Feb 1, 2023
Robert Gill's Top Picks: February 1, 2023
Robert Gill's Top Picks
Robert Gill, senior vice president and portfolio manager, Goodreid Investment Counsel
FOCUS: Canadian large caps
As we start 2023, it’s necessary to understand why 2022 was very different than previous years over the past decade. There are three reasons for this:
- After decades of low inflation, in 2022 it roared back.
- Central banks hiked interest rates at the fastest pace in decades.
- Fears of a recession evolved.
So the investment environment changed. When this happens, we make changes to our portfolio.
To prepare for 2023, we made three key changes.
- Increased the quality of our holdings in the portfolio.
- Increased the number of holdings in our portfolio
- Shifted into better value companies.
We are very pleased with our performance in 2022 at Goodried. Now, we are early in 2023 with a materially different portfolio than we had in 2022. Regardless of the investment environment, our philosophy and process at Goodreid remain the same. We buy high-quality, blue-chip companies, at attractive valuations and employ active risk management.
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This is a familiar brand that trades at attractive valuation multiples and offers an impressive 4.3 per cent dividend yield.
Shares of this well-run pipeline declined after cost overruns at one of its projects, presenting a buying opportunity. It trades at 13X P/E and offers a 6.5 per cent dividend yield.
Brookfield Corporation (BN TSX)
Brookfield recently had a pullback in the share price. Currently offers a good buying opportunity for a company with diversified assets and a good management team.
PAST PICKS: November 30, 2022
Richelieu Hardware (RCH TSX)
- Then: $39.01
- Now: $39.63
- Return: 2%
- Total Return: 2%
BCE (BCE TSX)
- Then: $64.06
- Now: $63.19
- Return: -1%
- Total Return: 0.1%
Bank of Nova Scotia (BNS TSX)
- Then: $70.18
- Now: $72.34
- Return: 3%
- Total Return: 5%
Total Return Average: 2%