Del Vicario on Growth Stocks

This is just a short post on what I derived from watching a recent Market Call Tonight show.

One of the best asset managers in Canada to listen to is Jason Del Vicario of Hollis Wealth. He says it like it is, to the point and invests in top quality growth stocks. This is another strategy I try and employ and mix in with some income stocks to grow my money

Jason Donville of DKAM has said the only person he would trust besides himself to manage money would be JDV. High praise indeed. I never miss an opportunity to listen to his latest comments when he comes on BNN. Monday was one of those nights.

Some of the stocks he made comments on included; Molson Coors, Spinmaster, The Stars Group, Sangoma, Open Text, Parkland Fuel, Shopify, Salesforce, New Flyer, Alibaba, Transcanada, Franco Nevada, Canadian Tire and Tesla.

He also commented on Canadian Banks and whether you should buy individual banks or the ETF ZBK. He would prefer the big cap names of Royal or TD. He doesn't buy banks because they are low growth names and he doesn't invest for dividends.

You can go to stockchase.com for more of his in depth analysis of what he had to say on each individual name or the BNN website and listen to some short clips of his appearance. Spinmaster is the biggest position in the fund he manages.

The point of my blog post is to highlight the growth names he recommends and has recommended in the past as advice to follow up on and possibly invest in.

Top Past Picks of 20 June 2018

Dollarama (DOL) @ $52.82 post split, Now $42.11 down 19%

Constellation Sotware (CSU) @ $1054.64 Now $950.76 down 10%

Spinmaster (TOY) @ $ 57.10 Now $53.45 down 7%

His top picks have not done that well but in fairness it's only a 3 month performance snap shot. He's down on average of 12% on just these 3 picks. If you had owned the index through XIU you would be even during the same time frame.

I own all 3 of these picks but purchased my shares at much lower prices.

Let's look at what picks JDV made over a year ago.

It always matters when you buy a company so take your time and study hard before putting your money to work.

Past Picks 1 Year Old (18 Sep 2017)

Boyd Group Income Fund (BYD.UN) @ $91.62 Now $129.01 up 41%

CCL Industries (CCL.B) @ $56.98 Now $59.10 Up 5%

Constellation Software Debenture yields 7%. The stock was @ $687.00 Now $949.90 Up 38% on the common stock.

His top picks from a year ago have done extremely well over the course of the last 12 months. They would have performed even better for the TV had he been on a couple months ago. This is a much better gauge of his stock picking prowess as he's up 27.6% on these 3 picks alone. If you had owned the index through XIU you would be up 8% during the same time frame.

I know his whole portfolio is not up 27% but you get a good idea of the quality of the companies he likes.

Jason looks for and invests in companies with a ROE growth rate of at least 20%. 

As you can see JDV smashes the index when he picks growth stocks. The point is to hang in for the long term and don't sell a good business because it's down.

He is still looking to buy more Dollarama and so am I. They only missed earnings by a penny yet the market absolutely punished them and again sold off today. This is another buying opportunity if you have cash to invest.

I do not own CCL or BYD.UN. I have owned Boyd Group in the past and my selling of this company is perhaps one of my biggest investing regrets of the past few years. You can paste this link in your browser if you would like to watch the clip.

https://www.bnnbloomberg.ca/video/jason-del-vicario-s-past-picks~1498069

His Current Top Picks as of 24 Sep 2018

1. Dollarama (DOL) $41.82
2. Facebook (FB) $165.41
3. Viemed Healthcare (VMD) $6.45

I own both DOL and FB. Dollarama bought at much higher prices but Jason says at this level it represents great value and I agree. I will be looking to purchase more for all accounts.

I love Facebook and wrote more about it here and why I bought it before Jason recommended it. I paid $161.

He likes a smallcap Canadian healthcare stock VMD. Ever since I got burned on ProMetic Life I hate this space in Canada. Who knows but I don't think I'll be acting on this recommendation.

My Final Thoughts

You have to remember when listening to professional money managers recommend stocks that their goals are entirely different than yours. Make sure you investigate and research each company before you take a position. That's the responsible thing to do.

JDV buys stocks but also sells them to lock in performance gains and to re-balance clients portfolios. You and I have the advantage of hanging on longer and establishing smaller positions in a lot of stocks. We can ride out the economic cycle longer than Jason can afford to. We can and should neglect our portfolio for our financial health, he can't because he has to answer to other investors.

I won't sell Facebook for probably 10 years unless the company stops making money and stops growing. This for me is a long term growth story. Even when it gets overvalued I will still ride the stock where as I believe Jason will lock in gains as any good money manager will.

One stock he mentioned and owns, that I will look into further is CCL Industries.

Stocks he talked about or mentioned in the course of the show that I own include; Spinmaster, Dollarama, Alimentation Couche Tard, Royal Bank, TD and Constellation Software.

One stock I was really surprised he owned was Kirkland Lake Gold. It is one of the gold stocks that makes money and doesn't destroy shareholder capital like most gold companies. It has great margins and a 20% ROE. Great pick but he didn't recommend it today or mention it but briefly. With inflation picking up all over the world, this stock may pick up more traction. Insiders have also been buying lots of stock since August. I will be watching KL for a possible entry point.

Listen to Jason any time you have a chance and follow up by doing your own research before making a decision on what to buy as an investment. Great show and very informative. I learned a lot and got some new ideas to help me grow money.

NEVER GAMBLE WITH MONEY YOU HAVE SAVED FOR RETIREMENT

Looking for Saving Ideas So You Can Invest? 

If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with top money mangers in Canada using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!

Do you invest in growth stocks and if so who do you listen to for ideas?