Core Insights - The annual letter aims to discuss the performance of portfolio companies and explain the long-term investment philosophy behind the selection process [7] - The Rochon Global Portfolio underperformed in 2025, returning 2.7% compared to a benchmark return of 13.7%, resulting in a relative underperformance of 11.0% [9] - Since its inception in 1993, the Rochon Global Portfolio has achieved a compounded annual return of 14.7%, outperforming its benchmark by 4.8% [10] Portfolio Performance - The Rochon US Portfolio returned 7.6% in 2025, underperforming the S&P 500 by 10.3% [20] - The Rochon Canada Portfolio returned 4.9% in 2025, significantly underperforming the S&P/TSX, which returned 31.7% [23] - The performance of Canadian stocks has outperformed the S&P/TSX since 2007, despite significant fluctuations in individual stock performance [25] Market Analysis - The S&P/TSX's strong performance in 2025 was driven by Canadian banks, Shopify, and gold stocks, with banks experiencing a 36% increase in their average price-to-earnings ratio [26][27] - The Canadian economy saw modest GDP growth of 1.7% in 2025, lower than the 2.2% growth in the United States [28] AI Impact - The rise of Artificial Intelligence (AI) has significantly influenced market dynamics, with AI-related stocks contributing to a large portion of the S&P 500's returns [29] - Companies like Nvidia and Oracle are heavily investing in AI infrastructure, raising concerns about the sustainability of such valuations [34][35] - The market is reacting negatively to companies perceived to be at risk from AI disruption, affecting stocks like Constellation Software and Fiserv [37] Company-Specific Insights - Constellation Software's stock fell by 26% in 2025 despite a 15% revenue increase, attributed to market fears regarding AI's impact on the software industry [50] - Fiserv's stock declined due to management changes and overly optimistic growth projections, leading to a decision to sell shares [47] - Carmax faced increased competition and market challenges, resulting in a significant decline in stock price, prompting a sale of shares after years of ownership [45] Currency Impact - The appreciation of the Canadian dollar by approximately 5% negatively impacted returns expressed in Canadian dollars, as 85% of the portfolio is invested outside Canada [54] - Historical fluctuations in the Canadian dollar have had a minimal long-term effect on overall returns, with a total positive impact of 7% since 1993 [19]

Core Viewpoint - CN will release its first-quarter 2026 financial and operating results on April 29, 2026, before market opening, with a conference call to discuss the results and outlook led by CEO Tracy Robinson [1]. Group 1: Financial Results Announcement - CN's first-quarter 2026 financial and operating results will be issued before the markets open on April 29, 2026 [1]. - A conference call will take place at 8:30 a.m. Eastern Time on the same day to review the results and the railway's outlook [1]. Group 2: Participation Details - Interested parties can participate in the conference call by dialing 1-800-715-9871 (Canada/U.S.) or 1-647-932-3411 (International), using the passcode 9281112 [2]. - Participants are encouraged to join the call 10 minutes early, and a live webcast will be available on CN's investor website [2]. Group 3: Company Overview - CN transports over 300 million tons of natural resources, manufactured products, and finished goods across North America annually [3]. - The company operates a nearly 20,000-mile rail network, connecting Canada's Eastern and Western coasts with the U.S. Midwest and Gulf Coast, contributing to sustainable trade since 1919 [3].

Group 1 - Canadian National Railway (NYSE:CNI) ranks 3 in Bill Gates' 2026 Portfolio, indicating strong investor interest [1] - The company has a robust competitive advantage due to its extensive rail network that efficiently transports essential goods, allowing it to bypass congested hubs like Chicago [1] - The transcontinental rail infrastructure of Canadian National Railway is difficult to replicate due to regulatory and environmental challenges, reinforcing its market position [1] Group 2 - The stock is currently trading at approximately 17–18 times forward earnings, which is below its 10-year average of 19.4 times, suggesting potential undervaluation [2] - While Canadian National Railway is recognized as a viable investment, there are AI stocks that may offer greater upside potential with less downside risk [4]

Group 1 - Dividend Kings is running a special promotion in March where new users can enter a drawing to pay only $1 for their first year of membership after starting with a $30 month-long trial and paying for an annual membership of $699 [1] - The promotion includes a chance for one new or returning subscriber to be selected and refunded $698 [1] Group 2 - Scott Kaufman, known as Treading Softly, has over a decade of experience in the financial sector and serves as the lead analyst for Dividend Kings, focusing on high-quality dividend growth and undervalued investment opportunities [2] - The goal of the analysis is to achieve strong capital gains and a robust total return through cash dividends [2]

