Jason Del Vicario

He doesn't think that way--rising yields, so buy an insurance company. He just bought KNSL, which is founder-run and -owned. They have a strong track record. Have been buying back shares. For any insurer, look for the combined ratio (underwriting profit + operating expenses), which is 75% for KNSL, which means they're making money.

Prem Watsa has done a fine job compounding wealth over a long period.

Their return on capital over the years is in the mid-teens. Valuation matters. Banks don't meet his criteria. The returns aren't as consistently high as he likes. The primary wealth-building tool of the banks are the executive salaries and bonuses, not the appreciation of shares. RY is the leader in Canada. 

He remains patient and is above water. Is founder-run and -owned. They now carry debt after buying back 15-20% of shares. Good that they built their own data centre. Has seen good returns.

Is watching it. It's in a business that looks more interesting now. They historical don't have a great return on invested capital; returns are inconsistent. He needs to dig deeper on it, and current weakness could allow a half-position.

He sold it a while ago, because the cash return on capital was poor. Copart is better with a better valuation.  

He doesn't own resource stocks, because they lack a consistent return on capital and they carry a lot of debt. Also, resource stocks rely on commodity prices which are beyond their control. Doesn't know about the tax situation in this merger.

The executives and board own few shares, which is a negative in his book. Warren Buffett once owned this and was disappointed. Google and Meta are better for large tech.

Their valuation is always too high, now 100x PE. They've had a positive return on capital for 3-4 years in a row, but is not high or consistent. He would consider SHOP if shares fell 75% and the PE was 25x.

It was a past winner in diabetes treatment, but has lot some edge in the obesity space. They are losing market share to LLY. Only 5% of obese people use GLP-1 drugs, so the pie will grow much larger but more competitors will appear. He likes that there's some insider buying, through the foundation, but it's indirect ownership. The PE is only 11x PE and pays a 4% dividend. The downside is limited, but the upside is big.

It's his second-largest holding. The valuation is now more reasonable. There are fears that AI will replace it, but he doesn't see evidence of that yet. CSU owns 1,500 businesses that use AI. He last trimmed it in July 2024. Buy below $3,500 for the long term. Companies can use AI to drive value for their customers.

They have no debt. Is founder-owned and -run. Shares are fairly valued at 20x PE with a 4% dividend. They're off their recent highs. His position has ballooned, so he has trimmed. Now, is a good time to enter.

Is -10% from all-time highs, but over 40 years, they compounded shareholder wealth under 20% as is their return on equity. He owns a large position. Doesn't know why shares are down. Great long-term prospects.

There are many years of negative return on capital. Doesn't see a turnaround.