Canadian Pacific Rail (CP.TO)

First-class management. Most unique footprint of any rail in NA. Tariff uncertainty impacts it the most, as it facilitates trade among US, Canada, and Mexico. It's held in really well. Attractive 20x PE, but tariffs will impact growth.

He did think about exiting, as he looked out over 4 years and saw potential economic weakness on the horizon. But it's a trophy asset, one to own long term. He decided to hold on, and to buy a bit more if it does get hit.

Chart looks better and fundamentals work. When those 2 factors go hand in hand, it's quite compelling. Has outperformed CNR.

Cheaper on price to growth than CNR. 

High quality, stock's done reasonably well. Overhang on this name and CNR because of tariff talk and what that would do to the shipment of goods across the border, a potential headwind to watch. Strong dividend. Add and hold for the next 10-30 years, as rails will continue to be an important mode of transportation across NA.

He doesn't own this, but CNR, and CP is the better bet. CP is now bouncing off a long-term trend line of support. There was a support around $105 in 2024.

Attractive entry point. US rhetoric on tariffs has put a negative cloud on North American trade. The only North American rail network. Hit hard, down 15% from its high. Great management team. Such a unique asset, you want to take advantage of the weakness right now. Yield is 1%.

In the spotlight recently because trade wars and tariffs could impact the volumes being taken to the US by quite a bit. Lower ROE than CNR, but cheaper. Prefers CP to CNR, as its merger with Kansas City has opened up a whole new area.

It is going pretty well and there it is basically a duopoly. Protectionism and domestication is good for transportation including railways and trucking. The multiple is a little high but it is a solid blue chip.

Not worried about issues in Mexico. Very strong company with legacy assets that impossible to replicate. Stock price not cheap, would have to hold for a long time (buy on share price weakness). Over the long term - company will do well. Earnings expected to slowly rise. 

Management's done an excellent job. Hopefully the Kansas City deal will show material earnings growth. Kept guidance for 2025 quite high, though this year has been disappointing due to strikes and weather. Tough business with lots of capital expenditures, unions, weather. 

Avoiding for now. Valuation too stretched for him. On a material pullback, may look to get in. Used to own CNR, but probably should have bought this one instead.

Rail is the most efficient way to ship freight. In this higher inflationary environment he'd prefer a rail, and CP is his preference. Wide moat, massive cost advantages to choosing this method of transport, tough to replace.

Buy half right now, and wait to see what happens over the next month. Nothing in the chart gives him any pause. Earnings and other data this week might cause some froth, but it's in the ballpark.

Has gone sideways against the market since mid-April, and down since September. Weakness longer term, but he wouldn't make too much of that.

Excellent proxy on the state of economy. Company will benefit from strength in North America. Very good assets with legacy attributes. Hard to replicate as not possible to build new railroads. Would recommend holding for the long term. Current share price is reasonable - good for long term investors. 

It trades at 22x forward PE in a slowing economy. Also, the new labour contract is an overhang. He owns no rails, though he liked CP's KC merger, but you're paying for that now. He prefers Alphabet trading at the same 22x.

Has been watching lately. Does not own right now. Is a blue chip stock, but can be volatile. If trend heads upwards, would recommend buying.