Core Viewpoint - RBC Capital has raised the price target for Canadian National Railway (CNI) to C$160 (approximately $115.69 USD) for 2027, citing strong earnings potential and operational improvements among Class I railroads [2][6]. Financial Performance - CNI's Q4 2025 operating ratio improved by 250 basis points to 60.1% on an adjusted basis, with T&E labor productivity increasing by 14% compared to Q4 2024 [2][6]. - The stock has experienced volatility, gaining 13% through March 2, 2026, but has since fallen nearly 10%, resulting in a year-over-year increase of only 1.84% [5]. Market Position and Growth Potential - CNI is well-positioned to absorb volume growth due to 63% double tracking of the Edson Sub and having 800 furloughed employees on standby [2][12]. - The company achieved record levels in Western Canadian grain shipments in 2025, with intermodal revenue rising by 10% in Q4, indicating strong revenue streams [3][12]. Shareholder Returns - CNI has approved a share repurchase program for up to 24 million shares and increased its quarterly dividend by 3% to $0.8875 USD per share, resulting in a trailing dividend yield of 3.52% [2][12]. Valuation and Market Cap - The new price target of C$160 implies a market capitalization of approximately $70.7 billion, up from the current $62.4 billion, contingent on volume growth and earnings per share (EPS) growth [8][6]. - CNI's current forward P/E ratio of 17.06x suggests potential for multiple expansion if earnings execution remains strong [8].

Core Viewpoint - Canadian National Railway (CNI) has experienced volatility in its stock performance, with a year-to-date gain of 13% followed by a nearly 10% decline, resulting in a modest annual increase of 1.84% [2][3] Price Target and Analyst Outlook - The Street consensus price target for CNI is $110.25 USD, while RBC Capital has raised its target to C$160 (approximately $115.69 USD), indicating a more optimistic outlook [3][6] - RBC Capital believes CNI has the best earnings upside among Class I railroads, supported by strong volume trends and network efficiency that are not yet reflected in its valuation [3][6] Operational Performance - CNI's Q4 2025 operating ratio improved by 250 basis points year-over-year to 60.1% on an adjusted basis, with T&E labor productivity increasing by 14% compared to Q4 2024 [6][7] - The operating ratio of peer Union Pacific was 60.5%, indicating that CNI has narrowed the efficiency gap with its larger competitor [3][6] Key Drivers of Performance - **Network Efficiency**: The Edson Sub is now 63% double-tracked, up from approximately 40%, adding around six trains of capacity. Nearly 800 furloughed employees and stored locomotives are available to support volume growth with minimal capital investment [7] - **Grain and Intermodal Growth**: CNI achieved record levels in Western Canadian grain shipments in 2025, with intermodal revenue rising by 10% in Q4, contributing to stable free cash flow generation [7] - **Shareholder Returns**: CNI has approved a share repurchase program for up to 24 million shares and increased its quarterly dividend by 3% to $0.8875 USD per share, resulting in a trailing dividend yield of 3.52% [7]

Core Insights - Canadian National Railway Co. (NYSE:CNI) is recognized as one of the top railroad stocks to invest in according to analysts [1] - The company reported its best February on record for grain movement, shipping over 2.67 million metric tons of grain from Western Canada, surpassing the previous record set in February 2021 [1] - February grain volumes increased by 15% year over year, building on a strong January performance, which was the second-best on record for grain movement [2] Company Developments - On March 4, Canadian National Railway unveiled two specially painted locomotives as part of its America250 celebrations, marking the upcoming 250th anniversary of US independence [3] - The newly introduced locomotives will enter active freight service immediately and symbolize the themes of independence and innovation, traveling across the US rail network until 2026 [4] - Canadian National Railway operates a rail network of approximately 20,000 route miles across Canada and the United States, transporting various commodities including petroleum, chemicals, grain, forest products, coal, and automotive goods [5]

Core Viewpoint - The article discusses three Canadian infrastructure stocks that are expected to perform well in 2026, focusing on their predictable cash flows and resilience amid market uncertainties [2][3]. Group 1: TC Energy - TC Energy is highlighted as a key investment opportunity due to its role in transporting natural gas and crude oil across North America [4][6]. - The company generates 98% of its comparable EBITDA from rate-regulated or long-term take-or-pay contracts, indicating stable revenue streams [6]. - In 2025, TC Energy successfully put $8.3 billion in new projects into service, with each project coming in under budget, suggesting potential for further stock price appreciation [6][7]. Group 2: Canadian National Railway (CNI) - Canadian National Railway is noted for its unique position as the only railroad connecting the Atlantic, Pacific, and Gulf coasts, creating a toll booth effect for energy companies [8]. - Despite facing approximately CAD $350 million (about $255 million) in revenue losses from tariffs, the company has reported record grain shipments, indicating strong operational performance [9][10]. - Analysts have a consensus price target of over $118 for CNI stock, representing a potential 16% upside, and the company recently raised its dividend by 3% [11]. Group 3: Canadian Pacific Kansas City - Canadian Pacific Kansas City is recognized for being the only single-line railroad connecting Canada, the U.S., and Mexico, which is advantageous for supply chain resilience [12]. - The company is projected to face a C$200 million (approximately $146 million) impact from tariffs in the next year, but analysts forecast a 14% earnings growth over the next 12 months [13][14]. - Despite trading at a premium valuation of 25x earnings, the stock has a consensus price target of $92, indicating approximately 14% upside potential [14].

