Not understanding the nature of the game makes you a sucker – and a loser – in poker, just the same as not being aware of your limitations can make you a loser in investing. One of my most valuable investing rules resembles something I learned decades ago, as a teenage poker player.
By Fund Library News Wire | Friday, February 27, 2015
* Stocks post strong gains in February.
* Horizons launches active U.S. dividend ETF.
* Stock markets posted strong gains in February, with several U.S. stock indices reaching new record highs and the S&P/TSX Composite gaining 3.8% on the month, as the U.S. economy expanded in the fourth quarter and inflation in both Canada and the U.S. remained largely unchanged in the month.
Q – With Canadian interest rates once again at rock bottom, income investors are hard-pressed to find any good income-producing assets without incurring a high degree of extra risk. I’ve heard that investment funds that hold real estate investment trusts (REITs) might be a good choice for more conservative investors (say, retirees) looking for a steady stream of income, because they are diversified and have a better risk profile than, say, common shares of big blue-chip companies. Can you shed some light on this? – Randall P., Nepean, Ontario
The prominent technology investor Peter Thiel starts his new book, Zero to One, by posing the question, “What important truth do very few people agree with you on?” This is his standard question when interviewing potential employees. For most, it’s a difficult question. An easier way to provide an answer may be to ask what most people already agree on and then rigorously determine if it may be a popular delusional belief. Often, a good answer will stimulate ideas for a successful new company…or a new investment strategy.
Brandes Global Small Cap Equity Fund is a deep-value small-cap fund and continues to be one of my favorites in the Global Small/Mid Cap Equity space. While its performance has been stellar of late, it is really more the process and risk controls that attract me to the fund.
