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TSE:CP
CP-T vs. CNR-T. He owns CP-T and not CNR-T although both are excellent. He prefers Canadian rails to US rails. Both just reported modest volume headwinds but CNR-T had to cut their guidance and CP-T did not. The cuts are transitory in nature for both but over the next couple of years CP-T is positioned better to navigate through these volume headwinds.
CN vs CP After a lousy 30-40 years, the rails now enjoy sustained demand, high barriers to entry and free cash flow that can pay down debt and raise dividends. He likes this industry. He owns CN.
It could come under pressure with a commodities downturn. He would be more enthusiastic about jumping in if it was 15% lower. He feels the same about CNR-T
(A Top Pick Feb 04/19, Up 16%) He swapped out to CNR-T. He is still in the space. The fact that rails have not 'come off the rails' is an endorsement that as long as we have economic headwinds, things are cooking along. You'll do well in either name a year from now.