September 7, 2017

On Thursday, the S&P 500 was about unchanged while Toronto was down 0.2%.

Ceapro was down 4 cents or 6%. This is going to remain volatile and its ultimate future depends on its research panning out. Their CEO invited me to meet with them after I complained about poor disclosure. Due to travels I have not met him yet. It may end up being a phone call.

CRH Medical was down 3.9% on Toronto. In part this is due to the higher Canadian dollar. I remain quite confident that CRH has a good business model and is low risk at this point (though I never pretend that I can guarantee anything).

Dollarama was up an impressive 10.6% after posting earnings. I have for years said this is one of Canada’s very best managed companies. But it always seems expensive.

There are theories that higher risk companies make the highest returns. In practice some of the safest businesses in simple consumer businesses seem to make higher returns than most risky companies. There never was a theory that said ALL risky companies would make high returns (if so there would be no risk). But often it seems FEW risky companies make much money.

My road trip now has me in Kenora Ontario. Back home on Saturday.

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