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

MARKET OUTLOOK

After setting a torrid pace in the early part of the year, the equity markets have grown skittish in the face of trade tensions, uncertainty over the direction of interest rates and politics. Largely transitory issues, this is the type of backdrop that creates opportunities to take advantage of what is likely to be nothing more than emotionally charged rhetoric.

TOP PICKS

Gordon Reid's Top Picks

Gordon Reid, president and CEO of Goodreid Investment Counsel, shares his top picks: Charles River Laboratories, Alphabet and McDonald's.

CHARLES RIVER LAB (CRL.N)
Latest purchase on February 2019 at $126.

Charles River Labs is a contract research organization which works with large pharmaceutical firms to complete clinical drug testing, as well as discovery and safety testing. The company recently completed a half billion dollar European acquisition, further strengthening their earning power.

ALPHABET INC (GOOG.O)
Latest purchase on May 2019 at $1,155.

Google continues to impress, growing revenues in the most recent fiscal quarter by 16 per cent year-over-year on an annual run rate of $160 billion. Although revenues and earnings are growing at a nice clip, the stock price has stalled somewhat allowing for an attractive entry. Research and development spending of over $20 billion is resulting in new and exciting money-generating products. Expect over $53 earnings per share in 2019 and $60 per share in 2020.

MCDONALD’S CORP (MCD.N)
Latest purchase on May 2019 at $199.

With 38,000 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 is driven by solid organic growth. Menu innovations and cost-effective automated order/pay systems are driving earnings growth.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
CRL N Y Y
GOOG Y N Y
MCD Y N Y

 

PAST PICKS: JUNE 7, 2018

Gordon Reid's Past Picks

Gordon Reid, president and CEO of Goodreid Investment Counsel, reviews his past picks: Anthem, Booking Holdings and Honeywell.

ANTHEM (ANTM.N)

  • Then: $229.59
  • Now: $277.55
  • Return: 21%
  • Total Return: 22%

BOOKING HOLDINGS (BKNG.O)

  • Then: $2131.98
  • Now: $1684.54
  • Return: -21%
  • Total Return: -21%

HONEYWELL (HON.N)
Sold in Sep. 18 at $166. The following numbers include the spinoffs with Garrett Motion Inc (GTX.N) and Resideo (REZI.N)

  • Then: $152.09
  • Now: $165.53
  • Return: 12%
  • Total Return: 14%

Total return average: 5%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
ANTM Y N Y
BKNG Y N Y
HON N N N

 

FUND PROFILE

Goodreid North American Balanced Composite
Performance as of: March 31, 2019

  • 1 year: 4.1% fund, 3.8% index
  • 3 years: 7.3% fund, 5.9% index
  • 5 years: 6.6% fund, 4.3% 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: https://www.goodreid.com/