renters-ownersAn interesting essay on short term thinking from the CEO of Blackrock.

I’m not sure about manipulating public policy (in the form of lengthening the holding period for the tax treatment of dividends in the US) to impact investor thinking.

However, the idea of getting investors to think like owners instead of renters makes good sense.


On December 29 we had an interesting hour long segment on entrepreneurship and investing on CFAX 1070.


In the first half hour we discussed Uber which is turning the point-to-point transportation (ie: taxi) industry on its head. Taxi cabs have operated in an artificial market protected by regulations that rarely if ever provide a better or safer service for the customer. In fact in cities like Vancouver and San Francisco where there are 1 and 1.9 cabs per thousand people, this regulated market has only protected the cab drivers.

Uber has developed an application and pricing scheme that is upsetting the whole sector and providing consumers with choice.


In the second half we welcome Mayank Chauhan of NutTea of http://www.nutteabar.com who pitches me on his start-up business which has developed an organic, tea infused energy bar.

Click here and listen in: https://soundcloud.com/ian-jessop-cfax/december-29-2pm

Uber and Entrepreneurship

December 28, 2014

Tomorrow we are trying something new on CFAX 1070. We will have a full hour from 2 to 3pm.

In the first half we’re talking about the incredible success and growth of Uber.

In the second half a recent University of Victoria graduate will pitch me on his business opportunity and I’ll critique his concept in the last fifteen minutes.

Tune in, it should be fun!

On this month’s segment we discuss two great entrepreneurial success stories and investments.

Click the following link and fast forward to about 33 minutes:

WestJet was founded in 1996 and has gone on to become one of North America’s greatest airline success stories. It has survived a voluntary shut down, 9/11, SARS and the 2008/9 economic meltdown. When other airlines around the world were shedding staff, filing for bankruptcy, forcing staff to take unpaid leave and postponing important capital investments WestJet showed its 26th consecutive quarterly profit!

Apple has a market capitalization of just under US $700 billion and survived a near death experience. Steve Jobs, it’s founder and CEO, (from 1977 to 1983 and again from 1996 to his passing), not only created products but, more importantly, created categories. We talk with a caller about the future prospects for this business and as an investment.

I am not nor have I ever been an investor in either WestJet (WJA on TSX) or Apple (AAPL on NASDAQ).

I recommend the following reading on both companies: Flight Path by Peter Grescoe on the WestJet story and Steve Jobs by Walter Isaacson on the Apple story.

Buying Companies

September 1, 2014

On our monthly entrepreneurship segment on CFAX 1070 today, Ian Jessop and I talked about our process for assessing investments in businesses and a spectacular $700 million Kelowna success story.

Fast forward to about 32 minutes.


Investing in 2015

August 23, 2014


I don’t invest based on macro economics, I prefer fundamentals on a company-by-company basis. Nonetheless, this is interesting. Credit to PH&N / RBC Wealth Management.

Click this link and listen to Ian Jessop and I talk about how to value your business. We’re on monthly on the first Monday each month at 2:30pm talking entrepreneurship.

Be sure to fast forward to about 32 minutes.



I always enjoy listening to Michael Campbell’s Moneytalks show on Saturday mornings. He’s very good. However, today I heard an ad from an investment advisor who is a regular advertiser. The advisor said with great confidence and authority, “now is not the time to buy and hold”.

I couldn’t disagree more.

If you buy great companies at fair prices there should be no reason to sell. In fact if there’s a general market sell off that causes a downturn in the price of a great company it’s not a trigger to sell, it’s a trigger to buy more!

Benjamin Graham, Warren Buffett’s mentor, says in his book The Intelligent Investor, “the real money in investment will have to be made – as most of it has been in the past – not out of buying and selling but of owning and holding securities, receiving interest and dividends and increases in value.”

Now that is good advice!

Return on Equity

February 23, 2014

Only five ways to increase ROE:

(1) increase turnover
(2) cheaper leverage
(3) more leverage
(4) lower income taxes
(5) wider operating margins.

Warren Buffett has a talent at diluting important things down to their fundamentals.


This is the first of a monthly segment on entrepreneurship airing on CFAX 1070 in Victoria. It runs at 2:30pm on the first Monday of each month.

During this show we talk about my background, the importance of passion, skill and an effective financial engine and, finally, why we’re doing this segment on entrepreneurship.

I hope you enjoy it (fast forward to about 32 minutes).