BUY

On a roll. Whole sector looks quite strong. Very predictable, as contracts are long-lasting. Unlikely to get hurt if economy slows down.

COMMENT
Stop losses at work.

To be successful over cycles, you have to be a good seller. Of the 20-30 companies in a portfolio, out of 6000 to choose from, it's OK if one doesn't work. Your success depend on holding your winning positions, and getting the heck out of Dodge on the ones that don't work.

For every position, he sets a stop loss limit. As stocks do well, he ratchets up the stop loss in behind the stock price. Every security has a different personality with some being more or less volatile. He looks for a change in this personality to indicate when caution is needed and an exit may be near. For example, a stock that was making higher highs and lows starts making lower highs and lows.

He uses point-and-figure charts, an old-fashioned technical chart made of X's and O's. You could also use the 150-day or 200-day MA. As a short-term investor, you could use the 50-day, but you'll get stopped out a lot.

Unlikely that the market will forget about tariffs tomorrow, make a V bottom, and everything reverses from here. There will be time to see what's stronger, and what doesn't pull back when the market makes a new low.

PAST TOP PICK
(A Top Pick Apr 22/24, Up 26%)

Got stopped out at $77. Great company. Private equity is having a difficult time in this market, partly because so many have used leverage for deals and the cost of credit is going up.

PAST TOP PICK
(A Top Pick Apr 22/24, Up 6%)

Fastest-growing utility in the US. Interest rates went higher last summer, which made things more difficult for utilities. Caught up in change of sentiment toward clean energy. He stepped away.

PAST TOP PICK
(A Top Pick Apr 22/24, Down 7%)

He'd consider stepping in again if the Seven & I deal could get done, but that doesn't seem to be the case. Thinks they're pursuing this transaction because growth opportunities have slowed. He owns, and would prefer, DOL and Loblaw in this space.

BUY

Thought of using it today as a Top Pick. Just keeps chugging along. His choice in the space, along with DOL.

DON'T BUY

Avoided it since money-laundering issues in 2022. Lots of shareholders are stranded at higher prices, who would be sellers if they got their money back. He owns RY.

WEAK BUY

His big position in Canada. Leader in wealth management. Great capital markets business. Great balance sheet. Very well managed. When you get into a sloppy market, you want to own the best. Thinks you could buy this here, but he's not adding any new positions in anything at all right now.

DON'T BUY

Under pressure along with all the rest in private equity. Trouble finding liquidity for a lot of their deals. With rising rates, power is now in the hands of the lender, but private equity firms are huge borrowers. Stay away.

DON'T BUY

Under pressure along with all the rest in private equity. Trouble finding liquidity for a lot of their deals. With rising rates, power is now in the hands of the lender, but private equity firms are huge borrowers. Stay away.

DON'T BUY

Under pressure along with all the rest in private equity. Trouble finding liquidity for a lot of their deals. With rising rates, power is now in the hands of the lender, but private equity firms are huge borrowers. Stay away.

DON'T BUY

Under pressure along with all the rest in private equity. Trouble finding liquidity for a lot of their deals. With rising rates, power is now in the hands of the lender, but private equity firms are huge borrowers. Stay away.

BUY

Fantastic growth. Outperformed US peers. With tariffs, opportunity to expand margins, which would make a big difference to revenues. A top 10 holding for him. In a slowdown, consumers will be looking for bargains.

SELL

Wonderful company. He got stopped out once tariffs hit. Doesn't think any less of the business. Fundamentally in the right spot. Trading below the 200-day MA, and not many good things happen below that technical line in the sand. Exposure to China has probably hurt in the near term.

WATCH

Very successful. On his farm team. Has been incredibly resilient going through this downturn. Has a deal with AAPL. Talk of a merger in US would require financing; if markets are a bit better, he'd probably participate.