Blog
Understanding The Baskin Fixed Income Pool
There has been some misunderstanding about the Baskin Fixed Income Pool, and the returns or losses that clients have experienced. We accept responsibility for bad communication on this issue. Fund accounting is tricky, and in this case, has been made harder to explain by two factors. We have, in the past, reinvested income paid by the Pool, issuing additional units to our clients rather than paying them cash; and the bond market experienced a record decline in value in 2022.
The other side of risk
There may be no word discussed more in the world of investing than “risk”. Risk means many different things to different people. To some, it represents how much a given investment might fluctuate in a given day, month, or year. To others, it represents the chance an investment might lose its value entirely. A third option is that risk represents the chance an investment or portfolio will suffer a permanent loss of capital that will never be recouped. At Baskin Wealth Management we typically discuss risk as the latter; and we believe it possible to significantly reduce the risk of permanently eroding one’s capital through diversification, wise asset allocation, and owning high quality investments.
New Tax-Free First Home Savings Account – A faster way to save for that down payment!
In its 2022 Budget this past Spring, the Federal Government announced a new account to help first time homebuyers save for a down payment on their first home. While this Tax-Free First Home Savings Account (FHSA) will not be available until sometime in 2023, no time like the present to beginning planning.
An Ernest Opinion
How Patrick Doyle Can Fix Restaurant Brands
Last November, shares of Restaurant Brands International, the parent company of Tim Hortons, Burger King, and Popeyes, shot up on the announcement that Patrick Doyle would be the incoming Executive Chairman. The market’s enthusiasm is well founded: Doyle is best known for leading the turnaround of Domino’s Pizza as CEO from 2010 to 2018 with Domino’s Pizza being the #1 performing stock in the S&P 500 during that time.
A compounder thesis for Brookfield Corporation
Last December, Brookfield Corporation (BN) listed its asset management business into an independent company called Brookfield Asset Management (BAM), in essence separating Brookfield’s capital (Brookfield Corporation) from the third-party capital managed by Brookfield. The naming can be confusing, so in this blog, BN will refer to Brookfield Corporation, while BAM refers to Brookfield Asset Management.
ESG & Canadian Energy
In recent years, it has become common for companies to include a section on Environmental, Social, Governance (ESG) during investor calls and presentations. As an example, here is a slide from RioCan explaining their initiatives on ESG: I usually glaze [...]
Media Appearances
David Baskin on BNN Market Call – September 19, 2023
David Baskin discusses his top picks, past picks and his outlook for the markets.
Barry Schwartz on BNN’s The Street: Higher-for-longer is actually good news for equities
Barry Schwartz joins BNN's The Street to discuss how equity market can benefit from higher-for-longer interest rates.
Barry Schwartz on BNN’s The Street: Perception of housing as an investment will be punctured as mortgage rates stay higher
Barry Schwartz joins BNN's The Street to talk about the deal between Enbridge and Dominion Energy. He also discusses the performance of the Canadian dividend stocks so far this year.
Outlook
Monthly Newsletter – August 2023
In this newsletter David draws parallels between the winding journey of a road trip and the unpredictable nature of life and financial markets. He discusses recent economic news, including a minor GDP dip in Canada's second quarter, and emphasize that recessions are a natural part of the economic cycle. David advises against worrying about a potential recession and highlights the importance of long-term investing, encouraging a patient and steady approach to investing, emphasizing the potential benefits of market downturns in the long run.
Monthly Newsletter – July 2023
This months newsletter delves into the issue of productivity, growth, and investing in Canada. David highlights Canada's productivity challenges and its struggle to keep up with other wealthy nations, resulting in lower per capita income. He discusses possible factors contributing to this situation, including low business investment, regulatory obstacles, and high taxes. He also compares Canada's technological progress to that of the United States, where companies like the "Magnificent Seven" have experienced significant growth and wealth creation. While Canada certainly has its strengths and investment opportunities, David suggests that, right now, the U.S. is where the money is.
Monthly Newsletter – June 2023
In our newsletter this month we have a double shot from David to supplement your summer reading. In the first article, he discusses the significance of the recent milestone of 40 million people now in Canada and the importance of continued immigration to our long-term prosperity. The bonus content outlines why the summer economic recession has not happened, concluding with his best advice to clients.
Wealth Management
New and Improved – Savings plans get even better
The past year has seen the addition of a new registered plan aiming to help first-time home buyers, as well as increased annual contribution limits for both the Tax Free Savings Account and the Registered Retirement Savings Plan driven by inflation. In light of these changes, this article will provide an update of the various registered savings plans available in Canada.
Getting Wealthy and Staying Wealthy
Everyone worries about money. Daniel Kahneman, a behavioural economist and winner of the Nobel in economic science once said “Money does not buy you happiness, but lack of money certainly buys you misery”. Money worries are the greatest source of stress, more than work, personal health and relationships.
Don’t Hesitate; Just Designate
Designating a beneficiary on your registered accounts is one of the most important decisions in estate planning. By designating a beneficiary, you inform the financial institution of your plans for your estate after your death. While it is a simple act requiring little in the way of paperwork, it can do a great deal of heavy lifting in establishing your wishes for your estate and ensuring your assets are distributed according to your wishes when you die.
Podcasts
Podcast – September 21, 2023
Ernest and Barry discuss inflation and what it means for your portfolio. The guys talk about weird Constellation Software rights offering and what options one has. Then they review earnings from Copart and Adobe. And then the feature conversation is a review of the investor days for both Brookfield Corporation and Brookfield Asset Management.
Podcast – September 14, 2023
If you like dividends, you will love this episode! Barry and Ernest discuss the rationale for owning Canadian Energy stocks for income. They also provide an overview of the Canadian telco industry and review whether the dividends of the big three are sustainable.
Podcast – September 6, 2023
Packed show with a great discussion of "Higher for Longer" and what it means for your portfolio, a quick review of our Copart thesis and then our feature discussion on the Canadian Banks. We review the risks facing the Canadian Banks given higher interest rates and the impact on the Canadian consumer in the short and medium term. Finally, we discuss the long term bullish outlook for Canadian Banks and the reason why prefer National Bank.