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CP today increased their offer to buy Kansas City Southern He owns none of the rails here, but owns FedEx and has long liked it and its management. This battle will go on for a while. Even if CP wins, it'll likely be a year before the deal closes, and CP will be worth $90 billion, on par with rival bidder CN. CN will still have bigger revenues than CP, while CP will carry more debt if CP wins the battle. So, CP would win the battle, but lose the war. It'll be interesting to see how much synergy CP can generate if CP wins. The short-term winner will be KCS shareholders.
A great risk to stock investors is government (globally) is becoming more active in regulation, namely anti-trust and privacy. He's paying attention to payment systems. The pandemic may be a catalyst for long-term change. How are companies investing their cash in innovating techniques. The next phase of innovation is how to apply A.I. and A.R. into banking, medical, education and industrial companies. He looks for businesses actively investing in the future, into technology. Google, Microsoft, Apple and Amazon are morphing into greater vertical operations. Keep an eye on them. Canadian banks will keep up with tech; they are very well run and are the leaders in digital tech. Rather, the big risk is how to grow their Canadian franchises while competing in the U.S.
(A Top Pick Aug 08/20, Up 45%) He stuck with it last September when the trend was to sell growth and buy value. But selling means paying capital gains. FB continues to be a growth story internationally and are exploring opportunities in e-commerce to compete against Amazon and Google, and in digital payments, which it just entered.
Favourite US bank He avoids cyclical businesses. Brokerage businesses in Morgan Stanley and Goldman Sachs are very well run are more investment bank/trading firms. Theoretically, they should trade lower multiples than more diversified banks like JPMorgan. He owns 4 banks, including PNC will likely be a major consolidator given their strong balance sheet. Are well-run. he expect them to buy back shares and raise their dividend.
https://www.cbc.ca/news/canada/calgary/bitcoin-mining-black-rock-petroleum-company-1.6106978 The bitcoin miners won't drive Canadian energy producers. Instead, energy companies are price-takers. Bitcoin will find ways to alt energy sources of power. CPG itself is well-run, acquisitive and not afraid to make big deals. The CEO is trying to show capital discipline, but it's very hard to pay a dividend when your resources are being depleted and you're not in control of the pricing of what you sell. This is a cyclical business. Oil prices will likely move a bit higher. Keep your energy holdings limited and tight. In oil, he prefers Cenovus or Tourmaline or Topaz (for income).
