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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: Hello team,

A couple of years ago you advised that your 'ideal sector classification' would be as followed:

Consumer Cyclical
Consumer Staples
Retail
Financials
Real Estate
Health Care (CDN)
Health Care (US)
Capital Goods / Industrials
Transportation
Information Technology
Internet / Software
Telecommunication Services
Energy
Gold / Silver
Materials
Utilities

I ask this question every 6-9 months when I am doing sector re-balancing. Given today's market conditions, what would be your ideal weighting for each of these for an investor who has a long time horizon and is a 7/8 out of 10 on the risk scale?

My current weighting breakdown is:

Consumer Cyclical - 12%
Consumer Staples - 9%
Retail - 2%
Financials - 9%
Real Estate - 1%
Health Care (CDN) - 3%
Health Care (US) - 2%
Capital Goods / Industrials - 14%
Transportation - 3%
Information Technology - 8%
Internet / Software - 15%
Telecommunication Services - 4%
Energy - 3%
Gold / Silver - 2%
Materials - 8%
Utilities - 4%

I find myself usually becoming overweight in Consumer Discretionary and Info Tech / Software as most of your top picks are in those categories. Any thoughts on where I should be scaling back / adding to?

Please deduct multiple question credits. Thank you.
Read Answer Asked by Ray on October 16, 2017
Q: Hi 5i

Looking for some sustainable growth companies that may offer compounding return.

I have been looking at First Service Corp currently priced at 88.85Can.

What are your thoughts about FSV continuing to put up high growth numbers after doing it for two decades? I see by their investor information they have 5% market share; leaving significant share for growth.

Do the estimates you have indicate significant growth trajectory will continue?

Thanks
Dave

Read Answer Asked by Dave on October 16, 2017
Q: Hi Peter and Team,

In our combined portfolio, we hold the following Industrials: BAD, EIF, KBL, NFI, SIS, and STN. In this group, we're frustrated with EIF and are just breaking when considering its healthy dividend. I like your idea of "forever" stocks and note that CNR is your pick in this sector. My questions are: Given that all of the above (with the exception of EIF) are performing well, would you be OK with replacing EIF with CNR, or perhaps you have a better suggestion? Are there too many Industrials in our portfolio and is it time to exit one or more of the group?

As always, your advice is greatly appreciated and valued.
Read Answer Asked by Jerry on October 13, 2017
Q: Hello 5i,
Could you please comment on the above mentioned companies from a strictly growth perspective. Possibly rank them also, although I am more interested in your view of each.
Thanks for all your help!!
Dave
Read Answer Asked by Dave on October 12, 2017
Q: What are your thoughts on Outlook for Savaria, Grande West and Andrew Peller.
I see a Report from last year on Andrew Peller. Where do you see this Company going in the Long Run.
And How would you rate this Companies on Growth Potential.
Read Answer Asked by Barry on October 11, 2017
Q: Today (Oct 10) you identified Loblaw (L.ca) as a "forever" hold. Have you all seen a doctor about this problem? L is in a most challenging and very vulnerable sector. Razor thin margins which cannot always be made up in high volume.

Please take this comment 9not a question) in good humor. I write tongue in cheek because the inclusion of a supermarket in your supplementary list baffled me no end.
Sent most RESPECTFULLY
Read Answer Asked by Adam on October 11, 2017
Q: With all the rebuilding that will have to be done to restore those storm ravaged areas do you expect to see any Canadian miners, forestry companies etc. benefit from the increased demand for resources over the next year or so?
GUY R
Read Answer Asked by Guy R. on October 10, 2017
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