The market is changing. The AI trade is losing momentum, money is rotating into other parts

of the market, and some of the stocks investors left behind are making a

comeback. Is your portfolio positioned for what's next?

On this episode of the Long Term Investing Podcast, Barry Schwartz, President and Chief Investment Officer of Baskin Wealth Management, and Ernest Wong, Head of Research and Portfolio Manager, explain why strong businesses can be great investments even when the market has given up on them. Coca-Cola (KO) is proving that consumers haven't abandoned soft drinks, with Coke Zero helping drive growth. Domino's Pizza (DPZ) continues to gain market share despite pressure on consumers, while Garmin (GRMN) delivered strong earnings only to see its stock initially sell off. They also revisit Constellation Software (CSU), where fears of AI disruption sent shares plunging despite continued growth in the underlying business.

But the bigger shift is happening in AI. Following the U.S. midterm elections, growing political opposition to data centre construction is raising questions about the next phase of the AI boom. Could a slowdown in infrastructure spending hurt chipmakers and equipment suppliers while benefiting the hyperscalers that

already own massive data centre networks? Barry and Ernest explain why they're wary of sky-high valuations in parts of the AI trade but remain confident in Taiwan Semiconductor (TSM).

Plus, three stocks making headlines for very different reasons. Ferrari (RACE) is bouncing back as its controversial electric vehicle strategy attracts a new generation of wealthy buyers. FICO (FICO) has been battered by regulatory pressure despite reporting record results, and management is making a significant change to its pricing strategy. Meanwhile, Fairfax Financial (FFH) is defying concerns about a weakening insurance market, reporting strong results and pursuing major new investments in India and the UK.

The lesson? Stock prices can change dramatically even when the businesses behind them haven't. Barry and Ernest explain why tuning out market noise, focusing on fundamentals and resisting the temptation to chase momentum can make all the difference for long-term investors.

To learn more about Baskin Wealth Management or discuss your investment portfolio, visit https://baskinwealth.com.

Timestamps

0:00 Cold open: quality stocks and the AI outlook

0:56 Welcome to the Long Term Investing Podcast

1:45 Halloween talk: costumes, candy and shrinkflation

3:10 Coca-Cola’s pivot to Coke Zero

5:32 AI stocks pull back: why diversification matters

6:42 Midterm results and the market narrative

8:56 Don’t overthink elections and macro events

9:37 Strong fundamentals beneath market volatility

11:59 “The market is here to serve you, not instruct you”

13:46 Example: Garmin’s earnings and stock movement

14:51 Constellation Software and AI fears

16:12 AI hype, data centers and the chip sell-off

18:12 Why the hyperscalers may benefit

20:08 Risks across the data-center supply chain

21:57 Why they still own Taiwan Semiconductor

24:03 Ferrari: earnings, the Luce and brand strategy

33:00 FICO: pricing changes and regulatory pressure

38:57 Fairfax: insurance results and new investments

45:51 Wrap-up

46:09 Legal disclaimer

Links

www.baskinwealth.com

info@baskinwealth.com

DISCLAIMER

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.