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Market. Doesn’t believe this is a cheap stock market currently. He is holding cash and is very defensive. There is a lot of political noise, and is not something he spends an enormous amount of time on.

Very well-run in Canada, but has been under pressure recently due to Amazon’s acquisition of Whole Foods, which has pressured US grocers to a much greater degree. Reduced his position in the mid-$40. Well-run, and at the right price, the kind of company you can own, but be mindful that longer-term there is a potential margin and headwind from various technologies that are changing on how Canadians are buying groceries. The present price is fair.

Specializes in buying property from a company and leasing it back to them. It could include a nursery, gym, or a chain of restaurants. They typically buy properties in small market locations, which enables them to earn much higher cap rates and spreads above their costs of financing, as opposed to what normal REITs do. A very effective model over time. It is able to create a lot of value. When you are able to buy shares at around $20 or slightly below, it is an incredibly good opportunity.

A very well-run company. We are many, many years into a residential recovery, but you have to understand that this is cyclical. Looking at the multiple you are paying, he is finding better opportunities in other parts of retail where there is a lot more concern around the business model. Prefers companies that are a little bit more out of favour. Looking a little expensive overall. 2.3% dividend yield.

An outstanding rail. Very well-run with a deep management bench. An excellent franchise in terms of where they touch on the coast. However, it is all about what you pay for a business. This is not cheap. There are other rails that are better value such as CSX Corp (CSX-Q), where expectations are not as high. They’ve had certain service issues and Hunter Harrison will truly enact the plan he has laid out and issues will be resolved. Dividend yield of 1.7%.

Feels this is better value than Canadian National (CNR-T). The management team is very, very good. They do an excellent job in fixing the business. Intermodal is an area of long-term growth in terms of pricing and volume, and he likes the business model. They have pricing power and an excellent network. They are very good at allocating capital. Dividend yield of about 1.2%.

He likes this. A very well-run business. In the past number of years, it has been undergoing a pretty meaningful transition, and now much more of the business has much higher quality revenue streams. In his opinion, deserving of a much higher multiple than the prior Microsoft. They’ve found discipline in terms of costs and capital allocation. He likes their underlying strength, diversification and how they are running it. It is no longer cheap, and would own more if it were cheaper.

Auto parts maker with the best dividend? There are a number of suppliers in the 2%-3% dividend range, but this is a dangerous strategy. He would not seek out auto part suppliers based upon dividend yield. These are very cyclical, capital intensive businesses, and expecting them to provide a stable source of income without considering other factors, could be a little dangerous.

He likes the look of this auto parts supplier. Not expensive, but they have a lot of exposure to large SUV trucks in North America. That is a market which can move around. Their ability to be in the right part of the car and allocating capital under the current management team has been really good. Has a lot of respect for what they are doing, but this is a cyclical, capital intensive business.

A very neat model in Canada. Their competitive position is very, very strong. However, part of the issue is that it is a business that had quite a bit of growth and very high embedded expectations. It takes a while for a company to grow into that. Over a long period, the stock has done quite well. He likes how they think about the business and are very well positioned to be able to add on incremental volumes at relatively low incremental costs, which gives a good drop-through into the business. It is very hard for someone to break into the business. Over time they are going to be able to generate quite a bit of cash as their fleet requirements wind down. Dividend yield of 1.6%.

Royal Bank (RY-T), Toronto Dominion (TD-T) and Bank of Nova Scotia (BNS-T) have been dropping. Why? Higher interest rates do help the banks, but on the flipside you have to be mindful of the people who are paying the interest payments. He doesn’t own any Canadian banks. With the risk/reward, there are better places to put money in Canada. Canadians have taken on too much debt. Believes the dividends are safe.

(A Top Pick Sept 7/16.) This hasn’t been the best call. He is defensive by nature and his 1^st and foremost goal over the long-term is to protect capital.

(A Top Pick Sept 7/16. Up 39.45%.) They were getting out of their long-extended renovation process, and were able to take all the money, and effectively de-lever and return it to shareholders, and the stock was very cheap. Has sold some of his position.

(A Top Pick Sept 7/16. Up 0.47%.) It hasn’t done much over the past year in light of some of the competitive pressures in the industry and some of the overall challenges. He continues to own this, because they have a visionary leader with a very articulate intelligence strategy of how to create value, and they are good with capital allocation. This is ultimately going to be recognized by people throughout the chain.

Had a pretty interesting 2 years. Did a major acquisition and had some challenges in the interim when some of their end markets became very challenged. However, they were able to digest a lot of it and were able to sell a portion of the business they acquired, for a pretty healthy valuation. Recently, a number of billings in their markets have turned positive. Over a long period of time, he likes this business. They have a very consistent model of how they allocate capital. Dividend yield of 1.4%.