Group 1 - Canadian National Railway Company (NYSE:CNI) has re-entered the 13F portfolio of Fisher Asset Management after nearly seven years, with the fund currently holding close to 2.3 million shares, having increased its stake by 13% and 11% in the last two quarters [1] - The company has a strong dividend history, with a record of payouts for 29 consecutive years, and recently declared a quarterly dividend of CAD 0.915 per share, marking a 3.1% increase from the previous dividend of CAD 0.887 [3] - Canadian National Railway operates in the rail, intermodal, trucking, and related transportation sectors in Canada and the United States, providing a range of services including equipment, customs brokerage, transloading, warehousing, and private railcar storage [4]

Summary of Canadian National Railway Company (CNI) Conference Call Company Overview - **Company**: Canadian National Railway Company (NYSE:CNI) - **Date**: March 17, 2026 - **Speakers**: Patrick Whitehead (COO), Ghislain Houle (CFO) Key Points Industry and Operational Performance - The railroad network is performing at its best in over a decade, with significant improvements in operational metrics: - Car velocity increased by nearly 10% year-to-date compared to the previous year [5] - Network train speed improved by 6% [5] - Terminal dwell time decreased by 6% [5] - Record fuel efficiency achieved in February 2026 [5] - Volumes based on Revenue Ton-Miles (RTMs) are up 3% year-to-date, slightly exceeding expectations [5] - The network's fluidity is a key enabler of performance, although winter weather conditions have caused fluctuations in volumes: - January volumes down 3% due to harsh conditions, February volumes up 15%, and March volumes down 4% due to returning winter [6] Grain and Commodity Movement - Canadian grain movement remains strong, with record volumes delivered in early 2026: - Achieved second-best January and record February grain movement [7] - Improved car cycle times by 15% compared to last year, allowing for more productive movement with a lower asset base [7] Capital Expenditure and Growth Strategy - The company reduced its capital envelope for 2026, not due to constraints but because major work has been completed [9] - The locomotive fleet is in excellent condition, with units in storage, and the network has capacity for growth [10] - The company is well-positioned to leverage opportunities in agriculture and energy sectors, supported by a strong port network [10] Financial Considerations - Currency exchange rates are a headwind, with the Canadian dollar hovering around 73-74 cents against the US dollar, impacting EPS by about five cents annually for every cent of appreciation [11] - Fuel prices have increased due to geopolitical tensions, expected to create a headwind of $0.03-$0.04 in the first quarter [12] - Tariffs, particularly on forest products and metals, are impacting operations, with a significant financial impact of around CAD 350 million in 2025 [53] Staffing and Labor Productivity - Approximately 800 train and engine employees are currently furloughed, but there is a high return rate of over 90% when volumes increase [29][30] - Labor productivity has improved significantly, with a 12% increase in GTMs per train and engine headcount [33] Integration and Market Challenges - The company is less impacted by potential mergers in the industry, with 85% of traffic originating on its lines [60] - Concerns exist regarding the integration challenges of large rail networks, particularly around IT systems and operational plans [63] - The company aims to protect its franchise and ensure competition remains intact [61] Partnership Opportunities - The company is focused on converting truck traffic to rail, with partnerships such as the Falcon service from Mexico to Toronto [70] - Operationalizing partnerships has been a key focus, with successful examples leading to improved service and efficiency [74] Market Outlook - The company is monitoring energy price volatility and its potential impact on various markets, particularly housing starts and automobile sales [82] - The network has been built to accommodate growth, with significant improvements in double-tracking and capacity [88] Additional Insights - The company emphasizes the importance of operational discipline and agility in responding to market demands [8] - Continuous efforts are being made to enhance efficiency and reduce costs in the face of external challenges [24][55] This summary encapsulates the key insights and operational highlights from the Canadian National Railway Company's conference call, reflecting its current performance, strategic direction, and market challenges.