The Canadian Investor - Q1 earnings season and TCI Index update

Episode Date: May 3, 2021

In this episode we go over the big tech Q1 earnings release and a few other names. We then go over the returns of the Canadian Investor Podcast Index from last year and what the names have returned since last year. Tickers of stocks discuss: AAPL, SHOP.TO, GOOG, FB, AMZN, FD.V, TDOC, QSR.TO, CNR.TO, APHA.TO, PINS, DOO.TO, CHWY, JD, SPOT, SHOP.TO, SJ.TO, WEED.TO, BEP-U.TO, MA, BAM, CSU.TO, MCO, DSG.TO, ROP, CHD, AC.TO, T.TO, CNR.TO, CAR-U.TO, ENGH.TO, AQN.TO, DLR Want to send us a question? Check out our Anchor.fm link in the description below and leave us a voice message! Getstockmarket.com Candian Investor Pod Twitter: @cdn_investing Simon’s twitter: @Fiat_Iceberg Braden’s twitter: @BradoCapital --- Send in a voice message: https://anchor.fm/the-canadian-investor/messageSee omnystudio.com/listener for privacy information.

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I'm Brayden Dennis. Simon, what's going on, man? What a week of earnings. Lots of news coming out. Yeah, definitely. I mean, we've been texting a lot this week because it seems like one earning release after the other specific especially for big tech it's been quite unbelievable um who

would have known the law of big numbers right i don't think it applies for big tech it just doesn't make sense i mean how underpriced were these companies five years ago if anyone were to predict the kind of sustained growth that these companies would produce? So we'll get into some of those, like for big tech especially. Companies in the trillion dollar club to be reporting revenue, earnings, and free cash growth, like early stage growth companies for their size and their profitability is kind of crazy. And after we've done this, I'm curious to hear your kind of thoughts because they're producing gobs of cash like what are you gonna do with this much cash like what does apple do with this much cash i guess just buy back stock

right like what do they do with it it's just it's so much yeah exactly and i would say though for a lot of these like big tech i think it'll be interesting just to look at 2021 but 2022 because I'm sure there was some growth that was pulled forward because of the pandemic. So I think it'll be a very interesting thing to look at how they actually, in the next couple of years, how that continues to grow or maybe it kind of slows down. I really have no idea, but I mean, so far so good, right? maybe it kind of slows down. I really have no idea, but I mean, so far so good, right? Specifically, if we start off with Apple,

their revenue has been up 54% year over year from Q1 2021 to Q1 2020. So what are your thoughts on that? That's a lot, man, 54%. I'll go into some of the segments here and just some fun little facts about how much money this company is making. But yeah, do you want to touch on the buyback program? Yeah, so they had an existing buyback program. They increased it to $90 billion. They also increased their dividend to 7%.

it to $90 billion. They also increased their dividend to 7%. Personally, I would have liked a little more of an increase in dividend, even if it meant buying back shares a bit less. And let's keep in mind that they've approved a $90 billion increase in share buybacks. It doesn't mean that they will buy back that much, but they have approved that. The board has approved it. approved that the board has approved it they had 24 billion in operating cash flow for q1 and significant free cash flow i don't have the metrics right in front of me right now chip shortage though is something to look at for apple specifically because they had huge increases in sales that you'll go into more detail for some of their products. But chip shortage specifically is something to keep an eye on for Apple 2021 and potentially 2022. So one of their best performing segments was their Mac computers, the new laptops, the MacBook Pros, MacBook Airs, doing so well, you know, all this time later.

Such an old product now, still growing so fast, gaining more market share. And I think my prediction is that this segment did so well. So they did 9.1 billion for the Mac segment, which is up 70% year over year. And it's because they started making their own chips, like the M1 chip that they're throwing in the new macbook pros um and now they're saying that the m2 chip which will be the second version of their own chip for the new macbook pros for the 2021 mac releases the performance and the battery life and and all the specs that come with these new laptops and because they're being powered by this new chip, it's just like Apple just has the secret sauce for excellence. Everything they do, they do well.

