Each week, our team publishes a blog and webcast.
When central banks started to hike rates last March, we admittedly thought they would pause much earlier. But, as inflation remained stubbornly high, they kept hiking. While inflation still sits above the U.S.’s 2% target and Canada’s 1-3% preferred range, price growth has moderated substantially. After hitting 9.1.% in the U.S. and 8.1% in Canada […]
Our investment style is contrarian. We buy stocks that are out of favour with the expectation that there will be greater pricing upside when the tide turns. However, we won’t just buy anything that’s down in price. Our due diligence process requires a bunch of boxes to be checked before making a purchase. But, even […]
This week, Kevin McCarthy became the first person in 134 years to be ousted as Speaker of the United States’ House of Representatives. McCarthy forged a deal with the Democrats to avert a government shutdown (until November 17, at least) and the Freedom Caucus of his own party sealed his fate. After watching McCarthy win […]
Dollar General, one of the major discount retailers south of the border, reported weak earnings at the end of August. Its gross profit plummeted 24% due to rising theft, causing earnings to come in 15% weaker than expected. If that wasn’t enough bad news for one report, management also cut their sales guidance for the […]
This week, the United States Justice Department and 38 state attorneys-general will make their case in a federal courtroom that Google uses unfair business practices to stifle competition from denting its monopoly over search engine traffic. Google pays lofty sums to companies in exchange for making its search the default option on browsers and phones. […]
Why the market goes up in some months and down during others is anyone’s guess. Sometimes it is related to tax planning, other times it appears random. Nevertheless, seasonality can become a self-fulling prophecy because so many investors trade based on historical patterns. For that reason, it’s important to be aware of historical patterns in […]
Several years back, new regulations came into force that required our industry to share with clients a second type of investment return called the money-weighted return. Previously, only the time-weighted return was required. Though required to report the money-weighted return only once a year, we have decided to include both the time-weighted and money-weighted return […]
Any board of directors will fear a letter from an activist shareholder. They’re loud, disruptive, and usually seek short term solutions. Often, several managers at the top lose their jobs. Data from Insightia shows that in recent years, both sides of the border have seen an acceleration in activist campaigns. Last year, there were 53 […]
Always hunting for a bargain to benefit our clients, we review each day the stock prices that have dropped the most substantially. When doing so, we ask if the problem causing the sell-off is transitory or a material change to the business. We’ll invest in the former but avoid getting involved with the latter. When […]
