Dollarama Inc. (DOL-T)

It has recently come off with plans to expand in Calgary so there are cost headwinds to 2027. Valuation is quite high. It is expanding in other countries, eg. Latin America, so there is good growth ahead.
The question also included his cash position. They are fully invested but will probably take some profits in January.

Reported today. Met expectations on sales, EPS, and operating profit. Sales and earnings both grew ~6%, which puts it near the top of the pack given slowing economic growth. 

Market's not taking results in stride. Two new tidbits of information from the results. Extended longer-term outlook for store count in Canada, which acknowledges the maturity of the concept. Plans to open 1.6M square foot distribution centre in Calgary, which complicates the business model a bit. We've seen this before, he's comfortable owning.

Dramatic divergence between DOL and US peers. Hasn't figured out why. Analysts keep raising price targets, as they keep beating earnings. The trend is there. Trades at 35x forward PE, and he's a value investor. No big dividend. Subject to big market correction. Doesn't love the risk/reward.

We think DOL is a very high quality name and are quite comfortable with it for a long-term hold. We are comfortable buying at the current price, but a good entry price would be $140. DOL would be our top pick for exposure here, but another option with more of a growth tilt could be ATZ. 
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A star in Canada due to great execution and lack of competition. Shift to multiple price points is a winning strategy. Carved out a niche in Canada.

Has been a top pick in the past. Very strong growth potential in business. Lots of opportunity for store growth in Canada. Not as cheap as it was before, but strong company. Would wait for share price to fall before buying. 

Really likes it. Earnings forecast to grow 16-17%, 34-35x forward PE. Tremendous market share, no close second. If Canadian economy becomes soft, will get even more customers. Not sure how tariffs would or would not affect the name, but stock price movement over last couple of days indicates no impact. 

Costco trades at 50x PE vs. DOL's 35x, already high as its growth rate slows. DOL is looking overseas to Latin America to expand, which is interesting; there's lots of room to expand.

Excellent at the science of retail. Canadians pinched by inflation are increasingly changing their shopping patterns. Research shows you won't get things cheaper anywhere else in Canada. Very strong same-store sales, maintaining margins. Latin American joint venture has become a meaningful driver. Lots of blue sky ahead.

Brand-new high today. Still likes it. Not a lot of serious competition in this segment in Canada, so pricing power and ability to operate are that much stronger. 18% earnings growth, bit of a premium at 30x forward PE. A beneficiary as Canadians downshift spending.

Among his top 10 positions. Continues to execute strongly, well managed. Still lots of opportunities to grow. Has done well, but he wouldn't want to bet against it.

DOL is well-capitalized, has strong profit margins. For a long-term holding, we would prefer DOL today.
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Always trying to get it cheaper on a selloff day. No major competition to it in Canada. 1500 locations, wants to grow to 2000 by 2031. Very consistent revenue growth, as is profitability. Very resilient business model in any economic environment. Yield is 0.3%.

Uncertain economic environment means more consumers are being more cost-conscious. Foot traffic and sales volumes are strong. He projects 15% earnings growth rate going forward.

Great management and track record. Under-promise and over-deliver. Leader in a sector has an easier time hiring the best employees, as well as lower cost of capital. Hard to kill the leader, or be the laggard and make a turnaround.

Unique aspect is it's not just for people with lower incomes. Attracts all types of income earners who just want to save a few bucks. Management has been a large part of its success.