Gordon Reid, president and CEO of Goodreid Investment Counsel
Focus: U.S. equities

MARKET OUTLOOK

Defensive equity issues are fading as two powerful forces take hold. First, the economy appears to be getting its second wind, leading to a resurgence of cyclical issues. Secondly the “growth” part of the market has prevailed for most of this cycle and is looking expensive and tired. Conversely, value issues are far less expensive.

TOP PICKS

Gordon Reid's Top Picks

Gordon Reid, president and CEO of Goodreid Investment Counsel, discusses his top picks: Alphabet, Masonite International, Sherwin-Williams.

ALPHABET (GOOG:UW)
Last purchased in December 2019 at $1,306.

Google continues to impress, as we expect revenues next year to grow by 18 per cent year-over-year, on an annual run rate of $188 billion. Although revenues and earnings are growing at a nice clip, Alphabet’s current stock price allows for an attractive entry point. Research and development spending of $20 billion is resulting in exciting, new money-generating products. Expect $59 in earnings per share in 2020.

MASONITE INTERNATIONAL (DOOR:UN)
Last purchased in September 2019 at $56.

Masonite is a leading worldwide manufacturer of interior and exterior doors, having last year achieved sales of 35 million doors in 65 countries. Margins and profitability are poised to accelerate rapidly on the back of a very strong housing market and a restructured business.

SHERWIN-WILLIAMS (SHW:UN)
Last purchased in December 2019 at $578.

Household formations are skyrocketing and the interest rate pause is giving housing a boost. Combined with high employment numbers, strong consumer confidence and advancing real wage growth, Sherwin-Williams is in a sweet spot. Their Valspar purchase of two years ago is fully integrated and earnings are advancing at a rapid 12 per cent rate.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
GOOG Y N Y
DOOR N Y Y
SHW Y N Y

 

PAST PICKS: DEC. 19, 2018

Gordon Reid's Past Picks

Gordon Reid, president and CEO of Goodreid Investment Counsel, discusses his past picks: Apple, FedEx, Visa.

APPLE (AAPL:UW)

  • Then: $160.89
  • Now: $281.86
  • Return: 75%
  • Total return: 78%

FEDEX (FDX:UN)

  • Then: $162.51
  • Now: $148.37
  • Return: -9%
  • Total return: -7%

VISA (V:UN)
Sold Visa in September 2019.

  • Then: $131.26
  • Now: $187.73
  • Return: 43%
  • Total return: 44 %

Total return average: 33%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
AAPL Y N Y
FDX Y N Y
V N N N

 

FUND PROFILE

GOODREID NORTH AMERICAN BALANCED COMPOSITE

Performance as of: Sep. 30, 2019

  • 1 year: 3.0% fund, 3.9% index
  • 3 years: 7.9% fund, 4.4% index
  • 5 years: 6.6% fund, 4.1% index

INDEX: Equity Balanced Category Average. Returns are based on reinvested dividends and are net of fees.

TOP HOLDINGS

  1. Canadian equities: 32%
  2. U.S. equities: 37%
  3. Canadian fixed income: 19%
  4. Cash: 12%

WEBSITE: Goodreid.com
TWITTER: @goodreidinvest