Meet Value Investor Norman Rothery
Friday, Dec. 06, 2013 8:20PM EST
The three-martini lunch might have loosened tongues in the past. These days all it takes is a little coffee for a fund manager to reveal his deep-seated longing for the end of the year.More »
Monday, Dec. 02, 2013 6:00AM EST
Every value investor has a favourite ratio. Some wax philosophical about the merits of price to earnings ratios, others extol the virtues of price to book value multiples, and a few opt for more exotic measures.More »
Friday, Nov. 22, 2013 7:53PM EST
Many people go to New York to try to make a fortune on Wall Street. But value investors often thrive in smaller cities, where they’re insulated from the groupthink that can infect those in the big city.More »
Sunday, Nov. 17, 2013 7:51PM EST
If Commander Chris Hadfield were still in space today, he might be surprised to see the U.S. stock market rocketing by.
It’s been a record breaking year for the S&P 500. The market is up more than 25 per cent since the start of January and has been hitting one record high after another. As you might expect, the gains have buoyed the spirits of investors who are showing signs that they are no longer feeling bound by the normal forces of market gravity that tie a stock’s price to its earnings.More »
Friday, Nov. 08, 2013 7:29PM EST
Most investors focus on a company’s share price. They should spend more time looking at a related question – how many shares the company has, and whether that number is growing or shrinking.More »
Monday, Nov. 04, 2013 2:31PM EST
Strategy Lab experts started with a hypothetical $50,000 portfolio on Sept. 13, 2012. They can each hold five to 12 Canadian or U.S. securities and trade as often or as little as they wish. We’ll monitor their portfolios on a regular basis so you can see how they’re performing.
|American International Group *||AIG-N||131||$51.65||$34.44||$7,055.06||61.51%||0.77%||The firm was at the centre of the 2008 meltdown but it is quietly turning around.|
|Bank of America||BAC-N||480||$13.97||$9.40||$6,991.93||60.05%||0.29%||Another near casualty of 2008, the bank has survived and is very cheap. It should do well when the economy gets going again.|
|Berkshire Hathaway *||BRK.B-N||51||$115.09||$88.56||$6,120.22||39.96%||0%||Warren Buffett's collection of high quality stocks. The firm is trading a smidgin above where the master would buy it.|
|Crimson Wine Group||CWGL-Q||19||$8.75||$0.00||$173.35|
|Dell||DELL-Q||424||$13.86||$10.63||$6,127.57||40.42%||2.31%||The firm has stumbled on weakness in the PC market, but it is profitable. It is also moving aggressively into services.|
|Fairfax Financial *||FFH-T||12||C$455.00||C$366.59||$5,460.00||24.12%||2.20%||The Canadian version of Berkshire Hathaway is led by Prem Watsa, a famed value investor.|
|General Motors||GM-N||186||$36.95||$23.53||$7,166.16||69.12%||0%||The government is itching to sell its shares, but the firm is very profitable after restructuring|
|Leucadia National||LUK-N||192||$28.34||$22.90||$5,673.62||33.28%||0.88%||A well known investment conglomerate trading at a discount with a solid history of growing its book value.|
|Old Republic *||ORI-N||477||$16.79||$9.45||$8,350.81||91.34%||4.29%||Trading at a fraction of book value, shares of this hard hit insurance company are being snapped up by its CEO.|
* Also in personal portfolio
**As of close of Oct. 31, 2013 ***In Canadian dollars Dividends received since last update: $35.37 Gain/loss is calculated from Sept. 13, 2012
Sunday, Nov. 03, 2013 8:02PM EST
Try Globe Investor's new stock screener to find cheap stocks that perform well.
Halloween brought back fond memories of rushing from door to door for treats. And how, after returning home, I had some serious decisions to make.
I would begin with a careful inspection of my haul, then a methodical sorting of the treats into different piles depending on their relative attractiveness. Some were devoured immediately while others were put away for another day. Less appreciated candies – like the dreaded Halloween kisses – were left unmolested for weeks.More »
Friday, Oct. 25, 2013 7:53PM EDT
Mountain bikers tested their mettle – and metal – earlier this month against the Hardwood Hills 50km Single Track Challenge, which took place just north of Barrie, Ont.More »
Friday, Oct. 18, 2013 7:55PM EDT
Index investors are a passionate bunch because they love the rewards offered by their diversified and low-cost approach to investing.
