Investment Q&A

Q: Retired, dividend-income investor, with a reasonably diversified portfolio. I remember a question a while back (months, maybe even > a year?) about asset allocation, but I can't find it even after a lengthy search.

It had to do with how many stocks-ETFs, MFs one needed for a reasonably diversified portfolio, but in the context of the size of the portfolio as it grew over time.

For example, I hold 2 legacy dividend-income MFs (10% of portfolio), 7 ETFs (40%), 15 stocks (50%), ignoring the fixed income portion of my portfolio => a total of 24 equity positions. I am a firm believer in a concentrated portfolio and vary my allocation to meet my targeted allocations both by sector and security (allowing for my definition of comfort level or risk).

Your answer to the earlier question was that as one's portfolio grew over time, one might consider increasing the number of equity positions. I can't remember where the rough breakpoints were that one should consider adding additional positions.

Q#1 = acknowledging that you can't provide personal guidance, would the current asset allocation be suitable for a total portfolio of approximately $1-2 million?

Q#2 = roughly where should a person consider increasing their # positions? $3 million....$4MM?

Thanks for your help...much appreciated...Steve

Q: If you would like to do a short term trade with a long position are calls a better option than purchasing the stock?

Q: So I read in the G&M that household savings are at record numbers ; some $ 300 billion , twice the average of the last 2 years , yet I understand that Canadians are in debt to an unprecedented degree. How can this be ? The savers and debtors must be not the same person. Personally, I believe the boomers will come to the rescue of the many indebted GenX and Millennials by passing their sizeable assets over upon their last gasp.
Any thoughts ?

Derek ( boomer)

Q: I've heard on a recent podcast that the 'buy and hold' strategy will not work anymore in the current investing environment and that one's holding period shouldn't be more than 10 to 14 months. Would you agree with this?

Q: I’m considering selling Dorel once the dividend is paid. If the stock is sold on the dividend ex-date, who get dividend the buyer of the seller?

Q: Not really a question, more of a comment.

I had asked a question a number of days ago about ABBV, and I had referenced a PE ratio of 32 . Your team said they did not know where I got my figure from (I actually got it from Morningstar), and you had indicated that the forward PE was much lower than that. I see that your own database shows that the PE is 32. I realize that this, perhaps, is a trailing figure, but maybe there is also something else I am missing.

Q: there seems to be more questions recently asking for good entry price points.....for me, I tend to just buy when I'm keen to enter or add to a position...with that in mind, I'm wondering if there are few tips or hints that you would share on how to go about evaluating for a good entry price point or a reference or two to read over and then for me to mull over.....thanks....Tom

Q: Hello Peter and Staff

I have 2 questions on this security.

a) What fees are buried in this ETF?
b) Is the price you pay per unit based on the value of the securities held by that ETF divided by units outstanding or just what investors are paying because they want to own this ETF? If that is the case , is it really a good way to own the six companies ?

Thanks for all you do

Dennis

Q: Hi 5i,
What is the rationale to invest in sector-specific ETFs rather than index funds? It seems like the index themselves typically perform quite well compared to ETFs unless one is looking to gain exposure in a specific sector.

Looking back to Adam's question on 06-Jan regarding 2021 performance:
S&P 500: 28.7%
TSX: 25.1%
Here I thought I was doing reasonable with my 16%...
I certainly enjoy investing and learning about specific stocks and ETFs but this difference is hard to ignore.

Thanks,
Kyle

Q: Hi Peter and Staff

Why do tech stocks get hammered due to projected interest rate increases because “investors compare those earnings to what they can get on other investments”

Do stocks in other sectors not face the same competitive investments ?

Does this not hold true for many companies on other sectors ?

Thanks for all you do

Dennis

Q: I regularly use Globe Investor some terminology used by professionals on these sites and TV require some explanation. For instance, i.e. Trade Desk just as an example, the price/earnings (TTM) 142.2; earnings per share (TTM) 0.57;
Doing my math the share price 79.00 @ 11:00 a.m. divided by 0.57 = 138.59
Am I right you would be paying 138.59? Above I said the PE was 142.2 doing my math would the PE now be 138.59? I realize every move in the stock price changes the PE slightly.
Another frequently used termination is free cash flow. Please explain. I know I have the right people to explain the above.
Thank you

Q: I have been advised by BMO that this company is planning to have a Dutch Auction in the near future. The company is giving me 12 different options for selling some of my shares, with the last option(#99) being to do nothing. Can you advise why the company might be going this route to purchase back shares. Are there advantages for the company to go this route. And for the investor, why should he sell some of his shares this way. If there is some advantage to the investor, how do you decide which option to pick. Right now my preferred option is to do nothing, but would appreciate your advice on this matter. Many tnx for the great service.

Q: My unregistered investment account has a 50% core of VEQT and 5 equally weighted satellites; CEW, VGG, XSU, ZEO and ZQQ. I am considering overweighting CEW and ZEO. Do you think this is a good idea, would you use some of the other satellites or just stick with equal weighting. I would like to maximize the return without unduly increasing the risk. Thank you

Q: To what degree do you think insider buying is a predictor of a stocks future increase in value and why?
Thanks

Q: is there a website , or are you able to provide what fractional share interest these would have in a whole share of the underlying company...I am aware they use ADR's but looking for a reference point for each...many thanks...Cheers

Q: Hi, to compare apples to apples...In 2021 I've held a 80/20 portfolio and returned 19%.
Is there a site you would know of that shows returns for all types of allocations?

Thanks

Q: Hello,

I’ve always wondered why certain companies let their share price run into the thousands and rarely if ever split their shares. For a small retail investor like myself paying 2000- $3000 USD for an Amazon or Alphabet is simply not possible. I’ve always suspected it may be a philosophy of management and or founders who all still have significant influence in the mentioned companies.

Q: Happy New Year!
As a broad-ish generalisation, could one substitute 'structured notes' as an asset class in a portfolio with one or more covered call ETFs?

Q: I keep hearing that a rise in interest risks adversely affects tech stocks. Understand that comment in the context of companies that are reliant upon financings but don’t understand it in the context of the FANG stocks which are cash rich and have significant pricing power. Please clarify.

Q: Can you please post the total return for the S&P 500 and TSX for both 2020 and 2021. Thx