Cargo chaos looms as strikes threaten Canada's ports and rail networks
Strike action has threatened to erupt at both Canada’s ports and rail networks, leaving the ...
SEEKING ALPHA‘s Leo Nelissen writes:
– Canadian Pacific is my largest supply-chain bet as it benefits from a combination of all North American countries.
– In addition to that, Mexico is one of the biggest beneficiaries of an accelerating supply chain reconfiguration after the pandemic.
– The company is not cheap and suffers from economy-related de-risking, which is good as it comes with new buying opportunities.
Introduction
On February 24, 2022, I wrote my most recent article covering railroad giant Canadian Pacific Railway Limited (NYSE:CP), which is one of my largest long-term holdings. The stock has a 5.6% weighting in my long-term dividend growth portfolio, which holds 95% of my entire net worth. Needless to say, I only buy companies that I consider the best protectors and multipliers of wealth. Canadian Pacific is one of my favorites.
In my last article, I discussed its earnings, growth potential, and valuation based on forward-looking indicators. In this article, I will do things a bit differently. One of the reasons why I bought Canadian Pacific – probably the single biggest reason – is the acquisition of Kansas City Southern. I have frequently covered this on my Twitter as well as we currently witness a few geopolitical and economic trends that support this thesis. As I got a number of questions on social media, Seeking Alpha, and via mail, I’m using this article to update my thesis as CP is set to be a big winner in the decades ahead if I’m right…
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