Long Term Investing - With Baskin Wealth Management

👉 Click Here to Subscribe: https://www.youtube.com/@LongTermInvestingPodcastWhat do you do when a stock you own drops 26% in a single day? For long-term investors, moments like these can be the ultimate test of conviction.In this episode of the Long Term Investing Podcast, Barry Schwartz, President and Chief Investment Officer at Baskin Wealth Management, and Ernest Wong, Head of Research and Portfolio Manager, break down the sudden plunge in Fair Isaac (FICO), what changed for the business, and why they’re resisting the urge to make a knee-jerk decision. They discuss how to determine whether a falling stock represents a broken investment thesis—or simply a new challenge for a strong business. They also look back at lessons from Netflix (NFLX), TFI International (TFII.TO) and Moody’s (MCO), where sharp selloffs didn’t necessarily tell investors what would happen to the businesses over the long term.Barry and Ernest also tackle rising interest rates in Canada and the U.S., why chasing higher yields in U.S. fixed income can introduce unexpected currency risk for Canadian investors, and why they prefer keeping bond maturities relatively short.Finally, they make the case for Costco (COST). From cheaper gas and growing membership benefits to e-commerce, delivery and new stores, Barry and Ernest explain why they believe Costco’s flywheel continues to strengthen—and why they think the company deserves its premium valuation. Plus, why sometimes the hardest—and smartest—thing a long-term investor can do is nothing.Timestamps 00:00 Intro00:54 The three topics: FICO, interest rates, and Costco02:48 FICO’s 26% drop: what happened?03:41 Why investors shouldn’t react too quickly04:34 Netflix and TFI: lessons from sharp selloffs06:33 How US agency mortgages work07:33 Credit scores and mortgage pricing08:27 FICO vs. VantageScore: what’s changing?11:10 Why mortgage lenders may favor VantageScore11:56 The risk of weaker underwriting13:22 How much FICO market share is priced in?14:22 FICO’s other revenue streams and FICO 10T15:28 FICO’s profitability and cash flow16:25 Moody’s: a regulatory-fear comparison17:54 Diversification and managing stock risk18:34 FICO’s growth outlook over the next 3–5 years20:25 Interest rates, inflation, and fixed income22:29 The currency risk of chasing US bond yields24:30 Why short-duration bonds can help in rising-rate markets25:57 Costco’s earnings and business strength27:07 Costco gas and membership value28:42 Costco’s membership flywheel29:02 Store growth and expansion potential30:06 Why Costco can gain share in volatile times31:05 Costco same-day delivery32:31 Is delivery incremental or cannibalistic?33:44 Why Costco commands a premium valuation35:53 Closing thoughtsLinkswww.baskinwealth.com [email protected] DISCLAIMERSThis podcast is for informational purposes only and any forecast on the economy, markets or individual securities should not be viewed as investment advice, a recommendation or an offer or solicitation to buy or sell any securities. Clients of Baskin Wealth Management and the speakers on this podcast may own shares of the companies discussed. Information on this podcast is current as of the time of production and is subject to change. If you have any questions or would like to subscribe to these podcasts, visit our website at baskinwealth.com.

The Long Term Investing Podcast is back with a brand-new season and a brand-new look. Barry Schwartz, President and Chief Investment Officer, and Ernest Wong, Head of Research and Portfolio Manager at Baskin Wealth Management, return to break down why short-term volatility hasn’t shaken their conviction in owning high-quality compounders—businesses that can grow earnings and free cash flow per share, reinvest at attractive rates and create value over the long term.With interest rates moving higher, inflation concerns resurfacing and AI investment continuing to reshape the economy, Barry and Ernest explain why they aren’t making major changes to their portfolio. They discuss why higher rates can create challenges for dividend-paying stocks and why constantly chasing the market’s latest winners can come at a cost.They also look at the push to get major infrastructure projects built in Canada and what it could mean for Canadian Natural Resources (CNQ.TO) and Tourmaline Oil (TOU.TO), two companies they believe could benefit from greater market access for Canadian energy. Plus, they discuss how Brookfield Corporation (BN.TO) and Brookfield Asset Management (BAM.TO) are positioning themselves to capitalize on the infrastructure investment boom.Finally, Barry and Ernest examine just how exposed the S&P 500 has become to the AI and data-centre boom, with discussion of Nvidia (NVDA), Micron Technology (MU) and Amphenol (APH). Ernest argues that with roughly 40% of the index now directly tied to AI and data-centre spending, investing passively in the S&P 500 increasingly means making a significant bet on a single theme. For active investors, that raises an important question: how much AI exposure are you actually comfortable having in your portfolio? They also turn to Apple (AAPL) and whether its new foldable iPhone could become another meaningful growth driver.Markets may be shifting, but does that mean your investment strategy should shift with them?👉 Click Here to Subscribe: https://www.youtube.com/@UCJVRDGEQLGgnYyQ9yBrCnDw 00:00 Introduction01:07 Welcome to the Long Term Investing Podcast02:05 Ernest’s Summer in Asia and a Global Investment Perspective03:00 Rising Interest Rates, Inflation, and Market Uncertainty04:37 Are Today’s Rate Hikes Similar to 2022?07:17 How Interest Rates Could Affect AI and Data Centre Growth08:53 What Higher Rates Mean for Stocks, Bonds, and Dividend Investments12:23 How Baskin Is Positioning Its Portfolios14:09 Mark Carney’s Investor Summit and Canada’s Economic Strategy16:09 Can Canada Actually Deliver on Its Mega-Projects?19:31 Canadian Natural Resources and Tourmaline: Potential Beneficiaries (CNQ, TOU)23:41 Is Compounding Still the Best Long-Term Investing Strategy?26:33 Why Investors Should Focus on Fundamentals, Not Stock Prices28:25 Brookfield, the Maple Fund, and Investing in Canadian InfrastructureLinkswww.baskinwealth.com [email protected] DISCLAIMERSThis podcast is for informational purposes only and any forecast on the economy, markets or individual securities should not be viewed as investment advice, a recommendation or an offer or solicitation to buy or sell any securities. Clients of Baskin Wealth Management and the speakers on this podcast may own shares of the companies discussed. Information on this podcast is current as of the time of production and is subject to change. If you have any questions or would like to subscribe to these podcasts, visit our website at baskinwealth.com.

This episode, Barry and Ernest review 2025 including both highlights and lowlights for the marketsand the portfolio. 0:00 - Intro4:06 - Lowlight 1: The Canadian Dollar8:09 - Lowlight 2: Constellation Software17:00 - Lowlight 3: Large M&A 21:50 - What’s nextfor AI29:03 - Highlight 1: Google’s rebound34:41- Baskin’s portfolio changes39:39 - Strong fundamentals

This week, Barry and Ernest review results for Alimentation Couche-Tard and Copart before breaking down Netflix offer to purchase Warner Brothers Discovery. 0:00- Intro8:33- Alimentation Couche-Tard's rebound15:04- Canadian compounder buybacks24:17- Copart's earnings30:29- Copart's low-value car problem 36:42- How AVs impact Copart 39:00- Netflix's bid for Warner Brothers Discovery

This week, Barry and Ernest give an update on a number ofcompanies including Apple, Amazon.com, TFI International, and Live Nation. 0:00- Intro15:08- Apple strong results26:08- Amazon and AWS growth 33:52- TFI's 2026 rebound40:26- Live Nation update