Gordon Reid's Top Picks
Gordon Reid, president and CEO of Goodreid Investment Counsel
Focus: U.S. equities
Is the impending reduction in interest rates by the Federal Reserve an insurance policy or a “too little, too late” attempt to stave off a recession? The debate is heated, but regardless, investors need to ensure that their investing house is in order. Is your asset mix on target? Are you diversified geographically, by sector and industry and properly dollar-weighted? Are your portfolio characteristics suitable to weather an economic downturn? You should be asking all those questions now, not later.
Latest purchase on June 2019 at $148.
Strong pricing trends, healthy underwriting results and constructive cost management are leading to improved financial results at Chubb. On the valuation side this issue trades at a reasonable 1.3 times book value, which is not excessive when compared to peers or its own trading history.
WALT DISNEY (DIS.N)
Latest purchase on June 2019 at $13.2.
The long-term outlook for Disney is solid, based on an outstanding legacy platform of media properties and of course their famous parks. Going forward, the tie up with Twenty-First Century Fox, and their announced plans for Disney Plus put them in direct competition with streaming giant Netflix. The market is now reconciling valuation, with Disney trading at a fraction of the valuation of Netflix.
Latest purchase on June 2019 at $108.
Walmart, under the stewardship of Doug McMillon, has been making strategic investments over the past few years which are beginning to bear fruit. Their e-commerce presence is impressive, with roughly equal share to Amazon in the grocery space. Flipkart, their Indian e-commerce initiative, is gaining traction. Look for earnings per share to grow strongly in the coming years.
PAST PICKS: JUNE 7, 2018
- Then: $229.59
- Now: $280.05
- Return: 22%
- Total return: 23%
BOOKING HOLDINGS (BKNG.O)
- Then: $2131.98
- Now: $1854.81
- Return: -13%
- Total return: -13%
Spin-off of Garrett Motion Inc. happened on Oct. 1, 2018.
- Then: $152.09
- Sep. 28, 2018: $166.40
- Return: 9%
- Total return: 10%
Total return average: 7%
Goodreid North American Balanced Composite
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:
- 1 year: 4.1% index, 3.8% fund
- 3 years: 7.3% index, 5.9% fund
- 5 years: 6.6% index, 4.3% fund
Index: Equity Balanced Category Average. Returns are based on reinvested dividends and are net of fees.
- Canadian equities: 32%
- U.S. equities: 37%
- Canadian fixed income: 19%
- Cash: 12%