The Canadian Investor - A look at our stock portfolio and watchlist

Episode Date: September 7, 2020

In this episode of the Canadian Investor Podcast we discuss some of our stock holdings and what companies we have on our watchlist.Tickers of stocks discussed : BAM-A.TO, BEP-UN.TO, BIPUN.TO, TDOC, PYPL, MA, V, ADSK, ROP, CSU.TO, SQ, BLK, MCO, X.TO, GOOG, AAPL, ATVI, TCEHY, ISRG, AAXN, PSCT--- Send in a voice message: https://anchor.fm/the-canadian-investor/messageSee omnystudio.com/listener for privacy information.

Welcome back into the show. This is the Canadian Investor Podcast, made possible by our friends and show sponsor, EQ Bank, which helps Canadians make bank with high interest and no fees on everyday banking. We also love their savings and investment products like GICs, which offer some of the best rates on the market. I personally, and I know Simone as well, is using the GICs, which offer some of the best rates on the market. I personally, and I know Simone as well, is using the GICs on a regular basis to set money aside for personal income taxes in April of every year. Their GICs are perfect because the interest rate is guaranteed, and I know I won't be able to touch that money until I need it for tax time. Whether you're looking to set some money aside for a rainy day or a big purchase is

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I'm Brayden Dennis, joined by my co-host, Simon. And you guys will have to forgive me. I sound really sick. I'm not. I'm not sure what's going on. Simon joked about the potential Rona. But maybe I'm hitting puberty, Simon. That could be a possible reason why. Yeah, yeah. I mean, I wouldn't disagree. You're much younger than I am. This is true. But you're still a young lad in the grand scheme of things.

in the grand scheme of things. Yeah, exactly. So today, before we move on, let's talk about Zoom's absolutely outrageous quarter, the big headline, over 350% in revenue growth from Q2 last year. This has obviously become a household name. And when companies become the verb, in this case for video communication, that typically means it has staying power. Do you agree with that case here in Zoom, other than the results kind of speak for itself here?

Yeah, I mean, the results do speak for themselves. It's kind of hard to argue with that. I think we were texting yesterday about it. The one thing I would be careful is because the valuation is so rich for Zoom right now. And, you know, granted, I think it's a really good company. But at the same time, they're playing in a field that has some huge players that have pretty much infinite pockets, like not infinite, but huge deep pockets where they're competing with cisco has webex microsoft who has teams and then they're also competing with google who started entering that space as well so that's the one kind of not red flag but definitely a risk that you know those companies could just decide to just you know just pour some money in there and potentially dethrone Zoom video communications. I mean, yeah, I see that as a potential risk. I mean, when you look at the company, you think,

okay, there's two main concerns with buying shares. One is that the valuation has now gone quite rich. And two, that their competition is Microsoft and Google primarily, and then Cisco as well. And you think, oh, wow, those companies have infinite amount of capital, it seems like. And I guess the counter argument to that is that those companies both already existed pre-COVID. They already had it i think skype kind of like microsoft skype like blew a massive lead on this uh teams was a good product that came out but it seemed like they didn't care enough about it until um they had to

and i think they did a good job but but, uh, zoom did a better job. It seems like, and it has become the verb. Um, and this comes down to what Simon and I were talking before we started taping this episode is that like valuation ratios across the board, especially in tech are really high. across the board, especially in tech, are really high. Price of sales of not only it being like 50x, but forward time sales of 50x. The risk that people need to consider when entering positions at these levels

is when they trade so high compared to earnings and sales is you can get a situation. And I'm not saying this is the late nineties, 2000 tech bubble. I'm not saying that. I think, I think it is different, but in the realm of outcomes that it kind of just does nothing for 10 years because it was already so high is possible. Microsoft from 2000, I think it's 2002 to that 2016. During those 14 years, you held the stock with not a single positive return. Because it the the multiple was so so high before high before that eventually crashed. And then Microsoft was a phenomenal company during all of that time. But that is in the realm of potential outcomes when companies have such high multiples.

Yeah, exactly. And it's just for people to be aware. If you want to start a small position in a company you really love, by all means do so. But you should be weighing your position accordingly. You know, as much as I think Shopify is a great business, I would not put 50% of my portfolio in there. Because like Brayden mentioned, there's so much baked in into the growth of these companies. There's so much baked in into the growth of these companies where, for example, you could have a company that people are projecting that will grow its revenue, double them for the next five years. That's what people are projecting. Well, if that company within those five years grows their revenue by, say, 75% instead of doubling them, the stock's going to take a huge hit because the doubling was baked in the price.

