INVESTMENTS: Sow the seeds of wealth during hard times, Micheal Lee-Chin tells a forum in London

Now is the time for savvy investors to snap up bargains in a depressed stock market, says billionaire Canadian investor Michael Lee-Chin.

"The seeds of wealth are not sown during good times," he said yesterday at a London investment forum sponsored by CIBC Wood Gundy.

History proves that every political crisis and economic downturn provides a chance to buy good quality stocks at bargain prices, Lee-Chin said.

Despite the flood of bad economic news, investors shouldn't sell in a panic because equity markets typically overreact to global events, he said.

"The point of maximum pessimism presents an indelible opportunity for professional investors who are able to maintain perspective . . . and have control of emotions necessary to act and not be spooked by volatility."


Wealth management companies have proven to be the most reliable long-term investment and should be the core of a wise investor's portfolio, he said.

Lee-Chin noted that legendary investor Warren Buffett has spent the past few years amassing $45 billion and has recently spent $25 billion buying undervalued stock.

Lee-Chin, 57, said his own life story has been about seizing opportunities. Born in Jamaica, he immigrated to Canada in 1970 and studied civil engineering at McMaster University.

Lee-Chin started investing while working as a financial adviser, buying a stake in Mackenzie Financial. In 1987, he took over AIC, a small mutual fund company, and boosted its assets from about $1 million to $9 billion over 20 years.

One of 23 Canadians with assets valued at more than $1 billion, Lee-Chin is based in Burlington.