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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have been looking closer at the industrial sector over the last few months, as I believe that societal increases in technology usage and adoption of electric vehicles in transporation are placing increased demands on the generation and distribution of electrical power. I am looking at both Siemens and ABB as investments in this space which can also serve as long-term anchor holdings. Siemens is a very broad-based company which has a portion of its business dedicated to infrastructure and energy generation, which it describes as its "Smart Infrastructure" unit, while having very robust units in manufacturing, transportation and healthcare. ABB Ltd. appears to be more focused in the infrastructure and utility sectors.

The case for Siemens would revolve around its success in multiple sectors of the economy and its ability to generate revenue from a variety of sources, while the case for ABB would be that it is well-positioned to fulfill the demands of societies which are demanding ever more performance from the energy generation and distribution systems from the places where they live. Both seem to have corrected substantially since early 2022 (SIEGY down 24%, ABB down 18%), which could indicate buying opportunities in the absence of significant news which would account for these depreciations in price.

What are your thoughts on these companies, as well as the idea of investing capital in companies which could address upcoming infrastructure demands? As always, I look forward to reading your thoughts. Thanks so much, and have a great weekend?

Read Answer Asked by Domenic on April 25, 2022

Q: Please give your opinion on whether you would buy, hold or sell the companies listed. Thinking of 5 year or more time-frame.

Thanks as always,


Read Answer Asked by Kevin on April 21, 2022

Q: Can I have your thoughts on owning this stock: value / expectations/ and DIVIDEND @8.4% sustainable?


Read Answer Asked by Donald on April 19, 2022

Q: With the surge in commodity prices I bought positions in BHP and RIO. My portfolio is well diversified and mainly in value supported by yield. BHP and RIO combined only represent 3.3% of the total portfolio.
What concerns me at this point is the current noise about a potential recession later this year. That could hit metals and minerals fairly hard, particularly if the recession, if it happens, is worldwide. Spending on infrastructure construction as well as the demand for manufactured products could decrease substantially.
My first question is whether you support this scenario of a late 2022 recession. My second, obviously, is whether it's time to trim, sell, or just chill and ride out any downturn in the economy as I generally do. I do like the dividends of both RIO and BHP although they could easily be cut.

Read Answer Asked by Larry on April 18, 2022

Q: XP is being touted by Barron's as the "Schwab of Brazil". They see a historical imbalance between bonds and equities in retail investors portfolios and foresee XP taking advantage of a reversion to the mean (to paraphrase liberally). What is your opinion of XP? ( I recognize that, as a Brazilian equity, it is outside your preferred sweet spot; however, I value your perspective).

Read Answer Asked by David on April 12, 2022