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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I read this (i've excerpted) over the weekend. I expect you're familiar with the thesis, but I'm wondering what your take is on this for someone with little interest in researching and monitoring individual stocks, asset allocations, etc.
The One-Minute Portfolio consists of two exchange-traded funds (ETFs): the iShares S&P/TSX 60 Index Fund (XIU) and iShares Canadian Bond Index Fund (XBB). There is no requirement for hours of research to pick stocks or time markets. Only an annual rebalancing is needed….

Over the dozen years from 2003 to 2014, the One-Minute Portfolio’s average annual compound rate of return was 8.9 per cent on a total return basis. …

In the most basic form of the One-Minute Portfolio, an investor rebalances back to a fixed asset allocation, a common one being 60 per cent stocks and 40 per cent bonds. A slightly more advanced version, used in the published updates, allows the target asset allocation to vary according to the state of the stock market – as prescribed in Benjamin Graham’s investment book, The Intelligent Investor.

In general terms, the rule is: if stocks are getting frothy, their portfolio weight is cut. Conversely, if stocks are in a deep funk, their weight is raised.

from My OwnAdvisor
Read Answer Asked by M.S. on March 24, 2015
Q: I like the idea of international exposure but my preference is to hold Canadian listed companies. Can I get a list (maybe 5 to 10?) of 5i covered companies that have the best international or US exposure?

Thanks in advance!
Read Answer Asked by Wayne on March 24, 2015
Q: Can you comment on their latest earnings. thanks
Read Answer Asked by wendy on March 24, 2015
Q: Hi, Im a medium risk. long term hold investor. Can you pick two names of the four provided, for the best balance of risk/growth for the next five years.
Read Answer Asked by Graeme on March 24, 2015
Q: Looking to make investments in these stocks for my grandchildren education. Funds will be required in 15 to 20 years. About 12K to start adding cash monthly. As time go by with additional funds increasing the investments to 10 stocks. Your thoughts on the stock selection ? If not agreement, any other recommendations,? Thanks for you great service.
Read Answer Asked by David on March 24, 2015
Q: your comments on this utility holding and a better recommendation..thanks
Read Answer Asked by Diane on March 24, 2015
Q: Hello, could we have your thoughts on the current valuation and prospects for Savaria. It is approaching 6 per cent of my portfolio which is pretty high for a company of this size I think. Thanks.
Read Answer Asked by Adam on March 24, 2015
Q: Seriously thinking about taking a position in CSE. My goals are primarily income with potential for modest capital gains. Interested in your thoughts.
Read Answer Asked by Mark on March 24, 2015
Q: Can you comment on Goldman Sachs downgrade of the stock today, and recent insider selling? Would this change your generally positive view of the company?


"We view Nvidia as a high-quality company with best-in-class technology and strong management. However, we believe the market has become complacent about the risk of Intel licensing revenue going away (with few sell-side analysts highlighting licensing in analyst day takeaways)," said Covello.

"Our SanDisk, Qualcomm and pharma case studies suggest stocks see 15%-60% multiple compression going into binary events where licensing/patents are in jeopardy. We believe the near-term catalyst to refocus investor attention on longer-term normalized EPS will be weakness in PC fundamentals (which Nvidia noted it is not seeing at its analyst day). We highlight that business tied to the broader PC ecosystem is 55% of EBIT today, with PC OEMs particularly at risk (15%-20% of EBIT ex. licensing)," continued the analyst.

"We could become more positive if Nvidia were to drive enough scale in new segments to offset the $264 mn in annual licensing profit, though we believe that auto & datacenter are becoming more competitive (and drive <10% of EBIT today)," he added.
Read Answer Asked by Adam on March 24, 2015
Q: I'm most pleased with the mysterious research you guys are doing over there in Area 5i. You must have aliens from the future advising you.

You mentioned recently that the 5i membership is untested in a bear market. I wonder if a little preventive advice can be given while we're in an atmosphere of relative optimism.

You already have a few blog posts on sell-offs, corrections, and reasons to be bearish. But a post addressing an actual bear market lasting a few months or longer might help prepare people and retain subscribers.

Hopefully there's no hurry for such a blog post! The aliens you guys are hiding will let you know.
Read Answer Asked by Jerry on March 24, 2015
Q: Can you explain a little bit of the impact to the latest news from Boston Pizza? They are raising equity through a bought-deal.
Read Answer Asked by Eugene on March 24, 2015
Q: Wfc Canada is not a foreign affiliate of a Canadian person as that would require the Canadian person to own at least one percent of the company's shares.

However wfc Canada appears to be a Canadian company, in which case the t1135 would not be required.
Read Answer Asked by Christopher on March 24, 2015
Q: Any reason for the big jump today,other then the slight increase in oil price,can't find any news.
As to buying odd lots of shares,I do it all the time with TD Direct and have never had a problem,order is always filled and no extra charge.
Read Answer Asked by terry on March 24, 2015
Q: What do you think of this drop down acquisition, dividend increased 9% and another 6% on pending approval of new project. This deal looks good .For a stable utilities is RNW getting better with this acquisition?
Read Answer Asked by samuel on March 24, 2015
Q: This issue is being offered by my broker today (to place an indication of interest) for $19 - $22/share. Any thoughts on the offering and price points. Thank you!
Read Answer Asked by Ann on March 24, 2015
Q: If someone has all of their money currently invested in your model/income portfolio, what % would you recommend shifting to growth portfolio?
Read Answer Asked by S on March 24, 2015
Q: Hi Team,

I am doing my tax return and am struggling with one transaction for foreign reporting purposes (form T1135).

In 2012 I bought a Wells Fargo Financial Canada bond (CUSIP ID: 94975ZAX4) and sold it in 2014. I can't conclusively determine if Wells Fargo Financial Canada's bonds are foreign or domestic. I bought the bond through TD Waterhouse in Canadian Dollars.

The Wells Fargo Financial Canada site (https://financial.wellsfargo.com/canada/en/index.html) provides a Mississauga, Ontario PO Box as its address. The fine print on the web site says: "Wells Fargo Financial Corporation Canada is associated with Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company."

Do you know how I can determine if this bond is a Canadian or foreign asset?

Many thanks for any suggestions....

Michael
Read Answer Asked by Michael on March 24, 2015
Q: Hi Again, I may have found an answer to my question. CRA states that Specified foreign property does not include (among other exemptions): a share of the capital stock or indebtedness of a foreign affiliate.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/1135-eng.html

Wells Fargo Financial Canada would appear to be a foreign affiliate therefore its bonds are exempt.
Read Answer Asked by Michael on March 24, 2015
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