Tye Bousada & Geoff MacDonald

Edgepoint Investment Group

Edgepoint’s investment approach is deceptively simple – but requires independent thinking, curiosity and commitment to execute it. They buy good, undervalued businesses and hold them until the market fully recognises their potential. By focusing on longer periods, they’re able to realise a company’s true worth for investors.

Tye Bousada

Founding Partner, President & Co-CEO

Prior to founding Edgepoint, Tye already had an impressive history in the investment world. As well as holding positions as VP and Portfolio Manager at Invesco Canada, Tye worked his way up to Lead Manager of Trimark Fund, which was recognised numerous times for investment achievement under his management.

Geoff MacDonald

Founding Partner, Co-CEO

Geoff’s career got off to a strong start in 2009, when he was selected as a “Young Global Leader” by the World Economic Forum. Like Tye, Geoff distinguished himself at both Invesco Canada and Trimark. At Trimark, Geoff was integral to the launch of the Trimark Small Companies Fund and Canadian Resources Fund. He now works as part of the strong partnership that forms Edgepoint.

Introducing Edgepoint Investment Group

FILMED IN SEPTEMBER 2024.

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Stock Spotlight: Dollar Tree

FILMED OCTOBER 2025

EdgePoint’s Geoff MacDonald examines how Dollar Tree’s scale, buying power, and new pricing strategy are helping the discount retailer expand its footprint and boost revenues.

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Dollar Tree is a traditional dollar store retailer

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based in the United States with over 8000 stores.

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Up until a couple of years ago

they sold everything in their store for $1.

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At the beginning of this year over 80% of the store

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was priced at approximately $1.25.

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They have a balanced offering of consumables.

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So food items, whether it's confectionery items,

snack food, soft drinks,

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canned food, and discretionary items.

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Discretionary items could be anything from things that are required in the house,

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utensils for the kitchen, candles, clothing items.

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Anything that you can imagine

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that could be priced between $1 and $3.

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Dollar Tree will have it between their four walls.

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Dollar Tree has a very large global sourcing operation,

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one of the largest in the United States

for sourcing goods into the country

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and it uses that large buying power to provide

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products to their customers at very low prices

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as virtually the entire store is priced

between $1 and $3 per product.

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So when consumers feel pinched,

which is happening more and more recently

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certainly in the US, they tend to

trade down on their purchases

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and Dollar Tree is one of the top positioned retailers

in the United States to benefit from that trade down.

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The opportunity for Dollar Tree to grow earnings

it's quite substantial.

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First, they're still opening 500 stores a year,

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with great success and earning great returns

from those new stores.

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Second, they continue to roll out multi-priced offerings,

which is new for them.

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At the beginning of this year over 80% of the store

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was $1.25

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and that's changing.

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These multi-priced offerings are going to help both revenue

growth and margins expand.

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Third, the multi-priced offerings gives more flexibility

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to expand the range of items that

you can have in a Dollar Tree store now

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and that is also leading to margin accretion for the business.

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When you combine those three things

happen with Dollar Tree.

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We see substantial double-digit earnings

potential for the next 3 to 5 years.

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Dollar Tree is a winning format that has been outperforming

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in the US retailing space over the last few years,

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yet they’re still really early in their evolution

on multi-price formatted stores.

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We believe that the company will earn over

$8 a share in a few years

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and the stock today is under 12 times that earnings potential

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which we think is very attractive in the context of today's market.

Can US equities keep on rising?

FILMED IN SEPTEMBER 2025.

In this edition of The Big Question, Brian Kersmanc and Geoff MacDonald explore the tension between slowing economic indicators and elevated market valuations. From the influence of AI optimism, to the risks posed by market concentration, they share where earnings growth may fall short—and where opportunities still exist for investors.