Stephen A. Jarislowsky is the founder and former CEO of Jarislowsky Fraser Limited, which he built into one of the largest and most successful investment management firms in Canada, with over C$40 billion in assets under management for primarily institutional and ultra-high-net-worth clients. He stepped down as CEO in 2012 and currently serves as chairman emeritus.

In May 2018, Scotiabank completed the acquisition of Jarislowsky Fraser Limited, creating the third-largest active asset manager in Canada.

Visual summary of operating lessons from Stephen A. Jarislowsky, CEO of Jarislowsky Fraser.

Investment Discipline and Capital Preservation

  1. On Buying Quality at the Right Price: “It’s very simple: buy low, sell high, don’t buy junk and don’t deal with people who aren’t honest.”
  2. On Greed and Fear: “The stock market is like a zoo, with everything in it from a flea to an elephant and lots in between. You have to know what animal you’re dealing with. People are doing the exact opposite of what they should be doing. The idea is to buy cheap and sell dear. When you’re panicky, things are cheap. When the golden glint of greed is in your eye, things are expensive.Human nature never changes. People gravitate between greed and fear. It’s happened since time immemorial.Because of the same emotion that makes people sell now. Buying and selling on emotion rather than knowledge and common sense. Common sense is uncommon. People get fearful and say, how am I going to retire? I’d better get out of the stock market or I won’t have anything left. So they sell at a lower price.”
  3. On Long-Term Results: "Far too much attention is being paid by people to short-term results, both by corporations and investors. As a responsible manager, I don’t have to play a game which, in the long term, is a losing game. Our main line of business is solid, sound investment counselling.”
  4. On Sticking to Policy: “We don’t buy anything that goes against our guidelines. We stick to our policies, even if the market is totally different.”
  5. On Protecting a Track Record: “We think it’s smart to keep the fund size reasonable. And if we need more money we will raise another fund, rather than having a much larger fund which would put some of the pressure on us to just get money invested. It’s very important for us to maintain our record because it makes it so easy to raise money, and if we blow it, it’s 24 years down the drain. So there’s no inclination here to shovel money out in order to get another fund raised.”
  6. On Compounding Capital: Link savings to top-quality, largely non-cyclical businesses with predictable compound growth rather than assuming that cash, a house, or any stock will preserve and grow capital. — BMO Wealth Management — Stephen Jarislowsky on compounding
  7. On Returns After Inflation: Account for taxes and inflation when judging returns, and prefer productive assets such as real estate, science, selected common stocks, and art over idle cash or low-return bonds. — Montreal Gazette — At 100, Stephen Jarislowsky focuses on philanthropy

Research, Governance and Client Stewardship

  1. On Thinking Like an Owner: “I’m not just a pension fund manager. In my own mind I’m someone who could sit down with any chief executive and go over his affairs and have input.”
  2. On the Ideal Director: “This person has a sense of public service, and an awareness that much has been given to him, and that he owes much. He, or she, won’t expect the impossible, but has high standards, and can see and respect the perspective of others. They know better than to fuss with company business. They don’t need the money or the prestige of the appointment. A person willing to hold themselves up as a leader and an example for others. Common sense, integrity, judgment and knowledge.”
  3. On Comparing Capital Productivity: Build comparative research that shows whether each company invests capital productively and how its performance stacks up against peers in the same industry. — The Fundamentals Podcast — An Interview with Stephen Jarislowsky
  4. On Testing Management Promises: Judge management quality by tracking whether major investments, such as a new plant, actually produce the profits executives estimated. — The Fundamentals Podcast — An Interview with Stephen Jarislowsky
  5. On Teaching the Method: Share the method behind strong work, not only its conclusions; teaching clients and colleagues creates capable successors who can apply the discipline independently. — The Fundamentals Podcast — An Interview with Stephen Jarislowsky
  6. On Fee Alignment: Keep investment-counsel fees low enough that the adviser succeeds through durable client outcomes rather than extracting a large share of their capital. — Montreal Gazette — At 100, Stephen Jarislowsky focuses on philanthropy

Judgment, Ethics and Self-Development

  1. On Information Overload: “I don’t like technology. When they invented those things I was already working 12 hours a day, so how could I have become more productive? Technology brings too much information today. People don’t have the time to understand and think. A lot of the decisions today are made by people who have no understanding and haven’t thought things through.”
  2. On Money as Freedom: “the essence of money is freedom, including the freedom to speak your mind.”
  3. On Ethical Conduct: “Ethical behaviour is something an intelligent, grown-up person will decide is the way to live. It’s the easiest way to live, and the best way to get respect and recognition from people.”
  4. On Disciplined Self-Development: Set concrete objectives, educate yourself continuously, pursue work you believe you can accomplish, and earn the trust that makes others willing to support the mission. — The Fundamentals Podcast — An Interview with Stephen Jarislowsky

Action, Freedom and Legacy

  1. On Turning Belief into Action: “It gives me enormous pleasure if something has been accomplished. I’ve always thought that if you believe in something, it should lead to action. It should not lie fallow as a thought. If you have come to a conclusion that something is feasible, then by all means do it.”
  2. On Life’s Small Turns: "Most things that happen in life are the result of small turns in the road that lead to other places."
  3. On Future-Building Philanthropy: Direct philanthropy toward education, democratic governance, medicine, and invention because those institutions create a stronger future rather than merely preserving a personal legacy. — Montreal Gazette — At 100, Stephen Jarislowsky focuses on philanthropy

Learn more:

  1. Slayer of giants, pension fund whiz protects the small: The Windsor Star; Windsor, Ont. 12 June 1990: C9.
  2. Money talks. Maley, Dianne.Toronto Star; Toronto, Ont. [Toronto, Ont]19 Oct 2002: S01.
  3. Globe & Mail (Toronto, Canada). (July 16, 1992): Business News: pB18
  4. Stephen Jarislowsky: Value and integrity - A winning asset mix White, Janet. Benefits Canada; Montreal Vol. 26, Iss. 6, (Jun 2002): 30-31.
  5. Tender care for the family fortune. Vieira, Paul. National Post; Don Mills, Ont. 12 Feb 2002: SR1 / FRONT
  6. Stephen Jarislowsky has every right to say “I told you so” Lorinc, John. Report on Business Magazine Vol. 19, Iss. 5, (Nov 2002): 44-51.
  7. Stephen Jarislowsky calls it as he sees it. Francis, Diane. National Post; Don Mills, Ont. 12 Feb 2005: FP1 Front.
  8. Stephen Jarislowsky: Value and integrity - A winning asset mix White, Janet. Benefits Canada; Montreal Vol. 26, Iss. 6, (Jun 2002): 30-31.
  9. ‘Sheer stupidity, indulgence and greed’; Investment guru Stephen Jarislowsky, Macdonald, Don. The Ottawa Citizen; Ottawa, Ont. 27 May 2008: C.1.
  10. Stephen Jarislowsky: Retiring with purpose. Mcfarland, Janet.The Globe and Mail; Toronto, Ont. 21 July 2018: B.1.
  11. Stephen Jarislowsky: Retiring with purpose. Mcfarland, Janet.The Globe and Mail; Toronto, Ont. 21 July 2018: B.1.
  12. An occasional series about business newsmakers Stephen Jarislowsky Money Manager with a mission. Jade Hemeon. Toronto Star; Toronto, Ont. 27 Oct 1991: F1.
  13. Stephen Jarislowsky on compounding — BMO Wealth Management
  14. An Interview with Stephen Jarislowsky — The Fundamentals Podcast
  15. At 100, Stephen Jarislowsky focuses on philanthropy — Montreal Gazette