Monthly Message

The Wutherich & Co. Composite was up 11.7% in August. This compares with the S&P/TSX, up 2.3%. For the time being, we are not including a comparison with the small cap index. The provider is looking to charge more for the data than we are willing to pay. If you know anything about JF and I, you know that we are far too cheap to pay a lot of money for something that is “nice to have”, not “need to have”.

As for August, okay, that was a pretty good month for the Wutherich & Co. Portfolio. In fact, it was by far our best August on record. Most of our names have recently reported quarterly results and, for the most part, the numbers have been excellent. Yes, their operations have been disrupted by the coronavirus but most of them continue to grow and generate cash. The good results are helping the portfolio gradually climb back to fair value, though we recognize that we still have a long way to go. The severe downturn that we experienced in February and March was unwarranted. Sure, we are living in unprecedented times but there will always be human needs for certain goods and services. We will always consume beer, use telecom equipment, get colonoscopies, take out consumer loans, buy sports shoes, visit convenience stores and do much, much more. We recognize that it might be very difficult for the next few years to overcome the effects of the coronavirus, but value will out. Over time, our portfolio should reflect the strength of our names. Rather than owning one or two marquis stocks, we will continue to own a diverse selection of high quality, growing companies that should see excellent price appreciation over time.

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