And the new chips is no exception to that rule. So you're seeing just crazy growth growth in that segment so good for them the iphone up 65 everything is good i mean how do you find something bad other than maybe the upcoming chip shortage and the chip shortage that we've seen taiwan's semiconductor probably going to continue to be a benefactor of what's going on so I just wanted to pull some fun little facts about the AirPods revenue versus top tech companies. So AirPods does more revenue than the following companies, Adobe, Nvidia, AMD, Spotify, Square, Twitter, Snap, and Shopify. square twitter snap and shopify just the airpods segment like airpods does more than spotify twitter and and and snapchat combined

like how do you even comprehend that i mean i think it just speaks to the ecosystem and the brand loyalty that they've really created over time. And obviously, Warren Buffett loves Apple. It's probably his only stock that is really tech. Or I think he has a few more now, but it was his first big plunge in tech. And we can see why, because they have a big moat and they do have customer loyalty. because they have a big moat and they do have customer loyalty. And that ecosystem is really something that is the envy of a lot of different tech companies.

The one last thing about Apple that I just came to mind that people will need to keep an eye on, the EU just announced this week that they are, I can't remember if they're suing Apple, but for antitrust practices for the Apple App Store, which they get really high margins. I really don't know what it's going to come, what's going to come from that exactly. But something to keep an eye on because there might be some more and more governments. And I'm sure they'll come to some type of agreement regarding that, but something to keep an eye on because there's a lot of businesses that have apps on the App Store that have been complaining about Apple just taking that big share. I will say every time that big technology companies are in the news and trading lower on antitrust rules has typically been a great time to buy the stock yeah yeah i mean apple's basically flat this week right so that's yeah an indication right there yeah exactly i mean

yeah it's every i mean historically so far every time it's been a good time to buy the stock all right uh let's talk about google alphabet yeahphabet. Go for it. Alphabet revenue rose 34%. Again, that is crazy to me that this company is growing still so fast. They reported a revenue of $44.68 billion, a significant rise from $33 billion in the same quarter last year. Now, I am very bullish on Google. It's probably the one I would prefer to own for the long term. It's just such a great company, like the gatekeeper of the internet. And YouTube is a beast. Like YouTube is an actual beast. It did six billion uh for the quarter up 49 percent from a year ago and uh there's a report from pew whatever they are i guess there's some internet company it said that uh the platform

usage growth 73 percent um and already 81 percent from the quarter before in 2021. And they said it is the biggest pandemic winner in terms of social media sites, according to this report. I mean, I watch a lot of YouTube, both from an educational perspective, from an entertainment perspective. And I know I'm not alone on that. This is this is a beast of an acquisition way way back when and youtube continues to get it done for google yeah i remember when they bought them for 1.65 billion in 2006 that looks like a a steal of a deal obviously they they've really grown the business over time but um just looking back and that's insane thinking. They bought it for that price and now it compares to Netflix in terms of revenue. And if I personally had to choose between the different services, the one I would get, definitely Netflix and YouTube are right up there.

The other ones, I have a few more. I have Disney Plus and a couple more i would be fine getting rid of if i had to choose but youtube and netflix to me are the two uh two services i have to are you on spotify or like apple music uh yeah i'm on spotify um so spotify is the other one uh but in terms of video streaming youtube and video streaming right yeah the rest I think I could give them all up except for Spotify which may be why I'm so bullish on the stock um okay do you want to uh okay before we we let's talk about the ad counterpart Facebook earnings big blue daily active users were up eight percent and revenues were up 46%. What is like, how, like every time we think that this company

can't keep growing so fast, it does. Mark Zuckerberg is only 36 years old. Is that the bull case just right then and there? I mean, this guy is only 36 years old. He's going to do so much more compounding over his time period or his lifetime. And this company got 46% on revs. And as much as the narrative is that everyone's deleting Facebook, daily active users suggest otherwise. So focus on the numbers here, not the narrative. And Facebook still looks extremely cheap from a like price to free cash flow perspective. The free cash flow yield is still very cheap for a company growing this fast. So that's my two cents. Anyways, what happened over at big old Amazon?

