Part blog, part investment newsletter and part investor resource, this website is meant to be a wide-ranging exploration of the markets.
The heart of this website is the mispriced markets portfolio page. Here, you’ll find a listing of all the stocks that I hold in my own personal portfolio. I’ll include a description of each stock and my reasons for owning it. As time permits, I’ll also be posting in-depth write-ups on some of my favourite holdings as well as shorter updates as new developments arise.
In the Value Investing 101 section, you’ll find a series of tutorials I’ve written on value investing. Aimed at both newbie and more experienced investors, these take you through the process I’ve used to consistently outperform the market. The market is constantly evolving and there are always new avenues to explore. I will be adding to this section as new topics occur to me.
I will also be posting periodic market commentary, independent research that I do, reviews of stocks that I own as well as ones that I have decided to pass on and some investing tools that I’ve developed over the years. The blog section of this website is the jumping-off point for all of these different topics.
This isn’t your typical investment newsletter. There’s no subscription fee. I’m offering any market research, company analysis and stock recommendations I might have completely free of charge.
If this website unexpectedly draws a much bigger following than I expect it to and I find that we are tripping over each other trying to buy and sell the same stocks, then I may institute a subscription fee at that point to keep the numbers manageable. But for now, my primary motivation has nothing to do with monetary remuneration.
Investing is a personal passion of mine and this website is a labour of love. I spend a lot of time researching the markets and looking for the next great, undervalued opportunity. After I’ve finished buying or selling for my own personal portfolio, I see no harm in sharing this information widely. With 21 years of experience behind me and a very solid long-term track record, I might even find someone willing to listen to what I have to say. Family and friends have been at me for years to write a book or publish an investment newsletter. This website is a bit of both.
Twice a year I will be posting a snapshot of my own personal portfolio, once in January and again in June. The fact that I own these stocks in my own portfolio means that I consider them all to be undervalued to a greater or lesser degree. Certainly, it would be possible twice a year, to simply buy all the same stocks that I have and sell any that are no longer on the list. However, many of these stocks are in smaller companies. Often I will buy companies that are struggling or distressed in some way. I have, on occasion, lost my entire investment in some companies. These stocks would not be appropriate for many investors. You should do your own research on these companies and discuss them with your own financial adviser before deciding if they would be a good fit for your own portfolio. My intention with this website is to illustrate the kinds of companies I buy and the approach I take to investing. Hopefully, there are ideas here that help you in your own stock market adventures.
What kind of stocks do you buy?
I look for undervalued opportunities in a wide variety of sectors and a variety of countries. The core of my portfolio has always been in Canada, though and this is where the majority of my ideas come from.
I like to focus on operating companies where I can look at their track record of profitability and use that to draw some conclusions about what the future might hold. This tends to steer me way from the resource sector although I will frequently buy up stocks in the companies that service this sector. (I like to invest in the companies that sell the shovels to the prospectors rather than in the prospectors themselves). It also has steered me away from a lot of the more speculative areas of the market; the biotech companies, the internet stocks and more recently, the marijuana craze.
I’ll evaluate each company on its own merits, taking into account its history of earnings, its debt levels, its rate of growth, its future prospects and the risks it faces. I form an opinion of what I consider would be a fair price to pay for this company and then I buy any that I can find that are trading at a big discount to this fair value.
I’ll often buy smaller companies as this is where you tend to find the greatest pricing inefficiencies. I am not afraid to buy into companies that have fallen on hard times if I believe that their troubles are temporary. The companies I buy often don’t make for good cocktail party chatter. It’s hard to get people enthused about a yarn manufacturer. The end results, though, can be a good deal more exciting.
I’ve written a series of tutorials which go into more detail on my stock selection criteria. You can find them filed under the Value Investing 101 section of the main menu.
This page shows a list of my current holdings as of the most recent “portfolio snapshot” date. Clicking on the name of the company in the portfolio list will take you to a dedicated page for that stock. Here you can find a link to the company’s website as well as a brief summary of my current thinking on the company and some basic information about what the company does. Any blog posts and company updates relating to this stock will get posted here and if I’ve written up an in-depth review of the stock, you’ll find that here too.
The icons next to each stock name help to visually categorize the stocks in the mispriced markets portfolio and flag any noteworthy features such as a high dividend yield or an elevated risk profile that they might have.
You can find a full explanation of the meaning of each individual icon in the icon guide which is linked to at the bottom of the portfolio list.
Every time I update the portfolio snapshot, I will issue a blog post as well, reviewing the changes that have occurred since the last snapshot. I’ll comment on any new additions to the portfolio and report on any stocks that have been sold. Some general market commentary will often find its way in here as well. A link to these “state of the union” type of addresses can be found at the top of the list of stocks as well as on the main blog page.
You can find the full details of my personal track record going all the way back to the start of my investing career in 1996 here.
Over the past 10 years (2007 – 2017), my portfolio has beaten its benchmark index by a little over 13% a year, meaning it has risen by over 20% annually over the past decade. That kind of performance rivals some of the best mutual funds, hedge funds and investment newsletters out there. My sincere aim is to try to keep outperforming the market going forward. Only time will tell if I have been successful.
A carefully selected basket of undervalued stocks can be a great addition to any portfolio but you have to consider the broader picture. A financial advisor can help with asset allocation decisions, tax planning, retirement goals and a myriad of other important details.
This website is aimed at a broad audience and can’t be considered to offer any sort of targeted personal advice. Unless you are a sophisticated investor with experience in dealing in volatile, small cap companies, you should approach this sector with the help of someone who knows what they are doing.
However, once you do have the proper support network in place and have gained a bit of experience buying and selling your own stocks, you can start taking control of your own financial future. No one cares as much about your money as you do and no one else is going to give your investments the close attention they deserve. Investing directly in your own stocks can be a fun, exciting and rewarding activity. With the proper backup, I’d encourage you to take the plunge.