Investment Q&A

Q: Markets are going through a correction the past couple of weeks, particularly today (Tuesday). Tech is being hit hard. Can we have your assessment of the situation and what you see unfolding in the next few months? Do you view this as a buying opportunity or is it too early for this? Can you provide some names that have sold off too much in your opinion and might lead the rebound, when it happens.

Q: Hi 5i Team,

What is a good heuristic to use for a diversified portfolio with respect to the percentage allocation for the largest equity holding? For example, the Berkshire Hathaway portfolio has a portfolio weighting of more than 41% invested in AAPL. This represents a significant overweighting of one stock in comparison to the weighting of AAPL in the S&P 500 Index and Nasdaq 100 Index, which hold 6.1% and 10.9% in AAPL, respectively.

If one has a very strong belief in the superior expected returns of a company or ETF, for example, AAPL or QQQ, what is the upper percentage allocation one should assign for your largest equity holding? Is it 10%, 15%, 20%, 25%, 30%, 35% or 40%? What rule of thumb is reasonable for a well-diversified portfolio.

Your comments on the above is much appreciated.

Thanks George

Q: Hello Team,
Could you rank these securities in terms of growth going forward, strength of business and safety.
Thank You,
Barry

Q: Hi 5iresearch team

On a scale of 1 to 10, 10 being certainly, how likely do you think a stagflation scenario will happen in the US economy?

Second question, what types of investment will likely win in stagflation (gold, certain stocks, bonds, real estate, cash … etc)?

Third question: can you recommend 3 Cdn and 3 US stocks that you think will do well in stagflation? Can you please rank them if possible?

Thank you for your great service, I really enjoy reading your answers everyday in the Q&A section.

Q: I currently own these companies. I have some US cash to add to my TFSA and would like your recommendation on 5 additional best of breed companies. Or would you increase number of shares in the companies I already own.

Thanks, Donna

Q: Peter your opinion on selling Verizon and buying Apple and Microsoft with the proceeds. Also what is the cost to buy and sell a stock with a full brokerage company

Q: I am thinking of buying apple and microsoft.
Is this a good time?

Q: I am overweight in tech by about 10% in my portfolio and I should sell some positions to increase my exposure in other sectors. What is your conviction in order of preference on APPL, CSU, NVDA, OTEX, TTD and TOI if I need to sell some portions or all of any of these holdings?

Q: Retired I am a growth inclined investor. I have AAPL and PYPL in my taxable account for over a year and have bought and sold AAPL twice in the past 5 years. AAPL has been very good to me. The current evaluation I find is expensive. There would be a tax impact but I have no other choice but to sell either PYPL or AAPL to make room for APPS. Would you make the switch or not and if so, which security would you sell?

Thank you for your very helpful service.

Q: Hi 5i team. An article in the Economist this week suggests Apple faces a "growth conundrum" because of its large size and political and economic risks in China. What do you think of these concerns from an investor's point of view? Should we expect less from AAPL than it has delivered over the last decade?
Many thanks.

Q: What do you think of this company? Seems cheap to me. They aggressively position themselves for further growth through M&A. Would you buy? Currently own AAPL
In a second question, If AAPL was to build an electric car wouldn't you think that HNHPF would have a chance to partner somehow? Are there some hints from APPL management that they will eventually move to electric cars? Lots of rumors but any words from AAPL ?
Thank you.
Yves

Q: Good morning,

I recently started selling puts and put credit spreads in SPY, QQQ, IWM and AAPL, these being among the most liquid underlyings with very tight bid-ask spreads. Things have worked out well, so far, as the market has been moving higher and higher.

I'm told that my positions are highly correlated and should consider underlyings that are not as correlated to the broad markets. Could you suggest some underlyings that I can consider? I prefer liquid underlyings so that I can exit them quickly in the event the trade goes against me.

Thank you

Q: Hello, a great service and learning lots from the Q&A. I have a small Canadian portfolio with MG, OTEX, CNQ, BIP.UN and MFC. And also DIS from US side. I am looking to charge it up with some growth performers over the next 5 years. How do these holdings rate and any suggestions on additions? Would you replace any of these?

Thanks for the feedback. Have a great day.

Q: Hi Team,
Yesterday I read a headline on bnn stating that Apple, Affirm to join to buy now, pay later for Canadian purchases. GSY is partnered with Affirm (the old paybright division). I thought it might be very bullish for business for GSY being partnered with affirm which is now teaming up with the giant Apple. Yet, there was no reaction today for GSY or affirm stock on the partnership today. Can you give your take on this, as to whether this is a potential catalyst for GSY or not? Thanks.

Shane.

Q: For the above stocks you tend to be positive on, over the next 3 years please rank them in order with the main goal being capital appreciation (regardless of risk, sector or diversification)

Would your ranking change at all if:

1. Covid is still affecting the world as it is today with international travel somewhat restricted and variants posing a potential problem.

2. Covid becomes more and more contained and the world is as “open for business” as it was pre covid.

Q: I have been invested in this company for many years. I'm receiving a small dividend that was cut in half several years ago. Over the years they have changed their primary operation from a patent troll to an investment corporation. They even won a court case over Apple (patent infringements) but have yet to be compensated. Are you aware of any positive corporate actions that may make Quarterhill more investable over the next few years. They are reporting next week and I am concerned that things may not have gone as well
as expected. Would you continue to hold on or would you throw in the towel.
Ed in Montreal

Q: Hello. How would you rank these companies and which would you be buying now (if any) and why?

Thanks in advance!!

Q: I do not have technology shares in my RRSP. I'm well covered in energy, financials, utilities, transportation, tel coms and an ETF US equities. There are quite a few techno companies out there. For a long term investment, any suggestions and why.

Q: Hi 5i, These are my RRSP stocks, etf:
LSPD, WELL, GOOGL, NVDA, SHOP, AAPL, CSU
VOX, BAM.A, QQQ, XIC, VMO, BEP.UN. In around 18 months I will be retired, and would appreciate your comments on my holdings. I'm happy with all of them now, Can you provide any suggestion (goal) to capital preservation, dividends, would you get rid of any?
Thanks

Q: I invested in SWKS in tax-deferred account for potential gain in 5G (and perhaps 6G in future). I have two concerns: (1) AAPL accounts for a whopping 56% of SWKS revenues (according to Barrons recently). AAPL has the intellectual and financial resources to develop its own chips and thus be less of a hostage. (2) The second concern : SWKS seems to be overvalued now assuming I have the following correct: PEG sky high at 7.8 (ROE healthy at 28). I have been trimming reluctantly but just read in the Q & A that really like SWKS.

Would you agree with my concerns? If they are reasonably well founded, would you now withdraw much of your affection for this business... OR would you take the risk and keep loving her anyway?