Perhaps we have seen this movie before…
In a time when tech stocks are experiencing significant appreciation in their share price with little to no net income, many other companies who have sustainable earnings and provide stable growth in the dividends they pay their shareholders are not experiencing the same level of growth on their share price.
I think it is important to review why the asset managers we use “peel the onion” on the fundamentals of the companies they invest in to help provide a better understanding of the risk associated with speculative investing. Some are saying “its different this time” but when you look at the fundamentals, you be the judge.
Dave Atkins, portfolio manager of the VPI Canadian Equity Pool provides some interesting data that reinforces his process and why he buys what he does in the Pool. To read more click here