Investment Q&A

Q: https://www.theatlas.com/charts/S1mAAANEz

Warren Buffet has not outperformed the S and P 500 in years.

He is nice, loves TV appearances but buy the S and P 500.

Q: In my usa dollar rrsp account I would like to sell some of the holdings (all funds received will remain in the account) . I will re-purchase 2 of the same stocks in the future. What will the tax consequences be if the purchase is made prior to 30 days? Thank you for your time. jane

Q: This is in reference to Grant's Feb 15 question on reading materials in relation to bonds and fixed income investing. I found Hank Cunningham's "In Your Best Interest" to be a very good and useful book. It has the advantage of having a mainly Canadian focus. He also helpfully answered a question for me when I cold-emailed him, which was very nice of him. I also liked the parts of Benjamin Graham's "The Intelligent Investor" that dealt with managing a balanced portfolio of investments and using strategic rebalancing between fixed income and equities to good effect and for risk management.

Q: This may be of interest to some members:
https://www.bloomberg.com/news/articles/2019-02-14/energy-companies-perform-better-when-ceo-pay-isn-t-tied-to-production

Q: Regarding IPL’s Q4 results. I do not understand how they determine their payout ratio as 60.2 % when their dividends are $1.68 per share and their earnings are $1.53 per share.

thanks
Don

Q: Some (including Phil Town) are concerned that this is at or above 30. I believe the historic average is about 15. I am also told that an increased Shiller has preceded market crashes historically. I would appreciate your comments in particular as to whether a market crash is in the cards after such a prolonged bull market - a record at 10 years if I recall. Thanks! (Publish this question if you wish)

Q: Appreciated your answer about the liberty checks. Now on to part two. Why were the liberty checks directed and sent to individuals rather that directed to the health care system and the education system in the United States? The whole thing looks like a casino to me.
Thanks,
Capreol

Q: I am just starting to research bonds as I don't own any and think it's probably a good way to diversify, especially when the recession hits. Is it a good time to start purchasing bonds? Which bonds would you recommend? Please recommend some reading materials to get up to speed on the subject.

Q: hello Peter, can you please advise which stocks pay dividends in USD (from our model portfolios or otherwise solid names). Also, do most brokerages will keep in USD or convert to cdn. I noticed in my DISNAT RRSP account, dividend from BAM were in cdn dollars. \not sure if they converted to cdn, if so then, may move account to BMO INVESTORLINE or INT BROKERS.

Q: Want to give the ETF and Mutual Fund Newletter prepared by 5iR is well worth the read. I'm a long time subscriber but never seriously read it as I'm focused on stocks. Of late, I am burrowing into this Newsletter as
I discovered that there are good points that carry over to equities. Just want to share this with you. And feel free to post it on the Q&A 5iR web site or elsewhere.....Tom

Q: Hello 5i, In response to Keith' question on Feb. 14 about setting up his RRIF. Two books he might find useful would be: Your Retirement Income Blueprint by Daryl Diamond, also Retirement Income for Life by Frederick Vettese.

Q: Very interesting!!
WHY DOLLAR COST AVERAGING BEATS BUYING THE DIP!
A Josh Brown YouTube.
https://www.youtube.com/watch?v=4dswzb-8nHk&t=311s

Q: I am not an accountant or financial guru but I have learnt a few things. One thing I thought I learnt was to value resource companies, particularly oil companies, on a cash flow per share basis instead of an income per share (P & E). I assumed that is due to the fact the product that is being produce is non-renewable. I am I right on this point? If so, then why do people who are supposedly financial gurus who appear on BNN continue to evaluate a resource company on a P/E basis. This happened last night with Ross Healy. Healy has been in the business for decades so he should know that P/E are not a good way to evaluate resource companies, yet that was the metric he used. He is not the only guest on BNN that has done this. On the other side are the Eric Nuttall types who appear on BNN and spew out cash flow numbers that sound amazing but when you dig a little deeper his numbers don't take into account sustaining capital that is required to offset declining production. Who cares if a oil company has $300 million of cash flow when they need to spend $300 million to offset declines. I use the word free cash flow meaning any cash that is left over after enough money is spent to keep production steady. Is this the right term? I know that guests' opinions on BNN should be taken with a large grain of salt but do you think these guests are trying to sway the viewers opinion to move a share price. Apparently foreigners ae not interested in Canadian resource stocks and most of the big Canadian money managers don't seem too keen on them either. So who is left to buy Canadian resource stocks? Us little retail investors. Can a comment on BNN's market call actually move the needle on smaller companies by influencing us little retail investors, in your opinion?(I guess there are three questions here.)

Q: I think I send you a question last Friday and still haven't heard back from you. Just in case you never received it I will ask again.
Question: Is their a website that you could refer us to in order to determine the various financial reporting dates for all various companies on the TSX.Thanks.

Q: Hi 5i team,
I know you have answered this question before, but I cannot find the questions/answers. Which investing books would you recommend for an investor who already has some basic investment knowledge?
Thank you for your collaboration,
Eric

Q: On February 7th, you answered a question from Adam about what to look for in /stock filters. A very important consideration. I'm wondering, though, how specific industries would influence a search. For example, it seems to me a bank might have very different metrics from a railroad or a lumber company.

Q: Recently I have been hearing about...on the internet, a lot about liberty checks.
What are liberty checks and why are they happening at this time. It is starting to
look like to me a free government handout. I find it all very confusing.
thanks,
capreol

Q: GE & the DOJ recently reached a $1.5 B settlement related to GE's past accounting practices. My question is should not GE's auditors be punished as well? Further, the investors who bought the stocks at high price by relying on the misleading financial statements are the b biggest victims. Should not they be compensated by the DOJ?

Q: Is their a website that you recommend that would give all of the various companies financial reporting dates? Thanks

Q: This is comment in reference to a Question by Bryan:
It would be more beneficial for Bryan to have the other spouse as the successor to the RRSP (only spouse can be successor and basically the TFSA money transfers into TFSA of the spouse - no contribution limit affected). They can then have the beneficiaries if the successor has predeceased the account holder. I thought this might be something that Bryan and/or other members in similar situation can consider. Thanks.
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Q: My wife and I are 66 years old. We each have a TFSA which we are trying to maximize. These would be the last two accounts we would ever take money out of. Our children are the beneficiaries so these are long term accounts - hopefully! We each have RRSPs and share a non-registered account we use for income. We don't have any fixed income but do have enough cash to last us 3 years. No pensions, but are quite diversified in a number of blue chip stocks.

Between the two of us we have PHO, SIS, TOY, BNS, TSGI. None of which has been very good lately but we are patient. We have enough money for two more positions, and think it would be prudent to add two, more stable, names. OTEX, BOYD, GC ? Suggestions?
THANK YOU !

Asked by Bryan on February 07, 2019