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Tories draggedinto the muck

FINANCIALPOST

PM’S QUEBEC CHIEF

Lebel endorses50%-plus-one

as party fights it

By TrisTin Hopper

Stephen Harper’s Quebeclieutenant went public withhis personal belief Mondaythat a 50% plus one referen-dum majority should be allthe province needs to legallyseparate, even as his govern-ment heads to court to stopthat very thing from happen-ing.

“I am a Quebecer. I’ve al-ready said that I am at easewith [50% plus one],” DenisLebel, Minister of Intergovern-mental Affairs, told an inter-viewer for TVA Nouvelles in aninterview broadcastMonday.

Mr. Lebel, who is the rep-resentative for the staunchlyFrench-speaking riding ofRoberval-Lac-Saint-Jean, re-peated the sentiment in an-other Monday interview withMontreal radio station 98.5FM.

“So 50% plus one, that’s aclear result for you?” askeda host, to which the ministerreplied, “We always said wewould leave it to Quebecers todecide, but yes, that’s it forme.”

The comments were madeas Mr. Lebel was stumping todefend federal efforts to op-pose Law 99, a 2000 Quebeclaw asserting the right to sep-arate on a 50% plus one vote,and that no “other parliamentor government” could obstructthe “democratic will of theQuébec people to determineits own future.”

Written and passed by thegovernment of Lucien Bou-chard, Law 99 was designedto stand in direct oppositionto the Clarity Act, a Chrétien-era bill denying the right ofany province to break up thefederation without first ob-taining both a “clear majority”on a clear referendum ques-tion and an amendment to theConstitution.

Last week, the Harper gov-ernment added its support toa 12-year-old Quebec SuperiorCourt court challenge againstthe law launched byKeithHen-derson, a Quebec anglophonerights advocate.

“Secession, to be lawful,would require a constitution-al amendment,” the attorneygeneral of Canada wrote in afiling.

Over the weekend, news ofthe intervention elicited ven-omous declarations from theParti Québécois.

TORY MPSUPPORTS

QUEBECVOTE LAW

Duffy’s lawyergoesoNoffeNCe

[The PMO]wrote the lines….

They providedthe scenario and

the lines.

O N T H EP M O

The PMO ... wantedto sweep a political

embarrassmentto their Tory base

under the rug.

O N H A N D L I N GT H E S C A N D A L

The Senate intendsto act like a mob

to sentenceSenator Duffywithout a trial.

O N S E N A T ES U S P E N S I O N

BOSTONSTRONGRed Sox’run helps

city healfrom

bombings.Page B5

Requests by sex,ethnicity ‘happen

all the time’

By Tom Blackwell

Hospitals and clinics shouldresist patient requests to betreated by doctors of a par-ticular race, religion or sex,a top medical group is tellingits members, highlighting atouchy yet reportedly com-mon health-care phenom-enon.

The Society of Obstetriciansand Gynecologists argued in arecent position statement that“time-sensitive” services espe-cially should be provided bythe most qualified profession-al available — with no heed topersonal background.

“Patients can decline thecare offered, but should takefull responsibilities for thoseactions,” says the statement.

Other physicians confirmedthat patients, even in emer-gency departments, some-times ask for a doctor or nurseof their own sex or ethnicbackground, or balk at beingtreated by a professional of aparticular race.

Their actionswould seem toreflect an increasingly diversepopulation, where patientsand health professionals ofvery different cultures can bethrown together in potentiallysensitive situations.

Don’t letpatients

pick MD byrace: group

NEWS

ADRIAn WyLD / THe CAnADIAn PReSS FILeS

Donald Bayne, a lawyer for embattled Senator Mike Duffy, pictured, held a press conference Monday at which he pointedfingers at the Prime Minister’s Office while arguing his client is innocent of allegations of improper expense claims.

FAMILIARFACE

Senatorsprepare

for clashagainst

Alfredsson.Page B5

See COYNE on Page A4

John Ivison, A4See LEBEL on Page A2

See DOCTORS on Page A2

COMMENTMAKING A STAND

Time for influentialMuslims to oppose

extremism.A15

therapy Psychoanalyst tells tale of asuicide that wasn’t.PageA14

Ceoof theyearRioCan REIT’s Ed Sonshine namedCanada’s Outstanding CEO of theYear for 2013.Financial Post

T U E S D A Y , O C T O B E R 2 2 , 2 0 1 3V O L . 1 5 N O . 2 8 8

‘THE DIGNITYOF THINGS’

Christopher Prattelevates the

ordinary.Fulford, B1

Obamacareportal becomes

PR mess for CGI

By armina ligaya

What should have been a ma-jor highlight in the résumé of aCanadian information technol-ogy giant has become a public-relations disaster, with U.S.President Barack Obama him-self criticizing problems withthe Obamacare website that asubsidiary of Montreal-basedCGIGroup Inc. helped to build.

