Investment Q&A

Q: Hi Peter
My wife and I are fully invested in TFSA and RSP accounts. I have about $150,000 to invest. I guess I need to use taxable accounts, which I have no knowledge about.
Can you point me some good resources on taxable accounts and how to get started.
If I am already at the top of the tax bracket, is it worth consulting with a tax consultant before I go down this path?
Any guidance on approach and methodology will be very helpful.
Appreciate your great work!
Thanks

Q: enbridge came out with annual investors day presentation today and just wondering if you guys listened to it. they increased the dividend by only 3% but to me that was being cautious for outlook next year cause who knows what will happen but happy in their decision to raise a bit at least. just wanted your thoughts and as a sidenote i get a
newsletter from a reputable writer in ontario here and he was saying in one of his latest reports that 80% of all trading on the canadian markets [tsx] comes from south of the border now. i did not know that and is this right?
thanks

Q: Hello,

In the upcoming shareholder meeting, the following changes to the investment restrictions are proposed:

Current Investment Restriction:
[Each iShares Fund] shall store all the Bullion owned by the iShares Fund in: (i) with respect to CGL, the vault facilities of a Schedule I Canadian chartered bank or an approved subcustodian or sub-subcustodian or an affiliate or a division thereof on a segregated basis; and (ii) with respect to SVR, the vault facilities of a Schedule I Canadian chartered bank, or an affiliate or a division thereof, or a sub-custodian on an allocated basis.
[Each iShares Fund] shall ensure that the Custodian has adequate insurance in place in respect of the Bullion held by the Custodian on behalf of the Fund.

Proposed Investment Restriction:
[Each iShares Fund] shall store all of the Bullion owned by the iShares Fund in the vault facilities of one or more entities that meet the requirements to act as a custodian or sub-custodian for assets as described in NI 81-102 (or are permitted to act as a custodian or sub-custodian pursuant to exemptive relief from the applicable requirements granted by the Securities Authorities), on an allocated and segregated basis.
[Each iShares Fund] shall ensure that the Custodian itself has, or that the Custodian or sub-custodian(s) are required to ensure that their respective sub-custodian(s) have, adequate insurance arrangements in place in respect of the Bullion held on behalf of the Fund by such Custodian or sub-custodian(s), as applicable.

Would you be able to please explain in simple(-er) terms what's being proposed here?
Also, if the proposal is approved, how it would affect attractiveness of CGL going forward? I.e. would it be a good idea to continue to hold it?

Thank you kindly

Q: Hi,
I just came across the "Venture 50" list on the tmx money website. Please see link below. This is a good list of small caps that have had strong price appreciation and market cap growth (and that is all, there is NO other criteria to make it onto the list).
But 4 of the 5 venture-listed stocks in the 5i Growth Portfolio are showing up on this list which is a good sign (and WELL was there too, but has since moved up to the TSX).

Do you agree this is a solid list to use as an initial screen/filter for finding good investment ideas in the small cap space? For sure, more investigation is required because for example, I just looked at the #1 stock overall on the list (DYA) and it has no FCF, and expenses are rising faster than revenue, and it is just a 52-cent stock, and it didn't get the bump that others in green-clean energy/technology got from the recent positive market sentiment. It's worth watching but not ready yet..? Thx.

https://www.tsx.com/venture50

Q: Finished reading the book 100 Baggers and it was a great read. Good to know lots of companies achieved these level of returns. You just have to find a few and hold on.

One of the book suggestion is to focus on smaller market cap companies which can grow over time among other metrics. Looking at some of the recent IPO that came to market with 20B+ market cap and SNOW hitting 100B makes you wonder if some of these newer IPO's can get you 100 Baggers returns.

My questions are as follows:
Do you see market cap playing less of a role going forward and investors will just pay up for growth? Maybe instead of putting 10K in the stock you may have to invest 20-30K to get that capital to compound to 1M without having a 100 bagger.

Finally, just for fun if you were to guess at a few name in the US or Canada that has 100 bagger potential what would they be? I see SHOP, TTD and WELL as having a shot.

Thanks

Q: I just received a notice from my broker about a voluntary mini-tender by TRC capital for $73.75 USD, is this a good deal?
Thx
Nancy

Q: Hi,
WELL, together with LSPD, GSY, REAl, VEEV, KL, makes up the core part of my portfolio.
I find when Canadian listed companies seek a listing on the US stock exchange they have much better exposure to a way larger market, which ultimately benefits the stock, provided they execute their plans successfully.
Would you see, WELL, a small company by US standards, benefitting from a listing in the US and do you think that management at WELL might be heading in that direction?

NB" The hypothetical question is from the idea that maybe they can grow in Canada without seeking other markets, but I am skeptical about that.

