Listening to the “experts” on the TV or, heaven help us, reading their opinions in the newspaper, one might believe that the current uptrend in the markets is overdone. Or perhaps there might be an economic reversal to the April low. Or, even better yet, that there is a possible retrenchment of market prices to the March lows. Of course, it’s possible … it’s also likely the Leafs will eventually win the Stanley Cup. But, as we’ve written before, predicting things correctly is nearly impossible. I always liked Bob Arnott’s quote..”In investing, what is comfortable is rarely profitable.”
Over the past few months, having spoken to management teams of great businesses worldwide, we sense an air of caution. Nobody really knows the impact of the pandemic in the next 12-18 months. But most of these businesses, having experienced a hiccup in the first quarter of the year, are now growing again – and looking at using their cash hoard for growth or to acquire weaker competitors.