The Headlines (as usual) Are Too Dramatic

Despite the weakest post war economic recovery, heavy global debt burdens (debt to GDP at 125%) and brewing geo political issues, equity markets have been rather buoyant, especially in North America.

The Jelly Bean Effect

I have always been a fan of the Jelly Bean Game. You know the one: a glass jar filled with jellies to the brim and a daring sign proclaiming, “Guess the number of jelly beans, win a prize!” Whenever I see one of these in the middle of a crowded mall or tucked inside a carnival tent, I drop everything and start studying the beans.

The beauty of value investing is its logical simplicity. It is based on two principles: What’s it worth (intrinsic value), and don’t lose money (margin of safety)."

- Christopher Browne

Global Investment Trends: Treasure Trove (Benefits Canada)

Although developed economies have lost their lustre in recent years, pension investors can still find some gems in undervalued and evolving sectors.

Defensive investing, insistence on value, and shying away from leverage – they’re all important. And much of the reason they’re important stems from the fact that so little of short-term performance is under our control.”

– Howard Marks

We believe that the tortoise beats the hare. A focus on the long run leads to better investment decisions than a reaction to short-term movements. Rational, incremental, proactive execution beats emotional, reactive trading.”

- Kim Shannon, The Value Proposition

Uncovering Value in an Underperforming Asset – The Sionna Process in Action

At Sionna Investment Manager’s 2014 Market Review, Portfolio Manager, Dave Britton, CFA, discussed our detailed investment process by illustrating how one company went from a potential idea to a portfolio addition.

Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.

- Warren Buffett

How to Invest in a Sideways Market (Benefits Canada)

Sideways markets deliver below-average returns, and we probably have a few more years to go, said Kim Shannon, president and chief investment officer of Sionna Investment Managers, at the firm’s 2014 financial market review.

CFA Institute Book Review: The Value Proposition

The book is an informative guide for those striving to gain a deeper understanding of and improve their skills in value investing. Its themes include adapting to changing market conditions, defining and calculating intrinsic value, and constructing and rebalancing portfolios. continue reading →