Investment Q&A

Q: This is a follow up to Dennis‘s question on the number of stocks to hold in a portfolio. You have suggested that about 20 (15-25) is all that you need. This may be correct for a conservative investor, but I feel your client base is a little bit more aggressive. Hence 20 conservative stocks, and a dozen more aggressive ones. I have used your advice to help me invest in a dozen smaller or unknown companies of which some have done great, some have done well, some are treading water and some have done poorly. I have started all these at a quarter position, which has worked well over the years. My biggest problem is knowing when to trim the great stocks as a fourfold increase only brings them to a full position. A great problem to have. Thanks for your advice over the years.

Q: Hi,

The other day I sold 300 shares of a company from an RRSP account. A minute later I submitted a buy order for the same amount of shares in my TFSA. Both the buy and sell were for the same price.

Today I received a call from my broker advising that I had broken the rules(?) and engaged in a wash trade.

Can you enlighten me as to what and whose rules I have broken?

Q: What % is a good split between holding hardware vs software names? Barbell approach? Do you think the sasspocalypse is over? We've seen these names bounce off the recent lows and you have days where they are leading and days like today where sentiment swings the other way. I believe the names I hold are of good quality and can be patient while I wait for them to bounce. But then you have the opportunity cost of not buying more AI leading names with positive momentum. For example, do I sell some CSU/LMN/TOI and buy more CLS? Or sell some AXON and buy more NBIS? What would be a good approach? Thank you1

Q: Digital Subscription credit has been discontinued, effective 2025. Does 5i subscription qualify for Investment Advice Fee (Carrying Charges)? Where can I access a receipt for this expense, on the portal?

Thank You

Q: With a 1.7 million dollar stock portfolio is 37 positions too many?? Might I be better off concentrating on fewer stocks like perhaps 25 and still get diversification across sectors?

Q: Hey,

You guys often do some great research that includes lists of companies eg. Stock screeners and others.

What i think would be very helpful to you subscribers is hilite in yellow liner the 2 or 3 stocks that 5i research likes best in the grouping.

I know you list them in order of some quanitative data eg highest to lowest growth rates, but that doesn't necessarily mean that going forward the one with the highest past growth rates has the best future potential for growth.

Would like to hear if you think this would be feasible for you to use on future analysis and lists that you generate.

Thanks


Sheldon

Q: How many stocks/ETFs/mutual funds do YOU own? How many would you recommend? Does this number change based on your age and where one’s at in investing ?

Also, I just want to thank you for your hard work and consistency with your Members at 5i. Your services are life changing for all of us. So thank you again.

Nick

Q: What is “Cash Value in Life Insurance”. I heard there is Tax Benefits. Is there a video or book. Do you know how it works is there benefit for retirement.

Thanks for the great advice

Q: I adhere to a portfolio construction strategy where 5% is a full position but I allow for a "rock star" stock like a SHOP, NVDA or GOOG, to go to 7% at which time I will trim a point or two.

When you suggest a small-cap stock, you often warn against buying too big a position initially, given the inherent instability and risk of a smaller company. My question is, at what point do you "loosen the reins" and allow that stock to assume a full position and when do you allow it to go to (in my case, for example) rock start status? I'm thinking of companies like ATZ and HPS.A. Is it based on capitalization, number of business cycles management has gone through, profitability ratios or is it as much art as science?

Appreciate your insight.

Paul F.

Q: I think there are more questions recently on small cap stocks. I also note that in your answers on small mining stocks, aka penny miners, you display solid knowledge. Any thoughts on adding a separate service for junior mining and small caps? This area has given me significant gains over the past year, and I am constantly looking for knowledgeable commentary to assist in spotting opportunities. Maybe if other members vote this up it will give you an indication of interest?

