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No-Lack-3144

If I had to guess it would be Canadian Pacific, Canadian National, Pembina or Enbridge. He’s looked at the Canadian railroads before. There’s also the possibility of him looking at a bank, but I highly doubt he would touch a Canadian bank. It’s either infrastructure or energy, two things Canada can’t mess up. This also factors in that Abel likes energy investments. There’s also the possibility of him purchasing Couche Tard like he did with Pilot. This would give him ownership of the Circle K Franchise.


joe4942

I'm surprised ATD as a $71B company hasn't ever bothered to dual-list on a US exchange. Most Canadian large caps are on US exchanges too.


hellolittleman10

My guess is they don’t want to pay the exchange fees.


creemeeseason

CNQ would be of appropriate size, and he's been very into energy lately (OXY). Really good long term company too.


Obvious-Guarantee

This would be my bet as well.


allyuhneedislove

>”cant mess up” Justin Trudeau: “hold my beer”


One-Eyed-Willies

You read my mind.


BoozeBirdsnFastCars

Pipelines completed Harper: 0 Trudeau: 1


allyuhneedislove

Go check out Trudeau on LNG.


InflationMaximum7048

"Hold my Maple Sirup"


pretendperson1776

"Can't screw up infrastructure, eh? Hold my poutine" -Canadian Government Source: Government owned pipeline.


SaintofKillers420

this I am guessing CNI or possibly RBC ticker is RY We do need to be careful with the railway stocks though there is a potential for a strike. [https://finance.yahoo.com/m/38e724b5-a1f0-32cd-af7d-e148e25bafeb/teamsters-canada-says-strikes.html](https://finance.yahoo.com/m/38e724b5-a1f0-32cd-af7d-e148e25bafeb/teamsters-canada-says-strikes.html)


No-Lack-3144

That’s why the railways are more attractive at this point. A strike would create that fair price for investors. But it also depends on if Berkshire is looking to invest or buy a business. That he did not say, but it does lead to more speculation of what his secret holding is once again .


SaintofKillers420

maybe it will be enough to bring back All Dressed Ruffles and Ketchup Chips.


datafisherman

Same thing happened to CN just before the pandemic. In that case, a group promoting Indigenous sovereignty blockaded a key line in Southern Ontario. Politically, I sympathized with the protesters. Financially, I considered buying CN - because I knew the Canadian government had a 100% record of breaking up such blockades in the past. It was over in weeks, and CN's share price continued its upward trajectory. The press had itself tied in knots.


SympathyOver1244

apparently, Alberta's government has essentially diminished a lead Canada had in renewable energy infrastructure...


artvandelayyc

Alberta has the most wind and solar in Canada by far, but those obviously don’t provide baseload generation.


Baldpacker

And the grid is an issue.


cantstopwontstopGME

That’s because Alberta lives and dies by the price of the shit level crude they export


Significant-Safe7458

He’s probably not looking at investing in railroads. In one of his annual reports he discussed how expensive railroads are to operate. It seems like he is disappointed by the returns generated from BNSF.


No-Lack-3144

He owns BNSF, but also mentioned you can’t replace railroads. He may be choosing to just invest in one versus straight up buying another.


Billsnyanks2

A railroad? Didn’t he speak somewhat negatively about BNSF in the letter?


No-Lack-3144

Yes, but he also mentioned during the meeting that you can’t build more. It’s a forever asset and with Canadian strikes looming they might trade at a cheap price. He looked at railroads in Canada years ago when CP and CNI were both trying to acquire Kansas City Southern. He expressed the only way it would be a good investment is if the company can adequately integrate and be managed. CNI is a nice company with great management, CP it’s on the fence but it’s closer to fair value


Straight-Coffee-8637

Fortis?


CreaterOfWheel

what about EQB? online banking just like Nu


samchar00

I would guess telecom tbh


No-Lack-3144

What are you seeing that makes you think telecom?


samchar00

they look cheap currently, maybe a little oversold? Considering population growth, they might be a great 10Y holding


No-Transportation843

At this point our government is up for sale. He may as well just buy Canada.


OpeningCharge6402

With majority liberal governments in the last 50 years. We could never be so lucky to be owned by someone who truly embodies fiscal responsibility


jojothegreat55555

Lol he should buy bombardier. His company netjets is already a massive buyer of their jets so it makes sense from a business point of view


Vashta-Narada

lol- except Buffet likes well managed companies. bonbardier ain’t that.


JakeFrmStateFarm_101

recently they’ve underwent quite significant changes.


Kill_4209

Good reason for there being upside for an investor big enough to make organizational changes.


