Monthly Message

The Wutherich & Co. Composite was up 5.4% in October. This compares with the S&P 500, up 8.4%, the DJIA up 8.6%, the NASDAQ up 9.4%, the S&P/TSX up 2.0%, while the BMO Small Cap Index was up 4.4%.

We saw a small reprieve in October from the very difficult performance in the prior few months. Though a few of our stocks have come back a little, we still see good value in many of our names. Eleven out of the sixteen companies that we own are trading for less than 10 times cash flow. This is nowhere near as cheap as the 2008-2009 downturn where we saw many of our companies trade for as little as 5 times cash flow, but it bodes well for long-term performance. Tax loss selling may continue to pressure many of our names and the market’s obsession with Federal Reserve policy may provide more thrills and spills. Regardless, we continue to believe that the portfolio is reasonable value and will be much higher in the next five to ten years.

Please note that we still have seats available for our event on Nov. 5. Please contact us at jf@wutherich.ca and let us know that you can attend.

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