Monthly Message

The Wutherich & Co. Composite was down 0.7% in September. This compares with the S&P/TSX being down 3.3%.

All things considered, the Wutherich & Company Composite fared well in September and very well over the last year. We put this down to the quality of the companies in our portfolio. Recent results for most of our names have been very strong with their outlooks equally so.

Now, there is plenty to be worried about in the world and this is reflected in the media. In a recent conversation with a client, they said there is no good news. Turn on the TV, radio, open a newspaper or click on whatever website you get your news from and it is uniformly bad. Whenever I notice this, I go for a walk and observe how people are living their lives. I look in cafes, restaurants and people on the street. I talk to friends and neighbors, and you know what? The vast majority of them are living their lives and doing just fine. I talk with the managements of our companies. They also talk about how negative the headlines are. When I ask them about their businesses, most of them say they are doing well or very well. While the world has serious problems, the bad news lives mostly just within the media.

When I look at the names in our portfolio, I think they are about as strong as they have ever been. Will they suffer in a downturn? Yes. But, they will continue to produce products and services that people need for years to come. This will drive good long-term returns, not the current news cycle.

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