Q: I want to have more of my portfolio in US $. Some Canadian stocks trade on both the NY and Toronto exchanges (e.g. Magna). Can I avoid all the hassle of US holdbacks and other tax issues that apply to a non registered US$ account by simply buying a good quality Cdn stock on a US exchange? If so what stocks would fall into this category that you would recommend with a bent towards growth?
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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: Hi Peter & Team,
What is the way to calculate an estimate to a target price based on: forward P/E or Price/Cash Flow or Price/Sales or any of "per share data".
Is there any other data I need? or where can I get this info?
Thanks,
Morris
What is the way to calculate an estimate to a target price based on: forward P/E or Price/Cash Flow or Price/Sales or any of "per share data".
Is there any other data I need? or where can I get this info?
Thanks,
Morris
Q: Hello Peter & 5i Team
As a Canadian expat living in Europe, my current equity portfolio includes (in order of magnitude) European, Canadian, US and Australian equities. Given your experience in the industry, I would be interested in your views of international markets. More specifically, would North American markets provide better/worse growth/income etc than European markets or vice versa. I appreciate this is a very broad question that includes currency risk among others but I was wondering whether there is a "common knowledge" within the investment industry of the pros/cons of investing in the various markets with respect to quality of company reporting, dividend issuance, growth potential etc.
Your insight is always appreciated and I am constantly learning from your replies and reports. Thank you.
As a Canadian expat living in Europe, my current equity portfolio includes (in order of magnitude) European, Canadian, US and Australian equities. Given your experience in the industry, I would be interested in your views of international markets. More specifically, would North American markets provide better/worse growth/income etc than European markets or vice versa. I appreciate this is a very broad question that includes currency risk among others but I was wondering whether there is a "common knowledge" within the investment industry of the pros/cons of investing in the various markets with respect to quality of company reporting, dividend issuance, growth potential etc.
Your insight is always appreciated and I am constantly learning from your replies and reports. Thank you.
Q: Hello Peter,
Regarding the question I ask (August 01) concerning portfolio diversification, allocation and types of accounts for tax efficiency. Thank you for your answer and also for Lance’s comments (August 04) may I say I find this most informative and educational in helping me in my investment decisions. Ronald
Regarding the question I ask (August 01) concerning portfolio diversification, allocation and types of accounts for tax efficiency. Thank you for your answer and also for Lance’s comments (August 04) may I say I find this most informative and educational in helping me in my investment decisions. Ronald
Q: Question about what to do when buying or selling shares in less than 'board lots'.
I nearly always try and buy/sell shares in multiples of 100, but this doesn't always work if one wants to exit a position entirely, or if one wants to allocate a specific portfolio percentage to a stock and the numbers don't add up.
If it has to be less than 'board lots', should we aim for further multiples of 10 or doesn't it matter?
I was wondering that if one wanted to sell an obscure number of shares as quickly as possibly, would they take longer to sell if they were in random numbers?
Just as everybody else says, I really appreciate your advice. I finally feel that I am gaining control of my own destiny (belatedly, and not without your assistance.) Thank you.
I nearly always try and buy/sell shares in multiples of 100, but this doesn't always work if one wants to exit a position entirely, or if one wants to allocate a specific portfolio percentage to a stock and the numbers don't add up.
If it has to be less than 'board lots', should we aim for further multiples of 10 or doesn't it matter?
I was wondering that if one wanted to sell an obscure number of shares as quickly as possibly, would they take longer to sell if they were in random numbers?
Just as everybody else says, I really appreciate your advice. I finally feel that I am gaining control of my own destiny (belatedly, and not without your assistance.) Thank you.
Q: Thanks for the July 30 answer to Darcy on AYA. One additional question for Clarity on your answer. You indicated that a 20 to 30% positions becomes a portfolio bet on one company. I understand this concept, but doesn't a double down strategy by definition mean you will have positions greater than 30%, or do you always limit portfolio positions to a certain maximum even in you double down approach? Great Service, you have greatly changed my investing success.
Darcy
Darcy
Q: Hi Peter & company. Great job! We have recently sold all of our U.S. stocks because we were scared off due to the recent tax laws changes with respect to people with dual citizenship (US and other country). We don't have dual citizenship but this new tax is quite significant for those affected and the U.S. government seems to need to increase tax revenue. Do you think we were over cautious?
Q: For life insurers such as SLF, I have heard many times that higher interest rates will help them because of higher earnings in their bond portfolios. But, higher interest rates should also result in capital losses on bond portfolios. Can you explain this apparent conflict?
Thanks,
Thanks,
Q: re: Boeing
what symbol do we use please?
Gord
what symbol do we use please?
Gord
Q: Balanced Portfolio?
You currently have a model Equity Portfolio and a model Income Portfolio. From subscriber's questions, it appears that at some point you will be adding a Growth Portfolio.
