Investment Q&A

Q: Hi 5i -- my son (age 26) has recently started working in a well-paying job in the US. He's saving a good portion of his salary and has asked me what he should be investing in. No debt. He's looking to invest for long-term growth for retirement in 40 years or so. About 1/3 of his holdings right now are in Brookfield Asset Management, 1/2 are split between VIG and USMV, and the rest is Berkshire Hathaway and CN for his non-registered accounts. Right now non-registered savings are $75k.
His 401k is separate in Vanguard SP500 index fund. He is a believer in pay yourself first and has been able to save and invest 5,000/month US!

He's looking for good growth stocks or funds that will increase steadily over the long term. He's earning enough now that he doesn't need dividends in the short term but he's not opposed theoretically if everything fits together. Any thoughts on what he should be investing in? Thanks.

Q: Is this stock still a buy? I am looking for growth and not sure if it will continue as it has been..
John

Q: what are the best companies to buy that will benefit from research and development of robotics? also is there an it there an ETF in this area that you like? thanks Richard

Q: I just tried Portfolio Analytics and have concluded my portfolio needs some work. I need to increase US and international exposure and I need more weighting in Communication Services, Consumer Defense, Healthcare and Technology. Please recommend US/International stocks for me to consider in these categories for a five year hold. Thank you.

Q: What are some of your favorite US growth names right now? I am a younger investor with some money to deploy. I have a 20+ year time horizon. I am not too worried about sector allocation due to having a defined benefits pension when I eventually retire (20+ years).

I am also wondering what US stocks 5i staff are currently buying and why.

Thanks for all your advice. I read the questions daily. Your support through these tough times (my first as an investor) has been beyond insightful and finding I am getting my financial education through your words of wisdom and advice. I keep speaking highly of you to my friends looking to get into investing and am encouraging they subscribe to your service as it is beyond exceptional.

Thanks for all that you all do! Hope you and yours are safe and healthy during these tough times.

Q: Good morning,

I have some cash to add to 3 new US technology positions. I am looking for growth, and I am comfortable with volatility. Looking out 5 years what would be your favourites from the list above at current valuations. Any concerns with the list above? I already own MSFT, SQ, RPD, DOCU, AYX. If you have other suggestions please do share. Thanks in advance.

Q: Governments are going to put a lot of money into the system because of the corona virus. I have been told that this can lead to inflation. Which sectors,and companies, will benefit?

Q: Have been dithering on having a greater tech exposure for my portfolio due to my ignorance of the space. Nonetheless, have narrowed down to two choices, Descartes or Taiwan Semiconductor. Given their low correlation (.25) would you favor, one, the other or both? (anticipated total exposure < 5%) Currently have a small, speculative position in PHO:CA (<2%) Other solid, possibly dividend paying suggestions are welcome. Thanks.

Q: Hi 5i,

We own NVDA in our RRSP on the USD side and want to increase our stake by 2%. We would then have a 4% position. We are contemplating the benefits to sell this position on the US side of our RRSP and buy it in our TFSA (now that we have room) or purchase it in CDN funds to benefit if the CDN dollar drops.

Do you have any recommendations?

Debbie and Jerry

Q: I have a large cash position and am starting to re-deploy. Would like to take this opportunity to acquire a stronger US stock presence than I previously held. I am looking at about 40-50% in US to add to what will be a balanced diverse portfolio of Canadian stocks - many of 5i recommendations. I am happy with some overweight in tech .
I plan on putting in limit orders at lower prices than current and have my own price area for each identified, but as a "reality check" would appreciate some feedback from you as to what you think could be "suggested" buy prices on each stock.
Also, is there anything you would add to the list as Strong buy suggestions. Or anything you would delete from the list that you feel would not show a positive return in the next 1-2 years.
Thanks for getting out your crystal ball on this and congrats for coping so well with all the noise !

Q: Hi, my respected 5i team
I'm looking for some US stocks to buy in order to take advantage of the current market dip. Could you please recommend 4 or 5 solid names that worth buying now in the order of the most attractive to the least if possible? My time zone is about 3 to 5 years. Could you also comment the reasons of recommending?

By the way, I bought GOOG and NVDA last year upon your suggestion, only half position. Do you think it is a good idea to add more now?

Thanks in advance!
Jane

Q: Can you rank these 3 companies and justify the ranking?

Q: Hi 5i Crew,
I have the funds to purchase a position in one of either NVDA, TEAM or TTD (in a fairly diversified portfolio). Considering the recent pullback and economic deterioration due to covid19, what is your take on these companies short and long term? Would it be prudent to jump in now with depressed valuations? Thanks in advance.

Q: Hello Peter,
Looking for your opinion.
Could you please rank the following stocks highest to lowest for total return between now and the US election.
ALA TTD NVDA AD AFN and MX.
And if I may, what are your odds on a federal election in Canada this year?
Thank you.
Regards

Q: Hello Peter and Co,
My 20 year old grandson has opened a TFSA with $22000 in cash, and is asking for advice how to start investing. Our suggestion is that he put a fairly large amount into an index fund ETF, such as VFV, and then buy several individual stocks with the rest. They would be small positions (~$2500 per stock) but a good way for him to start learning, and with markets down, the timing seems quite fortuitous.
He is considering the following:
100 shares VFV: ~$7500
40 shares GSY: ~$2500
35 shares BEP.UN: ~$2500
1 share AMZN: ~$2500 (CAD)
7 shares NVDA: ~$2500 (CAD)
200 shares VET: ~$2500
-------------------------------
TOTAL: ~$20000

We had also suggested CSU, SHOP, KXS, PKI, TTD, GOOG, AAPL, ROKU, FB

What do you think of the above approach, and what changes might you suggest? I realize VET stands out as quite risky, but should probably do well long term.
Are there any sectors or stocks or ETF that you would suggest adding/replacing? Obviously he has a multi-decade time horizon.
Thanks for your sage advice!

Q: "This is the chance I've been waiting for". Based on the market sell-off and a scenario where I have no stock holdings and want to build a new portfolio, which 6 Canadian companies do you believe:
1. have the most short and long term upside potential based on the fact that they are now undervalued
2. have the strongest fundamentals to power them upward
3. are located in the right sectors
Yet still, because of the nature of their business, are somewhat insulated from the current negative market conditions.
Which companies should I buy today?
I thank you for your guidance.

Q: You provided a CDN wishlist in today's comments to get us started. Thank you. Could we please get the US equivalent?
Thank you.

Q: of all the chip stocks am i to assume your favorite is nivida.
dave

Q: Hello Peter,
Convention says do nothing in a sharp downturn, although this has the potential to be more like 2008, deep recession included.
What would you say if i were to sell some or all of AFN, MX,FLIR, BAC, GH (US),GIL,TD,CCL and SIS? And buy COST, MSFT, AMZN(GOOGL), DSG(add) and NVDA(orQCOM).? The thesis being, that these would do better from where they are now, over the next 2 quarters. Or just sit tight.
Thanks for your advice.
Regards.
P.S. Which would you prefer- AMZN or GOOGL? NVDA or QCOM

Q: Thanks for the virus update. Good to get a consolidated view. Regardless of the pullback do you think semi conductors are attractive and would you prefer an ETF or a specific stock.? Thanks