YCG Investments
“If you buy above average businesses at below average prices, on average, we believe you should come out ahead.” — Brian Yacktman

Sauntering Forward

RECENT THOUGHTS

Verizon Communications: The Signal in the Noise

Express Scripts: No Rx Needed

Inflection Point for Western Union?

Coke may be losing its fizz, but not its dominance

Why Procter & Gamble is Our Largest Investment

Ever since strong Black Friday sales were reported at the end of November, combined with the news of the ECB’s (European Central Bank) move to flood more dollars into Europe, the market has been on a forward march. True, holiday shopping did look solid, but the problem is personal incomes are not growing as fast as spending – an unsustainable course. We will not delve into our thoughts on Europe, except to say the closing act looks bleak.

At the end of Q1 2011, we wrote in our quarterly letter to clients: “whatever the events are that threaten to topple over this drunkenly bullish market, they only seem to cause a slight, momentarily stumble backwards and then it resumes sauntering forward again. The real question that remains is what will finally cause the market to come thundering back down to reality.” I must admit, recent market action has us feeling eerily similar to that time period. We’re not trying to call a top here, in fact, last time we wrote that, the market sauntered forward for months to come. But we have to wonder if reality will be setting in sooner this time.

Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. Rather, this commentary is presented solely for the purpose of illustrating YCG’s investment approach. These commentaries contain our views and opinions at the time such commentaries were written and are subject to change thereafter. The securities discussed do not represent an account’s entire portfolio and in the aggregate may represent only a small percentage of an account’s portfolio holdings. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Posted by: Brian Yacktman | February 01, 2012 | Permalink

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