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Model Portfolio for 2018 Look at individual companies, specific fundamentals, and individual drivers and build a portfolio that’s diversified across industries, sectors and around the world when appropropriate. On the margin, they are generally seeing better opportunities in Europe and Asia. Opportunities like the UK who are undergoing their negotiations for Brexit is where a macro event is creating some specific opportunities. Tax packages in the US are definitely going to be a tailwind for earnings in 2018.

A good time to buy? Likes it. One of those Canadian companies that are a global champion. They operate convenience stores better than anyone else in the world almost. Very good at allocating capital. They executed on their growth through acquisition strategies very efficiently. Just received regulatory approval on their acquisition of Holiday. They should be able to generate additional synergies that should translate into more cash flow and earnings. Margin on oil price is a driver for their profitability. Very good merchandiser, being able to upsell and driving incremental same store sales growth. Sees possibility to continue to grow earnings and potential margin expansion. Trading around 16.5X earnings today versus the low 20s they peaked out in the past. Not expensive relative to its own history. Very good historical business in Canada and a global champion. (Analysts’ price target is $79.)

Doesn’t think this is a time to buy in. They owned it and sold out of it toward the end of 2016 and 2017. The good news are already priced in. Cyclical. When they bought in 2016 it was trading around 8-9X earnings, today it’s around 13.5X earnings. The multiple expanded along with the fundamentals.Thinks the upside and fundamentals are already priced in. (Analysts’ price target is $30.25.)

The big news around Disney today is their acquisition of Fox. It’s a huge deal. As the integration unfolds into 2018, you may get a better opportunity to buy in. This whole space and the way people consume media is changing. Disney certainly owns a lot of content that people know and love and watch on a regular basis but the monetization of that will change, and understanding where their potential pinch points are could evolve also.

Industrials Impact of the Technological Revolution Industrials are one of those areas that the benefits of technology hasn’t been fully felt yet. He’d rather see a diversified portfolio across a number of different industries and sectors. Financial Technology is also influencing the banking sector.

U.S. Dollar The Canadian dollar is probably getting closer to fully valuated and it's hard to see sustained upside. He favours U.S dollar at this time. Sees upside interests rates in the U.S. and sees the economy moving in the right direction. Leaning toward seeing 3 interest rate hikes in the U.S. in 2018.

A Buy or a Sell? A great business. They have a great product trying to facilitate the online merchants transition for small/medium sized businesses. He wouldn’t buy at this point. Had a tremendous run over the last number of years. It’s one they are watching and perhaps on a pull back, they would get an opportunity to buy into it. Valuation seems full at this time. It’s hard to get excited when they don’t see meaningful upside.

This is a company that they own a great deal of and like very much. Their legacy business is Norton Antivirus. They are transforming the business into more business to business application for commercial cyber security. Thinks the new CEO is well positioned to do the transition. It has lagged this year and this is one reason they like it. Very favorable into 2018 and beyond.

This is a company they liked for a long time and they continue to like it. Had their executives in their offices 2 weeks ago to give an update. They are continuing to execute, has been a great compounder for shareholders over the long term. 2017 hasn’t been their best year in their history, but it’s positioned well for 2018. Certainly not a cheap stock, valuation reflects the solid fundamentals ahead, and he thinks it’s a good one to stick with in the long term. Feels comfortable buying at $58, maybe don’t initiate a full position, give yourself room to add more if we do get a broader market sell-off or something specific to CCL Industries.

Doesn’t like. They don’t own any of the banks in Canada. It’s one he would avoid he doesn’t see good upside. Had a nice rebounce coming back from the energy issues that plagued the sector in 2015 and early 2016. If he owned, he would look at trimming and wouldn’t be picking up here. The oil environment has improved and gotten a lot better and thinks Canadian Western Bank is fully valued at this point. It’s a valuation issue, and also a broader issue around the banking sector with valuations, you are paying for the fundamentals, and thinks fundamentals are rather toppy in terms of the credit cycle.

A good time to get into retail? Retail has been a tough spot. A global brand and one that has certainly performed well. Nike has been a beneficiary of the trend in athletic leisure space. He would pay closer attention to Under Armor (UA-N) which has been the laggard. Nike is a good brand around for ages and has generated good returns for shareholders historically.

Valuations is pretty high. He would wait for a better entry point.

They own it and like it very much. Leader in railway ties and utility poles, not the most exciting businesses but very profitable. They are expanding in other verticals such as residential lumbers in the U.S. in particular. 6% free cash flow yields on 2018 numbers. Management has a great track record. Opportunities for growth across different segments. Directors are big shareholders and own 40% of the business still. They have cash flow to increase dividend, but thinks they should be spending their money to allocate capital to best return opportunities for shareholder over the long term.

It’s a business he really likes. One of their favorites in the FAANG stocks. They’ve been very consistent growers and you’re still not paying up considerably to own that growth. They have a lot of different growth drivers. They are a leader in artificial intelligence. He likes their handset business which he thinks hasn’t had much attention and thinks it could eat some of Apple’s share. (Analysts’ price target $1178.)

Really appreciate the way they go about their business. They own great returns and have been great capital allocators. They typically find great opportunities when they find distressed sellers or unique assets to buy. Sold out their holding in the last month or so given the valuation they’ve seen. As had a great run and doubled in the last number of years. (Analysts’ price target $46.64.)