over at big old Amazon yeah Amazon had a pretty pretty good quarter I'm just that's probably the understatement of the year they actually exceeded their their guidance for sales in q1 so it was they had a bracket and they came up at 108 billion in net sales so surpassed guidance 44 percent increase year over year for a company as big as amazon amazon web services sells up 30 percent 32 percent year over year which is crazy because it's starting to be a very significant part of the business. 200 plus million Prime members worldwide. 44% year-over-year online sales increase. Obviously, a lot of that came because of the COVID-19 pandemic. 69% increase in operating cash flow to 67 million versus 39.7 million. That's over the trailing 12 months, so not Q1. Free cash flow of $26.4 billion versus $24 billion for the trailing 12 months. That's an 8% increase. Keep in mind, it might not sound as

big, but Amazon does reinvest a lot of money in the business. Ad sales, that's really impressive, went up to $6.9 billion for Q1 versus $3.9 billion for last year, and that's a 76% increase year over year. So really, Amazon is firing on all cylinders. I'm a shareholder. I'm not too concerned that Jeff Bezos will be taking a step back with the company. It sounds like the AWS boss is going to be taking over. I don't have his name in front of me. I know quite well. Okay, there you go. And so now it seems Amazon is just firing on all cylinders.

It'll be interesting, like I mentioned before, how that translate in the upcoming years. But there seems to not be any signs of their business slowing down pretty much all the segments too. 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. That is questtrade.com. Yeah, Andy Jassy is his name. He pioneered AWS with Bezos right when it became a thing. And he's run that AWS segment into the cash cow that it has become.

And a significant part of Amazon's business now, especially how they cash flow the business is through AWS. So he's the, he's the guy to do it. And he's the guy to take the throne from. And let's be clear here. I read in detail, Jeff Bezos's final shareholder letter as the CEO, and he's stepping into his, his next role as the chairman. And nowhere in the letter does it say that he is going to be less involved. It basically is saying that he is determined to make Amazon a better company in X, Y, and Z. Like, Bezos is not a guy who just doesn't seek excellence across what is his baby. I mean, he's not going easy. He just doesn't want to be in the weeds anymore.

He wants to make just high-level decisions and focus on what he thinks he's good at, quote-unquote, from the letter. Yeah, and I think he wants to spend a bit more time on his passion project, Blue Origin, as well. So I think it's trying to a bit more time on his passion project, Blue Origin, as well. So I think it's trying to balance those two things, right? Fair.

Fair. That is a good point. Speaking of another e-commerce giant, Canada's Shopify, revenues more than doubled from this time last year, over 110%. So this company is also doing just so well. Every time we talk about Shopify on this show, they're doing better than ever, and that's to be expected. This company has all the right things going for it. Tobias Lutke is a genius, and he has built an empire out of Ottawa, and just an incredible story gross volume so that

is that the total volume value of of moods of goods that are sold on the platform 37 billion an increase of almost 20 billion so that's up 114%. And that's the gross merchant volume, GMV. That's the number that I would track if I was a Shopify shareholder. And I mean, I don't even want to go down this path. But every time we talk about Shopify, I wonder why I don't own shares. And then I look at the valuation and find value better elsewhere for the growth. But I'm probably going to continue to be wrong on that. That's all right. Okay, Simon, now's our time. We have a couple more companies here.

But now's our time to dump on the dumpster fire that is FaceDrive, our favorite fraud hanging out on the TSX Venture. Yeah, the company wants to become a tech giant and is marketing itself like a tech giant, but it's really not looking good. So they came out with earnings yesterday evening. So the deadline for the filing for TSX Venture was midnight on April 30th so we're recording this on May 1st they came out with their earnings at 9 30 so just you know solid two hours and a half before the deadline and 3.9 million in revenues which was compared to 600,000

2019 so pretty good when you look at that top line but then once you start looking down it just gets worse worse and worse so a net loss of 17.8 million dollars versus 7 million in 2019 they had 8.9 million dollars in expenses specifically for sales and marketing. That's just mind-boggling when you have 3.9 million in revenue. More than twice that is actually expenses of sales and marketing. And total operating expenses, if you don't want to do the math, was 22 million dollars for 3.9 million revenue. And they had negative free cash flow of $10 million. And when you go on their website,

just that's a good indicator of a company not being very transparent. You can't even find their earnings on their website. So that's like one, that's like you, the first thing that happens on their investor relation is you get a pop-up for their newsletter, which I'm sure they just shan't view all these like little publicity stunts and things like that. But you can't really find earnings.

