Q: Regarding an earlier remark regarding Canadian Shareowner. It does provide easy diversification, at a cost. But,when you want to get out it can be difficult. You cannot, for instance, just transfer your portfolio to an online broker as a whole, as the broker will not take the partial shares that Shareowner holds. So, then, if you do switch to an online broker, you are left with perhaps many positions in Partial shares at Shareowner, each one of which you must sell individually for about thirty dollars a trade, I believe. A good service but something to keep in mind.
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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 I was wondering if it is possible to setup a portfolio of high risk stocks, or fast growing stocks, for those of us who are little more adventurous. Excellent service; I tell everybody about 5i I run into. !! Thanks..as a matter of fact I can not thank you enough.. its like a breath of freash air.
Q: Hi 5i/research,
Just wondering if you were aware of a service "www.shareowner.com"
It would seem to be an almost perfect compliment to what 5iresearch
offers to individual investors. I.E. A new Member to 5i could initiate positions in MOST (approx 85% - 90%) of your Model Portfolio stocks for a single price of $40.00 ($2.00/per stock for up to 20 stocks). Purchases can also be staggered/scheduled via their SPP either monthly, or quarterly. A (true/full) DRIP is also offered that purchaces partial shares (to 4 decimal points). One can tailor their own portfolio with Stocks/ETF's from their list of 450, or select existing pre-selected portfolio's. There is also periodic/automatic rebalancing of stock allocations. Between the recommendations from 5i and ShareOwner.com it would seem to be the perfect combination of "Set-it-and-forget-it" for someone that doesn't want to do the rebalancing themselves. I believe they charge 0.05% on A/C under
$100,000 and a Flat Fee of $40.00/MTH on A/C's over $100,000.
Just wondering if you were aware of a service "www.shareowner.com"
It would seem to be an almost perfect compliment to what 5iresearch
offers to individual investors. I.E. A new Member to 5i could initiate positions in MOST (approx 85% - 90%) of your Model Portfolio stocks for a single price of $40.00 ($2.00/per stock for up to 20 stocks). Purchases can also be staggered/scheduled via their SPP either monthly, or quarterly. A (true/full) DRIP is also offered that purchaces partial shares (to 4 decimal points). One can tailor their own portfolio with Stocks/ETF's from their list of 450, or select existing pre-selected portfolio's. There is also periodic/automatic rebalancing of stock allocations. Between the recommendations from 5i and ShareOwner.com it would seem to be the perfect combination of "Set-it-and-forget-it" for someone that doesn't want to do the rebalancing themselves. I believe they charge 0.05% on A/C under
$100,000 and a Flat Fee of $40.00/MTH on A/C's over $100,000.
Q: I subscribed to 5i in order to learn about investing, and I have learned a tremendous amount, although not always quickly or painlessly. Here are 3 of the many lessons:
Lesson 1: Stocks sometimes (often?) go down right after you buy them, but that is not a reason to sell. About a year ago I asked Peter about two companies I was considering, DHX Media and C-Com Satellite. I had read all Q/As about both companies and was leaning toward C-Com. However, Peter picked DHX, so I bought shares. But DHX immediately began to decline and C-Com began to rise. Luckily I did nothing. Now DHX is up about 80% and C-Com is down significantly from that date.
Lesson 2: Analyst and money-manager recommendations are not free of conflict. Sometimes (often?) recommendations are designed to generate trading activity so brokers can make money on commissions or to improve returns in a money manager's fund. I bought Avigilon at $14. and it rose to $19. but then one analyst downgraded it and the stock dropped to below $15., but in time, in spite of that analyst downgrade AVO rose to $34. Then the CFO resigned and now it is down around $22., but not because of poor earnings. Recently, I saw a money manager on BNN who is short the stock in his fund, and he suggested that because of increased competition and lower margins AVO is probably only worth about $12. dollars per share. (Now, being short, wouldn't he be happy if he could get the market to sell AVO down to that price.) I am learning that a stock's current share price is not always based on its current earnings or the long term potential of the company, so in order to make my investment decisions, I will rely on the conflict free expert opinion I pay 5i to give me. (How could it have taken me over a year to learn that simple lesson?)
