Investment counselling & the client experience

Tough October

It was another tough October—famously the most difficult month of the year for the stock market. There once was a rational explanation for this phenomenon. In the old days, October was the month when the rural banks drained their deposits from the urban banks to pay the farmers for the harvest, which created seasonal credit… Continue reading “Tough October”

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”

Time in the Market

There was a recurring theme at the annual Burgundy Client Day on June 8th: the market is getting expensive. Burgundy’s Portfolio Managers highlighted the difficulties finding high-quality companies at attractive prices in the current market environment. Given valuation levels, our return expectations going forward are modest. This raises the question: is it a good time… Continue reading “Time in the Market”

What are Money-weighted Rates of Return?

Over the last few months, you may have heard reference to “CRM2,” a set of regulations meant to enhance transparency in the investment industry by mandating investment management firms, dealers and advisors to provide clear reporting to their clients related to fees and performance, among other topics. We welcome the push for transparency across the… Continue reading “What are Money-weighted Rates of Return?”

Our Best Guess

Investors often have a notion about what is an acceptable or desired rate of return on their capital. This rate of return is typically expressed in percentage terms. For example, “I would like to make an 8% return on my money.” This desired rate of return could be based on a number of factors, such… Continue reading “Our Best Guess”

Are You Faking It?

Have you ever found yourself in a conversation about finance and, in a moment of incomprehension, rather than ask a question you simply nodded along? Perhaps it was a conversation with friends or colleagues, or perhaps it was even with your financial advisor. Much of the investment industry is built upon moments like these full… Continue reading “Are You Faking It?”