Tim Regan, Managing Director, Kingwest & Company
Focus: North American Large Caps
Top picks: Amrize, EQB, GFL Environmental
MARKET OUTLOOK:
Markets spent 2025 focused on macro forecasts: tariffs, interest rates, trade agreements, and inflation. The uncertainty this created opened investing opportunities. When investors fixate on macro complexity and near-term concerns, they overlook business fundamentals. That’s where we find value.
The newspapers warn that the stock market is overvalued, citing the S&P 500’s price-to-earnings ratio of 23.3 times versus a 50-year average of 19 times. This headline number is misleading. The Magnificent 7 trades at 30-50x earnings, while the remaining 493 companies trade at an average of 16 times. The market isn’t uniformly expensive; it is bifurcated. The handful of technology giants may be expensive, but the more reasonably priced broader market is not. Plenty of opportunities exist for patient investors willing to look beyond the headlines.
Looking Ahead
Years like 2025, where the market composition favours areas we systematically avoid, are inevitable. Our approach faced headwinds during the commodity surge, as it has in past booms. These periods will normalize, and patient investors who stay disciplined have historically been rewarded.
Our portfolio is built around businesses with enduring qualities: defensible competitive positions, recurring cash flows, high barriers to entry, and management teams focused on long-term value creation. As these businesses continue to execute and compound value, their quality will ultimately be reflected in stock performance.
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TOP PICKS:
Amrize (AMRZ NYSE)
Amrize engages in the provision of various building solutions for infrastructure, commercial, and residential construction markets in North America. It operates through two segments, building materials and building envelope.
The building materials segment offers cement and aggregates, as well as ready-mix concrete, asphalt, and other construction materials. The building envelope segment provides advanced roofing and wall systems.
EQB (EQB TSX)
EQB Inc., provides personal and commercial banking services to retail and commercial customers in Canada. It accepts term deposits, guaranteed investment certificates, high-interest savings accounts, institutional deposit notes, and covered bonds, as well as specialized financing solutions. The company also offers single-family residential mortgages, reverse mortgages, and home equity lines of credit, as well as insurance loans.
GFL Environmental (GFL NYSE)
GFL Environmental Inc. provides non-hazardous solid waste management and environmental services in Canada and the United States. The company operates through solid waste and environmental services segments. It offers hauling, landfill, transfer, and material recovery facilities; and liquid waste management and soil remediation services, including collection, transportation, transfer, recycling, and disposal services for municipal, residential, commercial, and industrial customers.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AMRZ NYSE | Y | Y | Y |
| EQB TSX | Y | Y | Y |
| GFL NYSE | Y | Y | Y |
PAST PICKS: Nov. 19, 2025
Strathcona (SCR TSX)
Then: $42.81
Now: $26.08
Return: -39%
Total Return: -15%
Quebecor (QBR.B TSX)
Then: $52.40
Now: $50.88
Return: -3%
Total Return: -2%
Blackstone (BX NYSE)
Then: US$138.65
Now: US$136.44
Return: -2%
Total Return: -2%
Total Return Average: -6%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SCR TSX | Y | Y | Y |
| QBR.B TSX | Y | Y | Y |
| BX NYSE | Y | Y | Y |
