Monthly Message
The Wutherich & Co. Composite was down 8.0% in February. This compares with the S&P/TSX down 5.9% and the BMO Small Cap Index down 8.9%.
The coronavirus continues to rock markets and our portfolio. Though this is a tremendous human tragedy for those directly affected by the virus, we don’t believe that this is the next Black Death. Some of our companies are experiencing disruptions in parts of their operations but we think this is temporary. While we keep one wary eye on the headlines, we continue to apply any cash that we have to our favourite names believing they will trade at substantially higher valuations in years to come. During the 20 years that we have been in business, every severe downturn that we have experienced has been follow by a period of strong performance. We see no reason to believe that it will be different this time.
A special Thank You! to those clients that contributed to, or opened, their accounts in the last two months. The portfolio looks as cheap as anything that we have seen since the fourth quarter of 2018 which proved to be a great set-up for a strong 2019.
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