Mr. Obama said Mondaythere is “no excuse” for thedelays and glitches plaguingthe health-care insurance ex-change at healthcare.gov —the centrepiece of his Afford-able Care Act health policy,also known as Obamacare— since it launched on Oct.1. The website that is centralto helping as many as sevenmillion uninsured Americansapply for or buy insurance istoo slow, he said.

“nobody’s madder thanme about the fact that thewebsite isn’t working as wellas it should, which means it’sgoing to get fixed,” he said inhis first public remarks onthe glitch-riddled portal, de-livered in the White HouseRose Garden.

Canadianfirm’s glitchy

website drawsPresident’s ire

See OBAMA on Page A2

SPORTS

THE MARIA MYSTERYRoma couple saythey took girl as

favour to mother.A3

andrew coyne

Comment

Well, that was edifying. The Conservative gov-ernment and one of its Senators would appearto have spent the better part of the last year dis-creetly blackmailing each other. now they aredoing so openly.

What began as allegations of misappropriationof funds against Senator Mike Duffy soon escal-ated, to hearMr. Duffy’s lawyer tell it, to lies, hushmoney, and possible obstruction of justice. Don-ald Bayne may not have succeeded, in the courseof Monday’s press conference, in lifting his clientclear of themuck. But hehas certainly dragged therest of theToryhierarchydown into it.

If we are to believe Mr. Bayne, officials in thePrime Minister’s Office blackmailed Mr. Duffyinto taking a bribe. He had done nothing wrong,but was forced to go along with a “scenario” inwhich the prime minister’s chief of staff wouldrepay his $90,000 in disallowed expenses — andhe would keep quiet about it — with the threatthat otherwise they would remove him from theSenate.

Mr. Duffy’s reluctance to go along with theplan was apparently out of concern for his goodname: accepting the money would imply ac-cepting his guilt.

INSIDEOIL BOOM

Amid protests,Brazil’s Petrobras

wins rights to Libra.FP12

C A N A D A’ S B U S I N E S S V O I C E , T U E S D A Y , O C T O B E R 2 2 , 2 0 1 3

Premier Brad Wall declares a ‘new day’ forSaskatchewan’s uranium sector as Canada-EUdeal pushes industry past Cold War era .FP3

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NCIA

LPO

ST

FPfinancialpost.com

INVESTINGPELLETIER

Note to advisors:You have lost your

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15,392.20-7.45

DJ Ind.S&P/TSX

13,186.53+50.44

Dollar Gold

US$3.67-US$0.10

US$99.22-US$1.59

Oil Natural Gas

By Euan Rocha

and Rod nickEl

TORONTO/WINNIPEG •Can-adian food processor MapleLeaf Foods Inc. said Mondayit may sell its controlling stakein Canada Bread CompanyLtd. as it determines whetherto exit the bakery business andfocus onmeat products.

Toronto-based Maple Leafsaid it has recently completeda comprehensive review of op-portunities to accelerate prof-itable growth across its bakerybusiness. But before commit-ting resources, it decided toexplore strategic alternatives,including a sale of its 90%stake in Canada Bread.

“This is about a great busi-ness with a good view to helpit to grow profitably over thenext four or five years, but be-cause we’re at a crossroads ...we felt it was prudent to con-sider the alternatives,” MapleLeaf chief executive MichaelMcCain said in an interview.

Map l e Lea f ’s sha re sjumped 10% to close at $14.63in Toronto, while those of

Canada Bread rose 8% to closeat $66.17.

In the event of a sale, MapleLeaf said it would considerusing the proceeds to paydown debt, reinvest in itsbusiness and return capital toshareholders.

The potential sale of itsCanada Bread interest, follow-ing a deal in August to sell itsrendering business, does notsignal that Maple Leaf itself isfor sale, Mr.McCain said.

Maple Leaf has the choiceto operate an integrated busi-ness that includes the bakery,or become a protein-focusedcompany, he said.

In response to an analyst’squestion on a conference callabout whether Maple Leaf issignaling it is for sale, he said“the answer ... is a very un-equivocal ‘no.’ ”

The company cautionedthat there could be no assur-ance that a sale of the businesswill take place. Maple Leaf ex-pects to conclude the strategicalternatives process in early2014.

