Baskin Wealth Management https://baskinwealth.com/ Working together to plan your future. And your kids. Mon, 01 Apr 2024 19:48:02 +0000 en-US hourly 1 https://baskinwealth.com/wp-content/uploads/2019/03/Baskin-Wealth-Management-favicon-66x66.png Baskin Wealth Management https://baskinwealth.com/ 32 32 Compounding is afoot at the Circle K https://baskinwealth.com/podcasts/compounding-is-afoot-at-the-circle-k/ Mon, 01 Apr 2024 19:46:50 +0000 https://baskinwealth.com/?p=12519 Alimentation Couche-Tard (ATD) is one of the best performing Canadian equities for over 30 years. Ernest and Barry discuss the pros, cons and the reasons why we finally purchased this investment for clients. We also talk about Apple's recent woes and reasons to stay optimistic.

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Alimentation Couche-Tard (ATD) is one of the best performing Canadian equities for over 30 years. Ernest and Barry discuss the pros, cons and the reasons why we finally purchased this investment for clients. We also talk about Apple’s recent woes and reasons to stay optimistic.

0:00: Introduction

1:48: Golf and Cialdini

2:42: Our take on the the DOJ suit against Apple

11:42: The Apple Bull and Bear thesis 17:50: Feature discussion on Alimentation Couche-Tard (ATD)

19:40: The beauty of convenience stores

22:22: ATD’s Consolidation story

23:57: ATD’s secret sauce to improving sales per square foot

27:22: The power of ATD’s compounding

28:43: lack of volatility in gasoline pricing hurting recent results

30:50: why fuel margins could stay higher for longer

34:15: Electric vehicles are risks and rewards

41:22: Potential risks to the ATD story

42:50: Insider alignment, valuation and potential U.S. listing?

Long Term Investing Podcast can also be found on Spotify & Apple.

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]]> Barry Schwartz on BNN’s The Street: There’s good reason to believe things will turn around for the TSX going forward https://baskinwealth.com/media-appearances/barry-schwartz-on-bnns-the-street-theres-good-reason-to-believe-things-will-turn-around-for-the-tsx-going-forward/ Mon, 25 Mar 2024 18:09:27 +0000 https://baskinwealth.com/?p=12508 Barry Schwartz shares why he sees investing opportunities with the Canadian banks.

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Barry Schwartz shares why he sees investing opportunities with the Canadian banks.

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]]> Tourmaline Oil – It’s a gas, gas, gas. https://baskinwealth.com/podcasts/tourmaline-oil-its-a-gas-gas-gas/ Tue, 19 Mar 2024 14:40:02 +0000 https://baskinwealth.com/?p=12492 This week's episode has Barry and Ernest discussing interest rates, why Baskin Wealth favours U.S. equities, why Alimentation Couche-Tard and Constellation Software are only listed on the Canadian exchange and then our feature discussion on Tourmaline Oil. Mike Rose, founder of Tourmaline, is one of Canada's greatest capital allocators. We learn all about his strategy and reasons to be bullish on Natural Gas.

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This week’s episode has Barry and Ernest discussing interest rates, why Baskin Wealth favours U.S. equities, why Alimentation Couche-Tard and Constellation Software are only listed on the Canadian exchange and then our feature discussion on Tourmaline Oil. Mike Rose, founder of Tourmaline, is one of Canada’s greatest capital allocators. We learn all about his strategy and reasons to be bullish on Natural Gas.

0:56: Charlie and Warren rubber duckies backstory

2:36: Bank of Canada interest rate announcement and why it is reluctant to lower interest rates.

7:47: why does this matter for long term investing? 10:08: why Baskin has as much as 70% of its clients equity exposure to the U.S. 15:50: rethinking dividend payers in a more normalized rate environment.

18:18: why Constellation Software and Couche-Tard aren’t listed on the US stock exchange

21:15: All about Mike Rose and Tourmaline Oil 27:20: Tourmaline sticks to its circle of competence 28:36: Tourmaline’s natural gas strategy

32:20: reasons to be bullish on Canadian Nat gas 36:18: What is Mike Rose doing with his own money?

36:51: Tourmaline’s capital allocation strategy

40:15: keep an open mind to own a commodity business

41:30: comparing Tourmaline to the Magnificent 7.

Long Term Investing Podcast can also be found on Spotify & Apple.

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]]> Buffett, National Bank and Royal way to value CNQ https://baskinwealth.com/podcasts/buffett-national-bank-and-royal-way-to-value-cnq/ Tue, 12 Mar 2024 13:06:15 +0000 https://baskinwealth.com/?p=12473 This week's podcast touches on a number of topics including a review of Berkshire Hathaway's recent shareholder letter and Warren Buffet's dissatisfaction with Berkshire's railroad and utility asset. Next, they have a conversation about the Canadian bank results and what their CEO's are saying about the Canadian economy. The feature discussion is on Canadian Natural Resources (CNQ) where Barry and Ernest give investors food for thought on how to value CNQ differently.

