Rate of Return: 24.2%
Initial Value $10000
August 13, 2012
Update Value $147515.37
March 3, 2025
You must have a strong stomach to be a growth investor. The stocks you purchase will be of the high-risk/high-return variety and there will be a lot of ups and downs along the way. This type of investing is not for everyone.
Our Growth Portfolio offers an example. In the latest six-month period, TFI International, a stock that had previously generated above-average returns, plunged almost 35%. Danish pharmaceutical giant Novo Nordisk, which manufactures one of the world’s hottest new drugs, Ozempic, fell by almost the same amount.
That would normally be a blow to any portfolio. But those losses were more than offset by a 117% gain in Canadian tech company Celestica. That’s the nature of growth investing. If it makes you uncomfortable, use a different approach.
The portfolio was launched 12-1/2 years ago, in August 2012. It had an initial value of $10,000 and a target annual growth rate of 12%. The portfolio is 100% exposure to the equity markets, so it’s not suitable for cautious investors.
Here are the securities that make up the current portfolio, with an update on how they have performed since our last review in August. Prices are as of the afternoon of Feb. 27.
iShares US Aerospace and Defense ETF (BSX: ITA). This ETF invests in the US defense and aerospace industry. We added it to the portfolio in 2021. It posted a gain of US$9.71 per unit in the latest period and we received two distributions for a total of US$0.67 per unit.
Alimentation Couche-Tard (TSX: ATD, OTC: ANCUF). The stock has been going through a lot of ups and downs lately as investors try to figure out where future growth will come from. The attempt to acquire the 7-11 chain of convenience stores from its Japanese parent is still ATD’s main goal, but progress is agonizingly slow. The shares are down $7.59 since our last review. However, over time this stock has been a huge winner for us, so we’ll stay with it a little longer. The company raised its quarterly dividend to $0.195 a share.
WSP Global Inc. (TSX: WSP, OTC: WSPOF). Montreal-based WSP is an international engineering and design firm. This stock went into a brief slump but recovered strongly in the latest period, gaining just over $30 a share. We received two dividends totaling $0.75 per share.
TFI International Inc. (TSX, NYSE: TFII). This Montreal-based trucking firm was added to the portfolio in February 2023. It did well out of the gate but then stalled and went into a deep nosedive. The CEO called the fourth quarter of 2024 “a disaster” as trucking companies battled diminishing demand. The shares lost almost $70 in the latest period, which is about as bad as it gets.
Nvidia (NDQ: NVDA). Nvidia posted year-end results that beat expectations last week, and the stock dropped! The company makes computing chips for AI processors, and its sales keep beating even the most optimistic expectations, but investors expect more. We added it to the portfolio in February 2023 and it has quadrupled since. The stock pays a tiny quarterly dividend of a penny a share.
Novo Nordisk (NYSE: NVO), This is the Danish pharmaceutical company that manufactures Ozempic, the diabetes/weight loss drug that is in huge demand world-wide. We added it to the portfolio in March at US$133.49. It generated a modest gain initially but then hit a wall and lost US$47.35 in the latest period.
Costco (NDQ: COST). Costco shares continue to perform well, gaining $143.92 in the latest period. We received two quarterly dividends for a total of $2.32 per share.
CGI Group (TSX: GIB.A, NYSE: GIB). This is a Montreal-based international consultancy company that has been on our recommended list since August 2012. We added it to the Growth Portfolio in 2023 at $140.51. The shares were up $11.44 in the latest period. Last year, CGI initiated a quarterly dividend of $0.15 a share.
Celestica (TSX, NYSE: CLS). This tech company has been the hottest ticket on the TSX for the past two years. We added it to the portfolio in August of last year and it proceeded to more than double in value. There’s no dividend but with gains of that magnitude, who cares?
Cash. We had cash plus retained earnings of $3,118.95. We moved it to EQ Bank, which was offering a high interest rate of 5% on its 30-day notice savings account. We received interest of $77.97.
Here is how the portfolio stood at Feb. 27. Commissions are not considered. The US and Canadian dollars are treated as being at par but obviously gains (or losses) on the American securities are increased due to the exchange rate differential.
