Investment Q&A

Q: Which would be the better buy for a 3-5 year hold? MG or TOI ? Thanks

Q: First thanks for the swift turnaround response for ADBE, yesterday. 
Now my focus is on Consumer Discretionary stock positions. I hold Canadian positions in ATD, BYD, DOL and PLC and then for the US, AMZN and HD. 
For the Cdn positions, all exceed the target weightings. But for AMZN, which I recently added to, the portfolio for this stock is underweight by 1.2% and for HD, underweight by 1.3%.
At this time, the total CD sector portfolio weighting is  13.5% compared to a target of 10% but me, comfortable going overweight this sector as I shy away from energy and materials.
I'm inclined to add to Home Depot next. What are your thoughts about adding to HD, especially looking forward to a brighter horizon?
Another one is ATZ which I have held in the past. Wondering about buying ATZ in the near term or wait awhile???
If there are other companies in the CD or Cyclic sector that you think I should consider for the brighter future, I'd be pleased to know about them.........Much thanks..............Tom

Q: Hi Peter and staff,

On Sep. 13 I asked about possible new purchases, and one of the recommendations was UPST. So I'm looking at the chart and it looks like it's on a free fall for the last year, although it has stabilized recently.
I went back and checked on past Q&A and your view was not positive for UPST. You recommended AFRM over UPST and you mentioned that the fundamentals and potential have deteriorated.
I also checked and it appears that right now there are 2 Buys, 6 Holds and 1 underperform.
Just wondering what new information you have that would make this a buy.

As always thank you for your advice.

Joe

Q: Hello Peter,
I am looking for potential double in the next 3 years or so.. which stock do you think has the highest probability ? Much appreciated.

Q: With oil and interest rates being a big topic in the Markets for awhile - I follow CNBC which provides me with good information available. When the going gets tough, they bring in two of their heavy hitters being David Rosenberg (being interviewed at CNBC studios in New York) also, being interviewed remotely is Eric Nuttall of Ninepoint (is this connected to Sprott?) Seems like the Canadians are in big demand for this type of information.

Q: Hello 5i, What sectors would you be looking to invest in and in what countries? This is for long term with a buy and hold strategy? Thanks

Q: Hi Peter,

Over the next five to ten years, what is your expectation from a risk-return prospective for the following asset classes? Please provide your ranking with a brief explanation for your rationale.

Annualized returns for the past ten years are noted below as per BlackRock:

U.S. equities – 13%
Canadian equities – 8%
Infrastructure – 7.3%
Japan equities – 6.6%
REITs – 6.1%
European equities – 5.3%
China equities – 4.9%
High yield bonds – 3.4%
Emerging Market equities – 3.3%


Thanks George

Q: These four stocks that I have an equal weighting in came to my attention because of the insider buying. Could you please comment on if this insider buying and overall ownership is significant and rank them from best to worst based on that information only. Then please rank them on which would have the best overall return based on dividends and capital gains for the next 3 years from best to worst and explain why (the pros) for the one you ranked first overall and why(the cons) why you ranked the fourth stock last.

And lastly is there any of the four you just wouldn’t buy today. Thank you.

Q: Good morning 5i
In response to a question this morning, September 12, you said:

We would agree that covered calls may limit upside potential.

I am not quite sure how to understand this response. It is always the case that covered calls may limit upside potential. The question referred to the particular time we find ourselves in, though, with stocks having fallen and now looking at possibly a more favourable climate for growth. I raise this question because I have also been wondering about cutting back on my monthly call writing. Do you think it would be wise to trim or even cut out our monthly call writing in such an environment?
Thanks as always

Q: What one to select?...that is the question for me. GOOG is trading at 20.6 x earnings and AMT at 43.1 x earnings. Wow what a difference in this metric.....Guess I go with GOOG, right?!......(Even thought keen to add to AMT)
Then there is PLC...keen to top up, like overweight as some investors are bailing out, while future revenue growth is expected to be strong for the rest of this year and 2023. PLC is now trading at 27.4 times earnings. Time to add, right?!...........Tom

Q: 3 questions

What is the annual return for ENB since it went public when you include dividends & largest drawdown?

Would a 20% position in ENB for a retired person looking for income make sense?

What are the 5 safest Canadian & US stocks that would provide the best protection against drawdowns?

Q: Similar to another question I submitted, I would like to ask about a potential switch. I presently own Linamar which has been doing well; Magna has continued to slide but generally has a favourable long term outlook. If it were you, would you sell LNR after its good momentum and acquire MG while it is beaten up, and if so, why or why not? Total return is the objective, nor are taxes a concern. Thank you for your excellent service.

Q: LULU shows up in my portfolio analysis as a canadian company. Any idea why?

Q: Hi,
Mr. Jeremy Grantham is predicting that the bursting of this current Super Bubble is almost here! Though reading his newsletter I couldn't find any specific date. His prediction is based on Fundamental analysis though some Technical Analysts have predicted the capitulation is not here yet as well. It seems that there is a convergence of these two seemingly opposing disciplines.

Any thoughts on Mr. Grantham's predictions?

Q: I hold MG in my non registered account for retirement purpose,since this stock did drop very significantly,is this investment at risk in a medium to longer term perspective ? Would any "switch" of this stock for another ne pertinent at this value level ? Regards, Jean-Yves

Q: I am a vlaue investor, 76 years old, good pension. 43 stocks, 16 ETF's including the above covered call ETF's. I do have some growth holdings (IWO, LNF, WSP).All are doing well except ZIM and SYZ (not worried). My question is the covered call holdings are 10% of my portfolio. Is 10% too much? I do enjoy the $650 a month dividends which have been consistent for the past five months.
Thank you
Stanley

Q: These companies are possible tax loss candidates this fall. Which are most likely to be the best choices for a rebound over the medium term (one - three years)? Please grade accordingly: most likely to rebound (best to worst); potential upside (highest to lowest).

John

Q: Taking into consideration current valuations and quality of these companies please rank these companies. Do any in particular look like interesting buys at the moment?
Thank-you.

Q: I own 5% (my max) weightings in BIP.UN and BEP.UN. I've always wanted to invest in BAM.A, but avoided this with a concern of too much overlap. However, now with the upcoming BAM.A spin-off, could one then make more of a case ? i.e. to invest that 5% in the "Asset-light" unit once this split occurs?

If you agree with that, do you have any concerns with a 15% overall weighting within the Brookfield group?

Q: Hi 5i,

I have maybe a rare question for you. I have done quite well with my stock selections (much thanks to you for many of the wise choices) and are sitting on a pool of Capitol Gains. Now, my wife and I are entering the phase of our life where we can make some significant "tax-friendly" charitable donations. Always keeping in mind, saving enough for the rest of our days. Our question is: If you had to sell from the list I provided, and thinking of holding the remainder at least another 10 years, which would you chose to sell a portion of ? Perhaps the top 3, in order of choice ? Thanks so much.