After completing the last column, I thought perhaps a better definition of growth and value would be in order as well as defining other common investment styles and strategies. There are three kinds of market participants often referred to under one umbrella as “investors,” however, I like to distinguish between the three: 1. Speculators orient […] Read more
Investing styles and definitions
Investing For Fun and Profit: Which category do you fall into?
Value investing is dead … long live value investing
“Reports of my death have been greatly exaggerated” — Mark Twain
As I was cleaning my desk clutter, I came across a Globe and Mail article titled, “Five reasons why value investing may never regain its appeal.” It appeared Aug. 27, 2019, after a decade in which growth stocks had significantly outperformed value stocks. It isn’t unusual to see these types of headlines just before a […] Read more
Stock market and economic outlook
Why aren’t we listening to Warren Buffett?
Warren Buffett is one of the best investors the world has ever seen. One of his most famous quotes is, “Be fearful when others are greedy, and greedy when others are fearful,” which aligns with the direction of my thoughts for the coming year. By the time you read this, some of the predictions may […] Read more
‘A pinball wizard’s got such a supple wrist’
For many market participants, 2022 was a volatile and negative year
Strategically located a block from my high school, lurked a pool hall readily luring innocent students from their studies. While it was busiest during lunch hour and après school, business remained brisk during school hours. Must have been students on their spares! At its entrance stood a bank of pinball machines, always busy and always […] Read more
Who makes the big bucks in the agri-food sector?
From an investment standpoint, choose carefully
After studying the ag supply sectors in my last article, I wanted to take the project a step further to examine companies between the farm gate and the consumer. Like with ag suppliers, my findings are somewhat surprising. I looked at four sectors: grain handling and primary processing, railroads, food manufacturers and food retail, with […] Read more
How do agricultural companies measure up as investments?
Do they make too much money on the backs of hard-working farmers?
A couple of months ago, I penned the article, “Profit is not a four-letter word,” after which I intended to immediately delve into agricultural companies’ investment merits. However, I was diverted to oil company investments after a quote from the director general of the United Nations so perfectly illustrated my points in the “profits” article. […] Read more
Why invest in energy?
Will “reversion to the mean” occur this time?
My last article had me questioning my sanity for investing in energy companies. The last decade has been brutal, and the political environment is brutal. Before delving into the questions, I would like to comment on a common narrative — that the invasion of Ukraine caused a European energy crisis. The narrative is highlighted by […] Read more
Are energy companies displaying “grotesque greed”?
Vilification of profits continues unabated
Shortly after submitting my previous article on the vilification of the word “profit,” and even more so when related to oil, the headline “UN Head Calls for Taxing ‘Grotesquely Greedy’ Oil” appeared in a newsletter I read, with the following quote: “UN Secretary General Antonio Guterres called on governments globally to tax these excessive profits […] Read more
Profit is not a four-letter word
Investing directly in stocks helps participants learn about the economy and business, allowing everyone who chooses to benefit from corporate profitability
There are few words as vilified as the word “profit.” The word “oil” is probably on equal vilification footing, making “profitable oil company,” vilified squared (V² for mathematicians). Given the societal hatred for profits, why are those societies with the strongest profit incentives also those with the highest standards of living? The role of “profit” […] Read more
The economy, GDP, inflation, interest rates, recessions and bear markets
These items are interrelated but perhaps not as directly correlated as perceived
The current U.S. bear market is brought to you by an unwinding of speculative excess, increasing inflation driving interest rates, Putin’s war in Ukraine and fears of a recession. A recession is defined as two quarters of negative growth. First quarter U.S. growth was negative and if the second quarter comes in negative it will […] Read more
Cyber-Savvy Farmer