You have to go directly on CDAR to go and locate the earnings. And it's just, yeah, it's just disappointing that the TSX Venture would allow this. And a good example of the type of stuff they were doing, I Googled this week just Phase Drive just to see some of the articles that were written on them. And I found an article from the Financial Post in January of this year. And it seemed all glowing and very good on Phase Drive. But then in very small print,

you see at the top that it's actually a paid article. So it looks legitimate. But then as soon as you see at the top that it's actually a paid article so it looks legitimate yeah but then as soon as you saw you see that you kind of realize that oh they actually paid for that and i think it's one of the few times that the ceo actually like comments is when it's paid stuff by them so anyways i'll let you dunk on them a little bit i think i've said enough on face drive ah you've said you've said it well. This is a shit show, man. Like, I'm picturing, like, they released their earnings last night at 9.30, the deadlines at midnight.

Like, I'm picturing a bunch of, like, college students just scrambling to get their paper in online before the midnight deadline. Like, that's what I'm picturing. And, yeah, I mean, they spent 8.9 million on marketing. Like how much of that was promoting their stock in this pump and dump? Yeah. This thing got over five, I think it was like 5.5 billion in market cap for at the time, a company that was doing $700, thousand dollars in in in revenue like seven

hundred thousand yes that's not a lot of money let's not really you'll probably make more than that with stratosphere yeah yeah stratosphere is clear i should go public on the tsx venture to pump myself to a billionaire um okay moving on oh god that's just the worst company ever let's move on to a real company so this one i've been getting a lot of people asking uh whether it's on the stratosphere community forums or also people paying me on twitter um so i can't obviously everyone knows i own teldoc so i wouldn't be a kind of earnings roundup if I didn't talk about them. So Teldoc organic revenue growth, 69% year over year. That excludes the Livongo acquisition.

So just to give an idea of how their business was doing. So that obviously was pulled for a lot by the pandemic. So there was a big uptake for their services. are a lot by the pandemic so there was a big uptake for their services uh the first quarter 453 million in revenue up 151 percent year over year revenue was up 18 percent sequentially from q4 2020 to q1 2021 the reason why i mentioning that is they did the acquisition of livongo at the beginning of q4 so they don't have a full quarter of Livongo last year, but most of the quarter that acquisition was in. So it shows that the Livongo acquisition is actually starting to pay dividends. 51 million plus paid membership by insurers.

So they're expecting a slower growth in that sector, which is kind of normal because there was big growth last year again because of the pandemic. 658,000 chronic care enrollment clients. So that's directly from the Livongo acquisition. I know they already had some services, but that's going to be a big driver. And those chronic care enrollments are really important because those type of customers actually will stay in their ecosystem for a long time and require care. And those services that they offer are very attractive for insurers because they're usually less expensive than other alternatives. There's 22 million members that enroll in visit fee only access. So that's different from the paid membership. There's two type of kind of two type of business model here the utilization has

gone up which means that members are using the platform they also raise their guidance for revenue not a lot but 1.97 billion to 2.02 billion the sell-off and that's where most of the questions were coming from, because the stock went down about 10% the day they released the earnings. So it's most likely due to the increase in expenses because in part of the Livongo acquisition, which is, you know, it's perfectly normal, but it's something to keep an eye on in this year and next year. They're also launching new products, they're expanding in new markets and there's a new data platform that they're working on. There is a net loss of $200 million,

which may sound big, but it's mostly due to deferred income taxes and stock-based compensation. When you look at their free cash flow, it was only $20 million in the negative negative so it's a company that's investing a lot in growth so i'm not too concerned by that and uh you know having talked about phase drive just before teladoc you can see the differences in a company that's growing quickly but is reinvesting in the business and actually has a solid business model versus a company that's just promoting itself. 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. From my opinion, and I don't follow the name as much as you, the long-term story remains intact. And if you own something like Teladoc, which I think you could even agree on, the valuation got really stretched at the end of last year. This stock was crazy expensive. And that happens, right? These things happen with great companies. They look very overvalued at many times over their time as a public company.

Yeah, it's gone down about 40% from its peak. And like you just said, that's mostly a valuation play. It's nothing really to panic about. And it's too bad if you bought near the peak. Obviously, we keep saying it, valuation when they're stretched i mean if there's a slight pullback or slight something missing expectations exactly if there's anything that doesn't go perfect then that's usually when you'll see a

kind of pullback in uh in the price of the stock not because it's not a good company it's just the expectations were so high but But I was lucky. I sold pretty close to the top because I needed extra funds. And well, I thought I needed extra funds. So I was proactive. So I'm actually thinking of buying back those shares now at the current price

because I like what I'm seeing. And, you know, it's, I don't have any reason to not believe management. I've owned it for several years. And usually, you know, they're pretty, you know, they don't come up every single time on every single promise that they make, but they're pretty consistent in, uh, in just, um, the execution of the business. Yeah.

