Latest Stock Buy or Sell? Make More Informed Decisions!

His point is that this has been a one-decision type of investment over the last 10 years. The compound is something like 22% over that time, but that's not a realistic expectation for investors. We've ridden a tremendous wave of AI, cloud computing, and electrification of the grid. If you look at the fundamentals of a lot of the NASDAQ companies, especially the Mag 7, they deserve to trade at high valuations.

That said, a lot of companies have come out of nowhere with big increases in market cap. No question, demand is off the charts for AI equipment. If that cools, we could face a period where (though some companies are doing amazing) the NASDAQ and the S&P could do nothing for years. It's simply because of the way the market's structured, with so many companies tied to the AI trade.

This worries him a bit. He wants to make sure his clients have reasonable expectations going forward. For a diversified portfolio set up for your retirement, the equity part of your holdings is looking at 8-10% and not 22% a year.

It's a good economy. Seeing lower unemployment, strong corporate earnings. When people spend $$ on infrastructure and AI, it blends into the entire economy. We're seeing the stock market be very strong, which leads to good vibes, rich people investing, and rich people retiring.

We're in for some pain at some point. He just can't tell you when. We're in the fourth year of strong markets for most of North America, double-digit returns this year. Sometime, the good news will start to fade. 

You need to be selective with your investments. There are so many wonderful businesses that used to trade at 30-35x PE, and now trading at lower valuations even though their growth is just as good. The market's focusing on a lot of nit-picky stuff that's not relevant to long-term investors.

After the cut, yield is now ~5.5%. Payout ratio is still high. Stock hasn't found a bottom yet. Needs to find cost cuts and growth quickly. He doesn't know where those are going to come from. He can't invest in companies where organic, topline growth is below GDP.

Move down is probably due to the quick move in the long bond yields across NA. When interest rates start to go up, and you consider the risk-free rate of owning bonds versus owning a riskier equity, dividend stocks fall. Not a lot of organic growth or high ROIC.

The debt levels scare him, especially in a cyclical, commodity-oriented business without a lot of pricing power. Management's done a great job. SES acquisition probably a smart move.

His clients own WCN instead.

Good balance sheet and track record of being profitable. Years of growth ahead, with proven capital allocation.

Not a growth business. Now cashflow positive, and covering its dividend. New technology is coming, and it might be much cheaper and much faster. A melting ice cube.

Stock prices go up, they go down. Don't let the stock market dictate your research based on daily, random market performance. Look at that chart! Holy smokes! :)  

The better question is why has it gone up so much? Should it trade at these valuations? Should I be taking some $$ off the table? How much of my portfolio does it now represent? Whether to trim depends on your risk tolerance and comfort level.

All have done extremely well. Trading at one of the highest valuations of the past number of years. So are US banks, as is the stock market. Banks benefit from the beta of strong stock markets, but the reverse is also true.

The better question is should I be taking some $$ off the table (and that depends on your rick tolerance)? How much of my portfolio does it now represent? Money managers have  to follow rules on position size, but individual investors don't -- for them, it all depends on comfort level.

We're in the craziest cycle we've ever seen. We haven't even touched levels people think we're going to reach in terms of AI demand. Sold out for the net 4-5 years. Stock reflects a lot of that good news. When the cycle ends, it'll be painful.

He bought more. No magical catalyst in the quarterly report. Carried interest won't come through as fast as thought, but insurance is growing like gangbusters. Undervalued here. A beautiful business.

He can't tell you where the price of oil is going. He does know that demand continues to increase. One of the best capital allocators in the O&G space. Decades and decades of reserves. Increased dividend for 25-26 consecutive years.

For a generalist, long-term investor, trust the management of the quality leader. When oil turns down, this name will hold up better. If there was a pullback for no good reason, he'd buy more. Be patient and wait for your opportunities.

He doesn't let the stock market dictate his conviction and concern level. He follows the fundamentals and earnings. How's the balance sheet? Are they raising the dividend? Most of it is daily noise, just ignore it (unless you're a daily trader). He urges the investor to own stocks for retirement, and not worry so much about the day-to-day. 

Great business. A slam-dunk Buy here. Focus on the next 3-5 years. Thinks it'll double production over the next 5 years. Natural gas prices should be a lot higher.

Not a lot of opportunities for growth. A lot of debt, but committed to a big dividend. He prefers TOU.

(Note the short timeframe.)  Market's been hating these companies due to uncertainty about capital spending. Revenues are accelerating, yet market's ignoring it. Continues to buy more. FCF should become much higher in late 2028. Topline is growing faster than expenditures, and will overtake them at some point.