Looking for Outsized Returns? Separate Emotion from Investing

A conundrum many investors find themselves involves how to invest in companies with which one has emotional attachment to.

Some of the greatest investors of all time have bought companies with which they have huge emotional attachment to; Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) CEO Warren Buffett is a prime example of someone re-living his childhood (hey, what’s wrong with buying massive states in makers of the biggest brands of ketchup, soda, and burgers to re-live the glory days?).

That being said, mixing emotion with investing can turn ugly when the time comes to get out of a position on has held for a very long time, or for those who may decide to “boycott” a stock because of some sort of negative emotional reaction one gets for a particular company due to its perceived misdeeds reported on by the media.

One such company which may currently be viewed collectively by financial markets as “too risky” of a play is the owner of Tim Hortons – Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR). Restaurant Brands has been involved in a series of disputes with Tim Hortons’ franchisees, which has received much more press in Canada (of course) than any other nation, due to the outsized importance of Time Horton’s to the average Canadian.

I invite investors to turn off the news, and instead look to the balance sheet of Restaurant Brands, for insight into how the company operates, in its entirety. What may be lost in the fray for many Canadian investors is the sheer size of the firm (with Burger King and Popeye’s collectively contributing vastly more than Tim Hortons to the company’s bottom line).

Invest wisely, my friends.