Monthly Message
For September, the Wutherich & Co. Composite was up 0.6%.
The portfolio has been lumbering along this year, in contrast to the spritely gains of the overall Canadian market. The key difference? We have no Gold or Base Metal stocks. We haven’t invested in these sectors in many years. Historically, they have provided poor returns and have few of the investment traits that we hold dear. Our strong, long-term returns have done just fine without their contribution, so you are not likely to see many changes here. On top of this, we have had weakness in two of our Financials positions, namely, goeasy (GSY-T) and Propel Holdings (PRL-T). This was driven by a short-seller’s report on GSY, a long time holding of ours. The company and several analysts have rebutted each of the short-seller’s points. The situation bears monitoring and we will make adjustments accordingly.
The balance of the portfolio continues to look very strong with most of our names handling Trump Chaos 2.0 with aplomb. That said, ongoing stress from political turmoil will have some effect on our companies over time. We’ll monitor this impact and make adjustments to the portfolio, as necessary. In the meantime, we are starting to pick away at several positions that we think are cheap and offer a strong, resilient path to long-term gains.
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