Focus on avoiding permanent losses rather than minimizing the risk of stock-price volatility...Consider stock investing to be a marathon, not a sprint, with winners and losers among its practioners best identified over periods of several years-not months
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Last Updated
October 21, 2014 14:15 ET
  Last Change
 TSX Comp  14,517.06  179.29
 S&P/TSX 60  837.76  9.74
 DJIA  16,586.26  186.59
 S&P 500  1,935.23  31.22
 NASDAQ  4,401.63  85.56
 Nikkei 225  14,804.28  -306.95
 TSX Vent  822.82  11.47
 Hang Seng  23,070.26  0.00
 $CAD  89.1300  0.5200
 London Gold  1,244.50  0.00
 WTI Oil Spot  82.55  -0.16
Source: SunGard PowerData

Martin  Gedja
Investment Advisor

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Contact Information
Address
Marsland Centre
20 Erb St. W
3rd Floor
Waterloo, Ontario
N2L 1T2
Phone
(519) 886-3845
(519) 465-9788
Fax
(519) 747-2236
E-mail
Martin Gedja
Specialties:
- Portfolio Management for High Net Worth Clients ($1Million+)
- Business Perspective Investing

Business Perspective Investing

The wrong reason to own a stock is because you think the per-share price is going up next week, month or even within a year for that matter. Think of it this way; if you were looking to invest in a business or real estate investment and I were to offer you a local business, franchise or a local apartment building you would look at the accountants books and determine how much money the business is making, how consistent the profits are, the future economics behind the business and of course at what price to determine your rate of return. If it makes sense and the business is attractive based on future returns you would make an investment in the business.

We must look at stocks from the same business perspective as buying an entire business and make our decisions to invest in an ongoing business venture for the longer term – like a business owner and not like most “investment professionals” by the short term.

Warren Buffett is right

Warren Buffett is right when he says you should invest as if the market is going to be closed for the next five years. The fundamental principles of value investing, if they make sense to you, can allow us to survive and prosper when everyone else is rudderless. We have a proven map with which to navigate. It sounds crazy, but in times of fear and selling in the markets, we should feel a sort of serenity in knowing that if I have checked my work and rechecked my work, one plus one still equals two regardless of where a stock trades right after we buy it.

 

All market data is delayed by at least 20 minutes unless otherwise noted. Quotes, historical data, charts and statistics are provided by SunGard PowerData. BMO Nesbitt Burns is not responsible for the information provided.


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