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COMMENT
US tech giants. Selloff, as in Feb/Mar when inflation was becoming a bigger worry. Tech companies are long-duration assets with lots of free cashflow in the future, such as MSFT and AMZN. When interest rates are so low, small moves in either direction can have a big impact. Also have had a big run up. This selloff is temporary.
Unknown
COMMENT
Investment parameters. He owns companies in a very specific niche. Low debt, high ROIC, and have generated predictably high ROIC. Doesn't distinguish between value and growth stocks. Looks for growing free cashflow, but trading at a reasonable valuation. Finding companies all over the world. Valuations are better outside NA borders. High quality, predictable companies that are border agnostic. He owns 20-30 securities at any one time.
Unknown
SELL
Asset light, price makers is what he's interested in right now. Best-run gold company on the planet. Better options out there. Excellent company. He sold out about a year ago around these same levels.
precious metals
DON'T BUY
He got stopped out in March 2020. Excellent company. Well run. Consistently high ROIC. At this time, CACC in the US offers better value in the space.
merchandising / lodging
HOLD
One of his larger positions. Offers better value than the comparable GSY in Canada.
0
SELL
Rapid topline growth, driven by acquisitions. Issuing shares, which makes him nervous. Not profitable, the main reason he exited. Can't predict how much cash they can generate. Speculative. A dangerous place to be, especially as this bull market gets long in the tooth.
0
DON'T BUY
He looks for asset light companies, those that don't have to spend lots of money to generate money. The fact that they've spent $11B on EVs seems exciting, but not to him. These types of businesses consume capital. ROIC is sporadic. Steer far away.
Automotive