Ok_Image905

I also think Bombardier, Netjets ordered up to 232 planes recently so makes a lot of sense. Stock is up a lot recently too... might be him buying...


ConstantOne5578

Canada is much better option than China.


Lost-Cabinet4843

Oh good god yeah.


xGlor

I'm Canadian. It is, obviously. But it's not a great capitalist climate. It's a 'fake' economy, driven largely by a housing positive feedback loop that had gone full /r/wsb and has started to peter out. Now, we're trying to import it with enormous, infrastructure-crippling immigration numbers. Canadians don't invest in business or entrepreneurship. The mindset is quite narrow, and your average citizen would rather 'invest' in a pre-build condo or investment property than much else.


Technical_Money7465

Same as Australia


sailorsail

Canadians don’t invest in business or entrepreneurship because our government(at all levels) regulates and kills everything except real estate, maybe logging. We are a banana republic.


IceOmen

lol you’re basically saying the avg Canadian just wants to.. live? Yeah that’s kind of the expectation in a real country. If the livelihood of citizens depends on rampant speculative investments it’s not a real economy, so yes you’re correct it’s fake. If a countries citizens can’t even afford to reproduce to the point where you have to replace them artificially, yeah not a functional country. The US is the only country that honestly sort of functions this way and barely as every couple years it almost collapses the global economy and just prints more money to stop it


Bewaretheicespiders

Ironic argument given how sharing a border with the US is the main reason Canada has what little economy it has.


ACiD_80

That was mainly a Charly thing


Bewaretheicespiders

China's own issues aside, Canada has started its collapse. Real GDP per capita, labor productivity and capital stock per worker all trending down. The opposite of an industrialization, Canada is actively reverting to a more cheap labor, less modern economy. It'ld be fascinating if it wasnt so tragic.


ahuiP

Only if u own an American passport


allyuhneedislove

Not if you’re trying to make money. Maybe if you’re trying to be moral though?


paramounted123

Anyone who thinks it's CN or CPKC is delusional. After the CPKC merger it became clear the regulators, specifically the STB, would not allow any consolidation within the top 4 North American railroads.


Senior_Heron_6248

There’s 7 class 1 railroads in North America.


CarRamRob

Not after the merger. Down to 6


Senior_Heron_6248

Definitely 7 class 1 https://blog.intekfreight-logistics.com/what-are-class-1-railroads#:~:text=Class%201%20Railroads%20account%20for,plus%20people)%20across%20the%20continent.


CarRamRob

Interesting, Amtrack has joined the club. I’m falling behind the times. Immediately after the CP/KCS merger it was only six https://www.american-rails.com/class.html


Sci3nceMan

Sweet Jeebus. Already owns most of Alberta’s electric grid. I sure love paying those exorbitant transmission fees 🫤


joe4942

Oh yeah, I forgot Berkshire owned AltaLink. Plus there was this: https://www.cbc.ca/news/canada/calgary/wind-farm-warren-buffett-alberta-berkshire-hathaway-calgary-1.5321345


Sci3nceMan

Berkshire is the person who gets the lucky first rolls in Monopoly and ends up owning most of the board 😑


Borthalomew

That’s a good reason to like CCJ


jp101913

CCJ?


Borthalomew

I like CCJ


dpl257

Buffet is buying Canada


Vibrantpowder

My bet is on Chevrons wells in my area. I work in the oil and gas industry in a major O&G area in Alberta. Chevrons wells in the area have come up for sale ($900 Million) and we’re all wondering who in the area will be able to afford them. I bet he will purchase them with his own O&G company or will loan money to Pembina to purchase them


umdwg

I believe that Whitecap will buy them


Woodpecker222

Grant Fagerheim (ceo of wcp) has repeatedly said the company is not interested in the entirety of the Chevron Duvernay assets as wcp is already very inventory rich. Pieces or maybe a JV are still a possibility. POU is also contiguous to the landbase and is very flush with cash..


umdwg

We’ll see!


Vibrantpowder

I gotta agree with Woodpecker222. From what I’ve heard from the whitecap guys out here is that whitecaps issue is more what opportunity of their own they want to dedicate there cash too.


Woodpecker222

It won’t be Pembina, which is solely a midstreamer. It’ll be an upstream operator.


