In 1955, at age 29, Stephen Jarislowsky, a Montreal resident, started an investment firm with just $150. Like Warren Buffett, Jarislowsky focused on owning great businesses over the long term.
Jarislowsky passed away recently at the ripe old age of 101. Along the way, he built a firm that sold for roughly $1 billion, and he donated most of it to universities. Here’s what investors can learn from the Canadian investment stalwart.
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How did Stephen Jarislowsky turn $150 into a $40 billion firm?
According to a report from Money.ca, Jarislowsky was born in Berlin in 1925. He lived in the Netherlands, France, and the United States before settling in Montreal in the 1950s.
In 1955, he founded Jarislowsky Fraser with $100 and an additional $50 from a partner. He stepped down in 2012, by which time the investment firm managed around $40 billion. The Bank of Nova Scotia acquired it for $950 million in 2018, and Forbes estimated Jarislowsky’s net worth at $3.9 billion.
Notably, Jarislowsky was not a flashy billionaire and never owned a yacht or a private jet.
What were Stephen Jarislowsky’s investing rules?
In this book, The Investment Zoo, Jarislowsky laid out a simple approach.
He explained that the key to building long-term wealth is owning large, high-quality companies with a strong management team.
Moreover, it’s essential to identify a portfolio of stocks that are poised to double earnings every five to seven years. Jarislowsky emphasized prioritizing stocks over other asset classes such as real estate, bonds, and gold.
He expected stocks to return more than 5% annually on average after adjusting for inflation. This means you could double your wealth every 12 to 14 years.
The investor also advised booking profits when stocks trade at elevated multiples and increasing exposure during downturns.
Why did Jarislowsky give away so much of his fortune?
For Jarislowsky, money was a tool for the greater good.
He launched the Jarislowsky Foundation in 1991. According to the family’s announcement of his death, it has backed more than 50 endowed chairs at Canadian universities and institutions. The University of Saskatchewan has said the foundation gave about $10 million a year.
In 2022, he announced a $10 million gift for chairs at five universities, with the goal of training future politicians.
He also helped found the Canadian Coalition for Good Governance and pushed for accountability in boardrooms. Jarislowsky held honorary degrees from 20 universities and was appointed a Companion of the Order of Canada.
Does Canadian National Railway fit the Jarislowsky playbook today?
Regulatory filings show Canadian National Railway (TSX: CNR) has been among Jarislowsky Fraser’s largest holdings in recent years.
Although Scotiabank now owns the investment firm, CNR stock fits the profile Jarislowsky described.
Canadian National Railway is a railroad giant that has returned 918% to shareholders over the last two decades, after adjusting for dividend reinvestments.
In Q2, CN reported adjusted earnings per share of $2.08, up 11% year over year. The free cash flow in the first half of 2026 rose 19% to $1.8 billion.
At the CIBC Eastern Institutional Investor Conference on September 24, CFO Ghislain Houle said volumes were up 4% so far this year, helped by a bumper Canadian grain crop. He also said the Fast Track efficiency program delivered close to $100 million in savings in the first half.
Houle said shareholders have told management to focus on what it can control. “We want you to push on everything you can control,” he recalled them saying.
CN is not risk-free. Houle noted that lumber remains soft because of tariffs and weak U.S. housing starts. Railroad performance is closely tied to the broader economy, making CNR vulnerable amid downturns.
To diversify risk and deliver inflation-beating returns, it’s essential to build a portfolio of quality stocks, as advised by Jarislowsky.
