Monthly Message

The Wutherich & Co. Composite was down 0.8% in November. This compares with the S&P 500, up 0.3%, the DJIA up 0.7%, the NASDAQ up 1.1%, the S&P/TSX down 0.2%, while the BMO Small Cap Index was down 1.3%.

Resource stocks continue to be under pressure in what was otherwise a neutral month. We still see good value in many of our names though some have rebounded considerably from the lows of August and September. We are always checking for the ability of our companies to survive a sustained weak environment. If a company shows signs of significant vulnerability, we will trim, and eventually eliminate it, from the portfolio. We have done this over the last several months. Conversely, we think that tax loss selling is unduly pressuring several of our names and we are selectively adding to several positions. As we have said in recent months, we believe that the portfolio, while not resoundingly cheap, is reasonable value and will be much higher in the next five to ten years.

We would also like to thank those clients and friends that attended our Nov. 5th event. It was one of the best conversations with a group of clients and fellow investors that we have had in many years.

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