Investment Q&A

Q: Hello,

IMO the strike/lockout seems to be priced in and news about deadlines seem to be noise rather than anything substantive.

Given the potential impact of this on Canada business, in your opinion what are the critical incidents that would trigger a decline or spike - duration of either strike/lockout, back to work legislation. There really is no other viable alternative to rail so the country is over a barrel.

Thank you

Q: Hello,

Which stocks would benefit the most from a strike/lockout at CP and CNR?
Thank you

Q: I understand CNR stock can be recession sensitive. It has gone down somewhat - would you say this is a buy here or would you be holding for more downside or waiting to see if we head into a recession? What would be a good price target to buy in for a long term hold? Thanks so much.

Q: Is there a reason why CNR has so poorly in the last week or so.

Ernie

Q: If not yet asked your comments on CN earnings please

Q: I have a TFSA account, and would like to add more for investment. I am very happy the current performance and would like to look for those well sleep Canadian’s stock. Any suggestion?

Q: Portfolio analyzer says I need more industrials. I already have a 3-4% position in CNR. What other names in industrial would you suggest and their price points for entry please? can be both US and CA.

Q: Hi Peter, Ryan, and Team,

We need to raise some cash in our non-registered account. Please rank in order of which stock/ETF to sell a partial position first: BYD, CNR, IHI, and TRI . All four of these holdings have done very well, thanks to the continued good recommendations from 5i.

Q: CNR. Have you heard any news re the potential reason for the downhill trajectory in the stock over the course of the last 2 weeks?

PLTR. In an opposite sense, any news re the upside being experienced by this company over the course of the last 2 weeks. I did see a target price of $29 recently but everything I've heard is that the company's forecast was ok (nothing special), I've heard many analysts reiterate that the companies stock was overvalued, ...

Would you be a buyer for either of the above at current prices? If not, would you wait for a better price? Thanks.

Q: With a debt-to-equity ratio to 99.4% does CNR have too much debt to continue operate successfully?

Q: Looking for your advice on stocks with accelerating capital returns, excluding IT, for 5 year hold.

Q: I am looking to get into safer investments and wondering which railway - Canadian or US - to buy. This would be held in a TFSA so growth would be preferred but total return is good too.

Q: Hello, this is about your answer to a member about the valuation of CP versus CNR today. In your answer you stated that “CP is now cheaper than CNR on valuation (21X vs 24X).” Do you refer to the P/E ratio here? It appears there might be some discrepancy between the numbers you provided and what I found on TMX Money (P/E ratio 25.99 for CP vs 20.37 for CNR). Then, is CNR cheaper than CP? I am just trying to understand correctly. Thank you very much

Q: Hi, all

Not loving the ride I'm taking with CP these days. I think you prefer CN, which I also own.

I can stay in my seat with CP for diversification sake or switch and stick with CN.

Your general thoughts on the two?

Thanks,
Robert

Q: Hello Peter and team

To complement my all ETFs portfolio : VEQT 40%, QQQ 10%, VGT 10%, MOAT 10%, I intend to add 6 of the above 7 stocks for 5% each.
Does it make sense, please feel free to substitute and suggest other stocks and explain why.
This is for a 10 years hold with minimum or no trading in this account.
Thank you
Raouf

Q: Good Day,
I currently hold CNR and JPM in my RRSP. I am considering selling CNR and topping up my JPM position with the hopes of increasing the growth profile over the next 5 -7 years. Do you believe that JPM should outperform CNR moving forward?
Thank you.

Q: Which is a better rail to buy currently, for a 5 year hold? My portfolio is very diverse (25 companies) but I do not have any railroads.

Q: I’m trying to form a kind of hybrid of the Hodson and the Buffet approach to investing. Hodson: balanced portfolio. Buffet: a few excellent companies. So I would form a fairly balanced portfolio but be overweight considerably in a few.

Buffet says you are buying a piece of a business; you are not buying a stock. He and Munger don’t care about the stock market. They both say you don’t need very many stocks, no more than 5 or 6. They also say their approach is not for the average person, who usually doesn’t know how to value a business and should just stick to EFFs. Their approach is for someone who knows how to analyze and value a business. Peter Hodson and 5i do know how to analyze and value a business. (And in answers to questions 5i has also said several times that the way to build wealth is to own a small concentrated portfolio.)

On the other hand, 5i is all about building and rebalancing a diversified portfolio, covering all, or almost all, sectors. This approach is more concentrated than an ETF, but not as concentrated as a Buffet/Munger small set of quality companies. I don’t know anything about Sees Candy, Geiko, or Coke. But they certainly do.

If Buffet/Munger were looking only at Canadian companies, which few would they want to own? Any size, any sector. Just outstanding businesses.

Q: From reading your recent answers, you like these 4 companies (CNR, CP, TFII and TIH). Would you please rank these 4 companies for growth and rank them again for dividend growth. Which two companies would be your favorite for a combination of growth and dividends for a 5+ year hold? If you can give a brief explanation for the reason(s) over the other 2 companies? Thank you.

Q: I have just updated my portfolio analytics and am delighted with the results and the advice from it. 5i has been a big part of that, giving me the insight, information and confidence to make mostly good decisions.

I originally put a 30% allocation for bonds when I started 4 years ago, mostly because that's what was usually advised for those in my position (about 10 years out from retirement).

However, I have put no new money into bonds over that time because the ones I own have been the worst part of my portfolio. They did not act as ballast when the market went down - they seemed more volatile than most of my conservative equities. They also did not go up appreciatively when interest rates rose, and overall, even with the payouts, I'm in the red on these bonds over the past 4 years.

I heard you mention bonds in asset allocation on the recent podcast but I didn't sense any great endorsement of them. Other than the traditionally recommended 60-40 or 70-30 split, can you offer reasons not to sell them off and buy conservative stocks like CN, CSU, BN, etc or else broad-based index funds like XIC, XUU etc.?