In a separate statement,Canada Bread said it has ap-pointed a special committeecomprised of its independentdirectors to ensure that all ofits shareholders are treatedfairly and that the company’sinterests are taken intoaccount.

Canada Bread, which hasa market capitalization ofroughly $1.66-billion, employssome 6,400 people in oper-ations spread across Canada,the United States and Britain.

CanadaBreadon theblock

brightfuturecorcoran ... Downtown canada’sMarxist battle. FP11

By John ShmuEl

Call it the Great White Bullif you want, but analysts areincreasingly optimistic thatCanadian stocks are where in-vestors should be putting theirmoney.

Sentiment for the belea-guered S&P/TSX CompositeIndex, which in 2012 was oneof the worst performing in theworld, has been steadily turn-ing this year. Canadian stockbulls last week received a bigboost in confidence as theindex moved above 13,000 forthe first time since July 2011.It gained 50 points Mondayto 13,186.53, its best close inmore than two years.

“The decisive move abovethe 13,000 level is putting theindex on the expedited routetoward 14,000 and higher,”said Ron Meisels, technicalanalyst and founder of Phases& Cycles inMontreal.

The TSX has even man-aged to edge the S&P 500 inthe past three months, with a3.9% return versus the latter’s3.1%. It’s an encouraging signfor Canadian stock investorswho have become accustomedto seeing U.S. stocks postmuch better returns.

“It’s not flashy, and Can-adian stocks are still laggingsorely on a year-to-date basis,but it’s a noteworthy changefrom the woeful relative per-formance seen over much ofthe past two years,” said Rob-ert Kavcic, a senior economistat BMOCapitalMarkets.

Canadian stocks havelagged their U.S. counterpartsfor a number of reasons, oneof the most prominent beingfears that Canada’s economy,particularly its housing mar-ket, would hit a rough patchover the coming years.

Such fears led to the GreatWhite Short, a term used todescribe how hedge fundsare betting against Canadianassets. The shorts predictedCanada’s economy would stalldue to high Canadian house-hold debt, which mirrorssimilar levels seen in the U.S.before the financial crisis. Thecrushing debt would, in turn,cause a crash in the Canadianhousing market, where pricesin some regions routinely hitnew records everymonth.

By nicolaS Van PRaEt

MON TR E A L • One familymade its fortune selling planesand trains; the other, financialservices. But Quebec’s Beau-doin-Bombardier and Des-marais clans are now squaringoff against each other in anindustry that underpins muchofmodern life: cement.

The Beaudoins are beingslammed for seeking corpor-ate welfare to jump-start acement plant project in adesperately distressed cornerof Quebec. Meanwhile, thosewho say Quebec doesn’t needthe factory, namely the fourmajor cement makers operat-ing in the province, are walk-ing a fine line between criti-cism and connivance.

Through its Geneva-basedholding company PargesaHolding SA, a partnershipwith Belgian billionaire Al-bert Frère, the Desmaraisfamily controls 21% of Lafarge

SA, the Paris-headquarteredmultinational known for itscement andbuildingproducts.Lafarge employs some 6,000workers in Canada alone, in-cluding 500 in Quebec.

Bombardier Inc.’s foundingBombardier-Beaudoin family,meanwhile, is the control-ling shareholder of McInnisCement, a company createdin 2011 through the takeoverof Cimbec Canada. McInnis’smain asset is a 450-million-ton deposit of high-qualitylimestone in Port-Daniel-Gascons, Que., which it plansto use to produce cement at a

new plant in the Gaspé penin-sula town.

McInnis estimates it willspend $1-billion to build theplant and a marine terminalnearby, which will make it oneof the most significant indus-trial projects in Quebec whenconstruction starts as ex-pected by the end of this year.

The company says the plantwill generate permanent directand indirect employment for400 people once productionbegins — a potential blessingfor a region struggling with acurrent 15.8% jobless rate.

M A N U F A C T U R I N G

Quebec families in feud over cement

By GaRRy maRR

One look at the stock chart isprobably enough to convincemost people of the job Ed Son-shine has done as chief execu-tive of RioCan Real Estate In-vestment Trust.

Over the past 20 years, theREIT has had an annualizedtotal return of more than 15%,making an initial investmentof $70,000 easily worth morethan $1-million today.