Q: I would like to add to the recent accolades for you Peter, and your co-workers. I pretty much joined right at the start of 5i. During the succeeding years I gained immeasurable knowledge from 5i and the members, either through staff, questions asked, or general comments.
The only negative in all these years is when I asked a question about Crescent Point Energy and another member retorted the next day how I could even consider investing in oil and gas. See below for how that turned out.
Even after donating large amounts of stocks to charitable causes I recently went over the seven figures in my trading accounts.
I/we can't thank you enough.
Gordo

Q: Dear Team:

Nice articles in your 5 From 5i. Thanks.

This question is based on one of the articles about Retirement portfolio. By Christine Benz.

She talks about 8 (EIGHT!!) years worth of funds invested in BONDS in Bucket #2 for withdrawals! The example in this case study is 80000 per year minus the person's Social Security income. (US based of course.)

Question: Is this allocation to Bonds excessive or reasonable, especially in the coming years of inflation (rate increase) or worse Stagflation(rate decrease/probable/possible?)

I know every person's situation is different. But in terms of principles of asset allocation for a pre-retiree/retiree in Canada, is this a reasonable template?

Q: I am looking to simply my portfolio by transitioning part of my portfolio to broad market etf.

I have a few concerns with the often mentioned Xeqt and veqt.

With Canadian assets around 25% of holdings, is the Canadian market over represented?

Secondly, if I were to split my ETF holdings between a VEQT (or Xeqt) and a second, growthier ETF, which ETF would you recommend for some added torque?
Would the default choice be a QQQ. I ask because I am worried about the long term prospects for SAAS.

Your advice please.
Thank you

Q: What, if any, are the risks in having a large percentage of one’s wealth (say, 50 to 60 percent) held by a single mainstream broker and invested in a suite of ETFs from a single major ETF company. For example, holding VUN, VAB, VBAL, VEQT, VEE, and other well funded Vanguard ETFs across several accounts, all at RBC-DI?
My apologies if you’ve answered a similar question. Couldn’t find answer.

Q: Everyone, message from Joel on April 20, “ Q: First, want to thank you for the service provided over the years. I recently reached a financial milestone (another 0 at the end of the net worth statement at age 33) and 5i played a massive part. Biggest elements were the great stock picks (obviously) which allowed me to outperform the market quite a bit, as well as the reassurance to stay long when the market has a fit.”
I started investing on my own with great assistance from 5i and over the last 15 years my returns are more than twice the market. This is due to the financial help and confidence from 5I. Many thanks to all the staff at 5i. Clayton

Q: What is involved with your appearances on BNN? What preparation do you do? Are they paid appearances? Do they limit the size of your entourage? Are you wearing makeup? What do you do during commercial breaks? Do they feed guests and if yes how is the food? Just curious to hear what we don't see on TV. Thanks!

Q: May I have your comparative analysis of risk/benefit of having your assets in a bank, caisse populaire (Québec) vs fintech (like Wealthsimple)? A friend in corporate legal domain was suspicious of the soundness of fintech vs banks in Canada. She was refering to the 2008 financial crisis and implied that fintechs would be a liability for investors. What do you think?

Thank you as always to Peter and the great team for expertise that goes well beyond stock analysis.

Q: Long term owner of WSP, with a full position. Started buying WSP in 2014 @ $37. Long term believer that WSP will rebound from it's current price of around $220 and resume it's "up and to the right" trajectory.

Going to trim some (again) from my Cash account for a capital gain. At the same time, I plan to buy some in my TFSA. My understanding is there are no CRA issues with this plan, as it is a capital gain and NOT a capital loss situation.

Please confirm....thanks....Steve

Q: What are you thoughts on the direction of the economies in Canada and the U.S.,inflation or recession?
What sectors would do well for each scenario/

Q: The market is proving pretty resilient given the turmoil around the Iran war and the global impact to Oil markets and economies.

However, there are several additional underlying challenges already being experienced in the markets, like Govt Debt, fear of Inflation and increasing Interest Rates, bad credit, and so on…

I know this is a difficult question, but given the global disruption of the Iran War plus the current market concerns, do you feel that the recent minor pullback in the markets could soon expand into a correction of 10 to 20%??

The market seems to be on a knife’s edge right now and depending on the days headlines could change very quickly.

Thanks
Tim