IWB Growth Portfolio (a/o Feb. 27/25)
Symbol |
Weight
|
Total
|
Average
|
Book
|
Current
|
Market
|
Retained
|
Gain/
|
ITA |
5.2 |
50 |
$107.42 |
$5,371.00 |
$153.47 |
$7,673.90 |
$173.50 |
+46.1 |
ATD |
6.7 |
140 |
$8.32 |
$1,164.10 |
$71.01 |
$9,941.40 |
$481.65 |
+795.4 |
WSP |
15.6 |
90 |
$27.00 |
$2,430.29 |
$256.31 |
$23,067.90 |
$669.11 |
+876.7 |
TFII |
2.7 |
30 |
$168.06 |
$5,041.80 |
$130.26 |
$3,907.80 |
$95.93 |
-20.6 |
NVDA |
25.3 |
300 |
$23.66 |
$7,098.00 |
$124.35 |
$37,305.00 |
$16.40 |
+425.8 |
NVO |
4.3 |
70 |
$133.49 |
$9,344.30 |
$89.53 |
$6,267.01 |
$101.01 |
-31.9 |
COST |
13.9 |
20 |
$344.27 |
$6,885.40 |
$1,021.48 |
$20,429.60 |
$837.60 |
+208.9 |
GIB.A |
7.6 |
70 |
$140.51 |
$9,835.70 |
$159.29 |
$11,150.30 |
$21.00 |
+13.6 |
CLS |
18.0 |
170 |
$71.68 |
$12,185.60 |
$155.95 |
$26,511.50 |
$0 |
+148.1 |
Cash |
0.7 |
|
|
$986.05 |
|
$1,064.02 |
|
|
Total |
100.0 |
|
|
$60,342.24 |
|
$147,318.43 |
$2,396.20 |
|
Inception |
|
|
|
$10,000.00 |
|
|
|
+1,397.1 |
Comments: It was another strong six months. The portfolio gained 11.3% in that period, led by huge contributions from Costco, CGI, and Celestica. That more than offset big losses by NVO, TFII, and ATD.
The total value of the portfolio (market price plus retained distributions) now stands at $149,714.63, from the original $10,000 we invested 12-1/2 years ago. Since this portfolio was launched, we have a cumulative return of 1,397.1%. That’s an average annual compound growth rate of 24.17%.
Changes: TFII can no longer be considered a growth stock, at least for now, so we’ll sell our shares. The returns on NVO are also disappointing and we will close that position as well. This gives us a total of $10,371.75 to reinvest.
We will use the money to buy five shares of Fairfax Financial Holdings (TSX: FFH), a Canadian conglomerate with international interests in property and casualty insurance and reinsurance. The company is run by Prem Watsa, who has been referred to as Canada’s Warren Buffett. Insurance is not normally considered a high growth sector, but FFH targets a 15% average annual growth in book value. The share price is up 44% in the past twelve months. The shares are trading at $2,039.99 for a total cost of $10,199.95. We have $171.80 left over, which we will add to cash. All else stays the same.
Our total cash plus retained earnings is now $3,435.08. We will keep it in the EQ Bank 30-day notice savings account, which is paying 3.05%.
Here’s a look at the revised portfolio. I will review it again in September.
IWB Growth Portfolio (revised Feb. 27/25)
Symbol |
Weight
|
Total
|
Average
|
Book
|
Current
|
Market
|
Retained
|
ITA |
5.2 |
50 |
$107.42 |
$5,371.00 |
$153.47 |
$7,673.90 |
$173.50 |
ATD |
6.7 |
140 |
$8.32 |
$1,164.10 |
$71.01 |
$9,941.40 |
$481.65 |
WSP |
15.6 |
90 |
$27.00 |
$2,430.29 |
$256.31 |
$23,067.90 |
$669.11 |
FFH |
6.9 |
5 |
$2,039.99 |
$10,199.95 |
$2,039.99 |
$10,199.95 |
$0 |
NVDA |
25.3 |
300 |
$23.66 |
$7,098.00 |
$124.35 |
$37,305.00 |
$16.40 |
COST |
13.9 |
20 |
$344.27 |
$6,885.40 |
$1,021.48 |
$20,429.60 |
$837.60 |
GIB.A |
7.6 |
70 |
$140.51 |
$9,835.70 |
$159.29 |
$11,150.30 |
$21.00 |
CLS |
18.0 |
170 |
$71.68 |
$12,185.60 |
$155.95 |
$26,511.50 |
$0 |
Cash |
0.8 |
|
|
$1,235.82 |
|
$1,235.82 |
|
Total |
100.0 |
|
|
$56,405.86 |
|
$147,515.37 |
$2,199.26 |
Inception |
|
|
|
$10,000.00 |
|
|
|