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COMMENT
Three things are happening at once: the lingering pandemic, the Russian war, and inflation. He isn't as worried about inflation as some, that it's not as persistent as some fear. Why? Supply chain snarls and commodity panic saw oil and grain prices go to the moon. The commodity push on inflation is over, but will the U.S. employment raise wages so that it prolongs inflation? The Russian-Ukraine war is a total wild card, how it will effect natural gas this winter. It's tragic and who knows when it will end?
DON'T BUY
He was in a store for the first time in a few years. That's the problem--customers can shop online at other places like Amazon. Or they can visit Costco. In rural areas, people still go to CTC, but not in cities, certainly not as much as in past decades. Online shopping is convenient and fabulous.
specialty stores
STRONG BUY
They're brilliant in finding ways to get their loyal customer base to buy the next iPhone. Fabulous. He's a big fan of Apple--its devices, cloud services, ad services and Apple stores. They have a mountain of cash, too. Will it be a legacy company in 30 years? Hard to say. He can't see that far in the future.
electrical
electronic
DON'T BUY
Chips are newly recognized are critical to business. Taiwan, the source of many chips, is vulnerable, and that has spurred production in North America. Now, there's a surplus of chips in the world following 2 years of shortages during Covid. Chip prices are falling (as at Nvidia). Intel has a long history and he prefers them overall Qualcomm. Wait a year to see how things pan out in this space.
computer parts mnfctr
BUY
They had good earnings, growth of 8-9% better than Bell. They made interesting gains. Saturation is high in telecoms, so there's limited growth in this industry. To make more money, you must give value-added services. In this sector, Telus has the best growth sectors while Bell offers the most stable income generation. He own both companies. You can enter Telus now.
telephone utilities
PAST TOP PICK
(A Top Pick Jan 25/22, Down 37%) One of his most embarrassing top picks ever. He misunderstood how competitive the streaming business would be, namely Apple+ and Prime, and overestimated how Netflix could raise rates without losing viewers--viewers actually are not and unsubscribed. Plus, there was a general decline in tech stocks. But now shares are worth buying. He target $400-450.
Technology
BUY
A giant in the alternative asset management space. Shares are down 25%. But it's great for the long term with growth ahead. They're moving into ESG investing, which is smart. They face downward pressure on managements fees in their broad index ETFs, but they can find new products to bring to market.
Financial Services
BUY
Buy before their quarterly report? Brookfield is one of the best Canadian companies and a must-own. They own infrastructure assets which everyone wants now for their stable income and long-term growth. They manage tens of billions of assets for others and make fees and profit shares from that. They are well-managed. It's his top Canadian holding. For BAM, earnings are not influential on their share price. But he would look for is how they answer: What is their estimated net asset value, assets under management and management fee stream? Buy this after the report.
management
diversified
BUY
Sell oil stocks to buy pipelines? The good thing about midstream companies is that they're not as effected by the price of oil and gas moving up and down, so they're much volatile. He's holding KEY long-term. They process natural gas. KEY has some commodity exposure to nat gas, but not much. They pay a growing dividend. They have a major project underway, but these costs have risen with inflation. Good managers.
oil
gas
