Long Term Investing - With Baskin Wealth Management

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What do you do when a stock you own drops 26% in a single day? For long-term investors, moments like these can be the ultimate test of conviction.

In this episode of the Long Term Investing Podcast, Barry Schwartz, President and Chief Investment Officer at Baskin Wealth Management, and Ernest Wong, Head of Research and Portfolio Manager, break down the sudden plunge in Fair Isaac (FICO), what changed for the business, and why they’re resisting the urge to make a knee-jerk decision. They discuss how to determine whether a falling stock represents a broken investment thesis—or simply a new challenge for a strong business. They also look back at lessons from Netflix (NFLX), TFI International (TFII.TO) and Moody’s (MCO), where sharp selloffs didn’t necessarily tell investors what would happen to the businesses over the long term.

Barry and Ernest also tackle rising interest rates in Canada and the U.S., why chasing higher yields in U.S. fixed income can introduce unexpected currency risk for Canadian investors, and why they prefer keeping bond maturities relatively short.

Finally, they make the case for Costco (COST). From cheaper gas and growing membership benefits to e-commerce, delivery and new stores, Barry and Ernest explain why they believe Costco’s flywheel continues to strengthen—and why they think the company deserves its premium valuation.

Plus, why sometimes the hardest—and smartest—thing a long-term investor can do is nothing.

Timestamps
00:00 Intro
00:54 The three topics: FICO, interest rates, and Costco
02:48 FICO’s 26% drop: what happened?
03:41 Why investors shouldn’t react too quickly
04:34 Netflix and TFI: lessons from sharp selloffs
06:33 How US agency mortgages work
07:33 Credit scores and mortgage pricing
08:27 FICO vs. VantageScore: what’s changing?
11:10 Why mortgage lenders may favor VantageScore
11:56 The risk of weaker underwriting
13:22 How much FICO market share is priced in?
14:22 FICO’s other revenue streams and FICO 10T
15:28 FICO’s profitability and cash flow
16:25 Moody’s: a regulatory-fear comparison
17:54 Diversification and managing stock risk
18:34 FICO’s growth outlook over the next 3–5 years
20:25 Interest rates, inflation, and fixed income
22:29 The currency risk of chasing US bond yields
24:30 Why short-duration bonds can help in rising-rate markets
25:57 Costco’s earnings and business strength
27:07 Costco gas and membership value
28:42 Costco’s membership flywheel
29:02 Store growth and expansion potential
30:06 Why Costco can gain share in volatile times
31:05 Costco same-day delivery
32:31 Is delivery incremental or cannibalistic?
33:44 Why Costco commands a premium valuation
35:53 Closing thoughts

Links
www.baskinwealth.com
info@baskinwealth.com

DISCLAIMERS
This podcast is for informational purposes only and any forecast on the economy, markets or individual securities should not be viewed as investment advice, a recommendation or an offer or solicitation to buy or sell any securities. Clients of Baskin Wealth Management and the speakers on this podcast may own shares of the companies discussed. Information on this podcast is current as of the time of production and is subject to change. If you have any questions or would like to subscribe to these podcasts, visit our website at baskinwealth.com.

Meta has spent billions betting on artificial intelligence. Now, investors may finally be getting a glimpse of what that investment could become.

In this episode of the Long-Term Investing Podcast, Barry Schwartz, President and Chief Investment Officer, and Ernest Wong, Head of Research and Portfolio Manager at Baskin Wealth Management take a closer look at Meta’s new AI assistant, Muse, and the rise of agentic AI—technology that doesn’t just answer questions, but can actually complete tasks for you, from booking a restaurant to shopping for insurance or cancelling unwanted subscriptions. The bigger question is whether AI agents could eventually change how we shop, search and interact with the internet.

That could have major implications beyond Meta. Barry and Ernest discuss why Amazon is pushing back against Muse, the value of controlling customer purchasing data, and how Google and Apple could respond as Big Tech competes to become the AI agent consumers rely on. Could AI agents become a new gateway to online commerce—and what would that mean for some of the biggest companies in the market?

They also look at what Muse could mean for the investment case for Meta. After spending heavily on both the metaverse and AI infrastructure, Meta now has a product generating excitement among users. Barry
explains why he remains optimistic about the company’s long-term opportunity and why Meta continues to be a holding in the portfolio.