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This week’s podcast touches on a number of topics including a review of Berkshire Hathaway’s recent shareholder letter and Warren Buffet’s dissatisfaction with Berkshire’s railroad and utility asset. Next, they have a conversation about the Canadian bank results and what their CEO’s are saying about the Canadian economy. The feature discussion is on Canadian Natural Resources (CNQ) where Barry and Ernest give investors food for thought on how to value CNQ differently.

0:00: Intro

2:09: What to do in a bull market:

5:12: Berkshire Annual Letter

9:22: Reviewing Berkshire’s under-performing assets

16:29: Letting your winners compound:

18:29: Why National Bank is outperforming:

21:44: The big picture for Canadian banks:

23:33: CNQ has reached its debt target – now what?

25:49: The math for CNQ

Long Term Investing Podcast can also be found on Spotify & Apple.

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]]> David Baskin on BNN’s The Street: What are Nvidia’s earnings going to be 3 years from now when its competitors are out there? https://baskinwealth.com/media-appearances/david-baskin-on-bnns-the-street-what-are-nvidias-earnings-going-to-be-3-years-from-now-when-its-competitors-are-out-there/ Wed, 06 Mar 2024 20:44:15 +0000 https://baskinwealth.com/?p=12449 David Baskin joins BNN Bloomberg and shares his thoughts on investing in the magnificent 7.

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David Baskin joins BNN Bloomberg and shares his thoughts on investing in the magnificent 7.

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]]> David Baskin on BNN’s The Street: Investment dollars are leaving Canada https://baskinwealth.com/media-appearances/david-baskin-on-bnns-the-street-investment-dollars-are-leaving-canada/ Wed, 06 Mar 2024 20:39:06 +0000 https://baskinwealth.com/?p=12448 Increasingly Canada's being perceived as being a laggard going forward says David Baskin.

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Increasingly Canada’s being perceived as being a laggard going forward says David Baskin.

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]]> Monthly Newsletter – February 2024 https://baskinwealth.com/latest-news/monthly-newsletter-february-2024/ Tue, 05 Mar 2024 16:10:26 +0000 https://baskinwealth.com/?p=12434 Spring has arrived, ushering in the annual ritual of filing income tax returns. This is a process marked by the increasing complexity of the Canada Income Tax Act to which the Government has responded by hiring at a rate exceeding that of the general population by almost 4-fold over the past 10 years. Unfortunately, this is not isolated to CRA and is symptomatic of declining productivity across the country. In this month's newsletter, David discusses how this impacts growth prospects for Canada and how we are addressing it in client portfolios.

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Spring is here, and with it, the annual obligation to file our income tax returns. If you find that filling out the return is complicated, there are some reasons. For one thing, the Canada Income Tax Act and associated regulations now runs to exactly 1,000 pages (you can buy a copy on Amazon for $160). Successive governments have created bunches of tax driven programs that interact in unexpected ways and are so complex that recent surveys show that the folks who answer the government’s own help line get about 30% of all questions wrong. Luckily, it’s hard to get one of the misinformed CRA workers on the phone. Wait times routinely run to over an hour, and only about 50% of callers get through before giving up. This is in spite of the fact that the CRA now employs 59,019 workers, up from a mere 41,256 ten years ago. That’s an increase of 43%; during the same time, the population of Canada has grown by 11%.

The growth in the CRA pales beside that of Employment and Social Development which has added no fewer than 18,737 employees in ten years. That’s an increase of 93.4%. Altogether, the federal civil service now numbers 357,247, up by 36% or more than 94,400 people. That’s bigger than all the people employed in any one of the Atlantic provinces. The cost to the government of an employee is roughly $80,000 on average, so the federal civil service payroll is about $28.6 billion.

What are all these people doing? Your guess is as good as mine, but clearly, if it is taking a whole lot more employees to serve a population that has grown just a little bit, whatever they are doing, they are doing more slowly or less productively. If you have been reading the papers, you know that this is a problem for the entire Canadian economy, which is in the midst of a productivity crisis. While other countries are using fewer people and fewer resources to get more done, we are using more people and more money to do progressively less. The size of the Canadian economy has gone from being about 10% of the US economy to a more recent 8%. The average Canadian, who used to be as wealthy as the average American, has now slipped badly behind.

Meanwhile, the Federal government will run a budget deficit of about $39 billion this year, and sees no prospect of a balanced budget in the future. With interest rates 5% higher than they were two years ago, the cost of financing the growing federal debt keeps ballooning, and the deficit keeps compounding.

Canadians mostly pay their taxes without complaining. We live in a wealthy, peaceful country and most of us are grateful, particularly as we look around the world and see what is happening elsewhere. As long as taxpayers feel they are getting value for their money, things remain calm. When that sense of trust is lost, the public temperament can turn on a dime. Brian Mulroney, who died this week, saw his party reduced from 156 seats to 2 in the 1993 Federal election. Twenty-five years later Kathleen Wynne saw her Liberal Party reduced from 57 seats to 7 in the Ontario general election.

