Value Investing

The McCreath Group actively seeks to idenitfy companies that have solid businesses and balance sheets but which, for one reason or another, the market has undervalued. The result is an opportunity buying stocks when their price is deflated.

The McCreath Group has developed the following guiding principles to our value investing strategy:
  1. Buy quality.

  2. Buy great companies at attractive valuations.

  3. Understand that there are times when markets misprice businesses.

  4. Buy top management.

  5. Look for strong balance sheets.

  6. Buy companies that are leaders in their field.

  7. Invest in businesses that are easy to understand.

  8. Buy companies with growing earnings and strong cash flow.

  9. Look for low price earning multiples.

  10. Diversify in foreign securities – Canada is confining.

  11. We will only buy growth and cyclical stocks at reasonable valuations.

  12. Look for companies that pay dividends and have attractive return on equity (ROE).
Tax-Efficiency is a Key Part of Value Investing
While identifying value investing opportunities, we never forget the importance of minimizing taxes. Know how the tax rules effect your investments is essential to maximize your after-tax return. Keeping up to date on changes to tax rules may open up new opportunities that could affect the way your financial affairs are structured.