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August 6, 2010

Psychology Of A Turnaround


I am writing from somewhere over the US as I fly home from a very productive three week trip. I spent time canoeing with my dad, witnessed a close friend get married and visited a whole lot of companies along the way. Normally, when the last flight out of Toronto is three hours late, you can expect to miss your connecting flight. A better ... Read More
Categories: General
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August 1, 2010

Escape From Finance Thinking


I just spent a week canoeing with my father. When you share a canoe, you get to talk about all sorts of things. I always try to keep my father involved in my investment thinking. He’s a great resource because he has good business sense, yet has never been involved in the investment world. He once told me a great story about when he ... Read More
Categories: General
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July 13, 2010

Flugtag


On Saturday, I went to the Red Bull Flugtag in Miami. This is an event where teams construct powerless planes and then try to ‘fly’ them off a ramp into the bay. Like most things in Miami, the planes are big on flair and short on actual substance—engineering or otherwise. Let’s just say that most of the planes flopped over the side of the ... Read More
Categories: General
Positions Mentioned:
May 28, 2010

Volatility!!!


I’m writing to you from a plane somewhere over the Nullarbor in Western Australia. The original plan was to meander our way from Sydney to Adelaide, then north to Uluru (Ayers Rock) with stops along the way at points of interest. Then we were going to back track southwards and finally cut west through the emptiness of the Outback to my meetings in Perth. ... Read More
Categories: General
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May 16, 2010

Escaping The Next Data Point…


I am writing from Sydney Australia. Sometimes you need to just get away from it all and take some time to think things through. I’m an investor—not a trader. I am not trying to capture the next 3% move. Let someone else figure that out. PPI figures, CPI numbers, employment (or unemployment), bailouts and wild market gyrations, what does it all mean? Should I ... Read More
Categories: General
Positions Mentioned:
May 10, 2010

Multiple Expansion


I look at smaller companies because they can offer much better upside than larger companies. Part of this upside is the result of rapid earnings growth. Small companies can be more nimble and efficient than larger companies.  However, earnings growth isn’t always where you make money.  Often, you can make just as much money on multiple expansion. What is multiple expansion?  It refers to ... Read More
Categories: General
Positions Mentioned:
May 6, 2010

On Getting Splattered…


There are good days, there are bad days and there are awful days. Today was a debacle. Almost everything our fund owns was down. Some positions were down more than ten percent. Even worse, we stopped out on a number of trading positions. It was a mess. Our portfolio looks like a crime scene—all red. My dad tells me that some days you’re the ... Read More
Categories: General
Positions Mentioned:
April 24, 2010

The Curse Of Technology


For most of the last two decades, investors have been enamored with technology. I am baffled to understand why. Why do these companies trade at such hefty multiples? Why is there so much excitement? For the most part, technology is an awful business to be in. What’s good about the business? When things are good, there are strong margins, rapid growth phases and a ... Read More
Categories: General
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March 12, 2010

A Trip To The Science Fair…


Green energy is a trend for the future. I always like investments when you can make money and feel good about helping the world as well. However, after years of searching, I still cannot find a way to really invest in the technology. What will be the trend for the future? Even if you knew which method would be dominant, could you profit from ... Read More
Categories: General
Positions Mentioned:
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