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.
This post is presented for illustrative and discussion purposes only. It is not intended to provide investment advice and does not consider unique objectives, constraints or financial needs. Under no circumstances does this post suggest that you should time the market in any way or make investment decisions based on the content. Select securities may be used as examples to illustrate Burgundy’s investment philosophy. Burgundy funds or portfolios may or may not hold such securities for the whole demonstrated period. Investors are advised that their investments are not guaranteed, their values change frequently and past performance may not be repeated. This post is not intended as an offer to invest in any investment strategy presented by Burgundy. The information contained in this post is the opinion of Burgundy Asset Management and/or its employees as of the date of the post and is subject to change without notice. Please refer to the Legal section of this website for additional information.