But admiration for Mr. Son-shine goes beyond unitholders.His reputation in the industryis strong, among partners andcompetitors. The announce-ment that he is Canada’s Out-standing CEO of the Year for2013, an award presented byBennett Jones, founding spon-sor Caldwell Partners and

media sponsor National Post,waswidely applauded.

Jon Love, managing part-ner and founder of KingSettCapital, referred to Mr. Son-shine as a personality that hascome to dominate the real es-tate sector in Canada.

“Ed is smart, disciplined,decisive, with a big visionand a big personality,” saidMr. Love, the former chiefexecutive of Oxford Proper-ties Group, who has knownMr. Sonshine since 1980. “He’ssomeone you can trust. If hesays he’ll do something, trustme he’ll do it.”

Mr. Love said his companydeals with a lot of partners in-cluding RioCan and says theteam Mr. Sonshine has set upat RioCan has made dealingwith the REIT a pleasure.

“You get a business that sizeand it’s not a one-man showbut he built the business andthe great team and led it well,”he said.

“RioCan is just a great Can-adian story. It typifies the bestof Canadian business, greatinstincts, great skills and greatrelationships.”

G O V E R N A N C E

Sonshine 2013’soutstanding CEO

Corporatewelfare debateor collusion?

E X C H A N G E S

TSXBRINGS

OUT THEBULLSSPLitting

froMthebreaD

theMeat

Maple Leaf looksto cut the carbs and focuson a protein-based model

See MARKETS on Page FP8See CEO on Page FP2See BREAD on Page FP4

See FEUD on Page FP6

Lagging indexrallies to

two-year high

RIOCAN CHIEF

‘Smart,disciplined,

decisive’

f i n a n c i a l p o s tFP2 financialpost.com NATIONAL POST, TueSdAy, OcTOber 22, 2013

C O M M E N T

Case forvalue

investing

Barry CritChley

Off the Record

C O M PA N I E SI N T H E N E W S

burberry Group .FP8canada bread com-pany Ltd..............FP1celestica Inc........FP8chow Tai Fook....FP8citigroup Inc. ... FP10Ford Motor co..FP10Intercontinental ex-

change Inc. ........FP6Maple Leaf FoodsInc.........................FP1Swatch Group.....FP8Tiffany and co. ..FP8ubS AG .............. FP10

mor e at f i n a n c i a l p o s t . c om / e x e c u t i v e - s ummary

executive summaryThe best of our paper, the best of our website and extra analysis all ina two-minute read. Read it online and sign up for the newsletter.Go to financialpost.com/executive-summary

ceoContinued from Page FP1

Hugh MacKinnon — chair andceO, bennett Jones, and mem-ber, canada’s Outstanding ceO ofthe year advisory board — notedMr. Sonshine’s active communityinvolvement, having been a ma-jor supporter and serving on theboards of many charitable organiz-ations and non-profit organizationsacross canada.

“under his leadership, riocanreIT has become canada’s largestreal estate investment trust with anenterprise value of almost $14-bil-lion, owning and managing thecountry’s largest portfolio of shop-ping centres. The company is on theleading edge of consumer changeand Mr. Sonshine has built a for-midable team with deep capacity toresearch potential, understandmar-ket expectations and execute dealsflawlessly,” Mr. MacKinnon said.

Ira Gluskin, co-founder of invest-ment firm Gluskin Sheff + Associ-ates, said unlike some others in thebusiness world you would be hard-pressed to find many people to sayanything negative about the chiefexecutive.

“I never met anybody who didn’tlike him,” said Mr. Gluskin, who

noted Mr. Sonshine had the goodfortune to start up riocan in 1993,as commercial real estate was readyto recover from dismal times. “Thisthing started in the bottom of ahuge real estate crash. He’d be oneof the first to admit it was the rightperiod, but it was for other people.He capitalized on it.”

Mr. Gluskin said Mr. Sonshine’sbusiness ethics have helped himover the years gain a foothold onmany big deals.

“People like dealing with him.There are a lot of real estate peoplewho tell you ‘I’m glad to buy andI’ll pay $100-million’ and then theydrag it on and bring in lawyers andtry to kill you on details. you get acommitment from riocan and theyhonour it. you can’t underestimatethat.”

Neil downey, long-time real es-tate analyst and managing directorof global research at rbc capitalMarkets, called Mr. Sonshine thedean of canadian reITs.

