Instead, finding companies with compounding, sustainable growth is key, especially in today’s challenging investment environment, says Bo Knudsen, CEO of C Worldwide Asset Management in Denmark.
Knudsen, who’s also managing director of global equities, practises high-conviction investing and limits his portfolio to 30 stocks.
“You shouldn’t dilute your exposure to a certain factor by adding mediocre companies,” he said. “Why not go for the ones that can best exploit the factors you find most interesting?”
Knudsen looks for firms that can compound their growth over the long-term and that are well-positioned to weather climate change. He particularly likes companies that facilitate society’s digital transformation.
New York-based S&P Global Inc. is one example. While the company is primarily a ratings business, it boasts a broad understanding of data, and sells that data to a key client segment, noted Knudsen. The company has a one-year return around 10%.
Another example is Swiss firm Nestlé S.A. He noted that Nestlé doesn’t deliver high growth on a yearly basis (the company has a one-year return of 0.36%). But it has posted steady growth over time, which fits his mandate.
“The company reduces the risk in our portfolio,” Knudsen said.
On the sustainability front, the company announced in December that it will invest 3.2 billion Swiss francs to combat climate change over the next five years. Nestlé plans to use 100% renewable electricity by 2025, and to halve its carbon emissions by 2030.
Being a long-term investor, Knudsen is wary of companies that grow quickly in a short period.
“I think this illusion about making fast money is alive and well, but it’s more a game of speculation than anything to do with investing,” he said. “It takes longer to create returns at this stage and going forward.”
Tesla Inc. could be one example of “an object of speculation,” according to Knudsen — and its future dominance is far from assured.
“We think there’s going to be a lot competition coming from existing players from Germany, from the rest of the world, and in this very big segment of consumer goods,” he said. “So we think the competitive landscape is hard to predict right now, and that’s why we stay on the sidelines.”
To find sustainable growth, he analyzes the company’s culture and business model.
“You look at the company behind the stock,” he said. “Start understanding and focusing and researching the company. Then you look at the stock afterward.”
The pandemic has further highlighted the importance of strong balance sheets. Companies with large debts are “being run by debt holders,” he explained.
“The debt holders want their money back, and they can essentially force a company to focus on the short term. [A] strong balance sheet gives the company management the power, the opportunity to take strategic decisions and think long-term.”
Investors will have to look globally to find future growth. “Europe is taking the lead when it comes to the agenda of sustainability,” he said. He also suggested the growing middle class in countries such as India will continue to “deliver fundamental growth.”
Knudsen added, “In the decade ahead, investors and stakeholders will reward companies with sustainable business practices. We would advise to weigh up and emphasize sustainability of growth, rather than magnitude of growth.”
This article is part of the Soundbites program, sponsored by Canada Life. The article was written without sponsor input.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