Lesson 3: Re-balancing may either decrease or increase your returns, but it will always definitely decrease your risk. I bought Amaya at $5.20 and it was by far my biggest position. I watched it rise to $9.50 and thought about re-balancing, but decided to wait until after quarterly results came out, hoping to make even more. (Greedy) When the quarterly results came out the market did not like them and the share price declined, very close to my original purchase price. So when the stock rose again, on a rumour, I felt I had learned my lesson and took the opportunity to re-balance my portfolio and sold half my position at $11. Now the stock is around $22., but the weird thing is that I don't regret selling half my position at $11., even though I would have made WAY more money if I had not sold half. Instead, I feel lucky that I had the opportunity to make 100% back then, on a rumour no less. And now I'm thinking of re-balancing again, because my portfolio weighting is again way too high, almost back to where it was in the beginning.
I will probably (definitely?) need to keep re-learning these 3 lessons over and over again, but I feel very lucky that 5i is helping me learn about investing--and making me quite a bit of money while doing so!
Lesson 1: Stocks sometimes (often?) go down right after you buy them, but that is not a reason to sell. About a year ago I asked Peter about two companies I was considering, DHX Media and C-Com Satellite. I had read all Q/As about both companies and was leaning toward C-Com. However, Peter picked DHX, so I bought shares. But DHX immediately began to decline and C-Com began to rise. Luckily I did nothing. Now DHX is up about 80% and C-Com is down significantly from that date.
Lesson 2: Analyst and money-manager recommendations are not free of conflict. Sometimes (often?) recommendations are designed to generate trading activity so brokers can make money on commissions or to improve returns in a money manager's fund. I bought Avigilon at $14. and it rose to $19. but then one analyst downgraded it and the stock dropped to below $15., but in time, in spite of that analyst downgrade AVO rose to $34. Then the CFO resigned and now it is down around $22., but not because of poor earnings. Recently, I saw a money manager on BNN who is short the stock in his fund, and he suggested that because of increased competition and lower margins AVO is probably only worth about $12. dollars per share. (Now, being short, wouldn't he be happy if he could get the market to sell AVO down to that price.) I am learning that a stock's current share price is not always based on its current earnings or the long term potential of the company, so in order to make my investment decisions, I will rely on the conflict free expert opinion I pay 5i to give me. (How could it have taken me over a year to learn that simple lesson?)
Lesson 3: Re-balancing may either decrease or increase your returns, but it will always definitely decrease your risk. I bought Amaya at $5.20 and it was by far my biggest position. I watched it rise to $9.50 and thought about re-balancing, but decided to wait until after quarterly results came out, hoping to make even more. (Greedy) When the quarterly results came out the market did not like them and the share price declined, very close to my original purchase price. So when the stock rose again, on a rumour, I felt I had learned my lesson and took the opportunity to re-balance my portfolio and sold half my position at $11. Now the stock is around $22., but the weird thing is that I don't regret selling half my position at $11., even though I would have made WAY more money if I had not sold half. Instead, I feel lucky that I had the opportunity to make 100% back then, on a rumour no less. And now I'm thinking of re-balancing again, because my portfolio weighting is again way too high, almost back to where it was in the beginning.
I will probably (definitely?) need to keep re-learning these 3 lessons over and over again, but I feel very lucky that 5i is helping me learn about investing--and making me quite a bit of money while doing so!
Q: How much faith do you put on technical events identified by research provider "Recognia Inc.".
Q: I am a 5i member since day 1 and I want to first of all wish Peter a speedy recovery and wish him all the best for his efforts not only to guide so many people in making better investment decisions but also making positive contributions to the society.