And even though the company's still doing really well, like Brayden just said, that could really impact the stock big time and could take several years for the stock price to recoup from that. 100%. So some of the companies we're going to talk about on this episode this is kind of like what's on our radar and what are we holding uh this is a sneak peek into simon and i's portfolios and what we're looking at simon i'm gonna let you go first with uh i'm gonna point out two names that i know you're gonna talk about because I know that they are not only

Canadian but we've talked about them a lot and it is part of the umbrella of companies that we just absolutely love yeah so I mean I guess I'll get started unless you wanted to you know to talk about those two names now but feel free to just jump in so my my top holdings, so I'll give you guys the percentages. I won't give you the actual amounts because I kind of want to keep that to myself. We know you only own one share in each, Simon. It's okay. Okay, perfect. That's it. So yeah, the first one, my top holding. So this is across my TFSA. So this is like I calculated the total value of my whole portfolio. So it includes my TFSA, my RRSP, my locked-in RRSP, but also my pension with my work. For my work pension, it's all index funds.

So obviously, the percentage might sound a bit high right now. But keep in mind that I do have a large portion in index funds with my defined contribution pension. So my top stock in terms of percentage is BEP. Are you surprised, Brayden? Not even slightly. So that one is actually 17.5% of my total portfolio. It's uh with Teladoc probably my biggest gain in terms of money gain not percentage wise Teladoc definitely takes the lead for that I've made over 125% with my investment in BEP so I started and most of my investments started in mid-2017. And for whatever reason back then, the renewable stocks as a whole, the sector was really low. I bought BEP when it was paying like most of my shares, like 6.57% dividend.

So I can give you an idea how much in terms of the returns I've had. I've reinvested those shares and I got Terraform Power. Of course, I've got PEP shares from the merger with Terraform Power and Terraform Power I got at a really low price I had already more than doubled my money on that before the merger so I won't go into detail with BP because we've talked about it before and I think you guys know what they are and if not you can just go back to a previous episode and I think you guys know what they are. And if not, you can just go back to a previous episode. Any comment on that, on BEP, Brayden?

No, it's an incredible company. They're able to pull off renewable energy projects at scale because of the amount of capital that not only Brookfield as a larger corporation, but BEP has available. And, you know, these are the best guys in the biz. They run an extremely tight ship. Yeah, so my second largest holding, you can probably guess that one. It is Teladoc. So that is just under 10% of my whole portfolio.

Of course, I really believe in Teldoc and the future of telehealth and the recent merger agreement between them and Livongo, I think will just, for the long term, will just be, you know, a huge tailwind same thing as BEP. It's overseen by Brookfield Asset Management, of course. Really love that company, Stable Cash Flows. They've recently bought telecommunication assets in India, which I really like because that's a growing market. And it's also telecoms I think will keep growing. So I mean, what's not to like about BEP, right, Brayden? Yeah, I mean, it's same way I like BEP. I mean, it's a well-run company. Yeah. And sorry, I said BEP, but I meant

BIP for that one. I know you meant BIP. In case someone's like, oh, what is he talking about? But I digress. The next one would be Square. So Square at 3% of my portfolio. Square has been one of my best performers. I'm sure everyone should be pretty familiar with Square. If you're not, Square really started as those little device that you would see in like farmers markets and stuff like that on people's like iPad or iPhones that would allow you to swipe your credit card. But they've really grown into a much larger payment company. There's not as big as PayPal, but definitely a lot to like. They're run by Jack Dorsey, who's also the CEO of Twitter.

Not sure if I would invest in Twitter though, but I do like what he's done with Square as a whole. And if you guys want us to go a bit more in detail with Square, we might be able to do maybe a part two payment episode at some point and talk about other payment companies. As do-it-yourself investors, we want to keep our fees low. That's why Simone and I have been using Questrade

as our online broker for so many years now. Questrade is Canada's number one rated online broker by MoneySense. And with them, you can buy all North American ETFs, not just a few select ones, all commission-free so that you can choose the ETFs, not just a few select ones, all commission-free so that you can choose the ETFs that you want. And they charge no annual RRSP or TFSA account fees. They have an award-winning customer service team with real people that are ready to help if you have questions along the way.

