Member Documents

Big Bets on Canadian Banks

May 3rd, 2013

In reporting our quarterly performance to clients we are often asked where we see opportunities in the market. With the materials sector off 22.9% year-to-date our screens find plenty of value in this space, but our fundamental analysis finds little quality. Another area of the market where we see opportunity ...

The Market's Mixed Signals

March 1st, 2013

We are two-thirds of the way through another period of corporate financial reporting, and for the businesses held in the QV portfolios, the results so far can be described as stable. A good example to characterize the last quarter for most of our companies would be the results of Canadian ...

Reinvesting can pay dividends

December 7th, 2012

Dividends have been cited to compose roughly 40% of the stock market’s long-run total return. It comes as no surprise that US investors are concerned about the risk of taxes on dividend income sharply rising from 15% to 43% in the New Year. The effect on Canadian dividend paying companies ...

Core Consistency

October 26th, 2012

“[W]e’ve seen continued economic weakening and uncertainty…We’re focused on being very nimble and taking actions to respond…It requires a pragmatic and steady approach as we balance our actions in the short term with what we need to do to be prepared for better growth when the world economy improves.” – ...

Betting on Red

August 24th, 2012

I’m not much of a gambler. After losing $40 at a hand of blackjack I vowed never to gamble again. I recall sitting at the table with angst, knowing win or bust comes down to one card. (It’s clear what happened next). My $40 loss was small by betting standards ...

Exploring for Value

June 22nd, 2012

The announcement of Canada’s inflation rate falling to 1.2% from 2.0% underscores that inflation is not an immediate concern in North America (although disinflation might be). As a result, we wonder if inflation hedging assets like gold and oil will continue to see some near-term weakness. With a $2.65 trillion ...

The Transformation of Communications

May 4th, 2012

Many of the businesses we hold in the Canadian Equity Fund have been highlighted in the press over the past week. When companies we hold hit the front page, naturally we become more interested in what the press has to address.

Diary of a travelling analyst

March 23rd, 2012

I recently returned from holiday in Southeast Asia. A region of the world I called home for a significant duration of my youth. It has been at least ten years since I was last in the area, so it is an understatement to say that a lot has changed. The ...

What is it you do again? - Revisited

January 13th, 2012

With every New Year comes the opportunity to create annual goals, or resolutions. British media recently published survey results that revealed “despite 2.6 million people starting diets last Tuesday…this weekend 92 per cent of dieters gave up, shunning exercise and gorging on comfort food.” This survey suggests that individuals are ...

Sound businesses will "full-steam" ahead

November 4th, 2011

It’s that time of the year again where investors sit on the edge of their seats in anticipation of third quarter financial reports from the businesses we own. To date we’ve seen some very good earnings…and some not-so-good earnings. However, it is important to keep in mind that interim performance ...

Fresh off the press!

September 16th, 2011

At times it seems like all recent news has been negative.  Especially as we end the week with Research In Motion's (RIM) stock down 20% today after reporting double-digit declines in revenues and earnings in its second quarter financials on Thursday.  The disappointment resulted from much lower BlackBerry device and ...

A Dedication to Dividends

July 22nd, 2011

Part of QV’s investment process includes a monthly audit of fundamental portfolio characteristics against a relevant benchmark. In recent reviews of the QV Canadian Equity Fund and equity portion of the Balanced mandates, we have witnessed the dividend yield of the Fund come down to a level in line with ...

Putting Cash to Work

May 13th, 2011

When we're not discussing how the Canucks will win the Cup, cash flow is a hot topic among many of us at QV. Positive, sustainable cash flow is a quality we hold in high regard when looking at our businesses and seeking out new ones. As Darren highlighted in February, it paves the way for ...

High P/Es and High Returns

April 1st, 2011

We recently met with a company whose core business is private equity investment. Some highlights from their investment strategy include: 1) finding businesses with high quality cash flows; 2) using financial leverage cautiously; 3) buying at a discount to fair value; 4) ...

Value still exists, and it still rewards.

January 21st, 2011

It's been a busy start to the New Year and we've witnessed several encouraging signs for sustaining growth. Flaherty further acknowledged Canada's rising household debt by tightening mortgage rules; Obama stepped closer to corporate America by recruiting General Electric's CEO to his ...

Virtuous circle, or something all too familiar?

November 12th, 2010

With US Thanksgiving two weeks away, how many American families do you suppose will serve turkey with their holiday meals? Before taking a guess, Bloomberg has reported US wholesale frozen turkey prices have reached an all-time high. To be candid, I don't ...

Technology: Protector and Friend

September 24th, 2010

When I read about the speed of advancement in technology, it's hard not to conjure up scenes from The Terminator. Beyond the forecast of how the world would end, the movie portrays how moving too far, too fast can be detrimental to ...