Thanks,

Q: Hi,
Once you have maxed out your RRSP and TFSA contribution room, and you can continue to do so each year, where does a person put his/her money? In a non-registered account? I suspect that's the only way to continue to invest the stock market, correct?

Thanks

Q: In calculating the weightings of individual equity holdings, I use only my total equity holdings as the denominator and ignore bonds. Outside of Canada, my equity exposure is held in international ETFs, and I include these in the total equity when making the above calculation. Do you think that's the right approach? I go back and forth on whether to remove the ETFs from the calculation.

Thanks.

Q: In my self administered TFSA I’m invested about 50% in US equities/50%CND equities.

So whenever I’m buying or selling a US stock I have to deal with currency conversions as well as trading fees.

Am I allowed to have a Self directed US dollar TFSA thru Invest Direct at CIBC and linked to US dollar account held at the same bank? My local CIBC guy says no. Seems RBC allows it. Thanks for your appreciated guidance!!

Q: Hello Peter,
Please watch this link....it's only 1min. This is very worrisome. Pierre Poilievre suggests "lock away your money". What would you suggest? If decide they want to go after ou savings (which BTW I think it's very possible), what would they "grab"? How would they go about doing this assault?....Do you think they could go after trading accounts? Or maybe the cash on trading accounts? Maybe savings accts., GIC's, etc.
How do protect ourselves?
As you may know, Trudeau w/NDP (which represent majority) are in agreement to tax on the equity of your home (principal residence) when you sell it. Also, they are planning (maybe they've already done it, don't know) on taxing inheritance to pay for all the free money they are giving away.....BTW Canada apparently has the highest debt, by far, of the G20.
Thank you very much!
Silvia

https://www.facebook.com/PierrePoilievreMP/videos/4692225587515077/

Q: Just wondering about your opinion of the Globe and Mail 2020 ranking of Board of Directors.
https://www.theglobeandmail.com/business/careers/management/board-games/article-board-games-2020-how-we-ranked-canadas-corporate-boards/
Would appreciate your suggestions on where to look for information or ranking of the best lead companies in the Canadian markets

Q: What is the net asset value of dfn at present and where can i find this on my own in the furure? thanks

Q: I'm relatively new to directly investing in stocks. With the help of the 5i resources and the community QA resource I am well on the way to building a portfolio. I am noticing that stocks seem to have outsized reactions to news or no news fairly regularly. I am hoping you may be able to recommend a book and other resources that will give me insight into the behavioural side to investing.

Q: What is a mixed shelf ?

Q: Hello 5i team:
This is a suggestion and a question!
Not at all hypothetical or a thought experiment.
In the main newspapers G&M, FP and magazines like Moneysense there is a real case history of people who submit their stories and ask for suggestions. Names and identities are of course masked.
It will be nice to see such a feature say once a month in your blogs!

Question: If you were to construct a portfolio(s) with ETFS spruced with some stocks that generates 80k per year, how much capital one would need? You may want to apply your approach of Income/Balanced/Growth portfolio.
Your growth portfolio has done exceptionally well thanks to some highflyers like SHOP. But one can't rely on such phenomenon all the time! Hence my ETFs based approach.

Q: Where to get information on daily trading volume of a stock for a particular date? also it is available to have a real time volume trading for a particular time, example from 9.30 AM - 11.30 AM?

thanks
Albertus SA

Q: This question is about valuations and growth. How do you determine when a valuation is too high? To me it seems extremely hard to me.

I've owed KXS since $80 (thank you btw) and still have most of my position at the current price, but isn't the valuation like 150X earnings and 20x fwd sales or something?

Same with PLTR: my cost base is $22/share, and it seems like it has tremendous growth prospects... but a really high valuation (what is the fwd valuation btw?).

At what point would you sell (KXS and PLTR for example) just on valuation alone even with amazing growth?

Sorry if this is poorly worded... but I think you get the idea of what i am trying to say.

Q: In your answer to a question concerning REAL you mentioned that the stock is cheap. Would you please explains what makes a stock cheap and conversely what makes an expensive stock. Thanks … Cal

Q: Active vs passive investing over next 12 months. I had shifted much of my USA and International exposure to low cost ETFs. With most mutual funds in that class at the time having MERs>2.0% and rising tides making it hard for them to outperform their fees. The landscape in Canada has improved for mutual funds with many companies releasing new lower MER funds or significantly dropping them on exisiting funds. With the bar for otuperforming their MER much lower now do you consider the lower fee active funds a better choice in these more volatile times? I am holding some cash and need to decide is I put it in ETFs to hit the average or pay for more active management in some well managed global and USA funds.