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Celestica Inc. (CLS $267.50)
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Shopify Inc. Class A Subordinate Voting Shares (SHOP $193.98)
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Amazon.com CDR (CAD Hedged) (AMZN $26.75)
Q: In a TFSA I have a small position in Celestica (0.75% of my overall portfolio), a “smallish” position in Shopify (1.5%), and a more sizeable position in Amazon (4.5%). I am trying to decide whether to free up some funds by selling some Amazon, to add to Celestica and Shopify (perhaps 2% each), whether to just let things ride, or perhaps sell Celestica and add to Shopify. The portfolio is fairly well diversified and the objective is growth. If you were me, what would you do? Many thanks for your excellent service.
5i Research Answer:
We can't get personal but typically we would see a 0.75% position as a 'fish or cut bait' decision, as such a small weighting won't do much for a portfolio either way. We like CLS quite a bit right now, and would be fine doubling it, or going to 2%. SHOP is also solid, but somewhat similar to AMZN in its category, so we would see taking 1.25% from AMZN and adding to CLS as the best move here for diversification.