We always find it difficult to 'leave' a long term winner and generally if it is not the company 'screwing up' and is just the market or the sector, we will not. Certainly TFII has some cyclicality. But it has also been one of the best compounders in Canada, despite this. Shares were under $3 in the late 2000 to 2010 period, and are up 60X+ since then. If we remove the financial crisis time period, they are still up more than six-fold since the last decade. A weak sector can give TFII more M&A activity, and it has benefited from other (weaker) companies going bankrupt in downturns. There may be other companies doing better in the short term, certainly. But if one takes a 25% to 34% tax hit then we would be more likely to keep the stock rather than move less (after tax) capital to another name that might not even work.
5i Research Answer: