Stock markets around the world have entered the final stretches of the year in a foul mood. While fundamentals are the law in the investment business, the short run price action is all about confidence. Economic growth is strong. Corporate profits are at records. Confidence in the future is low. Markets always overreact to good … Continue reading December Update, 2018: The Story Remains The Same →

Stock markets fall with a great deal more regularity than many care to believe.  Sometimes falling markets reflect investors’ collective fear that profits will fall generally across the economy. The causes of fear can be varied but usually involve concerns of rising interest rates slowing the economy. At other times, political events, trade friction with other … Continue reading November Update, 2018: When Markets Fall →

In 1980, your father’s government designed the National Energy Program (NEP). The goals of the policy as stated in the budget of 1980 were to be the  "security of supply and ultimate independence from the world oil market; opportunity for all Canadians to participate in the energy industry; particularly oil and gas, and to share … Continue reading An Open Letter to Prime Minister Trudeau →

We have written regularly about the threat government regulation could have on the information technology companies you own. The headlines recently have demonstrated that our concerns were well founded. Concerns about the power that Amazon, Facebook, Google, and to a lesser extent Apple (we will call them GAAF for short) exert over the world with … Continue reading September Update, 2018: The Cost of Privacy →

We have frequently written about technology and its impact on different industries. Healthcare, a major area of interest for Davis Rea, touches so many people globally. The perfect type of industry to invest within. Unfortunately, the costs of care are soaring and fewer every day are eligible or able to afford care even as our … Continue reading August Update, 2018: Digital Health →

Last Thursday, Facebook reported profit growth of 42% missing the consensus guess of 43% growth. The stock price fell 20% in the ensuing hours, and much gnashing of teeth and gloating by others worried that the ride to infinity was over. Really?! A 20% drop is no small thing and in Facebook’s leagues, it’s a … Continue reading The Facebook Disaster: Pt. 2 →

Within a matter of months, Canada will have a new industry that, until now, has been beneath the clutches of the “Tax-man” and hence, illegal. Illegal pot is a very big business right now. Estimates are about $8 billion per year. After years of fighting, the government has decided it’s a good business and that … Continue reading June Update, 2018: Canada Is Going To Pot →

About 3 years ago, we began investigating the evolution of the car. It started with our interest in Tesla. We wanted to figure out if this character—Elon Musk—made any sense. Self-driving electric cars? This seemed both possible and probable. We quickly dismissed the idea that any one company—Tesla—would control the market. This proves that you … Continue reading April Update, 2018: Cars, Entertainment, And How We Stumbled Upon An Investment →

When one thinks of great empires, one can look back at the great Russian, Mongolian and British empires as such entities. They ruled the world at their respective times, had overwhelming power and control over their regimes, and controlled a large portion of the world (anywhere from 15% to 23.84% of the world’s land area). … Continue reading March Update, 2018 →