Q: I am helping our daughter set up her TFSA, she has 10,000 to invest. My question is, how many stocks would you invest in with this amount and also, some stock suggestions would be most appreciated.
Thanks so much
Thanks so much
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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: Hi Peter & 5i: Just a comment. It is difficult to know what to do with the numbers when the market hands you outstanding returns. It isn’t all your own doing and yet if you didn’t make some of your own good decisions you would not have done nearly so well. You want some credit and frankly you deserve some credit and nothing sells the service like the odd eye-popping number. So on your “Join” page your first checkmark point in the sales pitch is: “Who else will offer a Model Portfolio (up 34.1% in 2013), with no obligations or management fees?” You didn’t promise the return; you just mentioned it, parenthetically at that; and after all, it’s a fact isn’t it? Sure. And for me: not a problem. I come to it knowing that 2013 was a great year in the markets but I also know you outperformed any likely benchmark. I know that number is much higher than your portfolio is likely to deliver over the long term, even over the medium term. I even know, because you have owned up to it, that the downward spiral of 2008 produced an absolutely brutal result in the portfolio you were running at that point. And all of that seems perfectly reasonable to me now because I also have several years of experience in owning stocks and watching the markets. But I can imagine someone with much less of an experience base reading that number on the “Join” page and thinking: hey, here is a way for me to earn a 34% return; here is a guy whose stock picks go up. I can imagine that number contributing to the creation of an unrealistic expectation.
The fact is that when you buy a stock, unless you are buying at a longer term bottom (you’re probably not!), so long as you are thinking you’ll hold that stock for a reasonable period of time, it is very likely that at some point while you own those shares they will be worth less than what you paid for them. Think about that for a second. In fact, if they never are any lower, it’s just pure unpredictable luck.
Of course, the flip side is also true: unless you buy at a longer term top and provided you have sufficient patience, it is very likely that at some point your shares will be worth more than what you paid for them.
I feel for the uninitiated though, because the thing is, I’ve never heard anyone say the former fact. I’ve certainly never seen it acknowledged in a sales pitch. That said, I have the absolute greatest respect for Peter and 5i and the services you are able to offer to investors and I would recommend 5i as a great value and a great resource to anyone who ought to be interested.
You can publish this if you think any of those points are worth others' contemplation. Thanks!
The fact is that when you buy a stock, unless you are buying at a longer term bottom (you’re probably not!), so long as you are thinking you’ll hold that stock for a reasonable period of time, it is very likely that at some point while you own those shares they will be worth less than what you paid for them. Think about that for a second. In fact, if they never are any lower, it’s just pure unpredictable luck.
Of course, the flip side is also true: unless you buy at a longer term top and provided you have sufficient patience, it is very likely that at some point your shares will be worth more than what you paid for them.
I feel for the uninitiated though, because the thing is, I’ve never heard anyone say the former fact. I’ve certainly never seen it acknowledged in a sales pitch. That said, I have the absolute greatest respect for Peter and 5i and the services you are able to offer to investors and I would recommend 5i as a great value and a great resource to anyone who ought to be interested.
You can publish this if you think any of those points are worth others' contemplation. Thanks!
Q: Any particular reason for the high volume of trading of DHX today?
Q: What is your view of LEG since its rise over the past three months? I have a 48% profit..do you see any more upside or is it time to take some profit? If so, what would be an equivalent name to reinvest these funds in? It is a 7% weighting in my TFSA...
Q: Hi guys I realize that 5iresearch like enterprise group but is it time to get out of this name it's has done nothing over the last while but go down , or should I wit out another quarter if it's time to get out what name do you suggest I look into
Thank you
Thank you
Q: What would you recommend for a total minimum investment for a portfolio consisting of seven diversified ETF's, for a period of about ten years. I have about $15,000 to invest. I was just wondering if this would be worthwhile, thanks.
Q: A new company called slyce (slc-x) going to start trading on venture soon. There probably isn't much to go on from a numbers perspective and I certainly appreciate the risks involved with such a new unproven company but still curious about your thoughts on its imaging technology app and how you think it might be received by retailer community. Thank you.
Q: What is your opinion about CAB-T (high qualit bond fund)? . Thanks ebrahim
Q: btb.un announced a dividend increase-it is already above 9 percent,not many raise at these levels-secure ? going forward
Q: Peter & Co. Very difficult question. The supreme Court's decision to grant the Tsilhqot'in First Nations title to land including the current reserve and land beyond its borders. I understand that another band initiated similar legal action within hours of the announcement of the ruling. Many more land claims are at various stages of negotiation.
Although I understand that politics and legal matters are beyond the scope of this forum, I am very concerned about the potential impact of this ruling on BC resource companies, Northern Gateway.... It would appear to me that this might be an opportune time to sell the BC resource stocks in my portfolios.
Understanding there some many unknowns, I would highly value your perspective.
With appreciation,
Ed
Although I understand that politics and legal matters are beyond the scope of this forum, I am very concerned about the potential impact of this ruling on BC resource companies, Northern Gateway.... It would appear to me that this might be an opportune time to sell the BC resource stocks in my portfolios.
Understanding there some many unknowns, I would highly value your perspective.
With appreciation,
Ed
Q: Peter, with the improved Cdn $ here, would it be a good time to pick up some additional US positions ? In particular could you give an opinion on Berkshire. Thank you for this and all the great guidance you have provided. I look at the value here and my returns with you, and I cringe at the years I spent with the full service investment outfit I was with. Thank you !!
