The 10 per cent rule is often applied when comparing things between Canada and the United States. That’s to account for the fact the U.S. population is about 10 times the size of its northern neighbours’s. We’re using a variation of that rule to pluck three of the four Canadian companies – Element Fleet being the other one – that have been chosen for RBC Capital Markets’ Top 30 Global Ideas for 2021, Q2 Update. The stocks have 12-month upside of between 23 and 37%. Here are a few excerpts from that report.
When you started investing in cannabis in 2013 and have been through the initial mania and subsequent bust, and are now observing the renewed investor enthusiasm, your opinion matters. That’s why we asked Bruce Campbell during our live stream show what he learned from the cannabis boom and bust and how he is applying those lessons now to his StoneCastle Cannabis Growth Fund.
We’ve made it easy for you to watch Bruce Campbell talk about his top small cap ideas in case you’d rather not watch the entire replay of our live stream show. The founder and Portfolio Manager of StoneCastle Investment Management gravitated to small cap stocks early in his investing career because he favours emerging companies with accelerating earnings growth. Here are three ideas in plant-based packaging, cannabis, and renewables, each of which fit Campbell’s criteria.
We wrap up our three part interview with Teal Linde, with three investing lessons he absorbed from two legendary investors that he applies to this day. The President & Founder of Linde Equity Inc. says he gleaned invaluable information from a couple of books he read more than 20 years ago that he incorporates into his investment process. Those words to live by have helped Linde consistently outperform the market and his peers over the years.
You’ve heard of 30 for 30. The highly-regarded ESPN documentary series that was started to commemorate the sports network’s 30th birthday but proved so successful ESPN kept on making the documentaries. Well, how about 30 for ’23. Not the same ring, I know. But that’s what Morgan Stanley’s US Equity Strategy team has come up with. 30 stocks to consider owning through 2023 (see full list below). We’ve pared it down to the hi-lights and a more manageable five for ’23 based on a few factors such as the highest estimated growth rates, profit margins and price appreciation. Consider these stocks which could fare quite well through 2023.
Okay, bitcoin has proven a lot of people wrong. It’s price has soared dramatically. Institutions such as Paypal and Square are increasingly incorporating the cryptocurrency into their platforms. Tesla bought $1.5 billion of it and says it will accept bitcoin as payment for its vehicles. We get it. But can’t we wait for bitcoin to get above $100,000 before we start speculating about $500,000 or some other astronomical number? Apparently not. Then again, Teeka Tiwari has every right to speculate. The former Wall Street VP and now Editor of Palm Beach Confidential, started recommending bitcoin in 2016 at $428. That’s a mere 14,200+ appreciation at its recent peak above $61,000. Here’s Tiwari on why bitcoin could reach half a million dollars.
Uncommon Sense Investor visitors continue to discover this article from deep in our archive. So, like a vintage song, we’re reposting it to our front page: Unless you’re a trader, the advice to investors from portfolio managers worth their salt is to own well-managed, dependable, market-leading companies that people touch every day, and to own them for the long haul. So what do you want to own from now until at least 2025? We ask because RBC Capital Markets Global Equity Research team has put together an exhaustive report entitled Imagine 2025: Themes, Opportunities and the “Law of Accelerating Returns”. We’ve plucked some key commentary, a list of 70 stocks from seven sectors, a sub-list of 10 stocks, and a few intriguing charts.
Lots of excellent insight today from Bruce Campbell on his Small-to-Mid Cap investing style. The Founder & Portfolio Manager of StoneCastle Investment Management, who runs the number two ranked Purpose Canadian Equity Growth Fund, and the StoneCastle Cannabis Growth Fund, goes in-depth on how to find winners, and gives investors three top stock ideas. We also have a big announcement about a live cryptocurrency and blockchain show we have coming on April 21, featuring prominent CEOs. Watch the replay here. It starts at 04:55.
Our videos with Chris Mayer remain among our most popular so we’re going back to the well for excerpts from the 100-Bagger author’s latest blog. Mayer is also the co-founder and Portfolio Manager at Woodlock House Family Capital. He gets a lot of questions about how to find stocks that grow 100-fold or more over many years. Here he answers a few of those questions.
We’ve saved the best for last with Paul Harris. This Partner & Portfolio Manager at Harris Douglas Asset Management has discussed how he finds great companies, given investors three “KISS” investing principles, and now presents three top stock ideas. These companies are all leaders in their sectors, have strong growth opportunities, and are well managed.
Paul Harris has learned a lot about investing over his many years in the business in various roles. One important lesson he’s absorbed is to keep it simple. Here are three “KISS” investing principles, from this Partner & Portfolio Manager at Harris Douglas Asset Management, to help you achieve that.
Teal Linde has chosen two undervalued companies that are still trading well below the levels they hit before the market crash last year. And, the President & Founder of Linde Equity Inc., likes the growth runway of this company, which he believes could grow more in the next 10 years than it has in its first 35. Take advantage of these ideas from Linde, who consistently outperforms the market and his peers.
Snappy bowtie. Check. Pink newspaper tucked under arm. Check. Fencing, love of arias and cooking. All of the above. Paul Harris is not your average dude. So it makes sense that he takes a meticulous and particular approach to investing. This Partner & Portfolio Manager at Harris Douglas Asset Management has a strict criteria when it comes to the types of stocks he’ll buy, and the types he’ll avoid. In this conversation, Harris dives into his process, explains how he tunes out the noise of the market, and details a contrarian view on the role of bonds in every portfolio.
