Burgundy Blog » valuation

Trees Don’t Grow to the Sky

By Mathew Harrison February 23, 2017

With the right conditions, a young tree will grow quickly but, as it matures, its height growth slows to the point where it no longer advances. A Mountain Ash, for example, will grow two to three metres a year at an early age. This growth will slow to half a metre by age 90 and… Continue reading “Trees Don’t Grow to the Sky”

The Art of the Sell

By Evan Delaney January 16, 2017

When looking to invest in a company, Burgundy’s Investment Team performs rigorous analysis. Through extensive scrutiny of a company’s financials, study of the operations, research trips and meetings with company management, we determine whether or not the company fits our criteria for a quality investment. If it does, and at a market price that is… Continue reading “The Art of the Sell”

The Quality-value Tug of War

By Richard Rooney July 12, 2016

By most accounts, the last few years have been a very tough time for deep-value investors. Persistent slow world economic growth and prevailing uncertainties about fundamental macroeconomic issues like the strength of the world financial system, the ability of central banks to ward off deflation, the growth of the Chinese economy and the survival of… Continue reading “The Quality-value Tug of War”

The Chief Hazard to Investors

By Richard Rooney May 24, 2016

“The risk of paying too high a price for good-quality stocks – while a real one – is not the chief hazard confronting the average buyer of securities. Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.”1 This… Continue reading “The Chief Hazard to Investors”

Cherry Coke, Peanut Brittle & Witty One-liners

By Caroline Stern May 11, 2016

The Berkshire Hathaway Annual General Meeting (AGM) is the Super Bowl of annual general meetings. Shareholders make the pilgrimage to Omaha each spring to see Warren Buffett and Charlie Munger (Chairman/CEO and Vice Chairman, respectively) in action. For years, representatives from Burgundy have been attending the meeting as shareholders on behalf of our clients. An… Continue reading “Cherry Coke, Peanut Brittle & Witty One-liners”

Is This the End for Oil?

By Hayley Carr February 12, 2016

Energy is top of mind for investors in the Canadian equity market. After all, energy makes up 19% of the S&P/TSX Composite Index, the second-largest sector after financials. And, a quick scan of the financial page headlines of our national newspapers shows the energy sector is struggling: “Oil prices fall 2 per cent, supply overhang… Continue reading “Is This the End for Oil?”

Finding Solace in Discomfort

By Ayrton Dick April 7, 2015

Value investing is not supposed to feel good. It’s supposed to be uncomfortable, even painful at times. In certain parts of the cycle we will feel validated, but it is only after we have endured long periods of discomfort. By definition, value investing goes against the consensus. Sir John Templeton captured this idea well when… Continue reading “Finding Solace in Discomfort”

50 Years of Enduring Advice

By Greg Dowdall March 9, 2015

When Tony Arrell first established Burgundy, he promised clients he would manage their money the same way he managed his own. The Burgundy investment philosophy has been and always will be to invest our clients’ capital in a select number of quality businesses that offer a margin of safety, trading at a 30% discount to… Continue reading “50 Years of Enduring Advice”

Calculating Margins of Safety

By Richard Rooney December 10, 2014

During the annual Burgundy Information Session via conference call this Fall, I was asked to explain the concept of margin of safety. Here is my response. With every company we look at, we calculate what is called an intrinsic value. That is notionally the price at which we would buy or sell the whole business.… Continue reading “Calculating Margins of Safety”

Confessions of a Buffetteer

By Hayley Carr July 10, 2014

The VIEW from BURGUNDY Burgundy is a self-described quality-value investor, but what does that really mean? What other value styles exist, and where does Burgundy fall within this sphere? Derived from a speech delivered at the London Value Investor Conference in May, the latest issue of The View from Burgundy, “Confessions of a Buffetteer,” tackles… Continue reading “Confessions of a Buffetteer”

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WHAT IS MiFID II?

The Markets in Financial Instruments Directive II (MiFID II) is a regulation that took effect in January 2018 that aims to increase market transparency across the European Union (EU) through the standardization of the regulatory disclosures required for individual markets. It is one of the most significant regulatory changes to impact the global asset management industry. The MiFID II reforms cover a number of key topics including: best execution, conflicts of interest, bundled commissions and payments for research & trading.

BURGUNDY’S APPROACH TO MiFID II

At Burgundy, we follow a disciplined, bottom-up, value-driven approach to investment research, supported by intensive fundamental research. We believe that conducting our own research is the backbone of our success. From time to time we have used external research paid for using broker commissions to supplement our own research, but we do not rely on external research in our decision-making.

We always approach our decision-making with the guiding principles of fairness and transparency in mind such that all our clients are treated equally.

As of January 3, 2018, Burgundy has gone execution only on all trades and will absorb all external research costs related to our equity mandates for all clients, regardless of domicile. We will not pass these broker research commissions on to our clients, nor will our fees change as a result of this policy.