Friday, August 30, 2019

This week's interesting finds

August 30, 2019

Wisdom from the Oracle

Warren Buffett is famous for his wit, and will likely go down in history as one of the most quotable and influential investors of all time. This week marks his 89th birthday. This infographic highlights some of the smartest and most insightful quotes from Buffett on investing, business, and life, accumulated through his lengthy and prestigious career.

Never invest in a business you cannot understand.”

"The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd." 

“It’s only when the tide goes out that you learn who has been swimming naked.”

"Price is what you pay; value is what you get."

"Be fearful when others are greedy and greedy when others are fearful."

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." 

“Failing conventionally is the route to go; as a group, lemmings may have a rotten image, but no individual lemming has ever received bad press.”

“The most important investment you can make is in yourself.”

John Neff started managing Wellington Management’s Windsor mutual fund in 1964. Over the three decades, he was among the most successful fund managers of his era.

Mr. Neff, who died June 4 at age 87, shunned fads, such as the “go-go” stocks of the 1960s or the “nifty fifty” of the 1970s. Instead, he looked for stocks that were “overlooked, misunderstood, forgotten, out of favor,” as he put it. He favored steady performers and aimed to pay a low multiple of annual earnings.

Among his pithier tips: “When you feel like bragging about a stock, it’s probably time to sell.”

Some demographic experts predicted that young adults’ fascination with urban living would fade as they settled down, got married, and had children, at which point they, too, would follow their parents and grandparents to the suburbs.

A new study finds that not only have young people been a driving force in the urban resurgence of the past two decades, but they favor living in central urban neighborhoods significantly more than previous generations did at the same stages in life.

The locational preferences of young adults hold large consequences. Millennials make up America’s largest generation, bigger even than the Baby Boomers. Where they choose to live will have a lasting impact on which places grow, which stagnate, and which decline. This can be seen in the skyrocketing housing prices and affordability crises of a growing number of American cities.

Some retail investors may need a reality check

A survey of 9,100 retail investors in 25 countries finds that many are in need of a reality check. It shows that retail investors feel confident in their return expectations, with long-term return expectations in Canada at 10.1%, while financial professionals surveyed believe a return of 5.7% is more realistic for clients.

Our 10-year Partner Program

To show our appreciation for our partners who have had the conviction and unwavering long-term view by staying invested with us for 10 or more years, the 10-year Partner Program offers lower management fees. 

We believe that one of the keys to pleasing investment returns is taking a long-term view and holding good, undervalued businesses until the market fully recognizes their potential. While you can be lucky over short periods of time, it takes considerable skill to achieve long-term outperformance. The same notion applies to our investors. To succeed in getting to your Point B (whatever your financial goals may be), it takes conviction, a good financial advisor, the fortitude to embrace volatility and, above all, an unwavering long-term view.