He is bullish on healthcare. It began underperforming in 2015. It broke out recently. It is the largest industry weight in almost all of his portfolios. His biggest concern is that they have a direct exposure to pharma prices. He prefers United Health. XLV-Q plays it broadly but he does not recommend ETFs. You can see what happened to it in 2015.
(A Top Pick Nov. 21'17, Up 3%) Semiconductor masks, hard disk platters, and health sciences – eye glass lenses and endoscopes. Unfortunately there was a material change that caused him to sell the stock shortly after they recommended it. The FDA is concerned about the sterilization of endoscopes. It is unsure what the market share will be after they have launched.
He sold in 2013/14 because cross selling did not work. They were going to increase returns to shareholders and that did not materialize. As a British bank they are in a better position than a European bank. But he does not want to be a British bank because the American markets have access to your capital. He thinks the outperformance of non-Canadian banks is probably over.
He does not anticipating anything in particular to happen with earnings. They have guided toward higher operating expenditures. Normally they don't spend as much as they guide to. He got out because of declining engagement on their platforms. Core growth is from Instagram. He prefers AMZN-Q because they get a lot of advertizing dollars. He prefers it over GOOGL-Q also.
It depends on time horizon and risk tolerance. This is one of the champs on generating return on investment for a very long time. If you use pullbacks to get a position, get advice on how to time your entry and how to build a position. It is an appropriate time to be buying some.