He's both being defensive and buying the dips in tech. You look for opportunities when good companies sell off. Biggest value right now is in interest-sensitive, slower growth companies. Wouldn't chase valuations on higher growth companies, but when some do sell off and hit your buy price, it's a good opportunity to take advantage of.
Overall, quite constructive on banking sector in Canada. Valuations are reasonable, dividend yields quite high, capital bases very strong. So important to look at capital, as that determines what they can do. Well run.
Hit hard last quarter because of its acquisition of a regional bank, which tend to be bigger lenders to commercial real estate. Investors may look at this as a show-me story. If you own it, just sit tight.
He tends to own RY, TD, and BNS.
Absolutely wonderful. Well run. Very opportunistic on capital allocation. Circle K stores are popping up everywhere. Today's valuation of 18-18.5x earnings puts it above his buy price; he'd prefer a multiple point lower. Don't chase.
Very difficult to make money in this space, but they have a formula that works and is difficult to replicate. As they get bigger, they have scale and pricing power, which improves profitability.
Phenomenally undervalued. Sold off due to negative headlines on anti-trust. Whether it stays as one or gets broken up, massive amount of value. If it no longer pays fees for exclusive Search access on smartphones, but people still choose to use them, enhances profitability.
20x earnings, gushes cash, debt-free. He'd buy today.