What does it take to reach a “buy” decision at Burgundy? In this panel from the 26th Burgundy Forum, members of our Investment Team walk through the process, from idea generation to investment, highlighting travel, management meetings, scuttlebutt research, financial analysis, and governance. They share stories how they identify quality businesses and turn research into high-conviction investments.
KEY POINTS:
- 01:30 Travel Drives Insights: Mike opens the panel by explaining why travel is Burgundy’s primary source of new investment ideas, unlocking insights and perspectives that virtual meetings can’t replicate.
- 03:51 Management Matters: Matt recounts his visit to Japanese discount grocer Kobe Bussan, showing how in-person interactions reveal cultural and operational details that can strengthen conviction.
- 17:32 Scuttlebutt & Expert Networks: Using Universal Music as an example, Mike discusses the role of “scuttlebutt,” conversations with industry experts, adds depth and nuance to an investment thesis.
- 36:06 Governance & Engagement: Andrew stresses that poor governance is a red flag to walk away from, while also outlining how Burgundy has actively engaged with companies to drive change when needed.
For an alternate format, access the transcript via the “Download PDF” link at the top of this post. The transcript has been edited for clarity.
The Burgundy Forum is our flagship event, offering our clients the chance to hear directly from our Investment Team. Each year, we share our market perspective and discuss maintaining a long-term view in a short-term-focused world.
This post is presented for illustrative and discussion purposes only. It is not intended to provide investment advice and does not consider unique objectives, constraints or financial needs. Under no circumstances does this post suggest that you should time the market in any way or make investment decisions based on the content. Select securities may be used as examples to illustrate Burgundy’s investment philosophy. Burgundy funds or portfolios may or may not hold such securities for the whole demonstrated period. Investors are advised that their investments are not guaranteed, their values change frequently and past performance may not be repeated. This post is not intended as an offer to invest in any investment strategy presented by Burgundy. The information contained in this post is the opinion of Burgundy Asset Management and/or its employees as of the date of the post and is subject to change without notice. Please refer to the Legal section of this website for additional information.
About the Author
Roz McLean
Roz is passionate about long-term stewardship of institutional capital and spends much of her free time raising funds for charitable Canadian institutions. After earning a Bachelor of Arts Degree at Western University where she studied Economics and English, she was drawn to her role at Burgundy because it enabled her to pursue her interest in investment management and develop her capacity for communications. <br />
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Roz values the opportunity to work with dedicated colleagues and clients, who pursue excellence and share a client-first mindset.
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About the Author
Andrew Iu, CFA
Having invested in small-cap stocks for years in his personal portfolio, Andrew converted a hobby into a career when he joined Burgundy as an Analyst for the Canadian small-cap team. Under the mentorship of then-Portfolio Manager Allan MacDonald, Andrew took notes, developing the investment approach he later applied when he stepped into the portfolio management role.<br />
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Alongside his responsibilities as a Portfolio Manager, Andrew spent seven years as Director of Research, a role that broadened his focus across multiple geographies and market capitalizations. This global experience has continued to deepen in his current position as Chief Investment Officer, where he provides stewardship, guidance, and support to the entire Investment Team while upholding Burgundy’s long-term investment philosophy.<br />
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Outside of Burgundy, Andrew has been involved with the North York General Foundation for many years, serving as Vice Chairman of the Investment Committee and launching the Foundation's Next Gen program.
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Matthew O'Meara, CFA
Matt grew up in Milton, a small town outside of Toronto. He attributes much of his success in life to values instilled in him by his parents, who taught him to work hard, act with integrity and always follow the golden rule, among many other lessons (Matt’s parents are both retired educators). Through his time as a varsity athlete at McMaster University and professional athlete in the Canadian Football League, Matt learned valuable lessons in teamwork, discipline and perseverance that he has applied in his professional life. Matt stumbled into value investing during his MBA and since then has been working to deepen and broaden his investor tool belt. Matt joined Burgundy in 2018 and was attracted to the firm’s outstanding reputation for investment ability, professional integrity and putting clients' interests first.
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About the Author
Michael Elkins, CPA, CA, CFA
Mike was drawn to Burgundy by the profound simplicity of its investment philosophy. Stocks should be viewed as a fractional ownership interest in a business and purchased at a discount to an intrinsic value that is derived from intensive study of the business. Mike finds the efficacy of this approach to be self-evident and is continually confounded that it is rarely truly practiced by investors. Mike enjoys the intellectual challenge of practicing Burgundy’s form of value investing and the rewarding nature of it.
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