Derek Foster talked in one of the Strategies sessions on Saturday His talk was called “Compounders That Make you Rich”. He is the author of The Idiot Millionaire. His site is here.
His stocks must pay a dividend and increase them yearly at least for 10 years. Consumer taste are changing. He wants safe growth or relatively safe growth. He likes the CNR because it has a track to Price Rupert which can save 2 days off a pacific journey. He wants to have a company with safe growth, not a fad.
Asia (China) is in their third or fourth inning, but Asian trade will growth. Prince Rupert has excess capacity. There are only two railways in Canada, CN and CP and they have their tracks. There will not be another rail company in Canada. They have their basic costs and once they pay these costs, it is all profit. They both have huge growth potential and they will continue to grow. CN also goes to Mexico which is a growth area.
Visa (NYSE-V) is growing globally. It is a safe company. Their industry is hard to break into. Alimentation Couche-Tard (TSX-ATD.B) have convenience stores. They are consolidation the convenience stores. They are growing massively in Europe and Asia. Eating out is now done in national chains. We know that there will be a certain number of 70, 80 and 90 year old people. Savaria Corporation (TSX-SIS) is from Quebec and is growing massively.
He is looking for growth that is safe and with little chance of a downside.
On my other blog I wrote yesterday about Johnson and Johnson (NYSE-JNJ) ... learn more. Next, I will write about HLS Therapeutics Inc. (TSX-HLS, OTC-HLTRF) ... learn more on Friday, November 16, 2018 around 5 pm.
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