“From a near standing start inlate 1993, he’s led riocan to $13-bil-lion in assets, $8-billion in equityand a 20-year track record of ex-ceptional unitholder returns,” Mr.downey said.

gmarr@nationalpost.comFinancial Post

twitter.com/dustywallet

BuiltRioCan

REIT intobiggest

out s tand ing ceo of the year

TyLer ANderSON / NATIONAL POST

RioCan’s Ed Sonshine has been called “smart, disciplined, decisive, with a big vision and a big personality.”

With the announcement of the 24thCanada’s Outstanding CEO of theYear, the Financial Post takes a lookback at the business leaders whomade headlines for all the rightreasons and what they’re up totoday.

2012 Alain Bouchard,AlimentationCouche-Tard Inc.As CEO, Mr. Bouchard continues to play akey role in Couche-Tard’s growth. He alsosits on the board of directors for Atrium In-novations Inc. and CGI Group Inc.2011 Patrick D. Daniel,Enbridge Inc.After 11 years as CEO of Enbridge, PatrickDaniel retired in September 2012. He is adirector at CIBC, Cenovus Energy Inc. andthe American Petroleum Institute.2010 Ed Clark,TDBankGroupOn April 3, 2013, Ed Clark announced hisintention to retire as president and CEOeffective Nov. 1, 2014.2009 Ross A. Grieve,PCLConstructorsInc.Ross Grieve continues in his role as CEOwith PCL. He is also a member of the boardof directors of Melcor Developments Ltd.2008 Harold (Hal) Kvisle,TransCanadaCorp.Hal Kvisle retired from his leading role atTransCanada Corp. on June 30, 2010. Hejoined Talisman Energy as CEO inSeptember 2012.2007 Gordon M. Nixon,RBCFinancialGroupGordon Nixon continues in his role aspresident and CEO of Canada’s largestbank. He is also chairman of MaRS.2006 James L. Balsillie and Michael Lazar-idis,Research InMotionBoth resigned their seats three monthsafter being replaced by BlackBerry CEOThorsten Heins last year. Mr. Balsillie now

advises venture capital firms and startups,while Mr. Lazaridis recently announced heis exploring a bid for BlackBerry.2005 Gwyn Morgan,EncanaCorp.Gwyn Morgan left Encana in 2005 andjoined SNC-Lavalin as chairman in 2007. InMay, 2013 he stepped down in the wake ofhigh-profile bribery scandals surroundingthe company.2004 Jacques Lamarre,SNC-LavalinGroup Inc.Mr. Lamarre announced his retirement inMay, 2009 after a 43-year career with thecompany. He is now a strategic advisorwith Heenan Blaikie in Montreal.2003 Philip S. Orsino,Masonite Inter-national Corp.Mr. Orsino served as CEO and presidentof Masonite until 2005. In 2011 he was ap-pointed president of JELD-WEN Inc. as partof a partnership with ONEX Corporation.2002 Dominic D’Alessandro,ManulifeFinancialDominic D’Alessandro left Manulife Finan-cial in 2009, when he was appointed to theboard of directors at Suncor Energy, Inc.He is also a director with CGI Group Inc.and CIBC.2001 Richard J. Currie,GeorgeWestonLtd.Mr. Currie left George Weston Limitedin 2002, then served as chairman of theboard of BCE Inc. until 2009. He went onto be chancellor of the University of NewBrunswick before retiring in 2013.2000 John A. Roth,NortelNetworks Corp.Mr. Roth was widely criticized for drivingup Nortel’s Internet-bubble valuations andwas replaced as CEO in 2001, pocketingover $100-million in stock-option pro-ceeds. Nortel filed for bankruptcy in 2009.Mr. Roth lives on an estate northwest ofToronto.1999 Richard L. George, SuncorEnergyInc.Mr. George continued in the CEO role until2012 when he announced his retirement.

