The Wutherich & Co. Composite was up 7.8% in May. This compares with the S&P/TSX being up 0.1%.
Two steps forward, two steps back.
At least, that’s the way it feels. We have seen large monthly gains offset large losses in the Wutherich & Co. Composite for some time while little has changed for the companies that occupy the portfolio. In fact, most of our companies have reported their recent quarters, re-affirming the strength of their operations. Why the disconnect? Look no further than daily (minutely?) headlines about geopolitics and macro-economic issues. In my nearly 30-year career, it has always paid to turn off the background noise and focus on individual investment opportunities. While there is no doubt that the world is in a tough spot right now, outside of nuclear Armageddon, it will get through. Most of our companies will continue to grow revenue, cash flow and earnings and at one point, the market will recognize this and reward them with much higher stock prices.
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