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Volatility ETF’s as a swing trade? You are probably better off going to a casino and playing the roulette wheel. The outcome is absolutely random. Just because you get it right doesn’t mean you are smart, it just means you got lucky.

This has always been a very defensive investment, because Prem Watsa is a very conservative investor. He created an enormous amount of wealth for shareholders over the long-term. Has followed the model of Warren Buffett, which is owning an insurance company and using the proceeds to float to buy other companies. He has done a wonderful job. Doesn’t think you can go too far wrong owning and buying this company.

Best Canadian bank? This is one of his favourite banks. Because they have strong exposure to the US, it has done an incredible job of building out their branch networks. The US is going to be a safe haven. You may see more money flow into the US, which might be good for this bank.

For a 5 year hold? If you believe there is going to be more garbage produced in North America, this one is certainly going to haul its fair share. The slowdown in oil/gas has hurt their business a little, but if the Canadian economy continues to grow, this is a good business to be in. However, it is not cheap.

Gold stocks? Has bought gold stocks in the past, but wouldn’t buy them now. Doesn’t see any reason to own these types of companies. Has no idea what gold is going to do a year from now.

Likes this and the Canadian banks. Over the long-term, anybody who has owned Canadian banks has earned significant compound rates of return. They are not expensive and you get a nice dividend growth. Dividend yield of 4.2%.

One of his biggest holdings and he is happily buying it. It has exposure to the UK and Europe, but doesn’t think there is going to be any impact to its business operations. The smartest investors he knows and will probably use their beautiful balance sheet to make wonderful acquisitions going forward.

A well-run company and the CEO has created an unbelievable free cash flow machine, buying up software companies and having annuity revenues, and using the free cash to continue to buy more, etc. They now have a suite of thousands of companies and are on the hunt to buy more. This is on his radar screen, but he just can’t stomach buying it at this valuation.

Buy the stock or buy some call options for one month out? If you want to buy call options one month out, you should go to the casino, as it is the same type of business. He is buying the stock as it is attractive here. Has sold off materially from its all-time high of $120 a share. There are worries about ESPN, cord cutting and overpaying for some of the sports, but they own such wonderful assets. Valuation is very cheap for a company that he expects to have double digit earnings growth for the next few years.

Much cheaper than it was a few days ago, so you can absolutely buy it here. If you are waiting for a selloff, this is it.

A dairy producer; cheese, Nielsen milk, inputs for wholesalers, restaurants as well as branded retail. Still a small fish in a global pond, but there is potential for them to grow bigger and increase its footprint. Management, when they make an acquisition, are able to grow margins and improve everything all around. Generates a lot of free cash flow. Likes the potential for them to use their balance sheet to continue to make acquisitions globally. Dividend yield of 1.43%.

This is getting absolutely decimated today. They get 75% of their revenues from Europe. Their biggest entity is Booking.Com, a wonderful, wonderful company and benefits from the network affect. They have the most hotels and they are smart operators. A beautiful balance sheet that generates gobs of free cash. Unbelievable margins. Anything exposed to Europe right now is getting his head handed to it, but this is a wonderful buying opportunity.

Thinks this is doing the Microsoft Playbook, which is growing quickly in the Cloud, and getting more licenses and revenues and annuities instead of selling a one-time package. Thinks the turning point for this company is here. Generating a lot of free cash. Very reasonably valued. Dividend yield of 1.51%.

Market. Britain decided to leave the EU. It is a pretty big deal, an unprecedented and uncharted territory for the markets. From a Canadian investor’s point of view, he doesn’t think the impact is going to be overly material. A lot of Canadian investors’ portfolios don’t have much exposure to the European market, so doesn’t see them taking a huge hit. A lot of companies that trade on the TSX don’t have a lot of revenues that are generated from the European markets. Probably the biggest exposure is in the financial sector. This is a great opportunity to pull out your watch list, and for those that you have been waiting for, a more attractive entry point. You need to expect volatility for the next few weeks.

A classic value trap. It is cheap for a reason. The high dividend is really attractive and can suck you in. They are making an effort to adjust by restructuring and going digital. However, the institution is so large that he worries that they are going to go through all this work, turn around and adapt to what it is like today, but by the time they do that, the environment will have already changed.