1st Quarter Commentary
By George Droulias, investment analyst
Calling 2020 an abnormal year is an understatement. In a matter of weeks in March 2020, everyone’s normal behaviours and habits were forced to change. Fortunately, many of these new routines are already proving to be temporary. Based on recent mobility trends in geographies with high vaccination rates, people are starting to forget the lessons of 2020.
The stock market also displayed some unusual behaviours in 2020. Successful investments in stocks, which represent ownership claims on businesses, display specific characteristics. Empirically, companies with strong profitability, returns on capital and attractive valuations will typically do well over time. However, in 2020, many investors deviated from identifying companies with these attributes, instead favouring businesses with the exact opposite characteristics!
Read the rest here>> 2021 – EdgePoint 1st Quarter Commentary
Comments are closed.