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?
Unknown
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
A great pharma with a good stable of products, but he is avoiding all pharma because the new US law will allow Medicare to negotiate prices of drugs, giving them buying power. It's very uncertain how this will effect pharma for 3-6 months at least.
biotechnology / pharmaceutical
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.
electrical / electronic
COMMENT
Fairfax wants to buy RECP Sometimes Fairfax hits a home or strikes-out when it take over a company. He stands on the sidelines and watches in admiration. Doesn't know if this will work out or not.
food services
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