Firstservice Corp (FSV.TO)

Does property management really well, expanding in US. Good company/bad stock. Valuation has been quite high, still at a modest premium. If you're a long-term investor, he wouldn't stop you from averaging in slowly and continuously. He'd lean more Buy than Sell today.

It is similar to Telus in its chart. There is strong resistance at $272. The consolidation level is $215 but there is a continuation of a downward trend. There are still a lot of people holding on so he doesn't see how far down it can go.

Grown in US via bolt-on acquisitions. Industry is fragmented, so lots of room to grow. Compounds organically and through M&A. Strong loyalty through contracts, plus inflation protection. Yield is 0.83%.

Still likes it for branching into different verticals. Their issue is that there haven't been any storm. They restore properties after storms. They continue to buy companies in roofing. Is a good compounder and now prices are good.

Property management and services. Likes that it grows both organically and through acquisitions (either real estate or services). Lots of opportunity to make acquisitions in this fragmented industry. Very strict on its acquisition requirements. Incredibly well run. Fantastic Canadian company (founder started out by cleaning pools as a university student :)  Very large in the US, too.

Stock's never been cheap, but now's a great time to buy when it falls like this. Yield is 0.71%.

It has been a very solid performer with a collection of businesses, maybe somewhat like Constellation Software. It is very well managed but he would wait for the price to come down.

They grow by buying companies and by organic growth. Are disciplined with good hurdle rates in buying. Are a large player in the US, but the industry remains fragmented by mom-and-pop operations. Has never traded cheaply and pays a low dividend. But it's great as they continue to buy companies and grow.

They grow by buying companies and by organic growth. Are disciplined with good hurdle rates in buying. Are a large player in the US, but the industry remains fragmented by mom-and-pop operations. Has never traded cheaply and pays a low dividend. But it's great as they continue to buy companies and grow.

Compounded its way to extremely high valuation. Well run. Great serial acquirer. Trying to get into renovation and disaster restoration. Lumpy segments. Thinks roofing will be a home run.

Loves what management is doing. Slower US economy and high interest rates have slowed home-related businesses. Reported very strong earnings and strong guidance, stock pulled back (not sure why). Excited by the long-term runway.

Really well run, very good compounder. Likes the business, always on his watchlist, but it always trades as such a rich valuation. Strong growth profile, but valuation exceeds it. If you can get it at the right price, hold for a long time because huge runway ahead.

Largely insulated from tariffs, as services take place locally whether Canada or US. Only hiccup would be if housing materials were hit by tariffs; still, labour costs (not subject to tariffs) are the bulk of renovation expenses. Would be sensitive, however, to a broader economic turndown.

First bought in 1998. It had a simple strategy, and was overlooked in the market. Over 26 years, has executed its strategy bigger and bigger -- buy into a new market, buy a business that fits in, build that position. Repeat. Grows at 4% per annum, and a further 15% or so a year because cash generated is not needed to maintain the business.

Surprisingly, hasn't met his goals for return performance. But starting points do matter, and it ran up dramatically prior to pandemic, so maybe it got a little pricey. Restoration business suffered due to good weather. Long-term thesis. Serial acquirer. ("Genius") founder run and owned.

On his watchlist. Trophy of a company. Never cheap but has pulled back, now a less demanding multiple. Quality compounder, strong management, large addressable market, dominant position. Pullbacks are buyable.