Yeah. You have such a low cost basis on Teladoc. So, uh, I know, I know you, I know you trimmed a little bit, but I still know it's a fairly large position for you. And your cost basis is so low and well done on this name. I mean, you're probably the first one I even knew about owning these shares of this company. So well done. So Restaurant Brands International, that's a company i wanted to talk about because i know it has a canadian flavor to it and a lot of people have asked me about in the past and it

has one of the brands is an iconic canadian brands tim orton's so i had a quick look at their earnings um so this is just a quick overview it is definitely a slower growth business so keep that in mind compare of some to the names we've taught previously. So they had maybe if they didn't sell coffee that tasted like bathwater, they could improve some of their sales. Yeah, exactly. I mean, it's not high growth. So 1.4% increase in sell driven mostly by Popeye's Louisiana Chicken, which increased by 7%. Tim Hortons sales were down 4.9%. The company does believe that Tim Hortons should pick back up as the economy reopens. They're looking to launch new products and they have a back to basic plan. So

hopefully for them that works out. King sales increase 1.8% something to look at if you're interested in the company they do have quite a bit of debt on the balance sheet so you want to keep an eye on that the maturity the interest expense and so on they are free cash flow positive but keep an eye on the payout ratio when it comes to their dividend because it did exceed a hundred percent year. It was not above 100% prior years, so we can kind of give them a pass for last year with the pandemic, but it is something to keep an eye on. I know a lot of people kind of are interested in that.

They know the name, they know the business, at least for Tim Hortons, but it was, I guess, decent in terms of results if you factor in the pandemic and how it affected some of their franchises. Popeye's Chicken has been carrying this business for a while now. I think it's been pretty much the source of all growth. Yeah, last year they had like a crazy increase. I think Q1, Q2 last year was like the only thing giving them like staying helping

them staying afloat in terms of sales growth or not i think it was actually slightly negative but was the only thing kind of keeping them on yeah the popeyes brand was up like over 40 percent on revs and it's because of that popeyes chicken uh sandwich that went viral. Yeah, exactly. Have you tried it? It's good, man. It's really good. I'm not going to lie. And then everyone, all the quick serve restaurants

jumped on the chicken sandwich hype train after Popeye's just kind of crushed it. Yeah, exactly. And then the last one I wanted to touch on quickly i won't go into too much detail but uh canadian national rail obviously um their earnings got released the ceo talked again about the uh offer that they did for kansas city southern saying pretty much the same thing that their offer creates more value for kansas city southern and the same thing i mentioned on the last podcast about them,

how they don't see that as anti-competitive, that it should be more competitive against trucking. I'm a shareholder. That's all nice and dandy. I'm not sure the regulators will actually see it the same way. If they do, that's great. But in terms of their revenues, they were basically flat last year, which is kind of normal. There was a lot of disruption in supply chains.

The economy took a dive early in the year last year. Their free cash flow was a bit down, nothing too major as well. But overall, there were pretty solid results considering that any rail company, any trucking company, anything like that will be very dependent on how the economy is going. So I'm expecting that Canadian National Rail should have a pretty good year this year if the economy keeps picking up. So it'll be interesting what the results are for 2021. And also interesting what happens with that Kansas City Southern. That I don't think will be resolved anytime soon. I can see that taking the whole year, if not beyond that.

I hope it gets really dramatic and like there can be a documentary about, you know, Canadians are so nice, but look at us have these crazy railroad wars. I can picture it already. If I was, I guess CP could do the same thing, but I was CN or CP, I would be going to the feds with how good for it, the environment it is. And I know they've mentioned that, but connecting those ports and those countries of connecting all of North America, including Mexico, is a lot better than trucking environmentally. From a greenhouse gas perspective, rail is great. And they should be crunching the numbers on how much CO2 reduction it is

when they move goods via rail in this new network than trucking. That's how I position it. You throw it as an ESG play and the feds will be all over it. Yeah, especially with Biden in the states now, they're really making a big push with their infrastructure plan, but also just overall, they're getting back into those international agreements for greenhouse gases reduction. So I'm sure there is definitely some openness there. But I think it's also going to be a lot of resistance from especially the US regulators. They tend to be very intense when they perceive a lack of competition or a merger that will reduce the competition in a certain industry. So I really don't know what

