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Feels like a tug of war. We've been talking about this AI narrative for over 2 years now, and perhaps investors are getting tired of that. On the other hand, we've still had good earnings and growth in the States. Here in Canada, we have a lot of good underlying fundamentals with the banks and gold stocks.

But it feels as though there's a lot of optimism baked into investor expectations, perhaps too much.

He's worried about return on capital on the whole AI side; a number of these entities aren't making any money. Valuation-wise here in Canada, we used to be at a big discount to the US. That gap has closed quite markedly, though our market is still less expensive. On a number of metrics, the S&P 500 is still quite expensive.

Whatever you believe -- bubble, not a bubble, middle of a bubble -- you can find evidence to support that theory.

His firm's strategy is to look at what other investors are not looking at. He likes the middle ground of apathy -- what is it that no one's talking about.

There are a number of businesses that haven't really changed. They still continue to do what they do, but no one talks about them. They get mired in apathy, valuations get depressed, and they provide attractive opportunities to buy for a multi-year view. 

Ignore the noise, look long term, and try to take advantage of the market.

Going back the last century, November and December have traditionally been the best-performing months. While September and October tend to be the worst months, but we had some good performance this year. The averages are always there to misguide you to some extent.

We came into the end of the year with a lot of good expectations baked into valuations. There's a point at which investors just get too enthusiastic, and he suspects that's what we're seeing in markets in the last little while.

Grand Theft Auto 6 delayed until next year. Problem is, the company doesn't have much else. Despite having a soft spot for the game's Edinburgh origins, he doesn't like any company that's a one-hit wonder. Stock's priced for success of GTA 6 to exceed expectations.

He agrees with RBC. If you're trying to buy a name like this based on an oil price forecast, forget it. Its business is attractive, regardless of the current price of oil. 

Still made $$ even when WTI oil was below $39. Great capital discipline. Meaningful acquisitions. Plan to pay down debt well communicated. As long as the oil price is constructive in a long-term sense, this name is a very-well positioned, low-cost, reasonable-growth entity that generates a lot of cash. Growing dividend.

A number of bodies such as IEA are pointing to a glut for next year. Track record of predicting is not particularly good, so take it with a grain of salt. But there is a lot of potential supply coming on next year, which is concerning the markets to some extent.

As discussed at the beginning of the show, there's apathy in the oil patch and that makes for attractive opportunities.

Likes the waste management business globally. Really hard to replicate. Wonderful assets, almost impossible to get permits for new landfills.

Problem with all that is the valuation of ~40x+ PE, which is high. Some growth. FCF yield is ~2.5%. A bit rich. If you own today, tuck it away for 10 years. He'd love to get it on sale.

He's seen this story so many times when an entity commits itself to a growing dividend. His rule of thumb is that once the yield gets above 8%, there's a cut coming. As for the payout ratio, it's over-distributing. Market's telling you dividend will be cut, and that makes sense. 

We can get too enamoured by dividends sometimes, and there's no free lunch. Dividend can be high, but then the stock price is down. Yield is 9%.

Both a tech company and a car company and he values it accordingly. Premium car company, valued like a BMW. Problem is that the other bit, including the dream of robotics, is really hard to value. One of the most overvalued stocks in the market.

Lots of hype and speculation. You're playing the greater fool theory. He prefers not to play that type of game. Risk/reward not attractive.

Almost identical to WM, except WCN doesn't have the Phoenix Open. Wonderful, irreplaceable assets. Huge economic moat. Steady, predictable EPS and FCF. Market has pushed up valuations for anything predictable. Not ridiculously valued, just a bit rich.

Probably OK for a 10-year hold, even if valuation compresses.

Not a fan. Companies in the sector are low-quality businesses, price takers. Political relief from tariffs may give some relief in the short term. But ultimately, not a great business. Lots of debt.

Look at something like SJ, which makes residential products, rail ties, and telephone poles. A better compounder, with higher ROIC over time.

Makes residential products, rail ties, and telephone poles. A better compounder, with higher ROIC over time than names like IFP or WFG.

Software only, with some good offerings. Canadians have a soft spot for it, but it's an also-ran. Better places to put money, such as a cheaper OTEX or something with more of a moat. Take your $$ and look elsewhere.

(Note the short timeframe.)  Margins have been picking up. Couple of good quarterly results. Slightly improved earnings. Investors have embraced it. Despite weight-loss drugs, US consumption of butter and cream is at record levels, driving up demand for milk.