Q: Peter et al, Considering the latest ruling by the supreme court re Native land rites, what is your opinion on investment in "ALL" pipelines in particular IPL thru BC ? Tks
Q: Stella Jones Inc. is a company with a good rating, but is lightly traded and on a downward trend. Should I continue to hold this stock? Can I expect a turn around?
Q: Could you recommend a couple of high quality Canadian companies with US exposure that might substitute for holding US companies? I own Stantec, TD, and CN, all of which I think quality as having at least some exposure. Thank you.
Q: WFI has recently been sold and I have a 40% return what do you see for this company moving forward under new management, or should I sell and move on I'm looking at maybe swithing over to fsz or perhaps bep
Q: Regarding an earlier remark regarding Canadian Shareowner. It does provide easy diversification, at a cost. But,when you want to get out it can be difficult. You cannot, for instance, just transfer your portfolio to an online broker as a whole, as the broker will not take the partial shares that Shareowner holds. So, then, if you do switch to an online broker, you are left with perhaps many positions in Partial shares at Shareowner, each one of which you must sell individually for about thirty dollars a trade, I believe. A good service but something to keep in mind.
Q: In my Income Portfolio I have half positions in AD,ET and WSP , looking to add to one , at todays levels which would you add to?
Many thanks for the education I receive on your site.
Many thanks for the education I receive on your site.
Q: Hi,
I am trying to find a way to capitalize on the mobile space as there is a lot of research out there this is a growing area as people start to use more smartphones. I have come across a London based company call Monitise (MONIF on the OTC). Although its on the pink sheets it’s a 1.8 Billion market cap company. Both Visa and Mastercard hold a chunk of shares. I am looking to get your thoughts on this company, or preferably one that is listed in Canada that I might have overlooked?
Thanks!
I am trying to find a way to capitalize on the mobile space as there is a lot of research out there this is a growing area as people start to use more smartphones. I have come across a London based company call Monitise (MONIF on the OTC). Although its on the pink sheets it’s a 1.8 Billion market cap company. Both Visa and Mastercard hold a chunk of shares. I am looking to get your thoughts on this company, or preferably one that is listed in Canada that I might have overlooked?
Thanks!
Q: Hi 5i Team,
Would you consider building US growth and income portfolios?
I'm sure many clients would find this extremely beneficial.
Thanks for all you do.
Dave
Would you consider building US growth and income portfolios?
I'm sure many clients would find this extremely beneficial.
Thanks for all you do.
Dave
Q: 9:30 AM 6/29/2014
Hello Peter
First I want to thank you for the excellent advice you gave me a couple of weeks ago and I purchased both Surge [SGY] and COS and look forward to holding them for a very long time.
Now I am concerned about the sustainability of North West Company's [NWC] dividend, currently paying 4.85% yield. My yield on my purchase price is 5.47%. I have owned the shares since December 2011 and have an unrealized gain of 10.9%. I have offsetting losses so the gain would not be taxed.
I only own a 2% position but the retail business and especially retail food businesses are having a difficult time with no prospect of improvement that I can see due to cut-throat competition and razor thin margins, and even Sobeys just announced they are going to close 50 or more stores --
From the Medicine Hat News : "Sobeys is closing about 50 underperforming grocery stores across the country as it deals with intense competition and tries to squeeze savings from its operations after the acquisition of Safeway in Canada."
From the Globe & Mail : "Sobeys Inc. is focused on shaving costs to win a tough food fight, with plans to consolidate manufacturing and distribution operations, cut jobs in two regional offices and force suppliers to retroactively reduce their prices."
I do like NWC but now I cannot see much prospect for growth or increased profits, so unless you feel the dividend is quite secure I would sell it and add to an existing position in something that I already own and that is likely more secure, has better prospects for growth, and that is paying about a 5.5% or better dividend, such as SGY, NPI, AW.UN, BNE, BDT, PKI, or BCE.
What would you advise and which stock would you pick?
Thank you.... Paul K
Hello Peter
First I want to thank you for the excellent advice you gave me a couple of weeks ago and I purchased both Surge [SGY] and COS and look forward to holding them for a very long time.
Now I am concerned about the sustainability of North West Company's [NWC] dividend, currently paying 4.85% yield. My yield on my purchase price is 5.47%. I have owned the shares since December 2011 and have an unrealized gain of 10.9%. I have offsetting losses so the gain would not be taxed.
I only own a 2% position but the retail business and especially retail food businesses are having a difficult time with no prospect of improvement that I can see due to cut-throat competition and razor thin margins, and even Sobeys just announced they are going to close 50 or more stores --
From the Medicine Hat News : "Sobeys is closing about 50 underperforming grocery stores across the country as it deals with intense competition and tries to squeeze savings from its operations after the acquisition of Safeway in Canada."
From the Globe & Mail : "Sobeys Inc. is focused on shaving costs to win a tough food fight, with plans to consolidate manufacturing and distribution operations, cut jobs in two regional offices and force suppliers to retroactively reduce their prices."
I do like NWC but now I cannot see much prospect for growth or increased profits, so unless you feel the dividend is quite secure I would sell it and add to an existing position in something that I already own and that is likely more secure, has better prospects for growth, and that is paying about a 5.5% or better dividend, such as SGY, NPI, AW.UN, BNE, BDT, PKI, or BCE.
What would you advise and which stock would you pick?
Thank you.... Paul K