Canadian National R.R. (CNR.TO)

Sold this in favour of trucking, a more cyclical and higher-torque way to get exposure to recovery in manufacturing and merchandising. Covid explosion in purchasing made for difficult comparisons later, so trucking experienced a 3-year "freight recession".

Still, there's no good reason to abandon the rails. They give you a good franchise and "forever" earnings power. Sector is largely an oligopoly. Those trains should still be rolling 100 years from now. This name is a backbone of the Canadian economy. Tremendous compounder and TSX outperformer.

Canadian company. He's been 75% US, 25% Canada for a long time. He's now trying to reverse that and repatriate some of that US cash. The stock's been through a lot, dropping $40 in the last little bit. Spending lots of $$ to improve infrastructure, which will hopefully translate into some growth. Tariffs will resolve themselves shortly. Fairly good dividend of 2.53%.

Doesn't own yet, but plans to buy with proceeds from sale of US stocks. Sell if it drops below $130.

Both are really good, monopoly-type businesses. On timing, don't do either right now. Tariff inflation hasn't happened yet, but it will. As that causes economic problems, it will affect the economically sensitive names. The NA economy is vulnerable right now.

That said, his preference is definitely CP. Now that it includes Mexico, its footprint is so unique. Growth profile gives them more upside on earnings, which provides a buffer during economic weakness. Both trade at less than 20x PE, but CP is more compelling, along with its phenomenal management team. An OK buy here, but be prepared to buy more if it does get hit. Perhaps buy 1/2 a position now, and then the other half later whether it goes up or down.

She likes the rails but would like to see more consistency in the quarterly reports and more momentum. The dividend is 2 1/2% which is not great. There is upside in the fundamentals and it should turn around for the long term. It scores 6 out of 10 on the value scale.

Sold late last year, due to worries partly on tariffs and partly on management's ability to create value. Didn't like that it was buying back stock using debt, or yo-yo projections (up) versus guidance (down). Heavy capex business. Growth hasn't been there with pandemic, tariffs, inflation.

Probably some good value here. If you have a long-term investment horizon, not the worst idea to have a 1-2% position in the Canadian rails and just leave it alone. Doesn't have a strong conviction either way right now on CNR vs. CP.

He got stopped out, broke support. Can't be all that bullish on it until it returns to above $150.

Something she's looking at now. Higher yield, lower valuation. Has come up significantly in the past week or two with the market run. If it went back down to $125, she'd definitely be interested. Stable, not easily replicable. Consistent cashflow that supports the dividend. Still the cheapest way to transport goods. Prefers it to CP.

Is watching it after falling to current levels. The rails track GDP levels. CN boasts a slightly lower PE and higher ROE than CP, but are paying much more in price-to book than CP, but you get more. Overall, it evens out slightly in CP's favour. You can buy some shares now and more if it falls further.

Negatively impacted by trade. Economically sensitive. Likes the business. Margins and cashflow are great for the rails. Constructive longer term, once tariff issues get sorted. He prefers CP.

It's been a struggle holding this for years. The dividend continues to grow. With more trade, will be more transport by rails which is 300% more efficient than truck. Trades at a cheap 17x PE. Add some now, more later. If we don't trade with the US, we will be shipping to the coasts to export abroad.

CP has more catalysts from the Kansas City merger, and a better growth rate. Both are getting more attractive. If we get the all clear on the economy, both names will be decent entry points. Though optimistic, he's still a bit afraid, and wouldn't step in just yet.

Critical piece of the supply chain. Still remains a dominant player in the vast network linking Canada and the US. Rough Q4 from labour strikes and extreme weather. Yield ~3.4%.

Stable, long-term asset, but facing margin headwinds from rising costs and lower productivity. Increased competition from CP-KSU merger.

Small position. Not a great-looking chart. Thinking of selling. A potential candidate to raise cash in his portfolio.

As part of the CP/CNR oligopoly, it will always make money. Not even AI can make rails obsolete anytime soon. Very capital intensive -- operating costs, unionized workers, equipment. So FCF as percentage of revenue is not that amazing. Even with pullback today, still trades ~18-20x PE. Not overly expensive, but not cheap either.

Probably OK if you have a long-term view and want reasonable stability, grow as fast as the economy, get some efficiencies along the way, and collect the dividend. But it's not for him.