Posted on September 18th, 2017 by Barry Schwartz

  For the past four years or so, we have been hearing from various quarters, including US-based short- sellers, that the Canadian banks are in trouble. According to the popular narratives our banks are too expensive for the following reasons: 1. The Canadian housing market is vastly over-valued and in “bubble” territory in Toronto and […]

Posted on September 13th, 2017 by David Baskin

  Imagine the Federal Government floating a proposal to cut the pensions of all of its employees by 25%. Federal civil servants, it might say, have defined benefit pension plans which are now very rare in the private sector. Those pensions are mostly indexed to inflation, another feature now as scarce as four leaf clovers […]

Posted on September 5th, 2017 by Barry Schwartz

  This has been a lousy summer for equity investors. The TSX can’t get any traction, and the S&P has given up most of its gains since the beginning of June. To add insult to injury, the Canadian dollar has grown very strong, gaining about 10% against the US$ over the summer, cancelling out any […]

Posted on July 31st, 2017 by Barry Schwartz

  Ouch! The loonie has soared almost 10% since June 1st, and the impact of this has made the holding of U.S. Stocks about as much fun as a sharp poke in the eye. One reason for the Canadian dollar’s recent rise is Canada’s improved economy, which is doing better than expected; this led to […]

Posted on July 7th, 2017 by David Baskin

  Elections. Sports events. Stock prices. There are a lot of things in the world that are hard to predict. Among them, and high on the list, is the value of currencies. Forecasters, traders and economists spill oceans of ink and spend hours of time trying to guess (really, it is a guess) if the […]

Posted on June 26th, 2017 by Ernest Wong

  Our recent investment in Delta Airlines has puzzled some of our clients. Given our strategy of buying and holding superior companies forever, why are we now investing in a highly cyclical industry with a well-known history of capital destruction? Let’s start with a brief history of the North American airline industry. In 1978, President […]