Martin Cobb’s Power Trio: Google It, Drill It, Build It
How Martin Cobb’s global investment picks—Techtronic, Alphabet, and CNQ—cut through the market noise and signal where smart money is headed.
When Martin Cobb speaks, smart investors listen.
As the senior vice-president of equities at Lorne Steinberg Wealth Management, Cobb is known not just for his ability to spot undervalued companies, but for the clarity with which he communicates a broader market outlook. In an era defined by uncertainty, tariffs, and technological disruption, Cobb’s latest commentary and top stock selections offer investors a map through the fog.
Global Market Outlook: Tariffs, Recessions, and Reality Checks
Cobb didn’t mince words in his most recent appearance. "Hoped I might get to write something here that didn’t mention tariffs but apparently not," he quipped, criticizing what he called America’s self-defeating trade policies. Whether it’s pressuring companies to manufacture iPhones domestically or slapping 50% duties on European imports, Cobb sees these moves as harmful rather than helpful.
And while recession fears continue to dominate headlines, Cobb remains unmoved by the noise. He dismissed the constant stream of doomsday predictions as distractions from the actual work of investing. "The U.S. economy spends some 95 per cent of its time not in recession," he said, making it clear that trying to position for short-term economic cycles is the wrong game entirely. The market, Cobb reminded viewers, is a discounting mechanism. And while April reflected some recognition of an economic slowdown, that prudence appears to be fading again as valuations creep back up.
Still, opportunities remain. And Cobb’s top picks reflect a mix of global exposure, dominant brands, and compelling valuations—no matter the headlines.
Techtronic Industries: Quiet Powerhouse in Plain Sight
Based in Hong Kong but with 75% of its revenue coming from North America, Techtronic Industries is far from a regional player. This is a global titan in the power tools and floor care space, home to brands like Milwaukee and Ryobi. The company is perhaps best known among professionals for its dominance in jobsite tools, but it’s also increasingly popular with DIYers. Throw in Hoover and Vax in the floor care segment, and you’ve got a household name portfolio that stretches across categories.
What separates Techtronic from competitors is its relentless investment in research and development—spending three to four percent of sales annually—and its pioneering role in cordless, battery-powered tools. These innovations have done more than just modernize the toolbox; they’ve locked customers into a powerful ecosystem of interchangeable batteries and compatible devices, building loyalty and repeat purchases into the business model.
Its exclusive relationship with Home Depot continues to be a strategic edge, driving traffic and sales on both sides. After a couple of flat years post-pandemic, Techtronic is back on a growth trajectory, nearing 10% annual sales increases and showing meaningful margin expansion potential. Cobb believes the company could achieve profitability levels on par with U.S. rival Stanley Black & Decker. Yet Techtronic trades at just 16–17 times 2025 earnings—a discount that Cobb sees as deeply undervaluing the firm, especially given its pristine balance sheet, founder-led ownership, and clean accounting. Were it listed in the U.S., he argues, the valuation might be double.
Alphabet: Still a Juggernaut with Hidden Upside
Alphabet has never been a secret. As the parent company of Google, YouTube, and Android, it’s a digital advertising colossus with commanding market share. But in an age of AI disruption, even giants face questions.
Cobb acknowledges that large language models and generative AI pose the first true existential challenge to Google’s search dominance. Yet he emphasizes the importance of context. Even if 20–25% of Alphabet’s revenue is theoretically at risk, the company is far from complacent. With over $50 billion a year in R&D and industry-leading models like Gemini being integrated across Google’s suite of services, the fight is far from over.
Meanwhile, YouTube continues to quietly become a financial beast. Originally acquired for less than $2 billion in 2006, YouTube’s revenue now rivals that of Netflix. And Alphabet’s cloud business—often overshadowed by Amazon’s AWS and Microsoft Azure—is not only gaining share but also expanding margins faster than its competitors. Then there’s the optionality: self-driving cars via Waymo, quantum computing, health tech, and other so-called "Other Bets" that could, at any point, become billion-dollar engines in their own right.
With over $80 billion in net cash and a valuation below 18 times this year’s earnings, Cobb sees Alphabet as a compelling opportunity. It’s a rare mix of stability, optionality, and undervaluation in an industry where most names come at a premium.
Canadian Natural Resources: Canada’s Energy Crown Jewel
On the home front, Cobb turned his attention to Canadian Natural Resources, Canada’s largest energy company and a poster child for efficient, disciplined operations. With a portfolio spanning the oil sands, conventional crude, and natural gas, CNQ is a true upstream powerhouse. Its Horizon and Athabasca projects offer long-life, low-decline production that remains profitable even in adverse conditions.
Case in point: in 2020, when WTI averaged just $39 a barrel, CNQ still generated free cash flow. That’s not luck; that’s operational excellence. And with the completion of the Trans Mountain pipeline expansion, Canada’s pipeline bottlenecks are finally easing, which should gradually close the price gap between WCS and international benchmarks.
But what sets CNQ apart isn’t just its asset base—it’s how the company uses its cash. With 24 consecutive years of dividend increases and a steady commitment to share buybacks, CNQ has earned investor trust. Cobb highlighted the firm’s conservative balance sheet and transparent capital allocation strategy, two qualities that are increasingly rare in the sector.
With shares trading at just 12 times earnings, a free cash flow yield approaching 10%, and a dividend yield of 5.5%, CNQ offers the kind of value that long-term investors crave. Especially in an environment where oil prices are still recovering, this stock looks like a bargain.
Final Thoughts: Navigating a Noisy World with Clear Conviction
Markets are noisy. Tariffs, tech disruptions, election cycles, and economic forecasts dominate headlines, often drowning out the fundamentals. But investors like Martin Cobb remind us that the essence of investing hasn’t changed. It’s not about predicting recessions or reacting to quarterly earnings—it’s about owning quality businesses at reasonable valuations and letting time do the work.
His top picks—Techtronic Industries, Alphabet, and Canadian Natural Resources—each offer something different. One is an industrial innovator, the second a digital empire, and the third a resource giant. But all three share a common thread: strong fundamentals, smart management, and valuations that don’t reflect their true potential.
In uncertain times, those qualities matter more than ever.