Would it be in the realm of possibility to add a "Balanced Portfolio" as well. This would not necessarily need to be a brand new researched portfolio started from scratch but rather a portfolio constructed from stocks selected by you from your existing Equity/Income/Growth Portfolios and just maintained in a separate listing.
With 20 stocks in your Equity Portfolio and another 19 in your Income Portfolio and potentially another approximately 20 more in a future Growth Portfolio, I would find it difficult to manage a portfolio with this many holdings. I would find it extremely helpful as I'm sure other subscribers would who seek diversification not only in different sectors but also between equity, income & growth, and be able to maintain them in one all-encompassed portfolio.
Thank you.
You currently have a model Equity Portfolio and a model Income Portfolio. From subscriber's questions, it appears that at some point you will be adding a Growth Portfolio.
Would it be in the realm of possibility to add a "Balanced Portfolio" as well. This would not necessarily need to be a brand new researched portfolio started from scratch but rather a portfolio constructed from stocks selected by you from your existing Equity/Income/Growth Portfolios and just maintained in a separate listing.
With 20 stocks in your Equity Portfolio and another 19 in your Income Portfolio and potentially another approximately 20 more in a future Growth Portfolio, I would find it difficult to manage a portfolio with this many holdings. I would find it extremely helpful as I'm sure other subscribers would who seek diversification not only in different sectors but also between equity, income & growth, and be able to maintain them in one all-encompassed portfolio.
Thank you.
Q: Hi Peter, you articulate well your reasons why 5I does not issue target prices, and I agree with same and it makes perfect sense. I note brokers are normally "behind the curve" when setting or revising target prices. Usually it occurs right after earnings. If there is a big earnings beat, miraculously the target price is revised down, and conversely if it is an earnings miss then they revise down often. When target prices are set without reference to recent quarterly earnings, aren't they set using some valuations method, ie. price/forward earnings, price/book, price/affo etc. I don't buy or sell based on target prices, however is there not some limited value in them in that at least it allows one to examine the price based on a valuation method, and at least pay attention to the stock. And as to a potential purchase, if a stock is at its target price(s) should I not at least confirm there is no obvious reason why the stock cannot go up from there? I do keep in mind your advice that generally if nothing has changed fundamentally there is usually no reason to sell. Thanks for the great advice 5i provides. Bill Y.
Q: a comment
You can post this in the forum if you like Peter and team...
First off, enjoyed your session on Market Call. Very well done.
More importantly, what I really took from it was the consistent 5i message which has now repeatedly (we must drive you nuts) mentioned the philosophy of not using any kind of "target pricing" expectation/strategy. Ironic for me personally, considering just yesterday I asked where you thought Amaya might end up. I will be doing my very best moving forward to not ask about target prices although I admit, it will be tough.
I appreciate more than you will know the lessons you consistently emphasize - faith in metrics, long term investing, and not trying to invest/divest based on target pricing and/or timing the market. All things every once in a while I am guilty of not observing.
Have patience with me 5i team. I will try and do better.
Thanks for all you do
Gord
You can post this in the forum if you like Peter and team...
First off, enjoyed your session on Market Call. Very well done.
More importantly, what I really took from it was the consistent 5i message which has now repeatedly (we must drive you nuts) mentioned the philosophy of not using any kind of "target pricing" expectation/strategy. Ironic for me personally, considering just yesterday I asked where you thought Amaya might end up. I will be doing my very best moving forward to not ask about target prices although I admit, it will be tough.
I appreciate more than you will know the lessons you consistently emphasize - faith in metrics, long term investing, and not trying to invest/divest based on target pricing and/or timing the market. All things every once in a while I am guilty of not observing.
Have patience with me 5i team. I will try and do better.
Thanks for all you do
Gord
Q: Peter,
I know it is repetitive on my side and repetitive on your side..
but, tell me even this type of information is not even make you blink?
''Corporations are now the single largest buying source for U.S. stocks – authorizing buybacks of their own stocks to the tune of $754.8 billion in 2013 alone.
And it’s a long-term trend. According to Birinyi Associates, for calendar years 2006 through 2013, corporations authorized $4.14 trillion in buybacks of their own publicly traded stock in the U.S. — raising the question, just what kind of a bull market is this?
JPMorgan Chase, the largest U.S. bank by assets, has turned share buybacks into an art form, buying back a whopping $17,945,000,000 of shares from 2010 through 2013. In just the calendar year of 2011, JPMorgan spent a stunning $8,827,000,000 on stock buybacks''.
There is debt attached to that, it is not gone! 4 trillions buyback!!
To me this is madness in proportion of the 2000 and 2009 madness.. So ''they'' think they can get away with it this time.. Of course attached to that is the explosion of derivative (http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php?utm_source=Triggermail&utm_medium=email&utm_term=Markets%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_072914) leverage but everybody is on the same side of the trades as usual. Give me a serious black swan and you still do not worry?
Thank you for having again the patience to explain the reasons why you are so little worried.
CDJ
I know it is repetitive on my side and repetitive on your side..
but, tell me even this type of information is not even make you blink?