Who can blame them? The market is awash in high-fee products and shifty salespeople masquerading as advisers. Once you figure out their game, it’s only natural to run the other way.More »
Friday, Oct. 11, 2013 8:49PM EDT
Holding a concentrated portfolio that contains only a few stocks is a two-edged sword. If you pick the right stocks, they can pay off in spades. But if you don’t, you might be taken to the poorhouse.More »
Tuesday, Oct. 08, 2013 7:59PM EDT
Canadians love dividend stocks and it’s not hard to see why. After all, they provide a nice stream of income that has a tendency to grow over time. In addition, Canadian dividends are taxed less onerously than regular income for many investors.More »
Friday, Sep. 27, 2013 7:42PM EDT
As the weather gets colder and I get older, I’ve begun to enjoy the comfort provided by a warm bowl of soup. There’s nothing like a delicious mix of vegetables and chicken to ward off the chill in the air.More »
Friday, Sep. 20, 2013 7:48PM EDT
As the weather turns colder I’m looking forward to fall foliage, hot apple cider and – especially – the arrival of pumpkin pie. The best pies meld together a lovely blend of spices in an almost magical way.More »
Monday, Sep. 16, 2013 8:09PM EDT
There is a myth going around that most fund managers are bad stock pickers. It is undoubtedly true that some are, but it turns out that most beat their benchmarks over the long term.More »
Monday, Sep. 09, 2013 12:13PM EDT
I suffered from a distinct sinking feeling after spending a week bobbing on the waves of Lake Erie. But it wasn’t my fondness for the local butter tarts that was weighing me down.More »
Friday, Sep. 06, 2013 7:20PM EDT
If you grew up in the early days of manned space exploration, you might have dreamed of becoming an astronaut. Unfortunately, only a few people actually made it into space. But many others, like James East, helped to get them there.More »
Friday, Jul. 26, 2013 8:00PM EDT
There is something special about enjoying an ice cream next to the warm waters of Lake Erie on a hot summer day. My favourite purveyor of cones offers a load of flavours to choose from and seems to do quite well for itself.More »
Friday, Jul. 19, 2013 2:48PM EDT
To measure the market value of a stock many investors turn to its market capitalization. But that only represents the cost of the firm’s shareholders’ equity.
To get a better sense of the value of a company as a whole, analysts like to consider its enterprise value. They start with market capitalization but also add the market value of the firm’s preferred equity and debt while subtracting any cash it might have. After all, if you buy a company, you get both its assets and its liabilities.More »
Tuesday, Jul. 16, 2013 6:22PM EDT
I applaud the protections given to freedom of speech in the United States. Sure, unrestrained gabbing might be unpleasant and less than edifying – like a few too many reality shows – but that is still far better than the alternative.More »
Friday, Jul. 05, 2013 8:03PM EDT
France has enchanted the hearts, and stomachs, of romantics for decades.
Personally, I'm fond of relaxing on a summer evening while enjoying a glass of wine from the vineyards of Bordeaux along with a lovely bit of cheese.
However, on matters economic, most people wouldn't point to France as a beacon of capitalism. After all, its current president, François Hollande, is an avowed socialist who was swept into power on a promise to tax the rich. His election solidified the country's already poor business reputation.More »
Wednesday, Jul. 03, 2013 6:59PM EDT
The stock market recently took a tumble after the U.S. Federal Reserve mused it might taper its quantitative easing program should the economy continue to grow. It wasn’t a particularity apocalyptic portent, but even suggesting the flow of money might dry up was enough to unnerve investors.More »
Friday, Jun. 21, 2013 7:10PM EDT
It’s rare to find ancient structures that have stood the test of time. But those that survive hold lessons for the modern world.
One of those lessons was recently learned by researchers at the Lawrence Berkeley National Laboratory who cracked the puzzle behind Roman concrete. When used to build ports, the ancient stuff significantly outlasts the common version, which can handle only a few decades in the waves.More »
Tuesday, Jun. 18, 2013 2:34PM EDT
Liquidity sounds like something an investor might need after a bad day in the market. But when it comes to stocks, a highly liquid approach is not the way to go. Instead, teetotallers are more likely to outperform.More »
Friday, Jun. 07, 2013 7:00PM EDT
I have a soft spot for old Westerns, the type where it’s easy to tell the villains and heroes apart – largely because the bad guys are framed in posters proclaiming they’re wanted either dead or alive.More »
Friday, May. 24, 2013 7:55PM EDT
Value and quality are usually found at opposite ends of the stock market. After all, good businesses usually trade at high prices, while the market’s bargain bin is littered with ailing firms.More »
Welcome to Strategy Lab
Stock market ideas, investing insights (and competition): Watch and participate as four of Canada’s brightest investors go head to head in a battle for portfolio supremacy. Whether you’re a dividend collector, a value hunter, a growth junkie or an indexing enthusiast, you’ll find inspiration for your own investing.
About Norman Rothery
Norman Rothery, Ph.D., CFA, is the founder of StingyInvestor.com and has been catering to value investors since 1995. He publishes the Rothery Report, a value stock newsletter, that recently celebrated its 11th anniversary.