VIDEO - Ryan Irvine: Avoid the Hype, Look for “Boring” Businesses
Keystone Financial’s Ryan Irvine shares tips on companies that do well and companies that don’t when it comes to wealth creation.
Founder of Keystone Financial Ryan Irvine has some straight advice for investors: stay away from stocks that make headlines and stick to businesses that fly under the radar and are maybe just a little “boring.”
Speaking with the Investing News Network at the Vancouver Resource Investment Conference, Irvine pointed to blockchain and cryptocurrencies as markets that drew all the hype — then lost all the money.
To drive home his point, he said that the average loss for blockchain and cryptocurrency stocks in North America last year was 80-plus percent. “They lost that in one year, it’s a massive destruction of capital.”
A key indicator, said Irvine, was that blockchain coverage went as far as pop culture at its height.
So where should investors be parking their money instead? Irvine said that stocks that are all about cashflow is where the money is.
“Businesses can get headlines — I don’t care about headlines, I want to make money for our clients, I want to make money myself. We’ll buy businesses that are creating cashflow, and that cashflow will drive the earnings over time. Not headlines.”
He said that some good examples are Boyd Auto Body Group (TSX:BYD.UN), which is the best-performing stock on the TSX over the past 10 years.
“What do they do? They fix automobiles. Couldn’t really be more boring than that, but the shares are up over 5,500 percent over that time.”
Another listed by Irvine was XPEL Technologies (TSXV:DAP.U) — another ancillary auto company — this one with film that prevents scratches on surfaces.
Boring? Maybe, but the love is in the numbers.
“It was up around 320 percent last year.”
Watch the full video above for more of Irvine’s thoughts on headlines and boring stocks, musings on the TSXV and more tips on where to invest. You can also click here to view our full playlist on YouTube.
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Securities Disclosure: I, Scott Tibballs hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in contributed article. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.