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Below is our monthly commentary on topics covering the markets, the economy, and our investment approach. To receive an email notifying you when our blog is updated, fill out the form at the bottom of this page.

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Evaluating Management

Have you ever gone on a date? Have you ever interviewed someone for a job? Have you ever done both at the same time? (Let’s ignore the HR implications of this scenario.) Professional investors often find themselves in situations that are a hybrid between a date and an interview. When meeting the management team of […]

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Too Much of a Good Thing?

Things are going swimmingly! Especially in the U.S. We’ll forgive you if you didn’t know that, given all the rhetoric about the dangers of free trade and how jobs need to be brought back to America. But it’s true! Look, there’s even a chart to back up this claim: the U.S. unemployment rate is near […]

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Winner Take All?

The following chart recently caught our attention. It shows the number of movie tickets purchased per capita over a span of time in the U.S. It illustrates a drastic decline in attendance at the cinemas in an abbreviated period of time. We have redacted parts of the chart because we want you to take a […]

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“Trade wars are good, and easy to win”

In an effort to protect domestic steel and aluminum producers, U.S. President Donald Trump recently announced his intention to impose tariffs on imports of the two materials. Trade wars are a contentious issue, so the pushback to the announcement was swift. In an attempt to defend his stance, Trump responded with the quote in our title. […]

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Stocks Go Up, Stocks Go Down

Is it time to panic? On February 5th the Dow Jones Industrial Average index fell as much as 1,600 points, an intraday record. And the financial media lost their minds: Source: Bloomberg, Wall Street Journal, Financial Times, Globe and Mail As often happens when inflammatory headlines proliferate, the general public became worried. In a matter of […]

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Consequences have Consequences

Physics is a pretty straightforward field of study. Those who are well-versed in it can accurately predict the timing of a solar eclipse, map the path of a rocket, or design the voltage of an electrical outlet. Human behaviour, by contrast, is much messier to study. Trying to predict how humans will react to a […]

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Bitcoin and Baseball: Evaluating the Quality of Decisions

Moneyball is one of our favourite books. Written by Michael Lewis, it gives an insider’s view of how the Oakland Athletics’ front office made decisions about trading and signing players. As the book describes, the Athletics focused on improving their player evaluation process so that they could generate a higher return (in terms of wins) on each […]

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Equity Markets Checkup

It has been a lucrative year to be an equity investor. Unless you’ve been invested in Canada. Or Australia. Or the U.K. But other than that it’s been great! As the following chart shows, equities in emerging markets, the U.S., and Japan have all posted solid returns. Owing to our circle of competence, we don’t […]

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The Power of Incentives

There are two ways you can get a mule to move: with a stick or with a carrot. You could punish the mule by hitting it with a stick until it moves. Alternatively, you could encourage the mule to move by dangling a tasty carrot in front of it. Either way, if you want it […]

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Warm and Fuzzy Investing

We like sports. We like investing. Which is why the recent sale of the NBA’s Houston Rockets caught our attention. The sale price of US$2.2 billion struck us as an awful lot of money to pay for a team based in only the tenth-largest market of the big four professional sports (NBA, NFL, MLB, NHL). So we […]

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