As a customer myself, I've been impressed with Questrade's customer service. Whenever I call or email, every support rep is very knowledgeable and they get exactly what I need done quickly. Switch for free today and keep more of your money. Visit questrade.com for details. That is questrade.com. Calling all DIY do-it-yourself investors. Blossom is an essential app for you. It has been blowing up with now more than 50,000 Canadians plus and growing who are using the app. Every time I go on there, I am shocked. The engagement is amazing. This is a really vibrant community that they're building. And people share their portfolios, their trades, their investment ideas in real time.

And it's all built on the concept of transparency because brokerage accounts are linked. And then once you link your brokerage account, you can get in-depth portfolio insights, track your dividends, and there's other stuff like learning Duolingo style education lessons that are completely free. You can search up Blossom Social in the app store and join the community today. I'm on there. I encourage you go on there and follow me, search me up. Some of the YouTubers and influencers and podcasters that you might know, I bet you they're already on there. People are just on there talking, sharing their investment ideas and using the analytics tools. So go ahead, Blossom Social in the app store and I'll see you there.

So go ahead, blossom social in the app store, and I'll see you there. If we're moving on to my holdings as well, that should reinforce the fact that we need a breakdown on just payments in general, because as I list mine off, you'll realize that we are both very aligned on companies we like in the payment space. And we see huge, huge global runway for growth atop this large secular trend with cash being dead. So if you're if you're wrapped up, I'm going to rifle through a couple companies myself, I have nine that I'm going to talk about. Yeah, the last thing I wanted to add, so I have about five, six other companies that are just close to 3%. So just to just rapid fire some of those holdings. So Apple, MasterCard, Visa, Canadian National, REL. So those are just some

holdings. They're very close in terms of percentage to what I have. But I think you'll talk about some of the ones I just mentioned in your holdings. Well, the first two for sure. I believe the first two you just said, pardon me if I'm wrong, is MasterCard and Visa. Yeah, that's it. MasterCard and Visa are the two largest positions in my portfolio. And I'm not alone on that. I know a lot of people are super, super bullish on the both of them. And the runway for growth for them globally is just unbelievable and i think they're actually cheap i do think they're currently cheap took uh until like two weeks ago last week for some of them to break all-time highs compared to their drop from the march pandemic and wow these companies are just firing on all cylinders they're seeing a huge recovery i mean

they had down quarters from global consumer spending down during the pandemic and during the lockdowns but now they're seeing a big rebound in volume so mastercard and visa when i talk about them i talk about them as one singular investment thesis and i would just prefer to own both of them if mastercard like some people think is growing faster in emerging markets and that's why there's a higher premium on it if that's true i want to be i want to be part of that growth and then if visa continues to have the largest market share i want to be part of that growth. And then if Visa continues to have the largest market share, I want to be part of that growth. So they're both, they have such, such long rate, long runway for growth. The leader in payments, they're collecting a small, small percentage on every transaction, e-commerce,

in-store, and this pandemic has just accelerated the transition to cash is dead. Cash was already dead. Now it's super dead. Like when's the last time you used cash to pay something for a sign? Have you used cash to pay for something since the pandemic started? I actually have once. We went to a driving range for golfing and they only took cash. So that is the last, the only time I know. And I just happened to have like, I think 30 bucks in my wallet that had been there for like five months. So yeah, I was really lucky. That's the only time I've used it. That's the only time I've used it.

That's hilarious. I didn't think anyone had used cash since, but there we go. They both have incredible free cash margins, but I got a lot of companies to go through. We did a full, or I did a full pitch on MasterCard and Visa on this show at some point, so go back on those episodes, at least 10 episodes, 15 episodes ago. All right, next, you know I'm bullish on vertical software acquirers. This one is Roper Technologies. Very, very similar business model as Constellation

Software, which is also a position of mine, but not as large as Roper. Roper is the US equivalent, essentially, about $45 billion in market cap, cap so they become a quite large company very well managed acquirer of niche vertical software they grab recurring revenue software big acquisitions they just closed an acquisition over 5 billion insurance insurance software as a service and software acquisitions at large scale. They just did that entire deal with cash. And with low interest rates, this business model really, really works. Because they're able to get really high returns on invested capital with really, really cheap money. So if you're looking for an equivalent in Canada, Constellation Software is also an incredible acquirer.