''Corporations are now the single largest buying source for U.S. stocks – authorizing buybacks of their own stocks to the tune of $754.8 billion in 2013 alone.
And it’s a long-term trend. According to Birinyi Associates, for calendar years 2006 through 2013, corporations authorized $4.14 trillion in buybacks of their own publicly traded stock in the U.S. — raising the question, just what kind of a bull market is this?
JPMorgan Chase, the largest U.S. bank by assets, has turned share buybacks into an art form, buying back a whopping $17,945,000,000 of shares from 2010 through 2013. In just the calendar year of 2011, JPMorgan spent a stunning $8,827,000,000 on stock buybacks''.
There is debt attached to that, it is not gone! 4 trillions buyback!!
To me this is madness in proportion of the 2000 and 2009 madness.. So ''they'' think they can get away with it this time.. Of course attached to that is the explosion of derivative (http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php?utm_source=Triggermail&utm_medium=email&utm_term=Markets%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_072914) leverage but everybody is on the same side of the trades as usual. Give me a serious black swan and you still do not worry?
Thank you for having again the patience to explain the reasons why you are so little worried.
CDJ
Q: A year or so ago, you mentioned that LAS.A on T was on your to-do list. Just wondering if it is nearing the top of list and if you still expect to cover the name. I think you also may have said the same about ADW.A. And so will that be covered in the future? What would your "back of the napkin" rating by on these 2?
As a suggestion, have you given some thought to publishing a "here are the next 5 (or 1 or 10 or whatever) names we will be covering list" so that someone contemplating those names might wait for the reports. Just a thought.
Rick
As a suggestion, have you given some thought to publishing a "here are the next 5 (or 1 or 10 or whatever) names we will be covering list" so that someone contemplating those names might wait for the reports. Just a thought.
Rick
Q: Hi Peter and Team,
I hold US stocks and US ETF in a US trading account with TD Waterhouse (100k). Could you clarify to me if I will be liable to pay US estate taxes to the IRS or if I have any special reporting requirement.
IF so is it better to buy only ETFs issued in Canada of US indexes.
Any other alternatives?
Regards.
I hold US stocks and US ETF in a US trading account with TD Waterhouse (100k). Could you clarify to me if I will be liable to pay US estate taxes to the IRS or if I have any special reporting requirement.
IF so is it better to buy only ETFs issued in Canada of US indexes.
Any other alternatives?
Regards.
Q: This is a comment in response to Claude.
I have been using Qtrade for the last five years and have found them to be excellent in all respects. They have been given the top rating out of all the online brokers by the Globe and Mail for all but the most recent year, when they came second. Their real-time price quotes and ask-offer spread details are fine. I recommend them.
I have been using Qtrade for the last five years and have found them to be excellent in all respects. They have been given the top rating out of all the online brokers by the Globe and Mail for all but the most recent year, when they came second. Their real-time price quotes and ask-offer spread details are fine. I recommend them.
Q: This is a call for information about something going on with my BMO Investorline account.
I have seen over the course of the past year and some.. a complete abandonment of a true report of real prices on the bid and ask of my level 2 listings. Prices are all over the place and there is no more price discovery.
To make things even more challenging, the real time quotes are very often showing absolutely different bid and ask prices than the one from the level 2. A multitude of call to BMO has gone nowhere and I am planning an exit from my account, but no idea where to go!
So my question to the community is: Do anybody has a significant difficulty with the bid/ask from their broker, and who has not seen any discrepancy on their bid/ask, it will help any further move out of BMO.
Thanks
I have seen over the course of the past year and some.. a complete abandonment of a true report of real prices on the bid and ask of my level 2 listings. Prices are all over the place and there is no more price discovery.
To make things even more challenging, the real time quotes are very often showing absolutely different bid and ask prices than the one from the level 2. A multitude of call to BMO has gone nowhere and I am planning an exit from my account, but no idea where to go!
So my question to the community is: Do anybody has a significant difficulty with the bid/ask from their broker, and who has not seen any discrepancy on their bid/ask, it will help any further move out of BMO.
Thanks
Q: Hi Peter, From the sale of our house, we have quite a chunk of money that we need to put somewhere while we decide what to do. Where would you suggest parking this money for 2-3 months, keeping it relatively accessible, while we scout for longterm investments? Thanks!
Q: http://www.theglobeandmail.com/globe-investor/inside-the-market/the-man-who-foresaw-the-2008-crash-now-says-stocks-are-in-a-highly-advanced-bubble/article19812168/#dashboard/follows/
Hi Peter,
I would be very interested to hear your thoughts on this article. Thanks in advance.
Best regards,
Judith
Hi Peter,
I would be very interested to hear your thoughts on this article. Thanks in advance.
Best regards,
Judith
Q: I am considering moving my portfolio from RBC Dominion- to a money management firm- what are some of the pitfalls I should be aware of and maybe a couple or three questions I really should be asking- before making a decision.