The Wutherich & Co. Composite was down 12.0% in September. This compares with the S&P/TSX being down 4.3%.
Definitely two steps back.
As we write this, the Wutherich & Co. Composite is up 5.4% so far in October. Now this may change in the coming days, but we wonder how our group of companies was worth 12% less than one month prior and two days later, worth 5.4% more? Clearly, there is a tremendous amount of fear and uncertainty in financial markets creating huge price swings. Fortunately, the underlying value of our companies does not swing that much on a month-to-month basis. When we see price moves of this magnitude, we always go back to the fundamentals of our holdings. While many of our companies are facing challenges, by and large, their prospects continue to be strong. We have no difficulty owning our names as long as our analysis indicates that they are good long-term investments.
If we can set geopolitical disaster aside, admittedly a big if, we feel our portfolio presents the most compelling valuation that we have seen for a long time.
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