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Canadian Natural Resources Limited (CNQ $63.44)
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Brookfield Corporation Class A Limited Voting Shares (BN $60.45)
Q: Good morning and thank you for your amazing insights these days .
Question regarding CNQ and BN. Two completely different sectors, but given the appreciation in CNQ in recent weeks, and the corresponding pressure in BN, I have been slowly taking some CNQ off and moving more into BN. Both are core holdings for me, but your conviction with BN is impressive and I just think it is foolish to not take small gains off the table and move more to BN on the view that this too shall pass - for both companies.
Crazy or a fair approach so long as measured?
Question regarding CNQ and BN. Two completely different sectors, but given the appreciation in CNQ in recent weeks, and the corresponding pressure in BN, I have been slowly taking some CNQ off and moving more into BN. Both are core holdings for me, but your conviction with BN is impressive and I just think it is foolish to not take small gains off the table and move more to BN on the view that this too shall pass - for both companies.
Crazy or a fair approach so long as measured?
5i Research Answer:
We think this is a perfect valid and appropriate response. The energy sector has surged and keeping position sizes in line with goals makes sense. CNQ is up 44% already this year on war news. But it remains cyclical, and any positive war news would likely see at least some correction in the energy sector.