Friday, May 24, 2019

Bruce Murray on North American Growth Stocks


Just a short post on what Portfolio Manager Bruce Murray had to say on BNN Bloomberg on NA Growth Stocks.

I like to have a mix of income (mostly) and growth stocks in my portfolio. I believe in investing in good businesses that you understand and have the potential to grow their earnings over time and return that money back to shareholders through dividends and capital appreciation.

Many experts come on BNN giving out top picks and investing ideas mostly for entertainment and promoting their firms. Every once in awhile you hear about good companies worthy of further explanation.

Have you heard of The Murray Wealth Group? Me NOPE!

Everyone is consumed by the US/China trade war and it's the latest reason/excuse from most portfolio managers. It helps when your clients come calling when they think the sky is falling. It's when guys like Bruce come in to hold your hand during these times. After all that's what he ges paid to do.

He likes India to invest in through global companies.


Stock Questions

Visa V - good 3-5 year hold, doesn't own it. Owns Mastercard. Buy Visa now

Medical Facilities DR - has traded it sold over $17. Closed at $12.50. Just had a bad quarter. High Debt. Has lost 30% over the last 5 years. Owns a 2-3% position. Looking to add in a couple months.

Keyera KEY - good company, struggles with the oil price. Hold for the dividend

Bristol Meyers - taking out Celgene at a premium. Next 12 months it will struggle digesting the transaction. Sold his Celgene today.
Pfizer - sold it at $43 recently. Buy it sub $40.
Owns Astra Zeneca and Lily in the HC sector.

Very choppy speaker when giving answers to caller questions. He sounds nervous AF. Already I don't think I would let this guy handle my money. Then again that's probably not fair as I would not let anyone do that anymore.

That's why these shows actually suck and that same annoying caller is always asking questions.

TFI Internatinal TFII - trucking co. great management. (I own it) Up 82% in the last 5 years. Fuel pices can be a drag on the share price as with all delivery companies. 3% dividend.

United Technologies UTX - aerospace, will spin off its elevator business. 

Morneau Shepell MS - benefits and pension plans, expanding into the States. Steady slow growth, high quality investment. Solid growth company.

Sierra Wireless SW - makes stuff for the internet of things. Sensors etc... doesn't own it but could buy it. Need to hold it for 3 years. Hs lost 30% in the last 3 years.

Past Picks

Broadcom up 23%
chip manufacturer being hit by the Huawei troubles. Still holds it

BMW down 22%
still hoding a 2% position. If it drops he buys more. Will be a big player in electric. Tardes at 5X earnings.

Air Canada up 79%
Has gone bankrupt twice in it's history. AC will become a victim of the 737 Max probs.

More Calls

I'm just going to list the remaing stocks he took calls on. I can't keep up with or understand half of what he is trying to say.

Walt Disney DIS - he missed it

New Flyer NFI - doesn't own it, looks attractive to him

Becton Dickinson - solid HC company. Buy it and hold it, maybe wait for the election.

Enbridge ENB - we need pipelines (I own it) lots of debt great dividend. He owns it. Decent play not a lot of risk. 

Tapestry TPR - bought Coach and Kate Spade brands. He bought the stock a couple months ago and is down a few bucks. 3-5% dividend.

Amgen/Allergan - doesn't own them but would buy Amgen of the two

FedEx FDX - impacted by the China war. European problems. He is doing more homework but likes it here. Everything is going wrong. He's waiting to buy but could be wrong as it could drop another $25 (oh brother great advice).


Blackstone BX - owns it, likes the dividend
Marvell Tech Group MRVL
CIBC CM - TD is the best. Overplayed the mortgage business. Impressed by management. Best divy of the group.

Top Picks

Microsoft MSFT
UnitedHealth UNH
Linamar LNR


My Opinion

The only stocks I liked that were talked about were Visa, Microsoft and Disney. I think they are great 10 year holds at current prices. They are definitely worthy of more research on your part. They are definitely on my buy list.

I used to own Linamar and thought the stock would  really take off after we had a new NA free trade agreement. Apparently that was a lie too. Nobody knows shit and another reason why you can't buy stocks on the recommendation of experts on TV. Bruce bought LNR at 0.70 in 1976. The stock has been as high as $80. Now at $43. Maybe it's time to put it on my watchlist. Electric cars and components are the future of driving. Invest accordingly if you are into growth stocks.

To me Bruce Murray was a very frustrating guest to listen to. I do respect his time in the investment industry and his longevity as an asset manager. He has to be doing something right. He's a Ross Healy type of character. Lots of hawing and himming at times. Not everyone can speak and answer investor questions with rhythm and thoughtful insight.

He never once stated his firms philosophy or strategies to grow money. I have no idea how he selects stocks or what he looks at before making buy/sell decisions.

I own TFII, ENB, CM and TD of the stocks mentioned on the show.

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