The Canadian Investor An Intriguing Canadian Small Cap Stock and The Power of Simple Investing Ideas
Feb 24, 2025
The hosts dive into a fascinating Canadian small-cap stock, Calian Group, analyzing its diverse business segments and financial health. They highlight the importance of simplicity in investing, contrasting it with the complexity often faced by seasoned investors. Personal anecdotes, like a pivotal moment with Constellation Software, emphasize the power of understanding one's investments. The discussion also touches on job market dynamics and the influence of workplace culture, providing valuable insights for both investors and professionals.
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Calian Group Discovery
- Simon used a stock screener and found Calian Group (CGY), a Canadian small-cap company.
- He was intrigued by its diverse business lines and strong financials, but also confused by its wide range of operations.
Valuation Challenges of Diversified Businesses
- Calian Group's diverse business lines make it difficult to value, similar to other holdco-type businesses.
- Investors struggle to underwrite different segments and assign a proper value to the company.
Simplicity Over Complexity
- Focus on simple investments that you understand well.
- There are no bonus points for complexity; the simplest investment thesis is often the most profitable.