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COMMENT
Ignore the negative headlines. Focus on the long term. Headlines are all doom and gloom, not productive for most investors. Investors who were speculating in the markets earlier this year are losing enthusiasm. Very tough to trade these markets, can't do it profitably. More valuable to avoid capital gains and commissions and trying to guess the next squiggle upward in the line. The companies he invests in don't care about the Fed this next quarter or next. They're still making business plans, manufacturing things, and customers are still buying. All negative news does is make investors worry and make poor decisions.
Unknown
COMMENT
Omicron variant. For 18 months people have been talking about how bad Covid is, but markets have been moving higher. Businesses like McDonalds and Disney are very adaptable. Shipping lines have eased and still delivering goods in time for the holidays. AMZN has been quite capable of keeping shelves stocked and shipped out. Headline news has already been discounted to a large extent.
Unknown
COMMENT
Recent selloff. He's been a buyer 100%. DIS, for example, has enormous opportunities in virtual reality. Imagine the unique experiences possible from the comfort of your own home, without having to travel. People aren't necessarily focusing on the longer-term optionality that a company like DIS has.
Unknown
DON'T BUY
Export facilities in jeopardy? Not a major concern. US needs Canadian oil and gas. Longer term, oil and gas use is declining. Adoption of EVs will increase. ENB will need heavy capex to stay on top of renewables. ENB oil shipments will stay stagnant, difficult to grow dividends at a rapid pace. Capital intensive, slow growth. Yield close to 7%.
oil / gas pipelines
COMMENT
High dividend yield for a company like ENB. ENB thinks dividend will sustainably increase by 3% per annum. Investors cottoned on to ENB increasing dividends at a high rate, but then having to issue equity to pay for them. Portfolio managers were unwilling to keep it in their portfolios. ENB doesn't fit into the new ESG model. It's really a problem. So ENB has had to adjust its dividend growth model to a much lower number. Lots of debt. If interest rates rise, ENB would find it difficult to raise prices to consumers to service that debt.
Unknown
BUY
Still likes it. Today it sold its low-margin, security business. Demonstrates very strong portfolio management. Accelerating stock buyback program, which will help boost earnings. Focus on growing global tool business. Well financed and managed. Innovative.
misc industrial products
DON'T BUY
He stays away from drug companies, always forced to do acquisitions. Costly and competitive business. Pressures from government. Boost from pandemic, and this will continue. Reasonable valuation. He prefers medical devices, where you don't need a PhD to understand what's coming next. Attractive yield about 3%.
biotechnology / pharmaceutical