It has been one year since the Great East Japan Earthquake. The earthquake and tsunami that followed killed over 15,000 people, rendered more than 320,000 homeless, and caused approximately US$200 billion in damage, making it the most expensive natural disaster in history. Japanese companies lost production capacity, faced serious supply chain disruptions and dealt with… Continue reading “Japan: One Year Later”
Since the world financial crisis began in mid-2008, high-quality investments have greatly outperformed lower-quality ones. It hasn’t been a straight line outperformance by any means, given the bouts of government risk subsidization that we have seen in 2009 and 2010, but it has been significant and persistent, especially in times of stress like October 2008… Continue reading “Sources of Volatility in Equity Markets”
Although we read a lot at Burgundy, there is little that is considered “mandatory” reading. Warren Buffett’s annual letter to shareholders might top the list. Not long after the letter to the shareholders of Berkshire Hathaway is posted online, a keen Burgundian will quickly forward the link to all members of the firm. For disciplined… Continue reading “Berkshire Hathaway’s Annual Shareholder Letter”
Last month, Mat Harrison’s post “Where to Hide” mentioned how hedge funds have not been living up to their intended objectives. Building on this idea, The Economist posted an article that talks about the recent hardships hedge funds are experiencing – so much so that they are “quitting while they’re behind.” To read the full… Continue reading “Hedge Funds: Quitting While They’re Behind”
Warren Buffett recently wrote an article that appears in this month’s issue of Fortune Magazine, titled “Why Stocks Beat Gold and Bonds.” As we understand it, this will constitute part of his “Letter to Shareholders” in the Berkshire Hathaway Annual Report, which will be released shortly. This is a powerful article that demonstrates Mr. Buffett’s… Continue reading “Why Stocks Beat Gold and Bonds”
As part of a Globe and Mail article on investing in Europe, I was recently interviewed by Brian Milner to discuss how Burgundy invests in European equities. My message was simple: “Don’t let that macro worry keep you from investing in the many great companies that are available in Europe.” To read the full article,… Continue reading “European Equities”
“Denial ain’t just a river in Egypt” – Mark Twain Looking for bright spots in the global economy is a difficult task at present. There is no sense in trying to sugarcoat the truth: the undesirable “Ds” of Debt, Deflation and Default (Denial could be a fourth) in Europe and around the world are significant… Continue reading “Where to Hide?”
At the very outset of Shakespeare’s least loveable comedy, The Merchant of Venice, Antonio is telling his friends of his depression, and how difficult it is for him to account for it. His friends look for possible reasons for Antonio’s sadness, the most likely of which, they postulate, is anxiety about his business dealings.