Vibrantpowder

At first I thought the same but I’ve heard rumour Pembina already owns some wells anyways. And if they don’t, what’s to stop them from diversifying? Makes a lot of financial sense to buy the wells that feed your facility anyways.


number1_cop

0 chance Pembina buys it. Pembina might have some water disposal wells or something but no production. Midstream is a much better and easier (technical expertise wise) business and trades at a much higher multiple. And there really hasn't been any multiple differentiation for producers that own their gas plants and oil batteries vs those who don't, so combining midstream and production just lowers the valuation of your midstream, doesn't raise the valuation of your upstream. Tourmaline had great success in spinning out minority working interests in their infrastructure through Topaz and forcing the market to value those assets at 9-10x EBITDA vs 3-5x for a producer. I'd load up on PPL shorts if I thought there was any chance of them buying an upstream asset


wind_dude

Suncor(I think this used to be in his portfolio), Brookfield, enbridge or some other energy company…


VirtualTraffic1778

When I heard that I immediately began to wonder what it could be.


nonmetaljacket

CNR


CoastingUphill

It would have to be a very small stake for regulators to allow him to own a piece of another railroad.


Kerry_Kittles

It’s more likely a private company. It’s also likely a function of the cap gains tax increase happening in Canada soon. I would guess Jim Pattison Group which is a super under the radar company


joe4942

Could it be the newly completed Trans Mountain Pipeline that the government currently owns?


Senior_Heron_6248

Yes that’s what it is. Any other company he wouldn’t be advertising his interest in.


WedWealthist

Hmm interesting. Could be an exit strategy for Pattison


FrostyFire

Pattison is as old as Buffett and has one foot in the grave.


KissMyReardon

BlackBerry?


statusblue

Cybersecurity is the next pump


Spl00ky

Too small


SuperSultan

TD Bank? Scotiabank?


qhxj

I'd love to see it but it's unlikely because of our banking regulations (no more than 10% foreign ownership)... The same logic would rule out telecom (20% foreign ownership cap), so the only thing left is energy or railroad.


SuperSultan

I’m amazed Canada has reasonable bank regulations (see their reserve ratio compared to the US) but failed miserably at immigration and housing


qhxj

It's really easy to explain, Canadian banking regulations are largely set by Bank of Canada and Housing/Immigration are set by our politicians. Having lived in Ottawa for a bit and have friends that work at BoC, they are actually professionals with adequate experiences: PhD, CFA you name it... I'm not saying they're perfect, but they largely know what they are doing. Our politicians (liberals or conservative, Federal or municipality) are largely a group of showmen. There is no talent nor qualifications... I mean the Prime Minister is literally a drama teacher, what kind of policy are you expecting out of our politicians?


Bewaretheicespiders

Well thats simple. In the US, people still mainly think increases in their quality of life will come from working harder and smarter. In Canada, since 1980, people expect increase in their QoL to come from more government services. Every election cycle, they must come out with something new. Its worked for a while, but now that Governement spending has reached half of the GDP, the government effectively can't raise more income to pay for new services anymore. The economy is tapped dry. So what happens? The government chose to run structural deficits and increase the population through immigration so that more Canadians 5 years from now will pay for the services of today. Trudeau's 'sunny ways'. But of course, housing supply giving diminishing returns, it can't keep up with a population growth that only ever gets faster, and housing is just one of the issues of that ponzi scheme.


Norse_By_North_West

We went hard on banking regulations quite a long time ago. It's led to our banks being risk adverse, but stable.


joe4942

I doubt it, Canadian banks have a lot of mortgage renewal risk at the moment and average Canadian salaries don't qualify for mortgages. Not exactly bullish Canadian banks.


allyuhneedislove

Canadian banks don’t actually have that much renewal risk. Most Canadians don’t have mortgages. Of those that do, most have pretty small annuities. The only people really at risk are those who bought at record high prices and record low interest rates (really from 2020 on).


Trink333

Which is like everybody lol


FrostyFire

No. Canada has 26 million home owners and only 7 million mortgages, with a 0.18% delinquency rate.


allyuhneedislove

Maybe based on a cross section of Reddit? The data would suggest it’s a tiny portion of Canadians that are actually at risk due to mortgages. Without looking I seem to remember it was south of 5% of all Canadians. And then within that group there will be some people who can absorb the increased rate, so even less people who are actually “at risk”.


allyuhneedislove

Just checked, I was a bit off my math. It’s about 12% of Canadians who might face “mortgage shock”. Less still that will actually succumb to it (which is the banks real risk).


joe4942

Canada's largest bank: > Payment shocks from mortgages renewing at higher interest rates over the next three years may pose a substantial tail risk to Canadian banks, according to a new report from RBC Capital Markets. https://www.bnnbloomberg.ca/mortgage-payment-shocks-pose-risks-to-canadian-banks-rbc-1.1991440


FrostyFire

Did you read the article? > Canadian banks are working proactively to lower the impact of payment shocks, according to the report. “Customers are given a range of options including increasing monthly payments, switching to a fixed rate, making a lump sum payment, or extending the amortization period,” the report said.