At Baskin Wealth Management our job is to maximize returns for our clients. If you see more American stocks in your portfolio and fewer Canadian ones, it is only because money flows to where it can be most profitably employed. Right now, that is not in Canada.

 

Chairman

David Baskin

 

Media Appearances 

Barry Schwartz on BNN Bloomberg’s Trading Day: There will be tailwinds for Nvidia for the next two, three years – February 22, 2024

Long Term Investing with Barry Schwartz & Ernest Wong 

Stryker: Hips, Shoulders, Knees and Toes – February 5, 2024

Lessons from David Baskin – February 15, 2024

Sitting on Topicus of the World – February 27, 2024

Interesting Reads

What’s the ROI of Generative AI – Fastcompany

How Big Tech rescued the market in 2023 – Aswath Damodaran

Warren Buffett’s annual shareholder letter and eulogy to Charlie Munger – Berkshire Hathaway

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]]> Financial Planning Edition with Benjamin Klein https://baskinwealth.com/podcasts/financial-planning-edition-with-benjamin-klein/ Mon, 04 Mar 2024 19:39:23 +0000 https://baskinwealth.com/?p=12430 We are introducing a new regular feature to the podcast, the Financial Planning edition with Senior Portfolio Manager, Benjamin Klein, CFA, CFP. Benjamin joins Barry to discuss topics like - what is financial planning; does everyone need a financial plan; and, mistakes people make as they prepare for retirement. The feature discussion in our inaugural Financial Planning podcast is about the recently introduced First Home Savings Account.

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We are introducing a new regular feature to the podcast, the Financial Planning edition with Senior Portfolio Manager, Benjamin Klein, CFA, CFP. Benjamin joins Barry to discuss topics like – what is financial planning; does everyone need a financial plan; and, mistakes people make as they prepare for retirement. The feature discussion in our inaugural Financial Planning podcast is about the recently introduced First Home Savings Account.

We plan on dropping a Financial Planning podcast once a month so please send us your feedback and questions!

0:00: Intro

0:50: Introducing Benjamin Klein

3:49: What is Financial Planning?

5:08: Should one get a CFA or CFP?

7:37: Does everyone need to do a financial plan?

13:12: The value of knowing your clients

15:22: Mistakes people make as they prepare for retirement

25:00: Building in a margin of safety into your financial plan

27:50: Not getting too conservative too soon

30:20: All about the First Home Savings Account

36:30: If I can do only one contribution – RSP/TFSA/FHSA – which one should I do?

Long Term Investing Podcast can also be found on Spotify & Apple.

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]]> Sitting on Topicus of the World https://baskinwealth.com/podcasts/sitting-on-topicus-of-the-world/ Tue, 27 Feb 2024 14:12:38 +0000 https://baskinwealth.com/?p=12405 With Barry back from vacation, he and Ernest get right back into discussing stocks and the markets. First, the guys discuss Nvidia and AI and sticking to you what you know as an investor. Next, they talk about three companies that are getting the long-term shareholders they deserve, CoStar Group, CCL Industries and Restaurant Brands. Finally, the feature discussion is on Topicus. Spun out from Constellation Software in 2021, Topicus is a serial acquirer of software companies based in Europe. They discuss the reason for the spin-out, Topicus’ strategy, why it is listed on the TSX Venture exchange and why it trades at a higher valuation than Constellation Software.

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With Barry back from vacation, he and Ernest get right back into discussing stocks and the markets. First, the guys discuss Nvidia and AI and sticking to you what you know as an investor. Next, they talk about three companies that are getting the long-term shareholders they deserve, CoStar Group, CCL Industries and Restaurant Brands. Finally, the feature discussion is on Topicus. Spun out from Constellation Software in 2021, Topicus is a serial acquirer of software companies based in Europe. They discuss the reason for the spin-out, Topicus’ strategy, why it is listed on the TSX Venture exchange and why it trades at a higher valuation than Constellation Software.

0:00: Intro
2:22: Our take (or lack of it) on Nvidia’s earnings
4:32: Having patience for long-term investments as a long-term investor
7:29: Case study on Costar Group’s investment in Homes.com
12:27: Case study on CCL Industries’s flat stock price
15:45: Deep dive on Topicus.com

Long Term Investing Podcast can also be found on Spotify & Apple.

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]]> Baskin Wealth Management at the Daily Bread Foodbank https://baskinwealth.com/in-the-community/baskin-wealth-management-at-the-daily-bread-foodbank/ Mon, 26 Feb 2024 20:12:54 +0000 https://baskinwealth.com/?p=12418 In February our team spent an afternoon sorting 6,324lbs of onions at the Daily Bread Food Bank. A wonderful afternoon of team building in support of such an amazing organization.

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In February our team spent an afternoon sorting 6,324lbs of onions at the Daily Bread Food Bank. A wonderful afternoon of team building in support of such an amazing organization.

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