Barry Schwartz's Top Picks: January 4, 2022
BNN Bloomberg
Top picks from Barry Schwartz, chief investment officer and portfolio manager, Baskin Wealth Management
MARKET OUTLOOK: My New Year’s Resolutions for 2022:
1) I will always keep in mind that the day-to-day performance of the stock market is due to factors such as: growth, value, momentum, defensive, dividends etc., but what matters over the long run is the earnings and free cash that your company generates, the quality of the business, the valuation you pay and your expectation of future returns.
2) I will not beat myself up over short-term underperformance or missing out on the hottest stock. All investors make mistakes, the best you can do is learn from those mistakes and not lose sight of what you are trying to achieve.
3) I will remember that I am long-term investor. A long-term investor doesn’t buy stocks, they own companies. A long-term investor doesn’t bet on what he/she thinks the market will like in the short-term. Instead, a long-term investor bets on a good company staying good as long as the company has the key elements in place for success.
4) I will make sure to keep the right temperament to not sell winners to buy underperformers because of a valuation alone. There is nothing wrong in trimming a large position, but I will make sure to always put the highest emphasis on the best player on my investment roster.
5) Finally, I will stay optimistic. Had I told you at the beginning of 2021 that interest rates would go up, inflation would rise to levels not seen in decades, the pandemic would intensify, we would have a supply chain nightmare, and labour shortages would be pervasive, you may have never believed that North American stock markets would rise by over 20 per cent for the year.
