May Flowers

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May Flowers Are Here!

 

For those of us in British Columbia, we have been extremely fortunate to have enjoyed some early summerlike weather. We hope that everyone has been able to get outside to enjoy the sunshine as the days continue to get longer. The investment landscape has not shown its sunny disposition so far in 2016, but we are optimistic that our focus on proper diversification and quality companies will start to produce results in the coming months.

 

It was Sir Isaac Newton who said, “We can calculate the motion of heavenly bodies, but not the madness of people”. Indeed it has been the human element that has driven stock markets so far this year in our opinion. The stock market is the product of thousands of people making independent decisions every day. These decisions are based on their beliefs, in this case on the value of a business. There’s incentive for being right and punishment for being wrong. On any given day as an investor, it can feel like you can do no wrong while at other times it feels like you can do no right.

 

This is why we focus on the long term appreciation of quality businesses. Businesses with a sustainable competitive advantage, strong cash flows and proven management teams. While we may miss out over the short term by not participating in the flavor of the day or the next app to be sold for a fortune, we benefit from the long term growth of these quality companies.

Looking ahead we are very encouraged by Chinese economic activity which has strengthened due to stimulus and credit. We are also very much aware of the political situation in the US and are working hard to figure out the implications of the possible outcomes. Never a dull moment.

 

 

On the lighter side…

This is definitely something you need to know as we head in to the summer. Here is proof that eating ice cream is a smart thing to do. Contrary to popular belief, those who do not pass by the ice cream parlor score higher in educational performance. Perhaps if we all concentrate on consuming a bit more of this cool summer treat we can move Canada up in the rankings?

 

As always, if you would like and update or help with anything at all, just give us a call.

Enjoy your ice cream!

 

Ice cream consumption and PISA educational performance scores