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Enbridge Inc. (ENB)
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Shopify Inc. Class A Subordinate Voting Shares (SHOP)
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Tamarack Valley Energy Ltd. (TVE)
Q: I am selling some of my stocks from an RRSP. Based on your advice to avoid trimming the flowers to feed the weeds, I am thinking I should sell the ones that are down. TVE is down 23%, ENB 17%, and SHOP 19%. Which would be the priority to sell or is there a better approach in this situation? They will be sold as cash is needed each month so it will just be a reduction in my position. Adding info to my question earlier. I am generally following the Balanced Portfolio, except I have substituted TVE for Suncor but in a much smaller position.
5i Research Answer:
Much depends on what one's goals are, but in terms of potential we would see a ranking as SHOP, TVE and ENB, so a sell suggestion would be the reverse order of this. But, SHOP and TVE should be consider riskier overall than ENB. Selling losers of course works better in a taxable account, but for an RRSP can still be a viable strategy as long as overall diversification is maintained. Another option is to seel some of each and simply maintain positions at lower weightings. Or, as much as we like to let winners 'run', at some point portfolio management may require some trimming of very large positions. We tend to get nervous at 10% positions but this has to be a personal call.