Investment Q&A

Q: Hi Peter,
I observe that in your model porfolio you donot average down on a stock (may be i missed it). But if we have confidence in a stock and if the market is mispricing it should we not be adding more to get a better average (Buffett is and willing to buy more AAPL as it goes down). Lets say some one bought XYZ and it is down 50%, just in order to make it even the stock has to go 75% ( which requires a lot of patience). May be it is a personal decision whether to average down or not. However my opinion is that if 5i decides to average down we will get better guidance (and courage). I personally buy in portions (1/4) and try to keep my loss below 20%.
I have TSGI (-15%), TOY (-10%), NFI (-8%), DOL (-18%).
Thanks.

Q: Saw your list of "add now stocks" but most are tech tsig, sq, etc that pay no div etc...what non techs would you add along the lines of your balanced equity portfolio. I own SIS so was going to add a bit to it, what other materials, industrials or non-cycl also look attractive on the drop.

Q: With the recent market declines, what would be your top 3 picks in each of your portfolios?

Q: Good Afternoon,
Timely question I suppose with the market weakness today, I think the market is due for some weakness and volatility I'm not overly concerned by this. However, I am wondering what 5i's strategy going forward is in regards to the next recession?Perhaps we will find ourselves in a recession within the next few years, what will your strategy be for the B/E model? Can you see yourselves taking a more defensive stance , i.e raising cash, buying defensive sectors ( telecom, staples etc..) or just riding it out? I know the average recession is only about 9 months in duration.
Thanks very much.

Q: With the recent sell off, have any of the above stocks (contained in either the Income or Balanced Portfolios) reached the stage where you would call them "table-pounding buys"? In other words, has the market overreacted and the pendulum has swung too far?

Obviously, there is always the chance of a continued downdraft, but at some point you just step in top up your holdings.

The Income Portfolio is sitting on 10% cash...any thought to deploying some of it soon? Thanks...Steve

Q: Your Balanced Portfolio is down 7% since Sept 1 vs a really lousy TSX that's down 3.75%. Can you explain what is going on?

Q: Which companies in your BE and Growth portfolios would you consider to be both a value stock at this time, and low, or preferably no debt. Thanks very much.

Q: Hello. What stocks would you recommend for someone who wants to start a new balanced but concentrated portfolio of only 10-13 stocks? Thank you!

Q: What would be your suggestion for a 5 yr hold split between the growth/ balanced portfolios with a modest amount of $50,000 . I realized that it is small amount for proper diversification and how many names would be adequate . Thank you !

Q: Hello Peter, Even after recent decline Materials still represent 17% of balanced portfolio. do you suggest a high weight to this sector. do you still like it it / comfortable for it to show better performance ahead (relative to discr or fin).thanks

Q: I'm new to the service and am interested in (mostly) following the balanced equity portfolio. I'm not interested in investing in oil stocks and am wondering what would be a good way to invest that portion of the portfolio outside of the energy sector. I'm not sure if i should just spread it out evenly between the sectors or if there are other companies or an etf that you would recommend to replace the 3 energy stocks. My time horizon is 25 years and I'm fine with some volatility.

Thanks!

Q: Which 5 stocks from each of the balanced and growth portfolios would you recommend applying new money today. 20+ year horizon in TFSA.

Q: Good morning 5i

We are retired and have invested conservatively. By this I mean generally large cap dividend paying companies such as BCE, Telus, Loblaws, Proctor and Gamble (that one didn’t work out too well) and similar stocks.
Since signing on with 5i we have ventured more into the smaller growth type companies that are your forte’. We now own a fair amount of these kinds of stocks including NFI, Toy, Sis, Csu, Gud, pbh,tcl and dol. Thanks to you we have made a lot of money on most of these and faster than we would have with the larger cap companies.
We know that your own portfolios are comprised of these stocks, so we know that you trust them. But, when we look at our stage in life there seems to be a certain safety in the big, slow growers. And we are a little nervous about the smaller ones.
So, if you see 5% as a full compliment for a stock, in a situation like this, what would be a good percentage for these smaller cap stocks? If you say 5%, we can accept that, as we are not completely risk adverse.
Thanks again

Q: Thanks to the recommendations by 5i, I now have a good problem on my hands as it pertains to capital gains. Due to selling of aviglion, syz, aif, sj and trimming wsp, csu and sis in a unregistered account I will have to claim capital gains.

My question is that I am currently under water on Agnico, Teck, WCP and WEF.

Would you recommend selling any or all of these holdings and buying them back in 30 days? If I did I could defer all my gains. I dont mind claiming some capital gains as that day must come (fingers crossed). Could you list in order which ones you would let go and by back, or are all of them likely to stay flat for at least 30 days?

Thanks!

KC

Q: From your balanced and income portfolios which would you suggest with $25000 to invest? Income primary but some growth as well.
Many thanks for all you have done and continue to do for us.
Harold

Q: Hi Team,

It would be nice to have a column in the Portfolio report indicating a recommended price range for buying any stock for new money. The "Start Price" column shows the price when 5i added the stock to the portfolio which could have been a long time ago and the current valuation of the stock may be very high in terms of price. Alternatively if the stock is in the portfolio report does it mean it is always a buy recommendation ?

Appreciate all the work done by 5i Team.

Thanks
Ninad

Q: I am getting old and grumpy and often ask myself why didn't I have the good sense to just buy 40% XIU and 60% VFV, and spend the rest of my time playing golf, tennis or whatever interest I might have had. It seems to me that is very difficult to do better than the indexes. Do the 5I portfolios beat the indexes? Thanks, Grumpy Bill

Q: With your new allocations to the balanced and income portfolios what would be the remaining cash position of both as I like to keep as close to these as possible...thanks for the great service we all appreciate it...gene

Q: Could you list the micro caps that you have listed in your portfolios?
Thanks for your service?

Q: Hello 5i Team,

Which companies from BE Portfolio would you not invest new money today because of valuations or any other concerns you may have and what is the timeline to invest in them in near future.

Thanks
Ninad