way it's going to go. If anyone knows, you know, feel free to enlighten us. But it will be something and merger that will reduce the competition in a certain industry so i really don't know what way it's going to go if anyone knows you know feel free to enlight us but it will be something i feel like the cp and cn co's will just be going at it in the the upcoming months for sure we need the drama i love it well i mean yeah they should attack it from an esg perspective uh i do greenhouse gas calculations for my entire career i'm an environmental engineer maybe uh i need to get hired as the pr person here i don't know who knows okay no consultant consult i've moved on to a consulting role okay uh let's talk about the Canadian Investor Pod Index that we made last year. Now, we have a 12-month reporting period now of this index. So if you are a new listener and weren't listening to the show last May, last June,

we made the Canadian Investor Pod Index, last May, last June, we made the Canadian investor pod index, which basically was listeners could send us their favorite stock or idea just one. So this is an entirely listener based portfolio. Simon and I included some names ourselves, like I think we had three or three names each as well that we put in there. So like I put in consol consolation software of course uh simon i think you put in like etsy and chewy and you put in all the best performers honestly not to say consolation didn't do very well during that time period but um there's been some winners like pinterest killed it. Okay, so let's talk about it. If you invested $10,000 into the TCI index, and I'll tell you what those names are in a second,

you'd have $15,886 compared to the Vanguard S&P 500, only $14,000. So you made an extra, well, it was 14,351. You made an extra 1500 bucks in the TCI index. So if you're listening at home, pat yourself on the back. We did exceptionally well, beat the index. And it's mostly Canadian names too, which is even better because the Canadian index massively underperformed during this time. So we were fighting against a challenge. There is some U.S. businesses. Okay, so I did some backtesting because I'm an absolute nerd. So here's, you got the spreadsheet in front of you there, Simon? Yeah.

You got it? Okay, cool. Yeah. So let's talk about what the names are, and I'm going to list them in best performance to worst performance. I'm surprised for a few names on there. Just, yeah, the best performer specifically. Yeah, no, they're pretty surprising. Yeah, anyway, so it's 25 names that we put in the index

based on your guys' picks. So we were pretty, I'd say we were pretty like just open to whatever ideas you guys had. So I'm going to list them from best to worst in terms of performance. Every single pick ended up with a positive return during this time period, which is pretty remarkable of a portfolio of 25 names. So good work, team. Appreciate you guys. Okay, so here we go. Aphria, the weed company, they quietly strung along an exceptional year

or during this time period. Up 282% according to my back test. And I think I did say, I mean, I'm really cherry picking some stuff here. I did say that if I was to own a weed company, it would probably be Aphria. I don't know if it's the best performing one, but it's up 282%. if it's the best performing one but it's up 282 which uh they just announced that the um the shareholder approved the merger with um uh i have it right here the till for with tillray oh yeah yeah they just got approved i think yesterday or the day before so i just got a little note on that huh cool interesting okay so they're's some consolidation happening in this

industry right now okay so yeah afria the winner runner up with a mind-boggling 221 percent during this time pinterest i think this was a you pick i think i believe so i think you threw this one in here you must i'm not surprised you must have had some insight from your fiancee using this thing or something that's everyone's pinterest story is their wife uses it yeah i use it too actually i use it oh there it is i like cooking i like doing recipes so um i get a lot of inspiration for pinterest but one of the big thing about pinterest is it's such a great platform for advertisers because people are like almost looking for advertisements when they go on there right for pictures and ideas and so and they're just starting to monetize it so I think it's a company that will be interesting to keep an eye

on going forward it is built for ads I mean the ads actually provide, like they improve the service, not take away from it. Not like Twitter. Not like, oh God, let's not go there. It actually improves the service. You're right. Because if you're looking for some arts and crafts thing, and then all of a sudden an ad pops up, it's like, hey, by the way, if you're building this, you're going to need this piece of X and here it is. You can buy it right now. E-commerce delivery to your house. It's pretty genius. Okay. I'm going to talk about the third top three here and then we'll just rifle through them because we don't have all day. BRP, ticker do.to. It's also listed in the U.S. as do with an extra O.

