Long Term Investing - With Baskin Wealth Management

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A $2 trillion AI IPO, a sharp selloff in Google, and three companies that put shareholders first. Is Wall Street losing
sight of what really matters?

On 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 anticipated Anthropic IPO and explain why, despite the explosive growth of its Claude AI models, they're unlikely to invest. With enormous data centre commitments, fierce competition and a potentially staggering valuation, is the AI opportunity worth the risk?
They also examine Google's (GOOGL) latest earnings and the market's negative reaction despite strong revenue growth. As Google and Meta (META) pour billions into AI infrastructure, investors are increasingly questioning whether that spending will generate adequate returns. Could the market be overlooking the long-term opportunity?

Finally, Barry and Ernest reveal three companies they believe stand apart when it comes to respecting shareholders: Berkshire Hathaway (BRK.B), Constellation Software (CSU) and Fairfax Financial (FFH). They discuss what makes these businesses exceptional capital allocators, why management incentives matter, and how aligning executives with shareholders can create lasting wealth.

0:00 Cold Open
0:54 Welcome to the Long Term Investing Podcast
1:40 Halloween costumes and the economics of Halloween
2:50 The Anthropic IPO: what Anthropic and Claude are
5:45 Anthropic's prospectus: valuation and revenue
7:09 Why Anthropic going public matters for AI
8:21 Would we buy the Anthropic IPO?
9:29 Is Anthropic actually profitable?
11:01 The $500B data center commitments
12:25 Meta and Google Q3 earnings
13:25 Why Google fell despite 20%+ growth
15:09 Google and Meta's history with new ad formats
16:44 AI capex and what the market wants to see
18:03 Companies that respect shareholders
19:27 What shareholder alignment really means
24:44 The only three truly shareholder-focused companies
26:41 How Fairfax pays its CEO
29:12 Buffett's legacy and incentive design
29:58 Is Anthropic's Dario Amodei aligned with shareholders?
31:44 Alignment doesn't guarantee a good business
32:24 Capital allocation and decentralized operations
33:37 Wrap-up
34:12 Legal disclaimer
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.

👉 Click Here to Subscribe: https://www.youtube.com/@LongTermInvestingPodcast

Great companies don't always make great stocks—at least in the short term. Netflix (NFLX) and Meta (META) are delivering impressive growth, yet their share prices are under pressure. Is Wall Street missing the bigger picture?

On this episode of the Long Term Investing Podcast, Barry Schwartz and Ernest Wong of Baskin Wealth Management break down what's driving the selloffs in Netflix and Meta. They examine Netflix's declining U.S. engagement, growing competition from YouTube, and whether its international expansion and live sports strategy can reignite investor enthusiasm. They also discuss Meta's ambitious AI investments, the rapid growth of its new Muse platform, and Mark Zuckerberg's plans to maintain control of the company.

Plus, why are some of the market's most reliable businesses being overlooked? Barry and Ernest discuss Waste Connections (WCN) and FirstService (FSV), two long-term holdings that have faced investor skepticism despite resilient fundamentals. From pricing power and acquisitions to share buybacks and disciplined capital allocation, they explain why patience can be one of the most valuable tools in an investor's portfolio.

The bottom line: Stock prices are opinions. Fundamentals are facts. And for long-term investors, knowing the
difference is everything.

Timestamps
0:00 Trailer & Intro: Meta, Netflix, Waste Connections and First Service
1:42 Kawhi Leonard and the Raptors
3:47 Are publicly traded sports teams good investments?
4:27 Netflix: stock under pressure and the YouTube narrative
5:37 Is Netflix engagement really declining?
7:04 Netflix's leadership shake-up
7:40 The Warner Bros. bid and the stock drop
9:43 Putting Netflix's U.S. engagement issue in perspective
11:19 Is Netflix a utility? Why engagement still matters
12:38 Netflix's international content strategy
15:32 Why the US engagement problem is fixable
16:57 Disney licensing deals and channel services
20:19 Live sports and the platform pivot
21:29 Netflix valuation vs. the S&P 500
22:31 Meta: why the stock fell after earnings
25:09 Meta's Muse AI agent and how it makes money
28:33 Meta's new non-voting share class
32:03 What Netflix and Meta have in common
32:55 Waste Connections: the exclusive-market model
38:18 First Service: property management, roofing and brands
42:56 First Service buybacks and capital allocation
45:57 Why boring compounders lagged this year
46:53 Legal disclaimer

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.

👉 Click Here to Subscribe: https://www.youtube.com/@LongTermInvestingPodcast

The AI trade is showing signs of cracking.

Rising interest rates, concerns about massive data centre spending, and questions about future returns are putting pressure on some of the market's biggest winners. Is your portfolio prepared if the AI boom loses momentum?

In this episode of the Long Term Investing Podcast, Barry Schwartz, President & CIO of Baskin Wealth Management, and Ernest Wong, Head of Research & Portfolio Manager, discuss why
diversification matters more than ever and why they're sticking with their strategy of owning high-quality, profitable businesses rather than chasing the hottest stocks. They explain the risks of an increasingly AI-concentrated S&P 500, why rising borrowing costs could spell trouble for companies like
CoreWeave (CRWV), and what separates speculative AI investments from companies that
can fund their own growth.

They also take a closer look at Taiwan Semiconductor (TSM), which is benefiting from explosive demand for AI chips, and explain why its disciplined approach to spending makes it an attractive long-term investment. Plus, with fast-food stocks struggling under the weight of inflation and a stretched consumer, Barry and Ernest discuss the challenges facing McDonald's (MCD) and why they continue to see opportunity in Domino's
Pizza (DPZ), despite its recent struggles.

With markets shifting and investors questioning what's next for AI, Barry and Ernest explain why fundamentals, cash flow and patience—not short-term performance—remain the keys to building long-term wealth.

Learn more about Baskin Wealth Management at baskinwealth.com.

👉 Click Here to Subscribe: https://www.youtube.com/@LongTermInvestingPodcast

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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