Monthly Message

The Wutherich & Co. Composite was down 1.1% in September. This compares with the S&P/TSX being down 2.2%.

September lived up to its reputation as the worst month for performance in the stock market. There is no lack of things to worry about and investors sold stocks and put their money…where exactly? Well run companies that offer desirable products and services should be around for years, or decades. If you buy them at a reasonable valuation and monitor this over time, you can own them till kingdom come. There is no doubt that geopolitics, macroeconomics and pandemics can knock them about but the best companies will survive and sometimes even thrive in these environments.

Research into new companies to add to the portfolio continues. We have come across many excellent ideas in recent weeks but have found that many of them come at very fancy prices. Maybe it’s Covid, maybe it’s the lounger pants that I wear just below the camera frame during Zoom calls, but I don’t feel fancy and I am unlikely to pay these prices. So, we will continue to dig and hope to come up with one or two new names for the portfolio. In the meantime, the companies that we do hold are doing just fine and should be able to continue to drive good long-term returns.

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