Expert: Steven Taylor - 2/2/2010

Question
Hello Steven,

Can you recommend any books on value investing which can be applied to the Canadian stock market?

Thanks.

stephen

Answer
Stephen, I think the principals of value investing work fine in Canada, and you don't necessarily need a book specific to the Canadian market. However, there is one major condition you need to be aware of.

Canadian stocks often trade at a lower valuation compared to US traded companies. This "Canadian Discount" disappears when a company becomes SEC registered and begins trading on a US market. Therefore, when comparing companies in the same industry, avoid comparing Canadian companies to US companies, and also look out for Canadian companies that are also listed in the US, as those will usually also trade with higher valuations than companies that are only registered and traded in Canada.