Blog
A Cottage Romance
Our family owned a cottage for 12 years. Our kids were little and we used it a lot, four seasons a year. Then, as happens, our kids grew up. They started going to camp in summer and had hockey or swimming or other activities in the other seasons. By the end, I was going up by myself to cut the grass in summer and get the snow off the roof in winter. We sold out more than twenty years ago. Do we miss it? Sure. The sunsets over the lake, the joy of jumping into the cool water, the pure pleasure of canoeing on a windless day. Can’t beat it. But things have changed. We paid less than $100,000 for our place. Now, the same property would likely go for close to $1 million. Would it still make sense to buy? Here is some advice I gave to a client who asked us just this question.
Does value still matter?
In the early 1720’s, exactly 300 years ago, all of England was overtaken by a surge of stock market speculation which we now know as the “South Sea Bubble”. Ignited by a monopoly granted by Parliament to a company to trade in South America, all manner of companies suddenly were brought to the market, and their shares were purchased with wild abandon by all and sundry. Two strong emotions ruled; today we call them “FOMO – fear of missing out” and “YOLO – you only live once”. No idea was too bizarre and no scheme too outlandish.
The kids will be all right – How to save for your kids’ and grandkids’ futures
Generous parents and grandparents frequently look for the most beneficial ways to give their descendants a head start, often by putting funds aside in an investment for their benefit. This has perhaps become more common during the pandemic, as those who have been fortunate enough to have continued employment, and retirees, have seen their expenses decline with a corresponding rise in their savings. There are a number of different approaches available, each with its own pros and cons, and this article will expand on each.
An Ernest Opinion
Thoughts on buying Chinese stocks and our circle of competence
One of the hot topics of the day among investors is the regulatory crackdown by the Chinese government and President Xi on various industries, most notably the for-profit tutoring and technology sectors. These issues have driven the benchmark MSCI China Index, which tracks a portfolio of internationally listed Chinese equities, down 13% year to date and over 27% from the high in mid-February with shares of major technology companies such as Alibaba, Tencent, and Didi down even more.
Thoughts on Netflix’s strategy on video games
Netflix CEO Reed Hastings famously said that Netflix competes against Fortnite more than HBO and demonstrated that on Wednesday by hiring Mike Verdu as the Vice President of Game Development. Mr. Verdu previously led Augmented Reality/Virtual Reality efforts at Facebook, and also led mobile gaming efforts at industry leaders Electronic Arts, Kabam, and Zynga.
What’s next for Canadian banks after COVID?
Although banks now have diversified their sources of income to include major areas such as wealth management and trading, they still largely succeed or fail based on the performance of the loans they make to consumers and companies. COVID-19 shutdowns were a big risk to the Canadian banks. People who lose their jobs cannot pay their rent, mortgages and credit card debt, and Canadian household debt was already at historically high levels.
Media Appearances
Barry Schwartz on BNN – TCI presentation given to CN Board of Directors is very compelling
Barry joins BNN to talk about CN Rail's proxy fight as TCI seeks board overhaul and new CEO. The news comes a day after KCS board formally determined that CP Rail offer was superior.
Don’t expect too much more in terms of big returns for the rest of 2021: Baskin’s Barry Schwartz
Barry Schwartz joins BNN Bloomberg as we gear up for the open. He says that investors shouldn't expect too much more in terms of big returns for the rest of 2021. He likes TMX Group right now.
Barry Schwartz on BNN – Stock Comments
Barry discusses a number of stocks.
Outlook
Monthly Newsletter – August 2021
After a slow start to the year, the spring and summer months brought our clients hot weather and even hotter returns.This has resulted in many asking the natural questions - "How much higher can the markets go?" and "Shouldn't we be looking at taking profits?". In this month's newsletter, Barry talks about the source and sustainability of these returns and the best way to deal with uncertainty.
Monthly Newsletter – July 2021
At the end of the day, earnings are what drive stock prices. Companies that make money, and particularly those that grow their earnings year after year, see the prices of their shares rise. Companies that lose money, no matter the amount of hype or publicity, ultimately see their shares fall. These twin truths are particularly important to remember in this year of “meme” stocks, crypto craziness and Robinhood retail empowerment.
Monthly Newsletter – June 2021
The number of mutual funds and ETFs has grown steadily over the decades such that there are now far more mutual funds for sale than stocks traded. These products provide some benefits such as diversification for accounts under, say, $500,000, which is why we have recently launched 2 pool funds. However, for larger accounts, holding the individual securities remains our preferred approach. In this month’s article, David provides 7 reasons why we continue to emphasize this for our clients.
Wealth Management
Tax Free Savings Accounts – Flexible, easy and really and truly tax free
Often, our clients ask us how we can help them and their children invest in a tax effective way. There are not very many ways to do that in Canada. While many are familiar with RRSP accounts, TFSA accounts are of great benefit as well. TFSAs are only available to Canadian residents who turned 18 on or after 2009. They allow for capital gains, interest, and dividend income to be (and grow) tax free. Unlike RRSPs and many other registered accounts, TFSAs also offer flexibility.
Financial Planning at Baskin Wealth Management
Financial planning can seem like a nebulous concept. Because it touches on many aspects of a person’s financial life – investing, retirement planning, tax planning, estate planning, and insurance – its holistic nature is in fact one of its key strengths. Sound analysis of a person’s financial situation requires a strong understanding and analysis of each of these areas and the ability to analyze each simultaneously.
Charitable donations using securities
Making a contribution to a charity by way of gifting securities which have appreciated in value is a simple, easy and highly tax-efficient strategy. We recommend making use of this strategy to all our clients who have non-registered assets and who wish to make significant gifts to a registered charity.