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Monthly Message

The Wutherich & Co. Composite was up 2.6% in October. This compares with the S&P/TSX being up 5.0%.

Our companies have started to report again for their most recent quarters. One standout so far has been 1-800 (FLWS-Q). This company operates an e-commerce platform that provides flowers, gift baskets, gourmet foods, seasonal décor and other products in the US. Last year, the pandemic caused people to increase the amount that they shopped online. FLWS benefitted enormously from this trend. Investors then said that this was transient and that, as lives normalized, they would go back to spending money in other ways. The stock drifted down accordingly. FLWS always maintained that some of this shift was permanent vis-a-vis their products and that they would continue to grow regardless of changes caused by the pandemic. Use of their platform for everyday gifting (not just Mother’s Day) would remain a permanent part of their customers’ habits. Their recently announced first quarter results certainly support their assertions.

FLWS is a great example of the kind of business that we like to invest in. Demand for their service, while it may ebb and flow, is essentially permanent. It is now so well established that it would be very hard to displace. To this robust platform, they can add other products that will allow the company to grow for many years to come, all at very high levels of profitability.

Lastly, we are introducing the 20 year number to our performance table. Like a fine wine, as we get a little older, we get a little better. Cheers to the next 20 years!

To view the complete Monthly Message and Factsheet click here


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