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Shopify is perhaps the most expensive stock in the developed world in terms of valuation. Amazon trades at 4 times revenue and has a positive operating margin. Shopify trades at over 40 times revenue and is losing more money every year at an accelerating rate. They also have a price to book ratio of over 25. However, this is completely sustainable since they issue new shares to raise money up to a couple times a year and also use shares as compensation. With a high share price, a company can literally do anything.
 

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Add Research in Motion, Valeant, and ... Shopify surpasses RBC as Canada’s most valued stock. Should investors worry? - The Globe and Mail. Is passing RBC to become #1 a blessing, or a curse?
Globe and Mail said:
Market watchers have seen hot stocks overtake RBC before, though, and it hasn’t ended well.

Indeed, stocks that have pushed the financial giant from the top of the S&P/TSX Composite Index over the past 20 years have not only failed to hold onto the top spot for long, they’ve performed miserably soon after.

The list of usurpers is an impressive display of blow-ups: Nortel Networks Inc., Barrick Gold Corp., Potash Corp. of Saskatchewan Inc. (now Nutrien Ltd.), Research In Motion Ltd. (now BlackBerry Ltd.) and Valeant Pharmaceuticals International Inc. (now Bausch Health Cos. Inc.) all topped RBC only to fall back sharply soon after – and, in Nortel’s case, fade out completely.
 

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I hold VCN in my couch potatoes.

Here are the top holdings, with valuations >10MM

SHOP makes up 3.3% which I suppose is acceptable.

Royal Bank of Canada(RY)
7.11247​
Banks$141,101,207.30
Toronto-Dominion Bank(TD)
6.14876​
Banks$121,982,600.60
Enbridge Inc.(ENB)
4.58414​
Pipelines$90,942,897.96
Canadian National Railway Co.(CNR)
4.43165​
Railroads$87,917,711.02
Bank of Nova Scotia(BNS)
3.95717​
Banks$78,504,709.64
Shopify Inc.(SHOP)
3.32901
Internet$66,042,746.58
TC Energy Corp.(TRP)
3.29509​
Pipelines$65,369,941.65
Brookfield Asset Management Inc. Class A(BAM.A)
3.17445​
Asset Managers$62,976,664.70
Barrick Gold Corp.(ABX)
2.57348​
Gold Mining$51,054,286.02
Bank of Montreal(BMO)
2.56279​
Banks$50,842,150.92
Canadian Pacific Railway Ltd.(CP)
2.40806​
Railroads$47,772,527.60
Canadian Imperial Bank of Commerce(CM)
2.05727​
Banks$40,813,368.00
Suncor Energy Inc.(SU)
1.95873​
Integrated Oil & Gas$38,858,337.98
Manulife Financial Corp.(MFC)
1.94299​
Life Insurance$38,546,186.16
Waste Connections Inc.(WCN)
1.61704​
Waste & Disposal Services$32,079,684.00
Alimentation Couche-Tard Inc. Class B(ATD.B)
1.59518​
Specialty Retailers$31,646,150.25
Nutrien Ltd.(NTR)
1.55572​
Specialty Chemicals$30,863,238.54
Sun Life Financial Inc.(SLF)
1.51894​
Life Insurance$30,133,703.88
Franco-Nevada Corp.(FNV)
1.47284​
Gold Mining$29,219,039.22
Constellation Software Inc./Canada(CSU)
1.439​
Software$28,547,726.40
Fortis Inc./Canada(FTS)
1.41063​
Conventional Electricity$27,984,922.47
Canadian Natural Resources Ltd.(CNQ)
1.26136​
Exploration & Production$25,023,594.75
Rogers Communications Inc. Class B(RCI.B)
1.16417​
Mobile Telecommunications$23,095,451.94
Thomson Reuters Corp.(TRI)
1.06536​
Publishing$21,135,307.80
National Bank of Canada(—)
1.02985​
Banks$20,430,678.87
CGI Inc.(GIB.A)
1.02178​
Computer Services$20,270,654.26
Intact Financial Corp.(IFC)
0.97854​
Property & Casualty Insurance$19,412,756.15
BCE Inc.(BCE)
0.97683​
Fixed Line Telecommunications$19,378,979.59
Wheaton Precious Metals Corp.(WPM)
0.97424​
Platinum & Precious Metals$19,327,470.63
Restaurant Brands International Inc.(QSR)
0.89626​
Restaurants & Bars$17,780,569.85
Pembina Pipeline Corp.(PPL)
0.81344​
Pipelines$16,137,422.40
Metro Inc./CN(MRU)
0.76272​
Food Retailers & Wholesalers$15,131,230.80
Emera Inc.(EMA)
0.75596​
Conventional Electricity$14,997,099.00
Agnico Eagle Mines Ltd.(AEM)
0.75525​
Gold Mining$14,983,037.46
Power Corp. of Canada(POW)
0.75289​
Life Insurance$14,936,196.64
Magna International Inc.(MG)
0.73934​
Auto Parts$14,667,426.36
Loblaw Cos. Ltd.(L)
0.73617​
Food Retailers & Wholesalers$14,604,605.20
Open Text Corp.(OTEX)
0.71698​
Software$14,223,806.03
Dollarama Inc.(DOL)
0.6779​
Specialty Retailers$13,448,616.32
Fairfax Financial Holdings Ltd.(FFH)
0.65211​
Property & Casualty Insurance$12,936,859.98
Kirkland Lake Gold Ltd.(KL)
0.61405​
Gold Mining$12,181,823.40
Shaw Communications Inc. Class B(SJR.B)
0.57847​
Broadcasting & Entertainment$11,475,978.93
Algonquin Power & Utilities Corp.(AQN)
0.54938​
Alternative Electricity$10,898,846.15
TELUS Corp.(T)
0.50694​
Fixed Line Telecommunications$10,056,933.25
 

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That's great news then. The fund will no doubt re-balance and take profits (sell high)
That's not how market capitalization indexes and the ETFs that track them work. They don't rebalance, they only change their holdings if/when a change is made to the underlying index via an addition or deletion.
 
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