Investment Q&A

Q: For people who own or are considering Alimentation ATD.B, this is an informative and interesting website: http://www.cspnet.com/. Enter "Alimentation" into the search box to see news and insights. The site covers every aspect of the convenience store business. It adds new dimensions of understanding to the world in which ATD.B operates and expands. How can you not like a website that devotes a major section to Snacks & Candy?

Q: Hi, pardon my ignorance but how do I access your growth portfolio?
GUY

Q: Hi,

Two quick questions on recent additions to the Balanced Equity portfolio:

1 - Do you think Alimentation Couche Tard may be able to acquire some retail locations in Canada or the U.S. from an integrated oil player that is looking to raise some cash? I heard that Suncor may be looking to sell Petro Canada? Not sure if its just speculation though.

2 - For Progressive Waste, the stock is near a 52 week high. Do you see growth in the U.S. market going forward or is this a play on lower oil prices improving margins and driving profit growth?

Thanks,
Jason

Q: On the topic of selling the stocks that 5i "dropped" from the portfolios, I wonder if a better way for us to think about this is to be aware that there are slightly more attractive opportunities in certain sectors for any new money or change of circumstance/rebalancing. Having listened to your advice on buying for the long haul, and finally desisted in trading so often, I find myself reluctant to sell companies ( SLF for instance) that are still "decent" even if I am a little underwater on them.

The new portfolios are great fodder for thought, but I suspect my reluctance to stampede after every idea is even better!

Any comments on the long haul hold vs better opportunity issue?

Many thanks,
Marilyn

Q: In your response to Kenneth you mention "SLF was changed for sector reasons, as was BDI." As a matter of fact SLF is still in your model portfolio. Last March I could not understand why you would want to sell BEP.UN, KBL, TOU, VRX and IPL. These were mostly all solid stocks and were replaced by CCL.B, DSG, BDI, SJ, MDA and SLF. The average gain of the stocks sold was 26.2% while the average gain of the new stocks added was only 2.2% over the past year not counting dividends. That's a missed opportunity of 24%! Fortunately I kept BEP.UN, KBL and IPL and unfortunately I had not bought VRX which turned out to be the biggest gainer. I should add that I kept WPK which was also sold in the model but is up >84% in my portfolio. Regarding your latest additions to the model portfolio i own WSP and agree with the STN switch, BIN and ATD.B are great additions but it appears by selling BDI now you are selling low and replacing with stocks at all time highs. BLSH.
Steve

Q: Hello, Peter & Co.
You have deleted a couple of stocks from your equity portfolio, should we assume that it is a sell recommendation if we hold them in our investment portfolio?
Ken

Q: Hi Peter and Co. Would you please comment on the companies removed from the portfolios? I have often struggled with the sell side of the equation as opposed to the buy side, and given my finite amount of funds I am unable to continue buying indefinitely. We are certainly seeing the effect of 5i on some of the stocks today, both up and down.

Thanks.

Q: Hi 5i,

How come the removal of SLF from the income portfolio? I had though it was there as insurance (haha) against rising rates. I hold it in a couple of accounts. Should I continue to hold?

Thanks in advance!

BTW, I will be renewing soon. Just trying to figure out if I want 2 years or the one year with the MS subscription. :)

Q: where can I find the growth portfolio thanks

Q: Thanks for creating all 3 portfolio.

Can you please rank TOP 10 from Growth and Model portfolio so I can purchase 20 stocks since 40 stocks will be too many for me.

Thanks a lot

Q: Your new Growth Portfolio is an outstanding cross-section of companies with good potential balanced by necessary risk to achieve above-average gains. Clearly, a lot of work went into this project and, as a member, it is much appreciated. Thank you.
Your cautionary note to members is very sensible. It reminds me of a phrase I try not to forget, sometimes unsuccessfully: "never mistake a bull market for brains".
Nice work!

Q: Why was this company chosen for the Growth Portfolio

Q: I follow your model portfolio .I have BNS, ENB and SLF in my Registered accounts and would like suitable replacements. Can you recommend other stocks as replacement for these stocks listed in the model' thanks .

Q: I can not find the changes to the balanced equity portfolio. The march update for this portfolio is not listed on the latest report section. Where do I look to find it?
Thanks

Q: Hello,

With the latest updates to the Balanced Equity Portfolio, of the holdings, could you please recommend 5 to 7 companies which you'd put into a TFSA before the others?
I'm a fairly young investor, with a very long time horizon (30+ years), and the TFSA represents approx. 40% of my total investment portfolio currently. I generally have a similar mix of diversification as the model portfolio across all accounts. I assume you'd be comfortable with any of the companies over this time horizon, but would any be 'better' than others for exploiting the tax advantages (with the understanding that losses can/will happen in any account)? Thank you.

Q: Hello Peter & Co,
I thank you for opening new (portfolio) horizons for us; I'm trying to digest all the info you supplied us.
Could you please explain the rationale for removing FSV from the balanced portfolio (in view of the split) with the view of adding back one of the two parts at a later date?
Since it seems that you have added CXI in both the balanced and growth portfolios, could you explain why?
By the way, my approach in developing my one and only (RRIF) portfolio is to incorporate into it a selection of holdings from all your three portfolios. Different strokes for different folks, I presume.
Thanks, as always
Antoine

Q: Hi Peter:
I have a Bell Canada coupon bond earning 9.25% maturing in 2032 currently worth 45 k sitting in a LIRA account. I am thinking of selling it and buying all or half of what's in your new Growth Portfolio. My question is would you suggest buying all 22 investments with the 45 k or say 10?
Any guidance on what those 10 should be?
Thanks for all the great advice.
Greg.

Q: I want to buy according to growth portfolio,to creat funds what do I sell from all this loosers,cf,cls,crh,tdg,dml,sgy,abm,bld,qst,tmm,mnd?>

Q: Two quick question on the balanced equity portfolio:

1 - I think you use to own Valeant and sold it last year. With no exposure to healthcare and the sector doing very well over the past year, why haven't you added exposure in this area?

2 - I'm surprised that you removed HCG! I also own it and have noticed its poor performance recently. It seems to be diverging from the other Cdn banks, but with a 20% ROE, a growing dividend and low payout ratio, its hard to get rid of it.

Thanks,
Jason

Q: Just a comment,I have been studying your growth portfolio for 3 hours and it is just fantastic-the weightings, the picks diversification etc.best thing about i already own 11 of the stocks in it and have owned them for many months. My portfolio is 85 per cent aggressive growth, I can manage the risk.
I especially like that you added Cxi to the growth and to the equity balanced, this has been a large holding of mine for 18 months.
Despite your comments, I really feel that some of the stocks in the growth could have substantial upside as your membership buys in.it is bit of a momentum trade but also great companies.thanks again dave