Investment Q&A

Q: Hey guys. My question is about building a great Canadian portfolio. I have done well for over 5 years now using screeners and small/micro cap stocks but this causes high commissions, volatility, and confidence issues. I have started to switch into your Balanced portfolio and stocks from your coverage list. You guys have an amazing list of stocks to choose from and an amazing balanced portfolio. Ty for that. I have been a big fan of Peter for many many years now and would like to know some tips or core rules he uses to find good stocks. Also a tip on how to adjust the industry weights in the portfolio. I know a book can be written on this subject and I have read William O'Neil's book and Graham's books but I find their strategies are to volatile or lag the Canadian market.
Thank you so much!

Q: Hi, Can you explain and provide an example of how the Management fee is calculated and how it affects me as a purchaser of an ETF (how much does the management fee cost me?).

Q: Can you explain a leveraged ETF? If it is a leveraged Dow ETF, Does it hold the 30 DOW companies? or is it doing something different. I see some that attempt to achieve 2x or 3x the Dow Jones Industrial average. From a risk perspective, is it safe to say the at the would come with 2x or 3x the risk as well?

Q: Where can I find out how an income trust pays out it’s distribution in terms of dividends, return of capital, etc. so I can evaluate its suitability in a non-registered account.

Ed

Q: Re:your answer to Johns question of august 27th. 10 pick of best company's to best weather a correction. Would you consider a portfolio of 30% pmif and 70% these 10 picks at 5% each to be a decent portfolio no matter an iminent significant correction is at hand or not or would you tweek it in some way. Thank you kindly. Larry

Q: While calculating ROE with cash earnings (amortization of intangibles added back), do you make the corresponding adjustment to retained earnings & thereby to shareholders equity? If so please provide the rationale behind this.

FJ

Q: 5i, Generally speaking when is the best time to buy stock, At end, or beginning of the week, month, etc
thanks

Q: Hello Peter / Ryan
Generally speaking, is there anything out there that really worries you about the way the economy is currently or where it is headed ? On the whole, you seem optimistic / upbeat and I'm wondering what it takes to shake you up and make you nervous. Just curious.

Thanks

Q: Just an observation.Traders returned from vacation and are adjusting portfolios.Historical data shows that Sept is a month of decline,on average 0.5% to 0.7% for SP,NQ & DJ.On the other hand,only 5 times since 1980 has SP been higher for each month for April to August.In those years the final 4 months were higher every time with some really strong returns

Q: I keep seeing reports that a company has missed estimates. I understand that estimates are made by advisors. There seems to be major swings if a company misses estimates. What the hell do outsiders know about the company to have such an effect on the share price. It seems to me a lot of bafflegab but I welcome your comments and don't be afraid to shoot me down.
PB

Q: Hello Peter;
NTAP, SQ, TEAM, ANET, WDAY
I read your article in the Financial Post. I had been following NTAP & SQ but other 3 others were just as good. Thank you.
I suggest you please include US stocks you find interesting in 5i. It is hard to make money in the Canadian market. I understand you have non-conflict pledge for the Canadian market and therefore you do not invest here but invest in the US. I and others would have no problem if you include US stocks with a declaration that you have invested in it. Come to think about it, you may do the same for the Canadian market.

Q: Why the CRA is targeting some TFSA accounts in court; Should an average investor be worried? by Jonathan Chevreau Aug 27, 2018 https://www.moneysense.ca/save/investing/cra-tfsa-accounts-court/

I don't think this is something I need to worry about just yet as I only have $81k in my account and my wife has $106k in her KTFSA (I call it the Kinda Tax Free Saving Account because it's kinda ok to make some money just not too much). We both still have $7k TFSA room for this yr. but we also have plenty of RRSP contribution room. In light of this article, I'm wondering if we should hold off adding to our TFSA until more clarity is provided by the either the courts or CRA.

Like many, I'm sure we aren't using our accounts like a business but at the same time I don't know what triggers an audit. Nor do I wish to find out since I don’t have the time/resources to prove our innocents. I'm starting to think this may be concerning to more than just a handful of 'savvy' investors as the article would imply.

We appreciate your insight on this topic.
Thanks

Q: It seems to me that most Short Attacks come from the USA on Canadian Companies . They hit Canadian Companies where trading volumes are not great and therefore easy to put downside pressure on the shares. Is there nothing that OSC or other gov't authorities can do about out of Country Short attacks ? RAK

Q: What large bank or investment coverage group (ie:Jeffries) would you say has the best track record for predicting future share price increases in the near and longer term.

Q: Today we are seeing another short seller, Citron Research, issue a report condemning Cronos whose reporting is being compared to disclosures by Canapy and Tilray.
Often, research assessments have been based on subjective judgment. What recourse do shareowners have to ensure there is accuracy? Are these firms subjective to recourse or penalties should their reports be issued for personal gain? Are there cases of class action lawsuits?

https://citronresearch.com/wp-content/uploads/2018/08/Cronos-The-Dark-Side-of-The-Cannabis-Space.pdf

Q: Do you think it is worthwhile to attend the Canadian Financial Summit? Which speakers would you consider the most compelling to see? I'm considering paying $89 so I can watch it on demand instead of live. Is this a good investment?

Q: Hi 5i team,
What do you think about the CANSLIM method/criteria elaborated by William O'Neil for identifying potential growth stock? Thanks!

Q: Short Attacks. What purpose do they have ? Should Short Selling be abolished ? Look what Musk tried to do to Shorts on his going private announcement for Tesla. Short Attacks cause massive selling in good quality Companies for no reason. What is your opinion ? RAK

Q: Hello 5i
I stumbled across a recent article by Ryan in the Globe and a member made reference to another article by Peter in either the Globe or Fin. Post. My question is: Is there a link or can you provide a link to all articles written for non 5i publications? I feel this would be a benefit to all 5i members.
Thank you
Dave

Q: Why would you buy a short term bond etf over laddering 1-5 year GIC. or for that matter just keep buying 1 year GIC.
I looked at BMO ultra short 5 year return 1.32.
I get it that it is liquid, but GIC has no risk.
Am I missing something?