the Canadian Western Bank (“CWB”) caught our attention. After falling just about 40% from its November 2021 high, the stock price was certainly considered contrarian. In addition to being out of favour, we liked that it traded almost 30% below its book value (which is a financial term used to describe […]

Jesse's: Meme Investing is Game that should Stop

Meme Investing is Game that should Stop

Meme Investing is Game that should Stop

It’s hard to believe that four years have passed since the Covid-19 pandemic shut down our economy and confined us each to stay home in seclusion. At the time, 2020 seemed unprecedented; in retrospect, it was quite a surreal experience. While in lockdown, something called “meme investing” was born through Reddit, an online community. Stocks […]

Jesse's: Today’s Environment for ESG Investing

Today’s Environment for ESG Investing

Today’s Environment for ESG Investing

ESG investing targets companies that follow positive environmental, social, and governance principles. The style exploded in popularity over the previous decade. In 2020, even the Rockefeller Foundation – created 90 years earlier by John D., whose Standard Oil owned 90% of the refineries at one point – committed to divest all of its fossil fuel […]

Jesse's: We’re Constructive on Brookfield Infrastructure

We’re Constructive on Brookfield Infrastructure

We’re Constructive on Brookfield Infrastructure

Rare is it to find a great business that simultaneously trades at an inexpensive valuation. Often, inexpensive stocks are cheap for a reason while high quality businesses accompany nosebleed valuations. We’re constructive on Brookfield Infrastructure Corporation (“BIPC”), a stock we purchased for suitable client portfolios at CAD$42.77/share last month. As its name suggests, BIPC has […]

Jesse's: Is the Dow at 40,000 a Reason to Sell?

Is the Dow at 40,000 a Reason to Sell?

Is the Dow at 40,000 a Reason to Sell?

The Dow Jones Industrial Average (“Dow”) hit 40,000 points last week. Had it not been for the media, I might not have noticed. A big and round number, however, makes for a good headline. Several ask if it’s a “sell signal” whenever an index hits a new all-time high. Our short answer is “no”. Not […]

Jesse's: AI’s Thirst for Power

AI’s Thirst for Power

AI’s Thirst for Power

Despite its benefits, artificial intelligence (“AI”) will accompany unintended consequences. On the plus side, efficiencies will be found, information will be more readily available, and productivity will be improved. On the other hand, jobs (and entire professions) will be eliminated, fraud will grow exponentially, and do we really want machines running our lives? Comedian Nate […]

Jesse's: Is Warren Buffett Paying Interest to TD Bank?

Is Warren Buffett Paying Interest to TD Bank?

Is Warren Buffett Paying Interest to TD Bank?

“I’ve always wondered what you think about the Canadian economy,” asked a shareholder that traveled from Newmarket down to Omaha last weekend for the Berkshire Hathaway meeting with Warren Buffett. Buffett responded that while many of Canada’s companies aren’t large relative to those in the United States, “we’re actually looking at one thing now.”  Is […]

Jesse's: That Budget was Taxing, Especially on Real Estate

That Budget was Taxing, Especially on Real Estate

That Budget was Taxing, Especially on Real Estate

Until now, 50% of all realized capital gains have been included when calculating your taxable income.  That’s about to change. Starting on June 25, the inclusion rate on realized capital gains exceeding $250,000 will jump from 50% to 67% for an individual. Money made on your primary residence or within a registered account like an […]

Jesse's: Tesla is Driving Out of Control

Tesla is Driving Out of Control

Tesla is Driving Out of Control

Now trading 60% off its all-time high, Tesla shareholders have seen the value of their investment collapse by just about 35% so far this year. Normally, this is the exact kind of contrarian opportunity that we would flock to for our clients. We like buying stocks that are out of favour. This is because our […]

Jesse's: Never Romanticize a Stock with Key Person Risk

Never Romanticize a Stock with Key Person Risk

Never Romanticize a Stock with Key Person Risk

Always invest in the company, never in the person. Eyebrows were raised earlier this month when the Royal Bank of Canada published a late Friday press release saying: “RBC was recently made aware of allegations involving [the Chief Financial Officer] and immediately launched an internal review and engaged outside legal counsel to investigate. The investigation […]