Q: Given the increasing focus on defence spending both in North America and Europe, do you have some conviction stocks (accessible to a Canadian retail investor) that will likely benefit from this trend?

Q: I've held Lockheed Martin (LMT) for 11 years and enjoyed a solid return of nearly 14% per annum, largely driven by the success of the global F-35 program, which has been a cornerstone of LMT’s revenue and earnings growth. However, with today’s announcement that Boeing has won the Next Generation Air Dominance (NGAD) fighter jet contract—potentially worth over $20 billion initially and hundreds of billions over its lifetime—I’m concerned about the impact on LMT’s future growth and outlook. The loss of this high-profile sixth-generation fighter program to a competitor could signal a shift in market dynamics, especially given LMT’s historical dominance in advanced fighter jets. How do you assess the implications of this decision for LMT’s long-term growth trajectory, particularly in terms of its Aeronautics division and overall market position? I’m considering selling my position due to this turn of events, though it would mean realizing a significant capital gain in my taxable account, and I’d likely reinvest in another aerospace and defense industrial, such as Northrop Grumman or even Boeing itself. Could you share your analysis of how this contract loss might affect LMT’s valuation and growth prospects, and offer your thoughts on whether selling now and reallocating makes sense for an investor like me seeking both growth and stability?I'm a retired investor and do benefit from the dividend growth of LMT. Please factor into your overall comments. Thank you!

Q: Further to Stuart’s recent question on European defense spending, I’m also interested in the security theme. I recently purchased Axon in the belief police spending will be ramped up going forward. Do you have some suggestions for me to investigate in the areas of security/defense for the following: police, computers, military. Perhaps a couple of companies in each area as your top choices. I realize you have covered companies such as Raytheon extensively through the years but this theme hasn’t been on my radar until recently. Unfortunately, it seems to be increasingly significant going forward.
Thanks so much for your guidance in these challenging times.