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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: The website adjustedcostbase.ca lists Canadian MoneySaver as featuring their free service. Do you recommend using this service for tracking adjusted cost base and capital gains?
Read Answer Asked by Alan on April 06, 2014
Q: My question is about cash flow.
1) When you look at cash flow (in lieu of net income) to see how the company is performing, are you specifically looking at "Operating cash flow"? If not, then? Additionally, when we read other analysts in various publications talk about cash flow, do they usually use the same definition as yourself?
2) When a company does capital investments (even if paid in cash), I believe this is not part of "Operating Cash flow"?
3) If my assumptions are correct above, then I have to believe that a company that is constantly investing in new capital initiatives, is therefore very capital intensive and would have to eventually demonstrate that this is not going to go on forever, otherwise I would believe that this cash flow metric may not be ideal?

Thanks again.
Read Answer Asked by Walter on April 06, 2014
Q: Addendum to my last missive re balancing/Bep.un. Sorry Peter, I meant to thank you for working so hard to instil discipline in us. Tough work, good teacher. Thanks! Henry
Read Answer Asked by Henry on April 04, 2014
Q: Good afternoon 5i team. To echo what so many members are saying, this is by far the best service I've subscribed to since becoming a retail investor. Thanks for everything so far.

In your April 3 response to Heather's follow-up question on brokerage account risks, you concluded by saying "Getting certificates out and in your name provides the most protection". Could you explain what this means? When I buy a stock for a registered or non-registered account, I get a PDF confirmation from my broker (Scotia iTrade). Is that a 'certificate' you're referring to?
Read Answer Asked by Thomas on April 03, 2014
Q: Great service, love the q&a forum, the tweets, the blog, and the fantastic education. I am learning every day and have done very well since joining last spring.
I am dividing this part of my financial plan into 50% Model portfolio and 50% Model income portfolio. I need to buy 4 of the Equity, SJ, BDI, CCL.B, and top up AYA, and also purchase 11 of the Income portfolio. I am just wondering how fast I should execute the purchases given, the fact that we are moving into the April, May, spring summer period now. I am not expecting a portfolio assessment. Thank you.
Read Answer Asked by Martin on April 03, 2014
Q: Hello Peter,
Would you recommend using stop loss orders in some circumstances?
Do you know where a retail investor can get access to what stop loss orders have been entered and at what prices? (Similar to Level II quotes for bid and ask).
Thanks,
Russell
Thanks
Read Answer Asked by Russell on April 03, 2014
Q: Hi Peter. Read question from Paul (April 2) and your answer regarding holdings in one financial institute brokerage account. My question is, maybe a misunderstanding on my part, regarding solvency of banks. I have all my stocks etc at TD Waterhouse well over the $100,000 insured amount. Are all the stock holdings at risk or is it only the cash portion over the $100,000 that would be at risk in the event of a financial solvency at TD. Thank You.
Read Answer Asked by Heather on April 03, 2014
Q: Just read an article that I would like to share with your readers
if you agree - especially the young ones.

www.milliondollarjourney.com/lessons-from-a-50-year-old-multi-millionaire.html

Read Answer Asked by claudette on April 03, 2014
Q: where can one find a list of the 10 tsx sectors, and the companies with in each. thankyou.
Read Answer Asked by layne on April 02, 2014
Q: Hedge Funds

Can Hedge Funds be bought through a self directed RRSP?
Is there a way to buy HF in amounts less then 200,000 and if so, how?
Read Answer Asked by Jean on April 02, 2014
Q: In one of your answers today, you indicated that large portfolios should consider hedge products and real estate, in addition to a diversified stock portfolio. I assume that the real estate you are referring to excludes a personal residence. Could you elaborate further and indicate how an individual investor can access hedge funds and real estate opportunities? Thanks!
Read Answer Asked by Linda on April 02, 2014
Q: Hi, as a follow up to your recent response for larger portfolios on using hedged products, real estate and large caps, can you please provide some further recommendations for these ? I have set up 3 seperate portfolios - eft portfolio recommendations from the moneyletter , your equity portfolio , and the new fixed income portfolio with an investment ratio of 2:2:1.

Thank you
Read Answer Asked by Vineet on April 02, 2014
Q: Just an observation: I have never seen more excitement or anticipation for a new product ( rivalling apple phones etc) than for your model portfolio update and the new dividend portfolio.
I hope the team recognizes this and is proud of what has been achieved in such a short period of time.
Clearly you have many enthusiastic and happy customers and raving fans.
Congratulations. And thank you for your superb service.
Hope you can make time to smell the roses - even if it is chasing Peter up the back roads of K-W on a bike.
Read Answer Asked by Donald on April 01, 2014
Q: Peter, Do you agree with borrowing to invest (non registered account) by using your home equity, if you have little to no debt? If I can borrow at 3% as long as I generate 4% in dividends I should stay cash neutral after taxes. To minimize taxes the lower income spouse would take out the loan and record the income. Over a 10 year period I should come out ahead once capital gains are added. All holdings would be high quality dividend growers. Are there any flaws to this strategy?
Read Answer Asked by Albert on April 01, 2014
Q: Hi Peter: I very much appreciate what 5i is providing and I think it is such a help to small potatoes like me. Thank you.
One thing I have noticed is that several of your profiled companies are regularly appearing on analysts top picks. Would it be that they also quietly looking to 5i to provide research. Shame on them.
Read Answer Asked by Hildegard on April 01, 2014
Q: has any one been able to open income portfolio
Read Answer Asked by Scott on March 31, 2014
Q: Forgot to say thanks in the question I posed earlier today - as noted by a number of other members, this really is a fantastic and, as far as I know, one of a kind, service.

Tom
Read Answer Asked by Tom on March 31, 2014
Q: This is in response to Kelly's question about good books for recent grads. I've found the rich dad poor dad series to be informative. One concept that's very helpful is the author's suggestion of looking at investments through young eyes. The younger generation knew about facebook, Michael Kors, Under Armour, Chipotle, LULU well before they became mainstream. In the same vein Peter Lynch, how to beat the street is an easy to implement investing strategy that compliments the above.
Read Answer Asked by Clinton on March 31, 2014
Q: Hello
Not a question- but a response to Kelly's question on financial reading. I found William Bernsteins book "The Four Pillars of Investing" to be very good. It may be out of print- but I'm certain could be found online. Highly recommended.
Regards
Read Answer Asked by Les on March 31, 2014
Q: Peter et al,
You have used the term "momentum shift" and "momentum investor" recently. I wonder if you can explain these to this old but still learning investor.
Gary
Read Answer Asked by Gary on March 31, 2014