Plus, what can investors learn from baseball? Barry and Ernest use Vladimir Guerrero Jr.’s massive long-term contract and Moneyball to explore an important investing lesson: past success matters, but ultimately
investors are paying for the returns a company can generate in the future. They explain why they look for strong businesses where management is properly incentivized, capital is allocated intelligently and the market may be distracted by the wrong narrative.

Is agentic AI the beginning of a new internet—or another technology investors are getting too excited about too soon?

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The Long Term Investing Podcast is back with a brand-new season and a brand-new look. Barry Schwartz, President and Chief Investment Officer, and Ernest Wong, Head of Research and Portfolio Manager at Baskin Wealth Management, return to break down why short-term volatility hasn’t shaken their conviction in owning high-quality compounders—businesses that can grow earnings and free cash flow per share, reinvest at attractive rates and create value over the long term.

With interest rates moving higher, inflation concerns resurfacing and AI investment continuing to reshape the economy, Barry and Ernest explain why they aren’t making major changes to their portfolio. They discuss why higher rates can create challenges for dividend-paying stocks and why constantly chasing the market’s latest winners can come at a cost.

They also look at the push to get major infrastructure projects built in Canada and what it could mean for Canadian Natural Resources (CNQ.TO) and Tourmaline Oil (TOU.TO), two companies they believe could benefit from greater market access for Canadian energy. Plus, they discuss how Brookfield Corporation (BN.TO) and Brookfield Asset Management (BAM.TO) are positioning themselves to capitalize on the infrastructure investment boom.

Finally, Barry and Ernest examine just how exposed the S&P 500 has become to the AI and data-centre boom, with discussion of Nvidia (NVDA), Micron Technology (MU) and Amphenol (APH). Ernest argues that with roughly 40% of the index now directly tied to AI and data-centre spending, investing passively in the S&P 500 increasingly means making a significant bet on a single theme. For active investors, that raises an important question: how much AI exposure are you actually comfortable having in your portfolio? They also turn to Apple (AAPL) and whether its new foldable iPhone could become another meaningful growth driver.

Markets may be shifting, but does that mean your investment strategy should shift with them?

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00:00 Introduction
01:07 Welcome to the Long Term Investing Podcast
02:05 Ernest’s Summer in Asia and a Global Investment Perspective
03:00 Rising Interest Rates, Inflation, and Market Uncertainty
04:37 Are Today’s Rate Hikes Similar to 2022?
07:17 How Interest Rates Could Affect AI and Data Centre Growth
08:53 What Higher Rates Mean for Stocks, Bonds, and Dividend Investments
12:23 How Baskin Is Positioning Its Portfolios
14:09 Mark Carney’s Investor Summit and Canada’s Economic Strategy
16:09 Can Canada Actually Deliver on Its Mega-Projects?
19:31 Canadian Natural Resources and Tourmaline: Potential Beneficiaries (CNQ, TOU)
23:41 Is Compounding Still the Best Long-Term Investing Strategy?
26:33 Why Investors Should Focus on Fundamentals, Not Stock Prices
28:25 Brookfield, the Maple Fund, and Investing in Canadian Infrastructure

Links
www.baskinwealth.com
info@baskinwealth.com

DISCLAIMERS
This podcast is for informational purposes only and any forecast on the economy, markets or individual securities should not be viewed as investment advice, a recommendation or an offer or solicitation to buy or sell any securities. Clients of Baskin Wealth Management and the speakers on this podcast may own shares of the companies discussed. Information on this podcast is current as of the time of production and is subject to change. If you have any questions or would like to subscribe to these podcasts, visit our website at baskinwealth.com.

Recorded: June 10, 2026
This week, Barry and Ernest review the current state of the stock markets including the mega IPO of SpaceX before discussing the strong performance of the Canadian banks.

0:00- Introduction
6:01- SpaceX's IPO
14:20- Elevated return expectations
22:21- Diversified Canadian banks
28:03- Prime lending focus
33:00- Canadian bank valuations
38:54- Regulatory landscape

Recorded on: June 10, 2026

This week, Barry and Ernest review the current state of the stock markets, including the mega IPO of SpaceX before discussing the strong performance of the Canadian banks.

0:00- Introduction
6:01- SpaceX's IPO
14:20- Elevated return expectations
22:21- Diversified Canadian banks
28:03- Prime lending focus
33:00- Canadian bank valuations
38:54- Regulatory landscape