The Wutherich & Co. Composite was up 3.9% in January. This compares with the S&P/TSX being up 7.4%.
As goes January, so goes the year? We certainly hope so, though we think there are an awful lot of hurdles to jump to make this happen. For the market as a whole, January saw a snap-back in some of the names that were the weakest in 2022. I am not sure that weakness is a sound investment reason to own a stock. We look at the long-term fundamentals of each of the names that we own and decide to buy or sell them accordingly. The only reason that we would buy a name whose stock price has dropped over the last year is that we think it now offers better value relative to its long-term outlook.
Overall, the portfolio seems very cheap to us. Yes, all the macro-economic hurdles that have to be jumped will affect our companies. Regardless, we think that they are well positioned to grow for many years to come, hurdles or not. This should drive good long-term returns.
This is RRSP season. We strongly encourage our clients to make contributions to their accounts as soon as possible.
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