Long Term Investing - With Baskin Wealth Management

The market is changing. The AI trade is losing momentum, money is rotating into other partsof the market, and some of the stocks investors left behind are making acomeback. Is your portfolio positioned for what's next?On this episode of the Long Term Investing Podcast, Barry Schwartz, President and Chief Investment Officer of Baskin Wealth Management, and Ernest Wong, Head of Research and Portfolio Manager, explain why strong businesses can be great investments even when the market has given up on them. Coca-Cola (KO) is proving that consumers haven't abandoned soft drinks, with Coke Zero helping drive growth. Domino's Pizza (DPZ) continues to gain market share despite pressure on consumers, while Garmin (GRMN) delivered strong earnings only to see its stock initially sell off. They also revisit Constellation Software (CSU), where fears of AI disruption sent shares plunging despite continued growth in the underlying business.But the bigger shift is happening in AI. Following the U.S. midterm elections, growing political opposition to data centre construction is raising questions about the next phase of the AI boom. Could a slowdown in infrastructure spending hurt chipmakers and equipment suppliers while benefiting the hyperscalers thatalready own massive data centre networks? Barry and Ernest explain why they're wary of sky-high valuations in parts of the AI trade but remain confident in Taiwan Semiconductor (TSM).Plus, three stocks making headlines for very different reasons. Ferrari (RACE) is bouncing back as its controversial electric vehicle strategy attracts a new generation of wealthy buyers. FICO (FICO) has been battered by regulatory pressure despite reporting record results, and management is making a significant change to its pricing strategy. Meanwhile, Fairfax Financial (FFH) is defying concerns about a weakening insurance market, reporting strong results and pursuing major new investments in India and the UK.The lesson? Stock prices can change dramatically even when the businesses behind them haven't. Barry and Ernest explain why tuning out market noise, focusing on fundamentals and resisting the temptation to chase momentum can make all the difference for long-term investors.To learn more about Baskin Wealth Management or discuss your investment portfolio, visit https://baskinwealth.com.Timestamps 0:00 Cold open: quality stocks and the AI outlook0:56 Welcome to the Long Term Investing Podcast1:45 Halloween talk: costumes, candy and shrinkflation3:10 Coca-Cola’s pivot to Coke Zero5:32 AI stocks pull back: why diversification matters6:42 Midterm results and the market narrative8:56 Don’t overthink elections and macro events9:37 Strong fundamentals beneath market volatility11:59 “The market is here to serve you, not instruct you”13:46 Example: Garmin’s earnings and stock movement14:51 Constellation Software and AI fears16:12 AI hype, data centers and the chip sell-off18:12 Why the hyperscalers may benefit20:08 Risks across the data-center supply chain21:57 Why they still own Taiwan Semiconductor24:03 Ferrari: earnings, the Luce and brand strategy33:00 FICO: pricing changes and regulatory pressure38:57 Fairfax: insurance results and new investments45:51 Wrap-up46:09 Legal disclaimerLinkswww.baskinwealth.com [email protected]  DISCLAIMERThis podcast is for informational purposes only and any forecast on the economy, markets orindividual 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 ownshares 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.

👉 Click Here to Subscribe: https://www.youtube.com/@LongTermInvestingPodcast A $2 trillion AI IPO, a sharp selloff in Google, and three companies that put shareholders first. Is Wall Street losingsight of what really matters?On this episode of the Long-Term Investing Podcast, Barry Schwartz, President and Chief Investment Officer at BaskinWealth Management, and Ernest Wong, Head of Research and Portfolio Manager, break down the anticipated Anthropic IPO and explain why, despite the explosive growth of its Claude AI models, they're unlikely to invest. With enormous data centre commitments, fierce competition and a potentially staggering valuation, is the AI opportunity worth the risk?They also examine Google's (GOOGL) latest earnings and the market's negative reaction despite strong revenue growth. As Google and Meta (META) pour billions into AI infrastructure, investors are increasingly questioning whether that spending will generate adequate returns. Could the market be overlooking the long-term opportunity?Finally, Barry and Ernest reveal three companies they believe stand apart when it comes to respecting shareholders: Berkshire Hathaway (BRK.B), Constellation Software (CSU) and Fairfax Financial (FFH). They discuss what makes these businesses exceptional capital allocators, why management incentives matter, and how aligning executives with shareholders can create lasting wealth.0:00 Cold Open0:54 Welcome to the Long Term Investing Podcast1:40 Halloween costumes and the economics of Halloween2:50 The Anthropic IPO: what Anthropic and Claude are5:45 Anthropic's prospectus: valuation and revenue7:09 Why Anthropic going public matters for AI8:21 Would we buy the Anthropic IPO?9:29 Is Anthropic actually profitable?11:01 The $500B data center commitments12:25 Meta and Google Q3 earnings13:25 Why Google fell despite 20%+ growth15:09 Google and Meta's history with new ad formats16:44 AI capex and what the market wants to see18:03 Companies that respect shareholders19:27 What shareholder alignment really means24:44 The only three truly shareholder-focused companies26:41 How Fairfax pays its CEO29:12 Buffett's legacy and incentive design29:58 Is Anthropic's Dario Amodei aligned with shareholders?31:44 Alignment doesn't guarantee a good business32:24 Capital allocation and decentralized operations33:37 Wrap-up34:12 Legal disclaimerLinkswww.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.

