Jason Del Vicario

US tech giants. Selloff, as in Feb/Mar when inflation was becoming a bigger worry. Tech companies are long-duration assets with lots of free cashflow in the future, such as MSFT and AMZN. When interest rates are so low, small moves in either direction can have a big impact. Also have had a big run up. This selloff is temporary.

Investment parameters. He owns companies in a very specific niche. Low debt, high ROIC, and have generated predictably high ROIC. Doesn't distinguish between value and growth stocks. Looks for growing free cashflow, but trading at a reasonable valuation. Finding companies all over the world. Valuations are better outside NA borders. High quality, predictable companies that are border agnostic. He owns 20-30 securities at any one time.

Asset light, price makers is what he's interested in right now. Best-run gold company on the planet. Better options out there. Excellent company. He sold out about a year ago around these same levels.

He got stopped out in March 2020. Excellent company. Well run. Consistently high ROIC. At this time, CACC in the US offers better value in the space.

One of his larger positions. Offers better value than the comparable GSY in Canada.

Rapid topline growth, driven by acquisitions. Issuing shares, which makes him nervous. Not profitable, the main reason he exited. Can't predict how much cash they can generate. Speculative. A dangerous place to be, especially as this bull market gets long in the tooth.

He looks for asset light companies, those that don't have to spend lots of money to generate money. The fact that they've spent $11B on EVs seems exciting, but not to him. These types of businesses consume capital. ROIC is sporadic. Steer far away.

Not profitable. He owns Evolution Gaming in Sweden instead with very high and consistent ROIC, extremely rapid growth, involved in live casinos.

He owns this instead of DraftKings. Very high and consistent ROIC. Extremely rapid growth. Involved in live casinos.

Not high quality, ROIC not impressive, not predictable. Speculative.

(A Top Pick Jul 06/20, Up 13%) Still good value at these levels. Really well run. Very high, consistent ROIC. Free cash used to pay down debt or make major acquisitions. Disciplined capital allocators. Questions about how they'll handle the EV trend, but they'll evolve with the times.

(A Top Pick Jul 06/20, Down 68%) A stalwart during the pandemic. Issues selling infant formula to China, because one of the selling channel has dried up. Beaten up. He recently added. Value here, but it's wait and see. Cautiously optimistic.

(A Top Pick Jul 06/20, Up 35%) Canadians should be really proud of this one. It stacks up with the best. Extremely well run. Founder is still involved. Doesn't spend a lot of money. Not a lot of debt. High and consistent ROIC. Doesn't issue shares. His largest position.

Not that familiar with this one. Focus is on data and medical type work. A better security to own than Telus if you're looking for capital gains. Likes the idea of this spinoff, which may generate higher free cashflow and ROIC.

Like a bond, with slightly better returns. Stable industries. Protected as part of the oligopoly. Few growth prospects, as a large amount of profits are paid out as a dividend. ROIC isn't enough to make him interested.