Gordon Reid, president and CEO of Goodreid Investment Counsel
Focus: U.S. equities
MARKET OUTLOOK
The titanic struggle within the market is between macro issues, which include areas such as trade wars and geopolitical tensions, and earnings, which are the fundamental support for stock prices. Both are creating turbulence, but in the final analysis macro issues are transitory in nature, whereas earnings are the building blocks of strong corporations and the ultimate basis for pricing securities.
TOP PICKS
CVS HEALTH (CVS.O)
Latest purchase: July 2018 at $67.
CVS has been out of favour, but Goodreid is excited for their future. The Aetna merger should be completed later this year and will increase customer touch points. With over 10,000 storefronts, they have a presence within three miles of 70 per cent of the American population. Their plan is to be a health solution, offering insurance, medical consultation and care, and prescription and over the counter medicines and products.
ALPHABET (GOOGL.O)
Latest purchase: August 2018 at $1,224.
Google continues to impress, growing revenues in the most recent fiscal quarter by 26 per cent year over year. A review of the trading pattern of Alphabet illustrates a very stable trajectory, giving investors’ confidence that price movements will closely match the growth of fundamentals. Research and development spending of over $16 billion is resulting in exciting, new money-generating products. Expect over $50 in earnings per share in 2019.
MCDONALD’S (MCD.N)
Latest purchase: August 2018 at $159.
With 37,000 restaurants, 92 per cent of which are franchised, McDonald’s is a cash machine, making money from lucrative lease payments and a revenue stream that’s driven by solid organic growth. Menu innovations and cost-effective automated order/pay systems are driving earnings. McDonald’s recently announced a $6 billion initiative to improve their store base.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| CVS | Y | N | Y |
| GOOGL | Y | N | Y |
| MCD | Y | N | Y |
PAST PICKS: SEP. 19, 2017
CELGENE (CELG.O)
- Then: $143.47
- Now: $90.88
- Return: -37%
- Total return: -37%
LEAR (LEA.N)
- Then: $166.30
- Now: $175.54
- Return: 6%
- Total return: 7%
PRICELINE GROUP (PCLN.O) – now BOOKING HOLDINGS (BKNG.O)
- Then: $1,859.78
- Now: $1,891.68
- Return: 2%
- Total return: 2%
Total return average: -9.33%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| CELG | Y | N | Y |
| LEA | N | Y | Y |
| BKNG | Y | N | Y |
FUND PROFILE
Goodreid’s North American Balanced Fund
Goodreid’s balanced approach allows investors to participate in the potential growth of equity holdings while mitigating risk through ownership of quality fixed income instruments.
Performance as of: June 30, 2018
- 1 year: 8.9% fund, 4.2% index
- 3 years: 7.3% fund, 4.3% index
- 5 years: 9.9% fund, 6.5% index
* Index: Globe Canadian Equity Balanced Peer Index Average
TOP HOLDINGS
- Canadian equities: 33%
- U.S. equities: 40%
- Canadian fixed income: 17%
- Cash: 10%
WEBSITE: https://www.goodreid.com/
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