Happy New Year!
The Wutherich & Co. Composite was up 1.5% in December. This compares with the S&P/TSX being down 4.9%.
The new dance continues with December being another positive month for the Wutherich & Co Composite. We are happy to leave the 2022 Two-Step behind though we have always danced to our own tune.
Our steps are guided by the valuation of the names in our portfolio. Despite a strong finish for us in 2022, we still have some of the cheapest companies that we have ever seen in the portfolio. This should drive returns for years to come. Strategic buyers seem to agree with us as we have had two of our companies taken over this past year. Waterloo Brewing is being bought by Carlsberg which follows Points.com being bought by private equity back in July. More take overs wouldn’t surprise us in 2023. Many of our companies’ valuations are at a complete disconnect with the prices that they are trading at. Geopolitics and the macro environment may delay the revaluation of some of our companies, but if history is any guide, they will revalue, taking up our returns with them.
This is RRSP season. We strongly encourage our clients to make contributions to their accounts as soon as possible.
Lastly, JF and I would also like to invite you to our Annual Update, taking place at Le Mount Stephen on January 18, “in person” and online. We still have “in person” seats available. Please contact us a 514-924-4438 or firstname.lastname@example.org.
To view the complete Monthly Message and Factsheet click here