There has been controversy. They invest in other private businesses in a yield type structure. It is not a model he likes. There is reinvestment risk. The payout ratio has been historically high. There has been concern from analysts that they could cut their dividend some day.

Financial Services

It is a mutual fund company, one of the most successful. It suffered recently as have others with concerns of pressure from ETFs and regulation changes. The dividend is probably stable and safe.

investment companies / funds

CP-T vs. CTC.A-T. CP-T is not as cheap as it used to be. The rails in general are benefiting from a strong North American economy. They have pricing power. It is a great business. CTC.A-T is basically only exposed to a Canadian consumer. He would be cautious on this one.

specialty stores

It is a really well run company and a great Canadian success story. They reported a very strong quarter recently and the stock popped and then came off. People are worried about electrical vehicles and what will happen to gas stations. They have not done a big deal recently and they grow through acquisition. It has gone sideways for the last couple of years so the valuation has come down, so it has come onto his radar screen. It is representing better value now.

food stores

After the failed takeover bid the stock dropped. He never really liked the construction business. He has IBG-T for exposure to this industry because it is more stable. Some of the promised government infrastructure spending has not come.


It is a well run business. They have been pretty successful. A lot of the products have done well. They are getting distribution and growing the revenue line but also ramping up costs. A recent recall was not a big deal. Over time there will be value creation there.

food services

It is a really well run software company. They buy up companies and cut costs. The market has awarded them a very high valuation multiple and they may have trouble continuing to grow as quickly.

computer software / processing