And been a like 80 bagger since IPO. Constellation, I was checking the other day, 80 bagger since it IPO in 2006, which is absolutely nuts. Another really, really great company and another duopoly is Moody's Corporation. They have a duopoly on rating credit with S&P Global. And their risk analytics software is really, really good. There's a lot of debt that needs to be rated in the next coming years, a lot of it coming due. And this duopoly on credit and bond market rating is just such a good business.

It's capital light, this service uh and there's only two names in the in the in the game and and moody's gonna continue to be a incredible company um before we move on any comments on roper moody's payments because i have one more payments company uh no no go for it i mean uh we'll finish off with some of the companies we're looking at or that we have on our watch list so i'll probably mention a few names there but nothing with that to what you mentioned one more that is a very large position is simon mentioned the two uh subsidiaries of brookfield which is the Renewable Energy Partners, BEP, and then Brookfield Infrastructure Partners, BIP.

I prefer to own the holding company, which is listed not only on the New York Stock Exchange, but also the Toronto Stock Exchange, which is Brookfield Asset Management, the holding company, which owns a controlling stake, like 60% roughly in BEP, for example. So that one does well brookfield also does well brookfield is really cheap right now because people do not like brookfield uh property partners bpy and we've talked about it on this podcast there's reason to not be a huge fan of commercial real estate right now but for it to be dragging down Brookfield asset management as a whole right now, the valuation, I believe you're getting the asset management business, which I believe to be one of, if not the best segments of the entire business

completely for free at this price. And, um, that business is incredible because there's demand for alternative assets that produce yield globally. This low interest rate, global infrastructure growth is really, really positive tailwinds and ask for a better management team. I dare you, it'll be hard to find it. Other companies on my watch list, two more involved in payments is one that i know you own is tencent the chinese massive company even at this size i still think there's a huge long way wrong long runway for growth even if it's just in china there's a really really nice tailwinds in their ecosystem of gaming payments and the smartphone messaging application yeah i also i also heard there's a lot of people in china so

that that should help there's a couple people there yeah i believe there's a few few people in china and that growing middle class is just going to be really positive for tencent i see tencent just continuing to be it's a big company that i think is just going to turn really positive for 10 cent i see 10 cent just continuing to be it's a big company that i think is just going to turn into a absolutely massive company um if 600 million in market cap wasn't already massive enough uh and then paypal you talked about square i like paypal just a little more uh but not by much i think if you were to own the basket of paypal square mastercard and visa you will do very very well their quarter i think flew under the radar of being like insanely good uh the like the first pandemic quarter for them with over 200 billion in payments in this, in the ecosystem, like 230 billion.

And that ecosystem, what I think is undervalued is someone in myself, who's in software as a service with my business, um, and Stratosphere 2 coming out is there's a lot of other businesses like affiliate marketing programs. Um, There's a lot of them being the payment software provider for companies collecting payments, not just in e-commerce retail, but in that other type of e-commerce that I think Stripe is the obvious leader in. PayPal has made a lot of advancements in that area and that the market i don't think really gives credit for it uh so that's something to consider and then uh another five i'm gonna rifle off here autodesk number one in my in my watch list it's the leader in design software

for engineering architecture and construction very sticky, successful transition into software as a service from the licensing model. And AutoCAD is not new, but it is still dominant. All my friends in engineering basically say there's pretty much no solid all-in-one solution than a subscription to Autodesk. I think BlackRock, another massive company, BLK, has a long runway for growth in passive management products like ETFs. They have so much assets bearing fees. And the growth rate lately has been kind of underwhelming considering

those tailwinds but i think is going to accelerate and that's a that's another massive company that i think is going to become more massive speaking of massive companies really really hard and i know we've been texting back and forth it's's really, really hard to not like Alphabet. Since they've been separating revenue streams, showing the strength of YouTube, showing the strength of Google Cloud, is there a larger, stronger, wider moat in the world than Google Search? I'd be interested for someone to, to, to debate that the ecosystem is so important and intertwined with our modern life. Like I said, long runway for growth, not only in the search, the advertising, but also in the YouTube and cloud. Um,

I just think that this moat is so strong. If your business is not seen on Google, I just think that this moat is so strong. If your business is not seen on Google, you're relevant. Like the saying goes, they hide the dead bodies on the third page of Google because you will never be seen. Two more picks. Activision Blizzard. I still think there's a huge runway for growth in gaming and esports. They can just take all their current games, make them mobile games and pull that lever. And that's what they've been doing.

