Investment Q&A

Q: I have noticed members have expressed their concern or disappointment in putting in stop loss orders and getting stopped out early in the day only to have the stock move up. I for one have been there and done that, and avoid it now.
I use TD webbroker, and for the last while I have been using the "Alerts" section for cut off prices for both high and low on stocks. Also if you use screeners you can actually set a specific alert for a stock not only on the positive and negative techinicals but a stop loss and upon hitting this level and email or a text is sent rather that stopping you out.

I have been using the technique for sometime now, and find it most useful and help in avoiding losses and costs.

Post if you feel this is worthwhile for consideration. I am sure other on-line brokers have the same service.

Again thanks for the awesome service and look forward to following you.

Q: Re: My question about Companies that are Monopolies/Durable Competitive Advantages.

Thanks John and 5i for the discussion and comment that Rail/Pipeline companies also belong in this category.

Q: I found Eugene's question on investing in monopolies very interesting, as it has formed the backbone of my investment strategy for about 20 years. While absolute monopolies may not exist, in Canada we do have some oligopolies that are very powerful. In their response 5i referred to banks nd telecom. I would suggest adding rail and pipeline to the discussion. Think about how difficult it is to build out large scale infrastructure in N.A. these days due to politics, nimbyism etc... For example, I have owned CNR and ENB since 1997. I invite fellow members to go to longrundtata.com (a great site, previously recommended by 5i) and check out the long run returns of such companies. There is no way CNR and ENB could outperform by that margin, for so many years, without significant barriers to entry in their industry. The marketplace is just too competetive for that. These companies obviuosly have the tables tilted in their favour and in the long run have been excellent holds. Personally I add to them every year. Just my two cents, sorry for being long winded.

Q: When it comes to investing in the US economy versus the Canadian economy, how do you treat companies like SU, BNS, OTC, BIN et al. that are listed on both Canadian and US markets?

Q: Hi! Today (March 31) you commented on a question that you do not like stop loss orders as one can get burned...as did today's questioner...how do you recommend one protects against a big loss? Just regular checking the markets?

David

Q: Hi,

When placing orders, do you have a strong opinion regarding limit vs market orders? I almost always use market orders and have never had any surprises...even with odd lots. I use BMO Investorline. I read something recently about flash events that can cause very brief dramatic price sings that could theoretically cause some significant surprises. Am I exposed when I use market orders? Would my broker have any built in protection? Thanks.

Q: Hi Peter. I sold 300 shares of Teck yesterday and was planning on buying them back today but Andy Bell said this morning that the trades made during the halt would be undone. My trade was late in the day. 12:30ish in BC. How will I know if my trade is being undone and when will I know? Thanks for any info.

Q: I think I got stopped out by high frequency trading and am quite annoyed. I put on a stop loss and saw that there was a momentary downdraft on the chart, poof my stock was sold and the price immediately jumped up about 5% after it took me out. I read that a new stock exchange is opening in Canada that will not allow HFT. Can you tell me something about it and will it be convenient for a small retail investor like me to use? Thanks for your help!

Q: Good Day 5i, I look after two RRSP's, two TFSA's and one non registered outside account. in these 5 accounts I hold just over 60 stocks with a total of approximately 600k. Do you feel that the sixty stocks is over done? I do hold a lot of the same ones you have in your porfolios. Thanks MC

Q: I am in the process of figuring out exactly the amount of each sector holding that I have and wondered how should I record preferred shares, should these recorded a financial sector?

Thanks

Q: My goal is to create a list of criteria for the ideal small-cap growth stock. I fully appreciate very few stocks, if any, will meet all the criteria. I have started the list. Please add to it.

1. Experienced management
2. High insider ownership
3. Low debt
4. Low forward P/E ratio
5. Momentum

Q: In reviewing the sector distribution of your reports (C rating or higher), there seems to be a notable absence of reports on oil/gas (none), pipelines (1), and telecoms (none). Is this intentional?

Q: Firstly, new to your site and find it very imformative. Peter you are one of my favorite guest on BNN. I would describe myself as a seasoned rookie investor. I certainly really enjoy doing my own research a lot more than paying a mutual fund two percent plus for picks like Bell, CNQ, and some glossy brochures. I am wondering if something like the Bloom and Burton Healthcare Investor conference
would be appropriate for a smaller retail investor. Btw I am geeky enough that I am sure to enjoy the technical medical stuff. Just did not want to spend a fair bit of money to go to TO and feel uncomfortable in this crowd as I am not a sophisticated investor with big bucks.

Q: Hi 5i team,

In the medium to long term, I believe you would agree that US economy is heading for a much better growth compare to Canada (unfortunately). In which case, wouldn't you advise increasing US exposure for Canadians to 50%, if not much higher? The current exposure recommended by 5i is around 20% as I understand. Can you please shine some light on this, are there implied risks that we are not aware of?

Thanks as always,
Jerry

Q: Hi...just curious how you select companies to cover in your reports? Do you have a schedule for up dating comapny reports?
Thanks!

David

Q: Thank u to Arneh for the clarification on Hxs vs Zsp
I did not mention that it was a non reg account so this was very helpful
Much appreciated

Q: Peter Ryan and team
I have a limited accounting background I understand most of the ratio's eg ROE PE CF but I have great difficulty in figuring out how to calculate them on a complex financial statement

Could you suggest a course or literature to help members calculate the different ratios and determine debt levels etc

Everyone says do your own research and I want to become better equipped

Any suggestions would be appreciated

Thanks
Paul

Q: Hi, where would I look for a listing of the tsx company reporting dates ?? Something that I can print out.

Thanks

Q: Hi Peter,

Can you offer 5 tips for portfolio construction in order to perform well in a rising interest rate environment?

Thanks.

Q: I read this (i've excerpted) over the weekend. I expect you're familiar with the thesis, but I'm wondering what your take is on this for someone with little interest in researching and monitoring individual stocks, asset allocations, etc.
The One-Minute Portfolio consists of two exchange-traded funds (ETFs): the iShares S&P/TSX 60 Index Fund (XIU) and iShares Canadian Bond Index Fund (XBB). There is no requirement for hours of research to pick stocks or time markets. Only an annual rebalancing is needed….

Over the dozen years from 2003 to 2014, the One-Minute Portfolio’s average annual compound rate of return was 8.9 per cent on a total return basis. …

In the most basic form of the One-Minute Portfolio, an investor rebalances back to a fixed asset allocation, a common one being 60 per cent stocks and 40 per cent bonds. A slightly more advanced version, used in the published updates, allows the target asset allocation to vary according to the state of the stock market – as prescribed in Benjamin Graham’s investment book, The Intelligent Investor.

In general terms, the rule is: if stocks are getting frothy, their portfolio weight is cut. Conversely, if stocks are in a deep funk, their weight is raised.

from My OwnAdvisor