2015 - Northland's Insights on Shopify
While it's 5 years after - Northland was one of the first family offices to invest in the Canadian success story Shopify.
Shopify Inc. has already returned a handsome profit to investors, especially those who got a piece of the tech company’s $17/share initial public offering, but even greater returns might be in store in the months ahead, says Arthur Salzer, chief executive at Northland Wealth Management in Markham.
“Given the companies ability to disrupt its market space along with its extremely high growth rate, we are likely to continue to hold a position once our stock becomes free trading,” he said after Shopify shares climbed as much as 65% on its market debut Thursday.
Salzer, a private investor in Shopify well before its IPO, said the company’s list of clients, which includes brands such as Google Inc. and Tesla Motors Inc. along with many smaller companies, “puts it almost into a league of its own.”
He said Shopify’s success to date is in no way representative of a broader equity market bubble.
Stocks are generally somewhat expensive, he said, but they remain in line with the current interest rate environment and earnings expectations.
If anything, he’s more concerned about the overvaluation of the high-yield bond market and its lack of returns given the spread between these bonds and U.S. Treasuries.
“This is definitely an area to have less than target or even a zero exposure to,” he said.