And it's been really successful. Mobile gaming is growing at a much faster clip than the rest of gaming. New console cycle coming out. Gaming is still just so untapped. And it's going to be a bigger, bigger part of what people do. And not to mention the continued success of flagship game Call of Duty. If you were to look at what the largest selling game is over the last decade, every year, Call of Duty, I believe, is 8 of 10 of those years, which is pretty remarkable

and shows how good the staying power of that game is. Last pick before I run out of breath. And I know this is one that we've talked about before and that I know you like is intuitive surgical. This is a leader in robotic surgeries. They continue to take market share in the surgery industry. And they have such a tiny fraction of surgeries globally in the US. And they're going to take more and more of that. Their DaVinci surgical system is years ahead of the competition. And the part that's really interesting is, it's kind of like the company you were mentioning before or did you even mention axis uh no i haven't i'll get yeah okay to that idea

talk about axis because this is another thing where thanks for ruining the surprise huh i did not i had to like think about that second. Um, this is very similar spoiler alert to what Simon's going to talk about is their hardware, the robot, once it's in the hospital, they have this recurring revenue is really sticky recurring revenue of, of a constant now revenue stream from that hospital on all the equipment and the consumables in surgery that have outrageously high margins. So intuitive surgical, the company like gross margin every year on the whole revenue is close to 70% for something that is hardware seems insane, but that's because of that recurring revenue model. Once they get that really, really innovative surgical robot inside of the hospital, it's very, very sticky and produces revenue for a long, long time to come.

So spoiler alert, give us another something that's on your radar right now. Yeah, so there's quite a few more on my radar, but there's a lot of them that I already talked about on previous episodes. I wanted to come up with something a bit fresher, a bit new. So the one I'm currently looking at right now, and I'm seriously thinking of starting a position probably in the next few weeks, I just need to dig in a bit more into the financials, listen to a bit more conference call. Drum roll, it's Axon Enterprises, so the ticker is A-X-N. So you're probably wondering what the hell is that. It's actually, it used to be known as Taser.

So that'll give you guys a good idea of what they do. So they do law enforcement equipment. So yes, they still do taser guns. They actually also do body cameras. And that's one of the big reasons why I do like them. Because what they do is they'll sell those body cameras, for example, and then law enforcement will subscribe. So they'll actually get SAS revenue, so reoccurring revenue, because they'll be storing that information securely in the cloud. They can also, they also have services to store evidence, and they have the optionality for different law enforcement departments to share information across

the country and the states, for example. And I know some of you might think, okay, like, why would, you know, depending on, you know, the unrest that's going on in the US? Well, I actually think Axon could do a really good thing there. Because what's been happening is, since the start of the pandemic, management has said that they weren't sure if law enforcement as a whole would be investing in their products as much as they anticipated when the pandemic started because of budget concerns. But now as the social unrest started in the US and has escalated, they've really seen an uptick because now law enforcement is the stage there's much more of a demand to be transparent. And especially with the the body cameras it really allows law enforcement to

give that level of transparency whenever there's issues with law enforcement and it does give them that reoccurring revenue and one of the most interesting thing is their their revenue their reoccurring revenue is actually over a hundred this year. So what this means is the ones that are currently subscribing to their services are actually staying put but also getting more services. So that's always a great sign. We can do a deep dive into this later on. I still haven't done all the research regarding that company but given what's happening and they do have a presence internationally as well I think the the runway is pretty pretty long for that that company going forward and they shifted to that SAS model in the around 2013 if I remember

correctly so it took some time for that to get into effect. But now they're seeing more and more that their product is stickier than ever. And just the solutions that they offer, I think what's going on in 2020, and probably the years beyond, to me, it's a, it's a bit of a no brainer. And even if you think about defunding the police, well, a lot of defunding the police is actually just reallocating those funds into other things but there's still plenty of funding that will go to the police in the states and that's what they've been seeing and their goal is really to yeah help police department law enforcement give more transparency so i mean i think that one is a really interesting play and i'll do a bit more research and we can

always do a deeper dive on it so that is one that's on my watch list and it's actually we talked about this before uh brayden it's trading at only what 9.5 10 times sales oh you know yeah just a casual low multiple of 10 times sales yeah I think it's mostly because people are either not familiar with it, or they still see them as strictly that taser company. They still have a pretty small market cap, like they're still kind of small cap territory with just slightly below $6 billion US. So definitely an interesting play there compared to some of the other valuations we're seeing a bit more in the tech space. And they have zero debt. They do have some liabilities, but a really good looking balance sheet as well. So that got me pretty excited when I looked into

