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Blog 2018-06-01T19:13:27+00:00

Digging into the Valuation Tool Box

By | October 26th, 2018|

Every stock has a price, and while the market is open, we can track it by the second. At the same time, every stock has a value, which might be very different from its price, either higher or lower. The job of the financial analyst is to find those situations where price and value differ, and to buy and sell accordingly.

Oh Canada. Why is your Stock market so bad?

By | October 15th, 2018|

About 8 years ago, on September 30, 2010, the TSX Index closed at 12,369. As I write today it is at 16,217, a gain of 31.1% or 3.44% per year compounded over the period. Add in dividends and the gain per year is around 6%. Not horrible, and certainly better than bonds, which yielded less than 2% over the same time span. However, when we look at the performance of the main U.S. index, the S&P 500, we start to understand how poorly the Canadian stock market has performed.

Don’t be Caught Off-Balance

By | September 13th, 2018|

On Wednesday, August 23, 2018, the S&P 500 set the record for the longest bull market rally in history. A bull market is identified as the consistent rise of a stock index without falling more than 20%. The last time the S&P 500 fell 20% from its high was in 2009—during the worst financial crisis since the Great Depression; some even thought the financial world was going to end.

Doing Well By Doing Good

By | August 14th, 2018|

One of the greatest things I have seen in the last ten years is the example set by the world’s richest families when it comes to philanthropy. Warren Buffet, Bill Gates and even the young and enormously rich Mark Zuckerberg have all pledged to give away most of their fortunes, amounting to tens of billions of dollars, to charities. Many others have followed their lead.

What makes a company great?

By | July 11th, 2018|

When someone is asked to give examples of “great businesses”, the names that typically come to mind are well-known consumer brands such as Apple, McDonalds, or Amazon. Clearly there is something about these businesses that make people think they are great. Ernest Wong discusses the characteristics that we look for in great companies using Moody's as an example.

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