Q: Hello,
I have built up a TRI position in a registered account since 2006, and it has now grown to become just under 10% of the portfolio. I plan on continuing to hold for many more years unless something changes.
Bearing in mind your usual advice about position sizing and over concentration, and understanding that you can't provide personal recommendations, is TRI a company that you would be more comfortable holding in an 8-10% weight, or a 6-8% weight?
Thanks.
I have built up a TRI position in a registered account since 2006, and it has now grown to become just under 10% of the portfolio. I plan on continuing to hold for many more years unless something changes.
Bearing in mind your usual advice about position sizing and over concentration, and understanding that you can't provide personal recommendations, is TRI a company that you would be more comfortable holding in an 8-10% weight, or a 6-8% weight?
Thanks.
5i Research Answer:
First, congratulations on being a long term investor. The period since 2006 has had more than its fair share of market and economic craziness. TRI was about $40 in 2006, dipped to $22 in the financial crisis and is $194 now. At $88 billion market cap, we would consider it one of the best conservative, yet growth-focused companies in Canada and believe it is very well-managed. We would be quite comfortable with a large weighting in the company. Note it is not cheap on valuation, but the 'good' ones rarely are.