Small-to-mid-capitalization stocks or large cap stocks? Either or? Or a mix of both? The evidence is clear that small-to-mid-cap stocks outperform over the long-term and will likely “dwarf” the returns of other asset classes for years to come, according to a report from J.P. Morgan. Eduardo Lecubarri, European Small & Mid-Cap Strategist, and Global Head of Small/Mid-Cap Equity Strategy lists the reasons why and breaks down the myths about these kind of stocks.
There are dozens of investment newsletters in Canada and the U.S. and Mark Hulbert has been tracking the returns on their stock selections for 40 years. The founder of the since wound down Hulbert Financial Digest and now Hulbert Ratings calculates that, over the past 15 years, out of 67 newsletters, the Linde Equity Report has the second-best record of all at an annualized 18.56 per cent. In fact, Teal Linde, since starting his newsletter in 2000, has made about 240 stock selections with an annualized return of more than 24 per cent. Linde started managing money in the early 2000s and launched the Linde Equity Fund in 2016. In this conversation, Linde, a stock market historian, compares the current market to previous manias, panics and crashes, reveals how he unearths winners, and explains his “switching strategy”.
Big, boring and beautiful. There’s a lot to be said for investing in large, established, household name companies. They may be predictable, they may not be sexy, but they sure can deliver strong investment returns. Here are three reliable, large cap stock ideas to anchor your portfolio.
We all know the expression “Don’t count your chickens before they are hatched”, meaning don’t expect something good to happen before it does. Are some investors guilty of that right now? Stocks that will benefit from the reopening economy are soaring with what appears to be a gale force wind combination of fiscal stimulus, low interest rates, stronger earnings and an uncoiled spring of personal savings at their backs. But not every egg is going to be golden. Here’s the monthly commentary from Davis Rea Investment Counsel on the potential for too much of a good thing.
Electric vehicle (EV) stocks have unwound some of their huge gains but remain favourites of momentum investors who have been driving almost anything EV-related higher. This on the belief EVs are the way of the future and the majority of them will succeed in the long run. That’s not how it works with innovative or disruptive new sectors, according to Rob Arnott, founder & Chairman of Research Affiliates. Here is a brief excerpt from his recent article Big Market Delusion: Electric Vehicles, followed by a link to the full, free article, which delves into why not all EVs will be winners long-term.
Value stocks outperforming growth by the most in nearly 20 years, investors spooked by the prospect of inflation, mini manias everywhere from GameStop to SPACS to Bitcoin to the sudden boom in non-fungible tokens (NFTs) as digital artist Beeple sells one of his pieces for $69 million at Christie’s. What’s an investor to do? In times like these, it’s always comforting to turn to someone who’s been through a bubble or two. Here’s our conversation with Zachary Curry, President & Portfolio Manager of Davis Rea Investment Counsel on what investors should be doing in this turbulent market.
Serial entrepreneur Sam Duboc, Chairman & CEO of MindBeacon (TSX:MBCN), and co-founder & Partner at Edgestone Capital Partners, on the importance of the PESST rule, and why companies “can’t thrive if they don’t set themselves up to survive.”
There are thousands, if not millions, of new investors these days. That’s as a confluence of idle time, increased savings, stimulus cheques, a lack of gambling outlets, a legitimate interest in investing, and other factors have resulted in a flood of new investor accounts being opened. Now what? How do new investors navigate the vast landscape that is stock market investing? What’s their plan? How much risk can they tolerate? Are they looking to get rich quick? Do they have patience? For some calm, clear-eyed guidance, how about someone with more than 35 years experience managing other people’s money. Here are three pillars of investment wisdom.
One of the oddities of the pandemic has been the amount of money individuals have been able to save. While acknowledging lower wage workers have been hit disproportionately hard, the U.S. personal savings rate, for example, is at the highest levels in more than 70 years. That should bode well for consumer spending as the economy reopens and pent-up demand is satisfied to varying degrees. That spending should lead to stronger economic growth and could also fuel inflation. Here are some ideas how investors can prepare for those scenarios.
Mother of All Melt Ups, affectionately known by its acronym MAMU, was coined, to our knowledge, by Ed Yardeni, President & Chief Investment Strategist at Yardeni Research. We posted an article on January 11 (link below) about Yardeni’s concern the stock market would get ahead of itself and implode, which would lead to a meltdown. In these excerpts from a blog by Dan Ferris of Stansberry Research, he picks up on that theme, compares the similarities of today’s market with previous bubbles, and advises investors how to prepare for the inevitable end of the party.
(And see below for the latest from Yardeni on MAMU)
See problem. Create solution. Build successful, disruptive company. That’s the classic path of an entrepreneur. But the inspiration for Sam Duboc and MindBeacon (TSX:MBCN) is unique. The co-founder of Edgestone Capital Partners, and co-founder of Loyalty Group (Air Miles), found himself having mental health issues about 10 years ago. His experience with the mental health system provided him with a “there’s got to be a better way” moment. Fast forward to today, Duboc is the Chairman & CEO of MindBeacon, a digital platform providing “affordable, accessible, effective and client-centric” mental health therapy services. From a business standpoint, MindBeacon is expected to continue its boffo revenue growth for the next several years. In this conversation, Duboc explains his journey, how that inspired MindBeacon’s business model, and the company’s growth potential.
We’re not pretending we know the answer to that daunting question. But it should be given deep consideration by investors who plan to surf what many consider to be the current stock market mania (current pullback notwithstanding). It’s something Keith McCullough has given a lot of thought to. The Canadian-raised co-founder of Hedgeye Risk Management has seen a bubble or three in his time and has learned from every one. Here is a snippet of a conversation McCullough had with James Bianco, President & Macro Strategist at Bianco Research, where they bring their experience to the concept of being able to make money quickly in a bubble but knowing when to pull the plug.