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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Private Equity is an area of investment that has been getting a lot more attention recently. Which listed asset managers specializing in Private Equity are worth looking at? Would the multiple-recent-name-change firm SuRo Cap Corp. be worth inclusion in this group?
Read Answer Asked by David on June 24, 2020
Q: In today's Barrons on-line edition there is a story that "pressure mounts on US banks to halt dividend payments". Do you see that pressure on Canadian banks? If Canadian Banks do not feel that pressure ( and assuming that is the case even though all the Cdn banks trade on NYSE) this may make Canadian Bank shares more attractive if US banks do trim their dividends
Read Answer Asked by Murray on June 22, 2020
Q: Could I get your opinion on Mastercard please. Also would you own either it or Visa.
Unless the trend to less cash reverses these companies should have some strong tailwinds but are never inexpensive from a valuation standpoint. Thoughts pls.
Read Answer Asked by Michael on June 22, 2020
Q: What are your thoughts on selling these two bank stocks I am about 25% down on both going on three years , thinking of buying Td or Ry.
Larry
Read Answer Asked by Larry on June 18, 2020
Q: Hello 5i Team
Comparing Fairfax Financial and Intact Financial, both in the Property & Casualty Insurance sub-industry (TMX data), which is the better choice? FFH seems to always in the news about its other investments rather than its insurance business, whereas IFC appears to be solid in its insurance operations
According to a recent Globe & Mail article, IFC could be a potential acquirer of smaller P&C insurance companies, would this also apply to FFH or is FFH more interested in its other investments?
Trisura Group is listed as Specialty Insurance sector. Is it comparable to FFH and IFC, noting its market capitalization is only $380M compared to $12B / $18B for FFH/IFC?
Thanks
Read Answer Asked by Stephen on June 18, 2020
Q: Re Fred’s question about longterm gains on RY
canadastockchannel.com has this info
If bought on Jan4, 2000, $1 worth of RY would be worth $12.46
assuming dividends are re-invested on a tax free basis (ex. RRSP)
If dividends are not re-invested, on a total return basis (including dividends, but still no tax paid) your $1 is worth $8.75.
You can enter different dates to get exactly what you want.
I personally find this type of analysis instructive but I know not everyone is a fan.



Read Answer Asked by john on June 15, 2020
Q: If I had put $100,000 into RY 20 years ago with all dividends reinvested, can you tell me what it would be worth today?

This is not a rhetorical question. I recently came to realize that a close friend put $100,000 RRSP into RY in 1989 as he has now retired from there. As he is an unsophisticated investor, he just left it there. But as there have been withdrawals over the years, it is difficult to determine the actual growth. It is now worth a tidy little sum. This is, in my estimation, a significant argument for a buy and hold strategy although most would also argue for more diversification.


Read Answer Asked by Fred on June 15, 2020
Q: These banks have been "hammered" in the recent downturn (for good reason due to prospective loan losses, and near zero rates). That said, do you see the Fed mandating dividend cuts/eliminations in the future here, or is the market just really skittish about it? They all look "cheap" right now, but an elimination of the dividend would be a real reason for me to leave this space if it were as distinct possibility vs. a "tail risk". What is your take on this and these companies - do you see much risk in dividend cuts here? Or is it just a reflexive thought in that the European banks were mandated to eliminate dividends...
Read Answer Asked by David on June 15, 2020
Q: I’ve held BNS shares in a DRIP over the past 10 years. My ACB is about break even. I obviously chose the wrong bank as I would have done much better holding RY, TD, or NA over the same time period. Since I’m in a position to sell and not pay any tax, would you suggest switching over to one of the other big five or simply stay the course? I’m a long term investor and plan on leaving this money for my estate. Thanks for your insight.
Read Answer Asked by Curtis on June 10, 2020
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