Topic: How To Invest

What is Pat’s commentary for the week of June 25, 2019

Article Excerpt

Here’s the text of the most-recent letter I sent to our Portfolio Management clients in May. “When you face difficult decisions, it’s easy to fall into the trap of letting fixed ideas warp your thinking. This can lead to costly, unintended side effects. Here are some recent examples from the political world: To stop the inflow of illegal immigrants, we’ll just close the Mexican border. (This would also block a major portion of U.S./Mexico trade.) To deal with income inequality, we’ll just raise the top income tax rate to 70%. (This would halt a lot of new business capital investment, which creates the jobs that lift people out of poverty and shrink the income gap.) To win the next election, we’ll just give a huge Canadian company a tap on the wrist for foreign bribery offences, rather than press criminal charges. That way, we protect the jobs the company provides in Quebec, which are crucial to our re-election strategy. (Of course, if the word gets…