Blind Spots

“Bull markets end when the perception of earnings growth disappears […]. Manias, on the other hand, end when the market runs out of buyers.” – Andy Kessler

2020 ended with the world collectively eager to put a challenging year in the rear-view mirror while looking forward to the light at the end of the tunnel. The US election results are now (mostly) behind us, and we have two approved Covid-19 vaccines being distributed in the US with an additional 5 being used in other parts of the world.  What is most surprising to me is, having witnessed a year where we endured the worst global pandemic in a century, the fastest bear market in history, a global recession, and a contentious presidential election; that I would find myself in the same place I was exactly a year ago: contemplating whether the market accurately reflects the reality of our economy.  

Viemed Healthcare (VMD) – “Healthcare from Home”

Company:    Viemed Healthcare, Inc. (VMD)

Sector:     Healthcare – Healthcare Equipment 

Price/Market Cap:   $9.85/$358M

Target Price/Implied Upside:    $15/52%

Thesis

Specializing in respiratory healthcare services, Viemed Healthcare (VMD) is a fast growing, free cashflow generating business serving an underserved niche market with tremendous runway ahead. VMD is building a moat by developing strong relationships with hospital systems and doctors while generating cost savings benefits to the healthcare system. 

Investment Opportunities in Every Market

“In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment” – Charles Darwin

 

2016 ended exactly how we predicted…..or perhaps the opposite of that. Election results contradicted most polls, and the market’s reaction to the Republican win was not the Armageddon that I expected. In fact, the Dow, Nasdaq and S&P indexes all improved more than 2.5% from the election to year-end.  Benjamin Graham, the man considered to be the father of value investing, taught that “stocks aren’t pieces of paper or lottery tickets; they are units of ownership in real businesses whose underlying value does not change

Your Broker May Not Be Working in Your Best Interests

Richie Capital Group specializes in discretionary investment services for Institutions and Individual Investors.  Our investment goal is to maximize client returns over time through an established investment process. We invest money on behalf of our clients and typically do not focus on providing individual comprehensive financial advisory services. However, to bring in clients over the past year, we have gladly performed these services for many who have asked. In this process, we have gained greater insights into the broader world of Financial Advisory Services (Brokers, Investment Advisors, and Wealth Management firms). There are many outstanding companies providing advisory services. But in most other cases, we have come to the conclusion that…. they may not be working in your best interests.

Year 1 – What We Have Learned

As we enter the fall, we are approaching the one-year anniversary of launching Richie Capital Group. We have spent much of the past year navigating regulatory requirements, launching early clients and preparing our platform to support larger institutions. We have also spent some time researching the market to better understand client needs, competitor offerings, and how RCG can be best positioned to provide solutions.

We have found that the problems facing clients both big and small are largely the same. In terms of retirement, most individuals have not saved adequately and are not on track for a comfortable and timely retirement. Many of the public pension funds set up for teachers, first responders and government employees are significantly underfunded.

The National Institute on Retirement Security completed a study[1] on retirement savings and found:

The Journey Begins

“Have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.” – Steve Jobs

And so it begins.

A new beginning.  A pursuit of passion.  A pursuit of investing excellence.

In 2016, we are marking the official launch of Richie Capital Group.

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RCG, is a firm focused on providing superior equity returns for our clients. Our initial offerings will include discretionary investment management services for High Net Worth and Institutional Investors. Additionally, we will provide investment advisory and financial planning services on a limited basis.