👉 Click Here to Subscribe: https://www.youtube.com/@LongTermInvestingPodcastGreat companies don't always make great stocks—at least in the short term. Netflix (NFLX) and Meta (META) are delivering impressive growth, yet their share prices are under pressure. Is Wall Street missing the bigger picture? On this episode of the Long Term Investing Podcast, Barry Schwartz and Ernest Wong of Baskin Wealth Management break down what's driving the selloffs in Netflix and Meta. They examine Netflix's declining U.S. engagement, growing competition from YouTube, and whether its international expansion and live sports strategy can reignite investor enthusiasm. They also discuss Meta's ambitious AI investments, the rapid growth of its new Muse platform, and Mark Zuckerberg's plans to maintain control of the company.Plus, why are some of the market's most reliable businesses being overlooked? Barry and Ernest discuss Waste Connections (WCN) and FirstService (FSV), two long-term holdings that have faced investor skepticism despite resilient fundamentals. From pricing power and acquisitions to share buybacks and disciplined capital allocation, they explain why patience can be one of the most valuable tools in an investor's portfolio.The bottom line: Stock prices are opinions. Fundamentals are facts. And for long-term investors, knowing thedifference is everything.Timestamps0:00 Trailer & Intro: Meta, Netflix, Waste Connections and First Service1:42 Kawhi Leonard and the Raptors3:47 Are publicly traded sports teams good investments?4:27 Netflix: stock under pressure and the YouTube narrative5:37 Is Netflix engagement really declining?7:04 Netflix's leadership shake-up7:40 The Warner Bros. bid and the stock drop9:43 Putting Netflix's U.S. engagement issue in perspective11:19 Is Netflix a utility? Why engagement still matters12:38 Netflix's international content strategy15:32 Why the US engagement problem is fixable16:57 Disney licensing deals and channel services20:19 Live sports and the platform pivot21:29 Netflix valuation vs. the S&P 50022:31 Meta: why the stock fell after earnings25:09 Meta's Muse AI agent and how it makes money28:33 Meta's new non-voting share class32:03 What Netflix and Meta have in common32:55 Waste Connections: the exclusive-market model38:18 First Service: property management, roofing and brands42:56 First Service buybacks and capital allocation45:57 Why boring compounders lagged this year46:53 Legal disclaimerLinkswww.baskinwealth.com [email protected] DISCLAIMERSThis podcast is for informational purposes only andany forecast on the economy, markets or individual securities should not beviewed as investment advice, a recommendation or an offer or solicitation tobuy or sell any securities. Clients of Baskin Wealth Management and thespeakers on this podcast may own shares of the companies discussed. Informationon this podcast is current as of the time of production and is subject tochange. If you have any questions or would like to subscribe to these podcasts,visit our website at baskinwealth.com.

👉 Click Here to Subscribe: https://www.youtube.com/@LongTermInvestingPodcastThe AI trade is showing signs of cracking.Rising interest rates, concerns about massive data centre spending, and questions about future returns are putting pressure on some of the market's biggest winners. Is your portfolio prepared if the AI boom loses momentum?In this episode of the Long Term Investing Podcast, Barry Schwartz, President & CIO of Baskin Wealth Management, and Ernest Wong, Head of Research & Portfolio Manager, discuss whydiversification matters more than ever and why they're sticking with their strategy of owning high-quality, profitable businesses rather than chasing the hottest stocks. They explain the risks of an increasingly AI-concentrated S&P 500, why rising borrowing costs could spell trouble for companies likeCoreWeave (CRWV), and what separates speculative AI investments from companies thatcan fund their own growth.They also take a closer look at Taiwan Semiconductor (TSM), which is benefiting from explosive demand for AI chips, and explain why its disciplined approach to spending makes it an attractive long-term investment. Plus, with fast-food stocks struggling under the weight of inflation and a stretched consumer, Barry and Ernest discuss the challenges facing McDonald's (MCD) and why they continue to see opportunity in Domino'sPizza (DPZ), despite its recent struggles.With markets shifting and investors questioning what's next for AI, Barry and Ernest explain why fundamentals, cash flow and patience—not short-term performance—remain the keys to building long-term wealth.Learn more about Baskin Wealth Management at baskinwealth.com.

👉 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.