After a decade of low inflation, the pandemic has reawakened investor fears around rapidly rising prices. Whether you are paying at the pump, shopping at the supermarket, or picking up takeout, consumers seem to be experiencing higher costs all over the place. Businesses are also facing pressure, with higher costs for transportation and raw materials alongside a tight labour market. No one knows if these trends are permanent or temporary, or what the future might bring as a result. Against this uncertainty, the one thing we can control is the companies in which we invest.
Investment Counsellor Kate Mostowyk speaks with members from the Burgundy Investment Team to discuss what we are seeing today with respect to inflation, how our portfolio companies adapt during a period of rising prices, and why, in the end, we believe owning quality businesses over the long run is the best strategy to guard against inflationary pressures.
For an alternate format, access the transcript via the “Download PDF” link at the top of this post. The transcript has been edited for clarity.
Video #1: Understanding today’s headlines
Kate, James, and Craig highlight what exactly inflation is, why it is dominating the headlines today, and how it compares to deflationary pressures.
Video #2: Burgundy’s approach to equity and fixed income investing
Kate, Oliver, and James discuss how inflation is affecting Burgundy’s companies and explore its impact on portfolio construction.
Video #3: Remaining vigilant investors
Kate and Craig highlight what inflationary pressures and changing macro environments mean for quality investors like Burgundy.
To learn more about how higher prices are affecting quality investors like Burgundy, please contact us.
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.