Monthly Message

The Wutherich & Co. Composite was down 5.8% in July. This compares with the S&P/TSX down 0.1%, the BMO Small Cap Index down 0.6%, S&P 500 (US$) up 2.1%, the DJIA (US$) up 2.7%, while the NASDAQ (US$) was up 3.4%.

There is no question, our portfolio was thrumped during July. Only one of our names reported negative news during the month. This makes it very hard to believe that our companies should be worth, collectively, 5.8% less than a month ago, especially since we don’t think that the portfolio was significantly over-valued in the first place. We usually don’t pay a lot of attention to the short-term, but we will be very interested in the next few quarterly reports from our companies. We will use these,  together with interviews with managements, to rigorously test our hypotheses for owning each of these names. From what we see right now, though the portfolio is not as cheap as at other times in the past (e.g. 2000-2002, 2008-2009, 2011), we do think that it will offer good returns over the next five to ten years.

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