FrostyFire

This is completely incorrect.


joe4942

How so? * https://www.thestar.com/real-estate/mortgage-payment-shock-looms-as-900-billion-in-mortgages-set-to-renew-in-next-three/article_3ceae3e7-a0fc-5a3d-b6c0-62a3095a9698.html * https://financialpost.com/news/mortgage-stress-test-makes-homes-unaffordable-canadians * https://betterdwelling.com/buying-a-house-in-canada-has-never-been-harder-years-to-correct-rbc/ * https://betterdwelling.com/most-canadians-still-couldnt-buy-a-home-in-their-city-its-not-even-close/


FrostyFire

Because there’s only 7 million mortgages in Canada with a 0.18% delinquency rate. Your clickbait articles can’t seem to grasp this.


Lost-Cabinet4843

Hard pass on TD, he only invests with businesses that have great management.


SuperSultan

What’s wrong with TD’s management?


Lost-Cabinet4843

RU kidding me?


FrostyFire

Is that 5.45% dividend too high or something?


Lost-Cabinet4843

What does that have to do with talking about TD management team? Do you often get into conversations with people talking about something and start talking about something else?


FrostyFire

Do you often get asked specific questions and respond with “RU kidding me?” and don’t actually answer the question?


Lost-Cabinet4843

You see, son, you should ask politely but it appears you haven't been taught manners. Reddit is a good place for you. Goodbye forever, have a good life.


WedWealthist

TD is going through it rn which would make it attractive.


SuperSultan

What do you mean? I wish I bought more though


Margin-of-Safety

DOL would be my guess.


IamRestart

CNR and wishful thinking for SHOP


OpeningCharge6402

No way he is touching SHOP with a 100 foot poll


Agitated_Father

BN?


Spins13

I do not think so but I would love that since it’s my second position haha


Spl00ky

Buffett isn't a big fan of private equity companies, even though I own BN.


Canadiannewcomer

Franco Nevada- he bought Barrick Gold as a play on gold before. If he likes to have a gold play, FNV is a debt free bet


Grunblau

He bought GLD the same quarter as the secret investment that ended up being Chevron. He sold GLD right after. I think it might have actually been the secret play that was contingent on NAK’s Pebble Mine permit approval that ended up getting blocked and is now in appeal. NAK would have been sold to Barrick to develop. NAK is a Canadian company.


Signal-Lie-6785

> “There are things we actually can do fairly well that Canada could benefit from Berkshire’s participation.” It’s got to be energy, railroads, or insurance. And Berkshire would probably be looking at buying the whole company so I’d rule out CP and CNR.


Playful-Forever-3799

https://www.bnnbloomberg.ca/parkland-says-strategic-review-called-for-by-simpson-oil-is-unnecessary-1.2059136 Pki.to Shares significantly undervalued and recently dropped further due to a black swan caused loss. Hostile large shareholders wanting to sell it private.


joe4942

Yeah I could see Parkland as a possibility.


umdwg

Def possible but it’s a little small for him. Simpson def trying to put Parkland in play though.


nietzy

Obviously SHOP


joe4942

P/E ratio of 725 lol.


G0D5M0N3Y

Most under invested are miners. World needs more metals specially copper. I think thats what he is looking for.


Senior_Heron_6248

It’s the trans mountain pipeline


alternativehermit

Even though Buffet loves banks, it is unlikely one of the top 5 Canadian banks. There just aren’t much growth in them to move the needle for him. I am guessing it might be one of the digital banks like VBNK or an insurance company like Manulife. VBNk is more likely of the 2 since he also invested in digital banks like ALLY and NU.


l1oydo

Good point. Take it we find out on August the 15th, F13 date?


alternativehermit

The secret stock was not revealed during the annual meeting as some have suggested. It is hard to predict when or if it will happen at all. There are some rumblings indicating that it might be made known in Berkshire’s next quarterly filing. But then who knows?


TooMuchMonster

Cameco


DancesWithHand

I came here thinking this, no real reason other than I was looking at it myself


JamesVirani

AQN!


silverfashionfox

This is a good bet. He likes a deal and he likes to knock out a high dividend. This has both.


maxkakteenpizza

I am not familiar with the company, from a quick glance I would expect the dividend to be cut further in the near future. Is there a good reason to believe otherwise ?


