The Wutherich & Co. Composite was up 1.3% in June. This compares with the S&P/TSX being up 3.4%.
Some of the macro-economic fears that have been consuming investors for the last few quarters have abated allowing markets to have an uneven recovery. Focus is on a handful of names with everything else just toddling along.
We own a subset of “everything else”.
When we see an enormous amount of hype around one topic, in this case, Artificial Intelligence (AI), we think of all the “hype-cycles” of the past. The dot com boom of the late 90’s is a famous example, though there have been many others. We have always avoided hyped sectors and have done just fine over time. Are we off-side from time to time? Yes, but we can live with that.
As always, we are grounded in the fundamentals of good businesses that we think will be around for years to come. Goeasy (GSY), Evertz Technologies (ET) and Exchange Income (EIF) are examples in our portfolio and none of them trade for eye-watering multiples. GSY is one of Canada’s largest sub-prime and near prime consumer lenders. ET is a leading supplier of solutions to the broadcast industry. EIF is a diversified collection of aviation and manufacturing businesses. All of them are highly profitable with the prospect of years of growth ahead of them. These are the long-term names that we are happy to own.
Give us fundamentals over hype any time.
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