Money manager buys Microsoft and Visa while trimming Alphabet

As stock markets continue their upward trajectory, seasoned investors are carefully selecting which companies to invest in. Christine Poole, a prominent money manager, believes that despite high valuations, there are still promising opportunities for long-term growth. This article delves into her investment strategies, highlighting specific stocks she favors and those she is trimming, providing valuable insights for both novice and experienced investors.

Current Market Trends and Investment Opportunities

Despite the impressive performance of stock markets over the past two years, Poole notes that the growth has not been uniformly distributed across the board. In her view, most of the gains in Canada have been concentrated in precious metals and financial stocks, while the U.S. market has seen a surge driven by technological advancements, particularly in artificial intelligence (AI).

Poole emphasizes the importance of the economic environment, stating that ongoing government stimulus and a favorable interest rate landscape are likely to bolster corporate earnings, even amidst geopolitical uncertainties. Specific areas of growth include:

• Increased defense spending in Canada.
• Infrastructure investments aimed at modernization.
• Tax cuts and stimulus programs in the U.S. that support consumer spending.

Such factors create a positive backdrop for economic expansion, which Poole believes will benefit a variety of sectors.

Performance Highlights of Client Portfolios

Under Poole's management, her all-equity client portfolios have performed exceptionally well, with a return of 14.5% in 2025. The allocation of these portfolios consists of approximately 40% Canadian stocks and 60% U.S. stocks. Over the past three and five years, the annualized returns were 14.6% and 11.4%, respectively, with all figures calculated net of fees. This strong performance underscores her strategic investment choices and market acumen.

Stocks in Focus: Buying and Holding

When asked about specific stocks she has recently acquired, Poole highlighted three key investments that reflect her strategic outlook:

Visa Inc.

Visa Inc. is a global leader in payment processing, which Poole originally purchased at $52 per share in June 2014, continuing to buy more over the years. Most recently, she acquired shares for $326 following a temporary dip related to regulatory changes proposed by U.S. President Donald Trump.

She believes in Visa's long-term potential as the world shifts from cash to digital payments, bolstered by its vast network and significant free cash flow. Furthermore, Visa is expanding into non-transactional services, such as cybersecurity, which adds a layer of resilience to its business model.

Microsoft Corp

Microsoft, a tech giant that Poole first invested in at $103 per share in October 2018, has proven to be a robust addition to her portfolio. Recently, shares were acquired for $454. Poole sees Microsoft as strategically positioned to capitalize on the growth of AI, particularly through its Copilot platform, which has a large user base and subscription model.

Additionally, Microsoft’s Azure cloud services rank second only to Amazon Web Services, further solidifying its place in the tech landscape. The company's profitability and cash flow generation capabilities make it a strong contender for continued growth.

Fortis Inc.

Fortis, a regulated utility company, has been part of Poole's portfolio since May 2009, initially purchased at $23 per share. The stock's recent price of $72 reflects its steady growth, primarily driven by demand for power in the U.S. market.

Fortis boasts a consistent dividend growth record, having increased its dividends for 52 consecutive years, with a current yield of 3.5%. While it may not be the highest-growth stock, its defensive nature and reliable income stream make it a valuable asset in a diversified investment strategy.

Stocks Under Review: Trimming Positions

In contrast to her purchases, Poole has been trimming her position in Alphabet Inc., the parent company of Google and YouTube. With the stock initially facing backlash due to antitrust challenges and concerns over its AI developments, Poole decided to reduce her holdings after a significant price increase of about 60% over the past year.

Despite its strong financial performance, including the anticipated release of its AI platform, Gemini, Poole felt it prudent to take some profits as the stock exceeded her target weight. Currently, Alphabet remains a core holding within her portfolio, comprising about 4.5% of her investments.

Assessing Future Investment Decisions

The current investment landscape is rife with opportunities and challenges. Poole’s approach exemplifies a balanced investment strategy that seeks to capitalize on growth areas while managing risks associated with market volatility.

Key factors that investors should consider when evaluating stocks include:

• Market trends and sector performance.
• Company fundamentals and growth prospects.
• Geopolitical developments and regulatory environments.

By focusing on companies with strong fundamentals and long-term growth potential, investors can navigate the complexities of the market effectively.

The Importance of a Diversified Portfolio

In today’s dynamic economic environment, maintaining a diversified portfolio is more critical than ever. Poole's investment strategy highlights the importance of balancing high-growth stocks with stable dividend-paying companies. This approach not only mitigates risk but also positions investors to benefit from various market conditions.

Investors are encouraged to think critically about their asset allocation, ensuring that they strike a balance between growth and income-generating investments. By doing so, they can achieve a more resilient portfolio that can weather market fluctuations while still capturing upside potential.