The Sea-Doo manufacturer, the ATV manufacturer, the extreme, the, what is that called? What am I thinking of? Utility vehicles. That's what I'm thinking of. Yeah. Like the four-wheelers and stuff? Yeah, yeah, yeah, yeah. Yeah.

I own some and I can't, I'm just blanking right now. Yeah. The good part of the Bombardier business. That's right. They stripped the best part of the Bombardier business, which was Bombardier recreational products, aka BRP, which is the Sea-Doo brand. And, you know, the best part of the business. And it has done so good during the pandemic. I mean, who's surprised that these outdoor vehicles are crushing it right now?

The Sea-Doo brand has such a good foothold in recreational water sports. That stock is up 171%. This was my pick, Simon. Well done, well done. So we were top two of the top three. I don't know who did Aphria, but thank you for carrying the weight.

All right, next we have Chewy, the pet e-commerce business. JD.com, the massive e-commerce company in China. Spotify, I did that one as well, up 66%. Shopify, up as well, not much. Parklawn Corporation, morbid business. Stella Jones, I mean, of course they're up big, 50%. They sell lumber products and the commodity of lumber has gone mental. Canopy Growth Corp, Brookfield Renewable.

MasterCard has low pro, done a 40% return during this time period. That's pretty good. Has Lowepro done a 40% return during this time period? That's pretty good. Brookfield up 36%. Constellation Software up 35%. Oh, God. I will never sell a share of Constellation Software until the day I die, I bet you.

Moody's Corporation, the Descartes Group, Roper Technologies, which is also very similar to Constellation. They buy software businesses. Church and Dwight, Air Canada was up 22%. Telus, Canadian Apartment REIT, CN Rail, Ench House Systems up 15%. That business is cheap right now, by the way. Algonquin Power, the utility, up 7%. And the worst performing is still up almost 7%, which is Digital Realty Trust, the REIT that does data centers. I think that was one of mine, too.

So I get the worst, but Chewy was also mine. You know, you win some, you lose some. I think you pulled your weight. And it's not like it was down. It was, it's still up a bunch. So, uh, just a couple, another quick facts. And I think this is an important takeaway before we go here is that in this portfolio of 25 stocks, which is a, you know, reasonable stock portfolio, that's probably pretty average in terms of number of holdings it's more than i'd like to own but i say that and i own pretty much 25 names so i'm just a hypocrite

okay so afria if you invested it you made over a thousand dollars cash now pinterest 885 dollars cash in terms of like realized gains if you were to sell it. Now, what I think is an important takeaway here is that so much of the gains were from just a few names that you let ride. And that is exactly what I think will happen in most portfolios, is that your winners will really win. And that's going to drive so much return in your portfolio. And I think that's an important takeaway, Simon.

Yeah, I know. That's a really good point. I mean, you're not going to do well on all of your picks. And what's going to happen is some are going to carry the portfolio more than others. And that's especially true when people are looking at, you know, we're not venture capitalists, but venture capitalists, that's exactly what they would do, right? They probably will have out of 10 maybe one big winner the rest are maybe a couple of them are breaking even and then they lose their money completely on a few of them but that big winner just makes up for all of the other bets right it's different when you have larger companies that are more established but it just goes to show you're going to have some that really outperform the market and some that maybe something unforeseen happens that you didn't factor in and they just don't perform well.

Yeah, you're going to have a couple home runs that are going to drive your portfolio. You're going to have a couple 7 RBI 3 home run from Vladimir Guerrero Jr. type of games. He's exceptional right now. He's pretty good. He's pretty good yeah can we just give that little shout out to vladdy guerrero jr for blue jays fan all right thank you so much for listening we finally did the tci pod index update we haven't forgot about it i know a lot of people have wondered what's happened with the performance of this fake portfolio of companies and there you go there it is an earnings season has wrapped,

well, not wrapped up, but the big tech companies have reported this week. It has not wrapped up. It's really just getting started. And the law of large numbers doesn't exist, apparently. So that's an important takeaway. If you go to getstockmarket.com, you'll go to Stratosphere.

You can sign up for free. You can see the companies that I'm investing in with my own money and software tools for your own research. If you're a long-term self-directed investor, it could be very useful for you. That is GetStockMarket.com. We will see you next week. Take care. The Canadian investor is not to be taken as investment advice.

Braden or Simone may own securities mentioned on this podcast. Take care.