them. So something to keep you guys on the watch list. Any comment on this one, Brayden? you guys on the watch list. Any comment on this one, Braden? Yeah, if it's only about $6 billion, like you mentioned, this sounds like a company that's going to be a lot bigger in the future. And the Canadian investor does not get political whatsoever in any way. But we can both agree on that given the current environment, there's probably an increased need for transparency in law enforcement. So I could see them benefiting from that tailwind. And if they are able to achieve that, that's a great thing. Yeah, and what they've shown is when you have that law enforcement agency into that direct ecosystem they've really shown that it's been sticky so really interesting play all

that to say the other thing that I've been buying not really a watch list because I've been buying it is the PSC T the Invesco S&P small cap information technology. So it's a small cap ETF for small companies. And it has a 0.29 management ratio. So it is reasonable. So that's a way for me to just get a little skin in the game for small tech companies that I would not be aware of, but that could potentially become big in the future. So that is one that I've been adding a few shares every month. And because Questrade doesn't charge for ETFs for purchases, then it's something I can do. So that's kind of, in a nutshell, my portfolio,

but also some of the things I've been looking at. As do-it-yourself investors, we want to keep our fees low. That's why Simone and I have been using Questrade as our online broker for so many years now. Questrade is Canada's number one rated online broker by MoneySense. And with them, you can buy all North American ETFs, not just a few select ones, all commission free so that you can choose the ETFs that you want. And they charge no annual RRSP or TFSA account fees. They have an award-winning customer service team with real people that are ready to help if you have questions along the way. As a customer myself, I've been impressed with Questrade's customer service. Whenever I call

or email, every support rep is very knowledgeable and they get exactly what I need done quickly. Switch for free today and keep more of your money. Visit questrade.com for details. That is questrade.com. Calling all DIY, do-it-yourself investors. Blossom is an essential app for you. It has been blowing up with now more than 50,000 Canadians plus and growing who are using the app. Every time I go on there,

I am shocked. The engagement is amazing. This is a really vibrant community that they're building. And people share their portfolios, their trades, their investment ideas in real time. And it's all built on the concept of transparency because brokerage accounts are linked. And then once you link your brokerage account, you can get in-depth portfolio insights, track your dividends, and there's other stuff like learning Duolingo style education lessons that are completely free. You can search up Blossom Social in the app store and join the community today. I'm on there. I encourage you go on there and follow me. Search me up.

Some of the YouTubers and influencers and podcasters that you might know, I bet you they're already on there. People are just on there talking, sharing their investment ideas and using the analytics tools. So go ahead, Blossom Social in the app store and I'll see you there. That's an interesting way to play small caps and i've thought about this a lot but i've never never done it so it's good to see that you're executing on that because one yeah you can just dollar cost average it on it really easily and

frequently with the free etf purchase but also um how are you supposed to know you said there's what 75 holdings roughly yeah yeah 75 holdings yeah yeah the chances of you knowing even just a few of those names is very very small for one person to be studying so hopping on a broad base i mean this is not that big but 75 companies a reasonable amount of small cap companies with high growth and infotech, which is obviously secular trend written all over it. That's a really interesting way to play it. I like it. I've considered doing that for other secular trends. But then again, I look at my list here and I'm like, have I mentioned I like payments yet?

I think you've mentioned a few times. Yeah. Okay, good, good. It's good to mention that. And then additionally, I have other Canadian TSX listed, uh, things on my radar and things that I'm buying. I don't want to disclose all of that because a lot of my customers at, uh, strategy investing pay for that service to get some of my top picks and analyst analysis on those names. So I don't want to go ahead and do that this early in the month. But that being said, these are a lot of the U.S. names we're looking at. Brookfield, obviously, being one listed on the TSX and Constellation being another one on the TSX that we mentioned that have lots of lots of growth and I still can't believe how cheap Brookfield is it is by far the largest

