He's dead or what?
No. Only retired since last summer. But, in this vitual world, when someone isn't active on Facebook, it's like he's dead. So, finally, in a way, Mooney is dead.
|Bernard Mooney: behind that gentle smile lies a guy waiting to tell you that your ideas are stupid
I owe what I know to a handful of people. Jason Donville being surely in the top 3.
Bernard Mooney deserves a mention too. Maybe he's even higher than Jason because he's the one that taught me first about the importance of the ROE. That lesson was learned from his first book which was a very good read. Much more practical than almost any other investment book I ever read.
Last week, I read once again his latest article. In that text, he said that a regret he had was that he souldn't have bothered about the price of great stocks: he should have bought them even if he thought that they were pricey.
That's a problem I have and probably of lot of investors share this problem. It explains why I sold almost 50% of my position of Constellation Software in 2015. And that's why I'm reluctant to add to my position of Couche-Tard or to initiate a position in Dollarama or O'Reilly.
There's very few super great CEO's. But it's probably true that some of them deserve to manage your money whatever the price of their stock is (well, almost at any price... but you have to have a lot of faith to pay more than 30 times next year's earnings).
Larry Rossy (Dollarama), Alain Bouchard (Couche-Tard. Ok, the CEO is now Brian Hannasch but Bouchard is still around), Mark Leonard (Constellation Software), Eric Lafleche (Metro): these guys did very well 5 years ago, 4 years ago, 3 years ago, 2 years ago, last year and this year. In some cases like Alain Bouchard, these guys have been doing well for something like 25 years. You may take a risk at getting these shares at 20-25 times earnings, but the risk is probably higher when you buy some shares of a company at 15 times earnings managed by a no name CEO that has only achieved 1 or 2 good years of operation.
Reading again that article made me want to add to my position of Couche-Tard and Constellation Software. These companies are on the rise, their CEO are great, the sector in which they operate is great... but the price to pay is a little high (however, remember that they make a lot of profits, unlike some companies like Tesla that's not making any profit and that is selling at an astronomic price).