JamesVirani

Yes, they just sold their renewable segment and their 42% interest in AY to ECB. The details of the deal aren't announced, but the sale of AY has already been rumoured as of a few days ago, and it's going to eliminate their high-yield variable debt, and turn them into a traditional utility company. It looks like they may be getting a decent value for AY, based on AY's price increase and option trading. AQN is trading below their book value. The sum of the parts is greater than the whole. This is a classic Buffett play in that sense, a mix of an arbitrage play and lower than 1 P/B.


silverfashionfox

I’m saying it would be attractive to him because it’s a deal and he has lots of space to force a dividend reduction. Their bottom line suffered from increased cost, rapid expansion prior to interest increases - and I think they had some bad concrete under one of their windmill projects. So yeah - it should come down but current management has resisted that.


Spl00ky

obligatory "pe ratio is 222"


Senior_Heron_6248

Trash company


Unlikely-Bee5040

Proof?


JamesVirani

I am guessing. If I had proof, aka insider info, I sure as hell wouldn't be posting it on Reddit. lol.. My top guesses are AQN and BNS here. TD is not unlikely either.


Unlikely-Bee5040

👍🏼👍🏼


ACiD_80

Hydrogen? Uranium?


joe4942

Usually Buffett doesn't like commodities outside of oil.


ACiD_80

Well they are comparable to oil and are going to be big in the next decade.


___TychoBrahe

lol no.


SkateOrDie-89

Hydro One (H) TSX


willystyle14

National steelcar in Hamilton?


an-awful-lot-girl

My guess is Fairfax or Brookfield.


Juergenator

BNS, can't lose with that dividend and a government backstopping and insuring their biggest liabilities.


Alert-Bit-8977

Enbridge (ENB) all the way!!!


lixx0040

I read it as he was looking to do another preferred equity deal


main314

NexGen, huge operating margin once it’s built, and early enough to acquire at a reasonable multiple of the NPV.


Riderfan11

The recently opened trans mountain pipeline expansion is my guess. Feds want to sell it, fits buffets wheelhouse, has to be someone with deep pockets buying it.


higherspreads

His answer of why they reduced their stake in apple during the conference was nor really clear ? Who agrees ?


l1oydo

If they do go for it, will we not find out until August 15th F13?


OpeningCharge6402

It’s an energy play no doubt, my bet is on Suncor


Spl00ky

He was already in Suncor a while ago. Not sure if he would buy it again


OpeningCharge6402

He’s admitted to being a sucker for oil and gas stocks


PositiveTea98

Cmcl


Sasdemand

Canadian Tire.


Friendly_Tough7899

Kneat solutions


wonkwonk2stonkstonk

TD bank yo, get that divvy


BradoIlleszt

Anything to do with modular power plants is my bet, or possibly Honda Canada due to their cash injection for EV manufacturing


[deleted]

LETS GO TEDDDDDDDYYYYYYYYY ape strong together


itssampson

Fingers crossed it’s DNN


OpenYourMind_888

Buy the CBC!


ybor512

Hopefully he’ll buy the whole country and turn it around.


Independent_Hyena495

More homes lol


Billsnyanks2

Mining company?


NY10

Why Canada tho? What makes Canada attractive investment?


Spl00ky

Canada is relatively stable and does a lot of trade with the USA


Brianautoney69

Wellhealth technologies


Brianautoney69

Lithium Americas


Regular_Parsley734

Yecch!


Spl00ky

CNQ, TRI, ATD, SLF, and DOL would be my guesses.


CameraGuitar

How about the Dartmouth-based and nearly bankrupt Meta Materials, Inc?


ojcpd

Suncor, AQN or Couchtard. Buffett won't touch a Canadian Bank, I don't think you could purchase a Canadian bank in the US. at least not one of the big 6. The government would never allow that.


Sirsettlement

Tilray?


t2easy

Probably $BAM


Icy-Ad-8596

Fairfax Financial


CantDoWP

Canopy Growth, watch out for it to 10x again. lol


Cryptolango

Why?


stonk_gazer

Haha we’ve not bottomed out yet bud


robotneedsoil009

Air Canada


Extension_File_5134

He's already been bit in the butt on air stocks. I doubt he's returning. My guess is Canadian Pacific.


wind_dude

lol, the only buyer for air Canada will be the govt.


robotneedsoil009

Good one. The reasons he bought ac stock still stand to this day. Ac stock fell due to Covid. It’s still a airline with a complete monopoly on Canada.


JupiterDelta

Edible bug factory


ry2waka

Buffet probably gonna die before he can choose what to invest in Canada, isn’t he almost 100?


T1m26

Prob canabis related.


Spl00ky

The business model for weed companies is terrible