2018 Archive

Marshmallows and the Cost of a Moat

The VIEW from BURGUNDY One of the most frequently mentioned research studies in the field of developmental psychology is the “marshmallow test”. Conducted in the late 1960s and early 1970s, the experiment considered how children’s ability to exercise delayed gratification would affect their success in life. The test was designed like this: children were offered… Continue reading “Marshmallows and the Cost of a Moat”

Deconstructing Quality, Part III

Our Deconstructing Quality series explores the three categories Burgundy assesses in our search for worthwhile companies. Part I looked into the business characteristics that help define a quality business.  Part II considered the financial attributes that make for attractive investments. In Part III, our final segment, we will investigate management assessment, the least quantifiable piece… Continue reading “Deconstructing Quality, Part III”

Lazy Fund Managers

When we started Burgundy 26 years ago we had some basic principles and values in mind. We would aim to make significant investments in well run businesses run by trustworthy, capable and honest management teams. We would work hard to deeply understand how these businesses worked and what the fundamental drivers were in order to… Continue reading “Lazy Fund Managers”

Stoic Training for Private Investors

Philosophy seems to be trending these days. In 2013, Burgundy sought investing inspiration from ancient Greece, publishing a View on Stoicism and the Art of Portfolio Intervention. Several tech entrepreneurs, such as Peter Thiel (co-founder of PayPal) and Reid Hoffman (co-founder of LinkedIn), proudly hold philosophy degrees. Charlie Munger, partner of Warren Buffett, has also… Continue reading “Stoic Training for Private Investors”

Volatility can be the Friend of the Patient Long-term Investor

Last year, conversations around volatility permeated the client meetings at Burgundy. During portfolio reviews, discussions often turned to how regularly the equity market indices had been reaching new highs and the very low level of volatility they had exhibited. There are various measures for market volatility, but one that is often used is the Chicago… Continue reading “Volatility can be the Friend of the Patient Long-term Investor”