I want to particularly comment on the negative comments by one of the members. Making investment decisions is one's own responsibility. Even though I got very good advice from 5i to invest in quality companies, I always went the other way by investing in more risky companies. I wish I had always invested in 5i recommended companies or their growth portfolio and I would have been at least twice as rich. 5i - keep up the good work.
I want to particularly comment on the negative comments by one of the members. Making investment decisions is one's own responsibility. Even though I got very good advice from 5i to invest in quality companies, I always went the other way by investing in more risky companies. I wish I had always invested in 5i recommended companies or their growth portfolio and I would have been at least twice as rich. 5i - keep up the good work.
Q: Peter; RE; LJ.s beyond belief rant- I strongly suggest he/she is either a Mutual Fund salesperson and/or
a frustrated Investment Advisor trying to fend off clients questions as to why their portfolios are not performing . I am willing to wager that anyone who
read the outburst would applaud your offer to refund his very large yearly fee you charge - and send him/her out of this platform. Please do us this favour. Rod
a frustrated Investment Advisor trying to fend off clients questions as to why their portfolios are not performing . I am willing to wager that anyone who
read the outburst would applaud your offer to refund his very large yearly fee you charge - and send him/her out of this platform. Please do us this favour. Rod
Q: Peter,
I'm very glad to hear that you're improving after the bike accident! I enjoy the insightful comments from both you and Ryan, and you have a wealth of company and stock information as well as experience. I am curious about your thoughts on portfolio returns. The results of the 5i portfolios have been outstanding since inception. But I don't know of any fund manager that would ever promise such great returns! My question is - what is a reasonable expectation for annual equity return (capital gain + dividend) over a five year time frame?
I'm very glad to hear that you're improving after the bike accident! I enjoy the insightful comments from both you and Ryan, and you have a wealth of company and stock information as well as experience. I am curious about your thoughts on portfolio returns. The results of the 5i portfolios have been outstanding since inception. But I don't know of any fund manager that would ever promise such great returns! My question is - what is a reasonable expectation for annual equity return (capital gain + dividend) over a five year time frame?
Q: I enjoyed your level and straight forward response to LJ (June 28th) somewhat emotional and short sighted question.
Q: I have always put in limit orders and have never worried about putting in orders in 100 lots. I put in an odd lot with a week expiration. Part was filled that day, the other part the next day. I was charged the commission both times. Is that normal?
Q: Hi 5i,
I have 3 out of 3 dissappointments bot jun 18th wks ago.
DSG just announced dilution at $13.50. current price $15.04(dwn 4%). I got the impression you did not like companies that do this.
SGY down 4%
AVO down 11%
It's nice when you quote a 35% gain in your portfolio but that hasn't help my results to date.
I would have appreciated the advice that the market has outrun itself & Jun 18th was a time of wait, not buy.
What can u tell me that is realistic about these three underperformers & when I might expect to see something more like the 35% returns you tout in your model portfolio.
I have 3 out of 3 dissappointments bot jun 18th wks ago.
DSG just announced dilution at $13.50. current price $15.04(dwn 4%). I got the impression you did not like companies that do this.
SGY down 4%
AVO down 11%
It's nice when you quote a 35% gain in your portfolio but that hasn't help my results to date.
I would have appreciated the advice that the market has outrun itself & Jun 18th was a time of wait, not buy.
What can u tell me that is realistic about these three underperformers & when I might expect to see something more like the 35% returns you tout in your model portfolio.
Q: HI Peter. My question is how big do you plan to take this newsletter? I hope that you stick with quality over quantity. Better to have fewer great stocks to watch than a lot of sosos. Thanks, and keep up the good work. It will pay off for us all in the end. Cheers, John Dufresne, L'Orignal, Ont.
Q: I would to echo Warren's request for dividend growth rate and add payout ratio which you usually provide.
