(Past Top Pick, August 17, 2017, Up 11%) There's fear out there over the flat yield curve and of course an inverted yield curve. Yes, we are in a low-interest rate environment, but the banks have changed from a decade ago. They can now money on a flat yield curve. In fact, they can make a lot of money just with rising rates, without a rising yield curve. He likes the banks in the U.S. and Canada.

investment companies / funds

It's trading at a low multiple, around 10x. But the worry is that Amazon will destroy Walgreens' model. What the market is missing is that Walgreens has 13,000 U.S. storefronts close to most of the American population. (CVS, which he
also owns, has 10,000.) The effect is to create a relationship with the patient/consumer so they can interact with a medical professional. Society is getting older, so chronic medical conditions will increase. These folks won't go to the
most expensive places to be served, meaning hospitals and emergency rooms.

specialty stores

Not for long-term investors. They've had problems over the years coping with changes in the auto industry and this change will only continue. Ford doesn't have a plan to create more dominance in their area. They let go of their CEO less than a year ago, not a good sign.


Well-run. This (and Morgan Stanley) were the most damaged banks in 2008, so they've had to grow their valuations since then. Now, they trade at a discount to book value. They're profitable, though struggling now with loan growth.


An impressive run, but we're seeing now impressive revenue growth from their Cloud and legacy businesses. Their margins are a little compressed from spending on new initiatives. -26x earnings, but they are walking the walk. A good

computer software / processing

It should be a great stage in the cycle for them. They rent out large building machinery. The recent move down is digesting some recent purchases. Take a position here, but they carry a lot of debt too. Edge in a bit.

Financial Services

Down 15% after-hours yesterday because of a big miss in subscribers. But the point behind Netflix is that they are cash-challenged which amounts to a lot of risk. Programming costs a lot of money. Don't worry about a one-time
subscription drop. Look at their cash.