Morningstar, an independent provider of data and research to the finance industry, held its annual Canadian Investment Awards last week in Toronto. In the Pooled Fund category, Burgundy was nominated for seven of eight total awards, and we were pleased to walk away with all seven awards for which we were nominated (see below for the full list of Burgundy awards).
While we are not in the business for recognition, especially when the decision is based mainly on short-term performance, we are honoured to receive the awards and view them within the big (read: long-term) picture.
Our current performance (and the recognition that it has brought us) is a result of the diligence and conviction of our Investment Team – not just over the past year, but also over the past 20 years that Burgundy has been in business. Through the ups and downs, they stuck to their guns. During the difficult investment environment of the past few years, they took advantage of the opportunities presented by market uncertainty and amassed high-quality companies at attractive valuations, creating solid foundations in our portfolios.
However, these awards also tell us that, if quality is beginning to be recognized in the market, then the opportunities to locate quality at a discount are quickly vanishing. Our solid foundation may now be reaping the benefits, but it is important for our clients to understand that, in the short term, performance comes and goes. Trends, macroeconomic factors and human emotion affect the market, creating dramatic and violent swings – which is why investors must look beyond the short term and focus on the ways to succeed over the long term.
Clients should stay focused on their long-term investment strategy and ensure their portfolio complements their individual, long-term objectives. Rest assured that this is our focus at Burgundy as well, which is why we remain passionately convicted to our long-term, global, value investment philosophy. We scour the globe for the highest-quality companies and invest when they are available at bargain prices. The markets will eventually recognize quality and in turn these quality companies should reach full value – which is our cue to sell. Over the long term this process should equate to strong performance, no matter the ups and downs in between.
It’s a simple process, but by no means is it easy. It involves discipline, conviction and rigorous research, not to mention a strong hold on logic in the face of (at times) powerful and destructive human emotions. Through the ups and downs to come, our Team will continue to stick to their guns; we are firm believers that, in the long term, investing in quality at attractive valuations will always prevail.