BUY
A very well managed Canadian software company that grows by acquiring others into its platform. You will get consistent growth as a stream of acquisitions comes along. You get it cheap and it has a solid outlook. There is probably 30% upside in a better market environment.
BUY
It is a very well managed company with an aggressive management team that grows by acquisition of smaller trucking companies. It is economically sensitive so it sold off recently. We are moving more and more to packaged goods delivery. He thinks it is fine at these prices. (Analysts’ price target is $52.00)
BUY
He likes it and thinks it has a great future. It is an expensive stock but the earnings and revenue growth are going to be spectacular. They are still building the business.
BUY
It is the best run of the grocery stores. They made an acquisition to get into delivery in the downtown core. Nice dividend yield and you can sleep at night.
TOP PICK
There is worry over over-supply in the industry. He likes this company and thinks the growth rate in cruising is still in line with ships being built. The company is managed well. The developed countries are cruising and the developing countries are starting to cruise. We increase cruising as we age. (Analysts’ price target is $139.58)
TOP PICK
Housing in the US ran 1-2 million units for 40 years but now is at 1.2 million and there is massive demand. The issue is freeing up land. With high employment in the US, people are feeling good and renovating their homes. (Analysts’ price target is $203.26)
TOP PICK
It has 65 stores in Canada and 25 in the US. Brand awareness is very high. Growth potential is huge. They have a big on-line business. They got caught up in the retail sell off a year ago but he thinks now they will do very well. (Analysts’ price target is $21.30)
COMMENT
Off to a decent start? So far, so good. Stocks have rebounded. Market was worried about everything all at once, it got insane. September was at all-time highs, and now we're down 13-14%, and it will take a while to get back there. We were at panic levels, where people were selling without regard for value, a lot of insane volatility. You can't explain it. At times like these, these are the opportunities you're waiting for, you have to put money to work. You want to buy when stocks are down.
COMMENT
Do you see stocks going lower? What matters are interest rates and valuation. The spread between bonds and stocks is the highest since 2015. If you bought then and held, you've done very well. The valuations are as attractive as we've seen in the past 3-4 years.
COMMENT
Time to get into tech stocks? Biggest market cap stocks are hurt the most in a pullback, and they're going to come back the quickest in a rally. Apple and Facebook may not be as attractive businesses as Amazon or Google, but the valuations are incredibly cheap, so this is the time to buy. Over time, what will matter are profits. Amazon is creating one of the most durable moats the world has ever seen, though it's extremely hard to value. Microsoft is doing all the right things.
DON'T BUY
Has been out of grocery for a couple of years. Low margins. Most people go to Costco. There are so many pressures like e-commerce, competition, inflation. Have to get so many things right, and so little wiggle room. He's not a fan of buying back stock, companies need to buckle down and innovate. Great assets, but he's not interested at all.
DON'T BUY
Guidance totally shocked the street, and in this market if you do that, you're done. An amazing business, but everyone's worried about Amazon. Pullback was just a concern about a recession, which he doesn't see. So the stock has some rallying to go, but not one of his best ideas.
BUY
Poorly timed the purchase of this stock. Market got overly excited about one of the games, but didn't live up to expectations. A good buying opportunity. New game, Call Duty, is going to compete with Fortnite, and it could be as big.
DON'T BUY
At the bottom of his list. Insurers are hard to analyze. Only ones they ever own are Berkshire Hathaway and Markel. Leaves this to smarter investors. Management has done a great job trying to diversify.
DON'T BUY
Destruction of capital. You don't want to be in a position where you're selling off your trophy assets. He wants to buy top-quality companies with great management, and that's not happening here. Buffet says "turnarounds seldom turn," so he tries to avoid these situations.