Investment Q&A

Q: Hello,

Why the significant drop today? At what price would you recommend buying?

Thanks.

Q: For those that have a smaller portfolio and where that translates to even 1 share of CSU making up a huge percentage of the portfolio, what CDN tech stock(s) would you recommend in its place? TOI? GIB? Other?

Q: Is XIT worth holding? Or would one be better off just buying the top 3 holdings in equal weightings. For CDN tech, what would be the best buys today for the long term?

Q: Hello,
Is today a good day to invest in Canadian Company CGI? What is a good target buy price?
Also I hold Amazon in an RRSP and Vanguard in an RESP. Is it a good time, with the market drop, to increase holdings?
Thank you,
Jovan

Q: Do you have a preference for one of these stocks an entry $ price and why? For a 3 to 5 year hold. Thanx

Q: Any stocks dropping that you feel represent a good buying opportunity? Perhaps something being sold that is an ‘overreaction’ or will look like a good buy in a year or so from now? Thanks

Q: Why the sudden sharp drop in GIB.A ? Tariff issues? Long term holder here with large position. Is it time to sell half and use proceeds to buy another large Canadian tech company such as CSU.

Q: Regarding Tom's question on Feb 21, regarding rating companies for tariff risk high to low, you rated GIB.A as the second highest risk of Tom's list of companies. As this company is near the top of my watch list to buy, would you expand on this company's risk exposure to tariffs.

Q: Looking for steady growth. LMN or GIB.A ? Thank you

Q: Please ranks these stock for risk from US Tariffs from High to Low.....Tom

Q: As one of 5i’s early subscribers, I find it a useful thought experiment to give my answer to a question before clicking on the 5i answer. I have found over the years our answers converge and so I rarely send in questions and comments. However my sense is that DeepSeek is a significant change.

On one level it is a clear lesson in the reality that, as Keynes said many decades ago, it’s real resources that matter, not money.

The American approach to AI development was that if you don’t have a $1billion you're not in the game. The Chinese have shown that if you have the pool of talent, amazing things can be done with relatively little money. The prevailing narrative that the Chinese are just copy cats was also blown out of the water. DeepSeek not only upends every assumption underlying the American approach to AI, it shows that the Chinese can out Silicon Silicon Valley and that means that, unlike in the past, China’s most talented minds will want to work for Chinese companies not American ones.

How will the Americans respond? Having staked political capital on the $500 billion Stargate, Trump and his entourage of billionaires have no choice, they will double down. We are hearing the narrative already, they are now saying that $500 million invested in DeepSeek’s advancements will produce even more amazing advancements in AI.

At a moment in history, as America consumes itself, China has taken a leap forward. Not only have they bloodied Trump, they have shaken the world in ways Napoleon could never have foreseen.

There are actually lessons to be learned in how Canada might deal with Trump but the political bobble heads and corporate Canada have actually come to believe the myths of neo-liberalism they started purveying in the 80’s, and are now incapable of rising above their paralysing fear.

Every investor has to ask, what are the implications of DeepSeek for their investments? Doubling down by the Americans will keep the party going for a while but it seems reasonable to expect a reckoning. Where would 5i look for alternatives to AI investments? Please suggest 5 US and 5 Cdn stocks that have strong balance sheets and reasonable growth prospects (without stretched valuations) that would benefit from using much less expensive AI? Also, please suggest a couple of ETF’s for Europe and China that would benefit should those markets surprise to the upside?
Mike

Q: Hi,

Looking to replace NVDA and VRT. I wish to avoid the AI theme and Mag7. Do you have an handful of tech alternatives to suggest in the US?

Many thanks.
Michael

Q: Thank you for the core ideas in aprevious portfolio question.

Would you please provide a buy range on GIB.A. I'd like to average in and obviously it's been climbing thanks to the sector overall.

Should I just initiate my full position at its current valuation?

Thank you.

Q: 5i,

My Taxable Account is CAN only 3 months old. I'm lucky enough to restructure my entire portfolio these past few months for some optimization.

The goal outperformance of XIC. Large and midcap growth primarily. Core moat players as well. I'm shifting back to a more concentrated stock portfolio.

I add underperformers and cyclicals for boosts outside of my core. ie: NTR, TD, LUG
thus far this year.
Core by weight;
CSU, TFII
DOL, DSG, SHOP, WSP
BN, CNQ, STN, CLS, TRI
TVK.

Outside of materials, gold; no retail; no reits. If this was you. Do you add a company that doesn't meet your growth expectation/debt/cash flow etc for balance ie ENB.
Or add to your current.

Looking for your sage advice as well as 2 potential core additions or adds and 2 other high conviction torque. No parameters.

Thank you!

Q: Doing my semi annual balancing. Have some money to add to one, two or all three of the named companies. Looking at a 3 to 5 year time frame, what would you suggest. (With your thoughts on the subject)
Thanks. ram

Q: I'm asking for 5i's opinion on your current (5) best asset-light company ideas - Canadian and / or American - that have:

- financial stability

- strong competitive position today and into the future

- in a sector that is not threatened by disruption

- attractive valuation at today's prices

Hopefully not a lot to ask. Thanks for your service.

Q: Operating metrics (FCF, ROE, margins, etc.) for PAYX seem quite strong - it seems to be an asset-light business, dividend grower and compounder. However, it's at the same price as 3 years ago and has been underperforming the S&P for the same period. Am I missing something? What are your thoughts for PAYX and is it worthwhile for initiating a position at some level you would suggest?

Q: Hi - do you have any concerns about CGI's growth with US Gov't contracts once the Dept of Elon/Vivek starts to cut "costs"?

Q: Please rank the following for purchasing (10years +)
Thanks

Q: Hi Guys

Thanks for all the amazing work you do to support us investors. Putting new money to work and looking out on at least a 3 year (tend to be a buy and hold investor) which of the four stocks would you buy today looking at total return? If you could rank them from your most strongest being 1st that would be great.

Thanks

Stuart