Investment Q&A

Q: Hi there,
I only have a 4% weighting in health care and own JNJ. I would like to increase my health care weighting to 10%. I was thinking of buying some XLV, CCT, and GUD. (CCT and GUD would go in our TFSA's). How does this combo seem in terms of diversification, balancing risk and growth. Any other recommendations instead?
Thanks, Kerri

Q: Hello 5 I, Canada Pension Plan purchased 341,900 of Kelso recently and was wondering if I should get excited about this?

Q: Peter, one year ago I purchased IPL over Enbridge and it represents 3.5% of my portfolio. I want to continue to hold the same weighting in a pipeline but was wondering if I should switch to ENB? I buy and hold stocks for the long term.

Stephen

Q: In relation to the question i just posted regarding portfolio construction, i have another question. In two different answers you give quite different percentages for asset allocation. I am surprised that there is such a difference in the two. One for "an average investor" gives this breakdown:
For the average investor, based against the TSX sectors, we would suggest these allocations; 
Consumer Staples  5%
Consumer Discretionary 10%
Energy  10%
Info Tech  15%
Materials  10%
Industrials (with some US) 15%
Healthcare  10% (with some US) 
Financials  10%
Telecom  10%
Utilities   5%
Enbridge and IPL do behave more like utilities, but the TSX includes them in the energy sector, so we do as well. Badger has 55% of its business in the oil and gas sector, but the TSX classifies it in Industrial Products. 

In the may 2014 post i cited earlier, which is for a "middle aged conservative" investor, it is like this:

May 05, 2014 (asked by paul)
Question: What sector weightings would you recommend for a conservative middle age investor, with a balanced focus on capital gains and dividends. Thanks
5i Research Answer:
On average, we would suggest a portfolio similar to this:
Utilities 15%; Financials 15%; Energy 10%; Materials 5%; Telecom 10%, Industrials 10%; Healthcare 5%; Info Tech 10%; Cons. Discretionary 5%; Consumers Staples 15%.

Q: Hello Peter & Co,
It seems that a few investors are taking some profit today in Health/Pharma & Info Tech; that's healthy as they had gained significantly lately. No need to panic and stay the course, right?
Have a good weekend,
Antoine

Q: I own a small position in Ritchie Bros (RBA). I am requesting your comments on its quarterly results released last night.
Thanks, Tim.

Q: What happened

Q: Could you please comment on today's drop in the stock? Is there reason for concern? Is this a potential buying opportunity. They have had a history of increasing dividends.

Thanks,

OV

Q: Hi Team,
Could you recommend some mid to large cap stocks with a good combination of metrics such as: high ROE, low debt, generates good free cash flow and has the ability to diversify globally. In other words the "perfect" stock lol.
Thanks, you continue to impress and should be very proud of the 5i brand!!

Q: I do not own, but am thinking of initiating a half position. Given how beaten up it has been over the last few months (close to its 52-week low, RSI around 20), would this be a reasonable entry point for a long-term hold?

Q: hi guys just starting to build my portfolio and i would like to do so by buying good stocks when they are out of favor and are cheap. i'm all about growth and have a high risk tolerance. i started by purchasing RE and SGY as they are in the most beaten up sector. can you suggest a stock each from the other sectors that's in this category,time is not a factor . Thanks Garfield

Q: Good day,

Healthy drops on each of these two companies today. Any cause for concern or just profit taking with each seeing all time highs this week? Assuming that both are held at a position size that could be comfortably expanded would you suggest buying more on the dip, holding or even reducing?

Thanks!

Q: Hi Peter, I am looking for investment in the US market, Narrower down to the above two stocks. Both offer dividends and have solid business model for some growth. Would appreciate your choice, perhaps another one you would recommend.
Regards, J. P

Q: Good morning to all,
Do you think SFL is still good for income and is AHF.DB safe to keep for income until maturity? Thank you

Q: Interfor had a significant down day today and West Fraser did not do well either. What do you think might explain these drops? Lumber prices and housing starts may be factors. Should I consider selling my positions in both companies?

Don

Q: Hi peter and team, thank you very much for your great advice. We are extremely happy with these two stocks but as each of them now comprises more than 5% of our portfolio, should we take some off the table, or let it carry on a bit more.

Thanks for your advice
John

Q: hi. could you please give your assesment of the 4th quarter results. thankyou,

Q: Visa is going to split 4/1. Stock aprox $270. Would it be prudent to buy now or wait for the split. Do the shares normally go down after splitting? Would MA or another stock be preferable.
Do you think LUN Lundin mining is a stock to buy now?\How do you value the Canadian banks now?
Many thanks.
Helen

Q: Several months ago I bought TVA.B on a recommendation from an analyst. The holding company was Quebecor, Brian Mulroney was on the board of Quebecor and Desjardins group owned shares in TVA. The book value was $12.50 and I bought in at $9.00. I figured this was good however I made a classic mistake and didn't research the details. When the price declined (I sold at $8.50) I decided to do some research. This structure was so complicated that the more I analysed the more I was confused. I made a classic mistake and confirms the old Ben Graham adage "never buy anything you don,t understand. At any rate, I noticed that they have now announced a distribution of rights at $5.66 and from what I see essentially folding the company. In terms of education can you give me, and members, a brief synopsis of what happened. Who are the winners? Obviously from what I can tell, the common shareholders are the victims.
Thank You

Q: 50yr old looking to start investing with an advisor who would be an active manager. (Not just follow the herd or stick me in a fund for 10 years and collect his fees). How do I go about picking a financial adviser? Is there a book or website where I can research this? For example, is it safer to pick an adviser at one of our Canadian banks or the larger investment firms vs smaller firms? Which qualities should I look for and which to be cautious of? What would you suggest? Any information or direction you can provide would be great.
Thanks