Q: This is a comment for Warren, looking for a list of preferred shares.
James Hymas has one here: http://www.prefinfo.com/
Have a speedy recovery, Peter and thank to the whole team.
Marilyn
James Hymas has one here: http://www.prefinfo.com/
Have a speedy recovery, Peter and thank to the whole team.
Marilyn
Q: I have $106,000 cash in a registered education savings plan. The money is to be paid out within a year. What is your recommendation for getting some return on the cash position?
Q: There are two pieces of advice that perplex me about investing and I'm not sure which ones to follow:
1. "you need to take profits" vs "you need to let your winners run"
2. "You should be raising cash to take advantage of an inevitable correction" vs "You can't time the market so you should stay fully invested at all times"
I suppose point 1 and 2 are almost the same thing...
All of these strategies make sense to me, but a choice has to be made right? In your experience which ones have you found more successful in the long run?
Thanks so much for all your help.
cheers
1. "you need to take profits" vs "you need to let your winners run"
2. "You should be raising cash to take advantage of an inevitable correction" vs "You can't time the market so you should stay fully invested at all times"
I suppose point 1 and 2 are almost the same thing...
All of these strategies make sense to me, but a choice has to be made right? In your experience which ones have you found more successful in the long run?
Thanks so much for all your help.
cheers
Q: This is by way of me trying to figure out why the market will suddenly shoot up or plunge down. I guess I can't help always seeking a reason. The reason given for today's big drop in the TSX and the DOW is tension in Iraq (or so I read on Bloomberg). This confuses me. The worst hit sectors were materials (Gold) and energy. Why would people fearing turmoil in the middle east sell off energy stocks in Canada? Would they not benefit? And isn't gold supposed to rise during times of tension? Or is Bloomberg simply seeking a reason for the fall and plucking that one of out of the air?
Q: A comment about investing whether to use a advisor or not .
I am arguably a fair income investor in my opinion the two key ingredients to be a successful investor is 1.Time and 2.Interest if you lack one of the two stay with an advisor/money manager.
My empirical opinion only
Kind Regards
Stan
I am arguably a fair income investor in my opinion the two key ingredients to be a successful investor is 1.Time and 2.Interest if you lack one of the two stay with an advisor/money manager.
My empirical opinion only
Kind Regards
Stan
Q: I see that many Members seem to have a problem finding the link to sponsor you in the 'Sears Ride for Cancer'. Maybe it might be an idea to point out that if you use the 'ASK A QUESTION' green button the first page you are then presented with at the TOP:
Member Questions
Ask a Question
5i Research is involved in a very special charity event in September. Click here for more info.
The above sentence is in RED and the 'Click here' is underlined
to represent the link. By clicking on the underlined "here" you
will be taken to the Donation page and your (Peter's) blog.
No need to remember, or cut and paste the link. It might be an idea if 5i was to increase the font of this line and make the print bolder so that it stands out a bit more.
Hope this helps others.
Member Questions
Ask a Question
5i Research is involved in a very special charity event in September. Click here for more info.
The above sentence is in RED and the 'Click here' is underlined
to represent the link. By clicking on the underlined "here" you
will be taken to the Donation page and your (Peter's) blog.
No need to remember, or cut and paste the link. It might be an idea if 5i was to increase the font of this line and make the print bolder so that it stands out a bit more.
Hope this helps others.
Q: Is it worth having a financial adviser managing an account under 200k for someone who has some knowledge of companies but not of their stock value (especially for blue chip companies) or should I try to manage my own portfolio on my own using 5i as my adviser? I would not be making daily trades of companies, it would be for growth of my equity portfolio, checking every month I suppose.
Current holdings since 2007: BMO BCE AGF.B TRP RY TRP BNS TRI POW (US holdings) GE BP. Thanks.
Current holdings since 2007: BMO BCE AGF.B TRP RY TRP BNS TRI POW (US holdings) GE BP. Thanks.