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The wonderful thing about compounders is their performance over a long time horizon, say 5-10 years. In Canada, we're lucky to have some phenomenal compounders. Examples include CSU, GIB.A, ATD, and BAM. For anyone investing, that's where you want to keep your attention. Don't just focus on 1-year performance. The power of compound investing is when you buy something that's really good, and you can't believe how much it's grown over 5-10-20 years later. You lose out on this if you have too much of a value-only mindset and you're looking for things that are distressed. Look for great companies at a reasonable price. The trouble with a lot of compounders today is that a lot of them would be classified as growth stocks. There are, for instance, a good number of compounders in the tech space but the valuations are rich. If you look at companies that can grow, the valuations are very strong. And if you look at companies that don't have the growth, valuations are very weak. This is the time to know the compounders you want to buy, and just wait for things to fall to your price. There are some attractive income opportunities to invest in while you wait. The two very best in Canada that he's ever come across are CSU and MEQ. MEQ is a smaller company, many similarities to CSU but doing it in a different space. For both, valuations are rich.
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