Distress in Indian Telecom Spells Opportunity in Telecom Infrastructure

Distress in Indian Telecom sector caused by entry of Reliance Jio and the price wars spells Opportunity for investors in Telecom Infrastructure. Brookfield Asset Management, KKR, American Tower and others are eyeing the space with great interest. There is a potential for great returns to be made as data is the fastest growing commodity and India is the country to be due to demographics and projected economic growth.

Canadian National Railway - The Best North American Railroad

Canadian National Railway (CNI) is undoubtedly The Best North American Railroad. The railway network of 20,000 miles connects 3 coasts (Prince Rupert on Pacific, Halifax in Atlantic and New Orleans and Mobile in Gulf coast) to major North American markets including many major cities in Canada (Vancouver, Calygry, Edmonton, Toronto, Montreal, Halifax) and Central United States (Chicago, Detroit, Omaha, St. Louis, Memphis) and Southern United States (New Orleans, Mobile, Baton Rouge).

CNI has one of the best management teams and excellent focus on customer service, growth initiatives leading to top line growth and the industry leading Operation Ratio of less than 60%. CNI also has the best diversified business by business sector and geography. CNI has generated 14+% annual return since 1995 IPO. CNI returns nearly 85-90% of generated cash to shareholders with 30-35% as dividend and remaining 55-60% in the form of buybacks. CNI can grow earnings and dividend at 10% per year growing forward driven by 3% organic growth in revenue, 3% price increases and 3% growth due to buybacks.

Risk of Artificial Intelligence as a Disruptor

Artificial Intelligence (AI) as a disruptor is the biggest risk to many businesses over the next 10 years. Many industries including Retail, Media, Advertising, Banking, Transportation are already facing an uncertain future.

Amazon(AMZN)
Innovation and exceptional customer satisfaction by Amazon is upending the retail industry. Even entrenched companies like Walmart and Costco are having a tough time competing. AI based innovation with Alexa and Echo and Amazons expansion into food retail and brick and mortar with Whole Foods and expansion of fulfillment and Amazon Prime all enhance the wide moat around Amazon's business. AWS and Advertising are two additional pillars of growth and profitability for Amazon.

Alphabet (GOOGL)
Alphabet is investing in Artificial Intelligence through self driving cars and by leveraging AI into all aspects of Google including mail, search, virtual assistant etc. YouTube has a lot of potential for growth and Alphabet continues to be dominant in the advertising market with Facebook a distant second.