position in my portfolio and I'd be happy with it doubling actually I had a question for you I'll put you on the spot just because you mentioned Moody's shoot away yeah and uh it's a canadian company so uh quick thoughts on tmx to toronto montreal exchange tm is that what tmx stands for yeah tmx group yeah yeah because uh tmx used to be so they merged the toronto stock exchange with the montreal stock exchange in montreal to used to be all derivatives right so um that's why i became that yeah yeah yeah but uh i was kind of thinking about it when you were talking about uh moody's and how they pretty much have like you know monopoly when it comes to uh you know listing stocks in canada but also derivatives right yep yeah no like that's ticker x right yeah yeah yeah just

just the the toronto exchange i like the exchanges um as investments as a group i i don't love them but i like them um i would even be happy i would be happy owning nasdaQ, which is listed. I'd be happy owning X, which is the TMX group. TMX group has done some really interesting things with the venture. And yeah, if you want to list in Canada, that's the only place you're going to be able to list. So they do have a monopoly. That being said, how attractive is international companies coming to list in Canada?

I don't know. I don't have some bull thesis on that. But if you're a Canadian company, and here's another thought for you here. tech sector we have been running laps around some of the biggest tech hubs in north america including silicon valley by by pure jobs um there's been so many successful uh canadian startups out of here and montreal um and just obviously other cities as well but toronto yeah decent amount in ottawa too yeah yeah yeah well Well, I mean, Shopify, hello. Yeah. So there's been some really, really interesting developments in, in that, in tech especially in those markets we're talking about. And I have some theory that, you know,

the built in margin of selling to the u.s as a already super high margin software subscription company you get that built-in margin with the dollar and then you come here and you scale with the canadian dollar you're hiring Canadian talent. The margins are incredible. And Andrew Wilkinson, he is a guy out of Victoria, BC. He built a very big design company called Metalab. He now has like over 30 software companies and different tech companies that he owns 30 software companies and different tech companies that he owns in like a little holding company that he like he loved Warren Buffett and loved the concept of owning all these companies so he did that if you don't know Andrew Wilkinson you can look him up on Twitter he's awesome he's from he's from Victoria BC and he talked about how he was running these companies and getting amazing margin baked in because of the

US dollar because he was doing all of his business south of the border. So I like the ecosystem going full circle back to your question about TMX having that monopoly on it um and them actually executing and providing value in interesting ways i like it and i don't love it yeah we should probably at some point if you guys uh want us to do a deeper dive on it we can do that but no i figured it was an interesting concept after you talked about moody's um just yeah i feel like they have a pretty solid mode in Canada. Plus they pay a 2% dividend. They do pay a little dividend. I will say in my kind of checklist, and then Moody's is a global duopoly, right? Is when I look at my, like, what I consider a stratosphere compound is,

look at at my like what i consider a stratosphere compound is compounder is does it have the ability to have legs on like a global secular growth trend and make make material difference on a global scale well the huge winner in your portfolio the one curveball i think that could be a big tailwind for them and that remains to be seen is depending what the u.s does with chinese listed companies in the u.s canada could become an option for them and i've heard that before it's not the first time so but obviously that you know a lot of stuff can happen that will impact that but that is the one i think wild card that could be a huge tailwind for them that is certainly wild card i had never thought about that i don't think that could be a huge tailwind for them that is certainly wild card i had never thought about that i don't think that would be my thesis to buy the stock but hey if that worked out

you'd probably be holding on to a pretty big bagger plus i wanted to add a little more canadian stock content you know you're usually the one that adds more of them so you know i gotta keep up with i got a long laundry list but it is september uh third or september 2nd as recording this sorry and september 1st was the first tuesday of the month and uh that is paid content given that paid content and other stuff get stockmarket.com on my website get a list of companies on the canadian side and u.s companies with all the metrics you could ever think of and my god simon we are so close to launching stratosphere 2 like it could be tomorrow the beta starts i'm really really close on the software

it's it's beautiful. Are you still taking new beta users or that's closed? I mean, I'm going to say it's closed because I have a lot. Like you guys have been really good about reaching out. But, Simon, I was showing you it after one of our calls and sharing my screen. It's money. Yeah, it looks really good. calls and sharing my screen it is it's money yeah it looks really good no it's uh it's worth it i'm sure that the beta taste testers will really enjoy it a lot of

functionality um really i mean at first that looks really good thank you so much for listening this week guys these are just some of the companies that we have in our portfolios as well as on our radar. Thank you so much for listening. We will see you guys next week. Bye-bye. The Canadian investor is not to be taken as investment advice. Braden or Simone may own securities mentioned on this podcast. Always make sure to do your own research and due diligence before making investment decisions.