Insights & Media2019-12-18T09:46:52-05:00

Blog

Shaken, but not Stirred – Presented by Barry Schwartz and Ernest Wong

By |April 14th, 2022|

Given the current environment, interest rate hikes, inflation, further disruption to supply chains and the Russian invasion which resulted in a very bumpy start to 2022, Barry & Ernest share their views on the market as well as specific examples of companies we are holding and how we analyze them.

Unprecedented events occur with some regularity

By |March 23rd, 2022|

If there’s anything to be learned from the last few years, it’s that unprecedented events occur much more often than one would expect. This isn’t exactly a new concept – the idea is borrowed from famous investor Seth Klarman – but the events that have taken place recently have really driven this concept home.

Chasing the Past

By |March 16th, 2022|

If your house is like my house, you have a box of ear swabs that you use regularly for their intended purpose, cleaning your ears. But if you read the fine print on the box, you will find a warning. You are told that you must not put this product in your ear, that it is dangerous to do so, and whatever made you think to call cotton swabs “ear swabs” anyway?

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An Ernest Opinion

Have growth stocks bottomed?

By |May 5th, 2022|

A notable feature of the current stock market decline is how disproportionately growth stocks have been impacted. The S&P 500 is down only about 12% year-to-date, while the technology-focused NASDAQ is down about 18%. Apart from Energy (+41%), the top performing sectors are low-growth, dividend-heavy Consumer Staples, and Utilities stocks. This result is not too surprising as high-growth stocks are more impacted by rising interest rates than low-growth stocks.

What to do about inflation

By |April 5th, 2022|

By now, there is unanimous consensus that inflation is happening and that it is not as transitory as once thought. I normally don't spend time thinking about macroeconomic issues such as future inflation since it is difficult to not only forecast such factors accurately, but even more importantly, have a correct non-consensus macro view that adds value. This is why our investment strategy focuses on company-specific factors such as business quality and capital allocation and why we often say, “We own individual companies, not the market”.

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Media Appearances

Buckets of companies to own during high inflationary periods

By |April 19th, 2022|

Inflation remains a worry for investors as they continue to navigate adjusting their portfolio's adequately. Barry Schwartz joins BNN Bloomberg to discuss which companies he's watching that may be worth holding during high inflation. One of them being Costco.

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Outlook

Monthly Newsletter – April 2022

By |May 2nd, 2022|

Usually, when the stock market is having a bad period, as it certainly is now, investors can take some comfort in the fixed income part of their portfolio. They know that returns on fixed income are lower over time, but at least the capital is protected and yields are predictable. Usually. The last six months have seen the biggest drop in the bond market in history. In Europe, where government-issued debt has traded with yields at or below zero for the last three years, losses have been in the trillions of dollars (or Euros). In North America, losses have been on a smaller scale, but are still very substantial.

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Wealth Management

Donating Securities to Charity – The Angel is in the Details

By |October 26th, 2021|

This is a follow-up to my earlier post on donating securities to charities. In short, making a charitable donation using securities – such as shares of public companies – that have appreciated in value is a highly tax-efficient strategy. This article will go into greater detail about the tax implications of the strategy.

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