Peter Cundill: 6 Principles for Mastering Value Investing
One of Canada's best fund managers in history - 100x returns in 33 Years.
For years, value investing has been a reliable method for wealth creation, championed by giants like Warren Buffett, Benjamin Graham and David Dodds. However, a lesser-known but highly successful investor, Peter Cundill, deserves recognition.
In this week’s newsletter issue, I will explore Cundill's investment journey. I will also unpack the following investing principles by Peter Cundill to help you become a more intelligent investor:
A Stock Isn’t Cheap Simply Because It Has A Low Price-To-Earnings Ratio.
Value Investing Tends To Work In The Opposite Direction Of Market Trends.
Evaluating The Net Assets Of A Company Isn’t About Tangible Assets
Knowing When To Sell
Expect Even The Greatest Of Investments To Go Through Rough Patches
Investing Approach Should Suit Goals And Risk Appetite
Check out my recent video featuring Rick Rule, a highly experienced natural resource investor and speculator.
While Peter Cundill was Rick Rule’s greatest mentor, he questions Cundill’s investment principle about “Knowing When To Sell”.
Learn if you should sell or hold when a stock doubles in price.
The Origin Story
Peter Cundill is one of Canada's top fund managers in history. His journey into value investing began unexpectedly during a Christmas flight, where he stumbled upon Benjamin Graham’s investing wisdom in “Super Money”.
Enthralled by Graham’s approach, Cundill fully embraced value investing, leading to the establishment of the Cundill Value Fund in 1975. The Fund’s success is staggering — a remarkable 15.2% average annual return, resulting in over 100x returns for investors over an impressive 33-year span.
Whether or not you’re a value investor, you will learn about invaluable investing wisdom from Cundill’s playbook extracted from Christopher Risso-Gill’s book “There’s Always Something to Do: The Peter Cundill Investment Approach”.
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