Ned Goodman is CEO of Dundee Corp., a holding company focused on real estate, resources and asset management. He also runs his Goodman Investment Counsel unit.
What would you do with a $100,000 windfall?
I think we are heading into an inflationary environment. My bias would be to invest in those securities with income, sustainability and inflation protection. I would put it in a real estate investment trust. I own Dundee REIT. The biggest asset is the Scotiabank building, and that bank is going to be around forever. The rent has an inflation factor in it. To build a building like that 20 years from now is going to cost a lot more, so that building is also an inflation event. You get that building, plus a lot of others just like it. You get yield and cash flow, so you can sleep well.…You might say that I am picking my own stock, but there are other REITs like it. I am also bullish on gold, so a mining company that pays a nice yield is not a bad place to be.
Where do you see investment opportunities now?
I am very bullish on gold. Anything that has a hard value, like real estate, agriculture or farmland. Resources are in demand. If you look at China and India, those countries alone are increasing the world population by 75 million people every year.
What was your best investment?
My education–the fact that I was able to go to school and get university degrees. I graduated as a geologist and got fired by Noranda at the time of the downturn in the metals markets in the late 1950s. I then went to the University of Toronto and took an MBA. I went to school while my wife, Anita, worked and kept the rent paid.
What was your worst investment?
There have been a lot of bad investments since I started investing money in 1962 for the Edper Group. But you have to expect some losses if you are ever going to make some gains. You can't be right on everything. The trick is to have more gains than losses.
What advice would you give to investors now?
Be prepared for inflation in your medium-term investment outlook. Our ownership of real estate investment trusts, energy and gold companies has fared us well for some time, and for the next three to five years, we see no reason to dramatically change our investment strategy of being cautious, and stressing protection from the world's deleveraging and monetization of excessive debt.
What keeps you awake at night?
The only think that keeps me awake is being so wrapped up in what I am reading that I cannot put it down. Otherwise, I sleep like a baby.