He is now the chairman of the boards ofOsum Oil Sands and Penn West Petroleum.1998 Paul Tellier,CanadianNationalRailwayCo.Paul Tellier was with CN until 2002, movingon to the CEO role with Bombardier from2003 to 2004. He was appointed to theboard of directors for Rio Tinto in 2007.1997 Jean C. Monty,NortelNetworksCorp.After officially taking on the role of CEOof BCE Inc. in 2000, Mr. Monty resigned in2002. He is a member of several corporateboards, including Bombardier Inc.1996 Ronald Southern,ATCOLtd.Mr. Southern handed over the reins of thecompany to his daughter Nancy in 2003.He continues to play a role on the board ofdirectors for ATCO and Canadian UtilitiesLimited.1995 Matthew Barrett,Bank ofMontrealIn 1999 Mr. Barrett left BMO to becomegroup chairman and CEO of Barclays PLCuntil he stepped down in 2006. He servesas an honorary director of BMO FinancialGroup.1994 Guy Saint-Pierre,SNC-LavalinGroup Inc.Mr. Saint-Pierre retired as CEO in 2002after six years with the company. Between1990 and 2007, he served on numerousboards, including Alcan, BCE, GM Canadaand RBC.1993 J. Edward (Ted) Newall,NOVACorp.Mr. Newall passed away in Calgary onApril 26, 2012. He also served aschairman of the board for Canadian PacificRailway and joined the boards of manyother leading Canadian companies.1992 Isadore Sharp, Four Seasons Ho-tels and ResortsMr. Sharp still serves as chairman forthe company he founded in 1960. Hestepped down as CEO in August 2010.1991 Laurent Beaudoin, BombardierInc.Laurent Beaudoin handed over the roleof CEO to his son in June 2008, remain-ing as chairman of the board.1990 H. Harrison McCain, McCainFoods Ltd.Harrison McCain passed away inMarch 2004. In the 1990s he and hisco-founder brother Wallace enteredinto a legal dispute over leadershipsuccession which led to the departureof Wallace and his son Michael.

Financial Post

Where are they now?A look back at Canada’s

Outstanding CEOs

K im Shannon, founder ofSionna Investment Managers,continues to build on her im-

pressive list of achievements in theworld ofmoneymanagement.

Aside from leading an 11-year-oldfirm that has about $4-billion of in-stitutional and private client assetsunder management, Shannon hasnow authored her first book.

The Value Proposition: Sionna’sCommon Sense Path to InvestmentSuccess, details her development froman anthropology/biology graduate tovalue money manager, to running thecountry’s largest investment counsel-ling firmheaded by a female, to antici-pating working for another two dec-ades. “There’s a lot to be said for beingan entrepreneur,” Shannon said.

Along the way she makes value in-vestments — the approach pioneeredby benjamin Graham and daviddodd — even though in canada thattask is complicated by the dominanceof two sectors, financials and cyclicals.Accordingly, Sionna — whose generalmeaning is applying wisdom to in-vestment decision making and whoseGaelicmeaning is the source for Shan-non— focuses on relative value.

So why the book?Initially, Shannon said, it was to

do with “owning” her idea, of her ex-plaining how relative value investingworks so well in canada. “deep valueworks really well in the u.S. Mostmarkets [outside the u.S.] are prettyidiosyncratic,” she argues, adding incanada “there is not a lot of choice”in trying to select large-cap stocksthat offer “value” opportunities.

Accordingly as part of the goal togenerate consistent returns, Sionnais a value investor “but not absolutevalue. From time to time a sectorsuch as gold is expensive and we ownthe cheapest names and are sort ofindex weight.”

That approach, Shannon argues,generates “good results but without alot of risk,” for clients of the firmwhoare split 60% institutional (mostlyendowments and foundations) and40% individual. (The latter investthrough mutual funds or separatelymanaged accounts.)

relative value brings another ad-vantage, Shannon argues: It’s easierto explain to clients than deep value.

“When the cyclicals are flying, thenumbers for the deep value man-agers look brutal against the marketleading to the view that “they havelost their way.”

In the tech boom, some observersexpressed that opinion aboutWarrenbuffett, the king of value managersand their focus on intrinsic value andreversion to the mean. Fifteen yearson, buffett is still going strong, whichcan’t be said about the former highflyers. (canada has produced manysuccessful value managers includingJohn Templeton, Peter cundill, Gerrycoleman and PremWatsa.)

And the reality, according to num-erous studies by the boston-based re-search firm dalbar, is that most retailinvestors don’t receive either the mar-ket returnor the returnpostedby theirmutual fundover the long run. Indeedinvestors under-achieve because theybuy and sell at thewrong time.

Given the long-term performanceof value investing, why aren’t all in-vestors value investors? According toShannon, it’s “psychologically hard togo against the crowd and be patient.”

Shannon, who makes about 200presentations a year, also notes themedia’s “short term focus” and theinvestors’ feeling “they should dosomething.” Turnover at Sionna isless than 20% (in one year it was 8%)—meaning an average hold period offive years.

Shannon’s advice to retail invest-ors: Hire good managers, stick withthem and don’t try tomarket time.

Financial Post

You get acommitment fromRioCan and they

honour it

Celebrate Canada’sSmall Business Day

on October 25th!Visit www.shopsmallbiz.ca

to find deals from small businessesin your community

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