Investment Q&A

Q: I have often wondered why a large diversified company like Fairfax gets almost no analyst coverage? No buy/sell recommendations (except for 5i) and even Thompson Reuters can't give it a score? Is it simply too much work to figure out what Prem is up to?

Q: Hi,
I'd please like your opinion on whether I should swap out CWB and into LB?
Thank you,
Kerri

Q: What is your opinion on this company. I could not find research report on your website about this company. How does it grade?

Q: I understand that due to the new US Tax bill, US banks as well as Cdn Banks with US operations such as TD will take a charge in the 1st quarter. Do you think these bank stocks will take a hit this quarter as a result of this charge and thus I should delay investing in TD and US banks.

Q: How significant do you think Visa's new sensory tech will be on momentum? I am trying to add to my financial sector. I have Royal Bank and Square. Any thoughts?

Q: Greetings 5i,

I am considering adding a long-term, full position (5%) in V. This addition is attractive to me based on its international brand presence, solid track record, and the rising interest rates that will likely help profits moving forward. I am not concerned about the short-term ramifications of the recent US tax reform on its long-term viability.

My current financial exposure consists of TD.TO and BNS.TO (roughly 3.5% each), as well as full positions in BRK.B and BAM.A (although, due to the breadth of their holdings, I look at BRK and BAM more like diversified "hybrids" than single financial positions).

I am 36 years old, debt-free, conservative (although not totally adverse to risk), and greatly prefer long-term holds that do not require constant monitoring. My investment portfolio is strictly for the purpose of expediting my retirement, and I have no need of its funds for the foreseeable future.

Does the addition of V sound like a reasonable course of action at this time?

Thank you.

Q: Hi, it appears self driving cars are going to be on the streets much sooner than anyone thought a short while ago. Meanwhile technological improvements have the potential to greatly reduce the frequency of accidents and eventually may eliminate them altogether, perhaps reducing the need for insurance or significantly reducing premiums or coverages? What impact might this have on major auto insurer like IFC? Thanks.

Q: Hello Team,
Do you feel US banks have substantially more growth potential at this time than the big Canadian banks given Nafta risks and the state of the current state of the two economies?
Kind Regards,
Barry

Q: Hi, I own the above companies mainly for income and some growth. Would these be negatively impacted by rising interest rates and if so, would a switch to BNS or SLF be warranted.

Thanks

Q: Good Afternoon 5i,

Excluding the big banks and MFC, SLF, what are your top 3 picks for Canadian financials?

Thanks!

Q: Looking for suggestions for 2018 TFSA contribution for 20 year old for long-term hold, slowly building out a more diversified portfolio. Current holdings/weightings are TOY (23%), PHO (20%), SIS (18%), KXS (20%) and PBH (18%). Thanks.

Q: BNS is the worst performer of the big 5 plus NA.It ranks #5 on 1yr return @ 6.1%,last on 3mo.@ 2% & 1mo @ 1.5%(as @ Jan 11/18 per TR).Recently a $2.9b acquistion of BBVA's Chile franchise.It is a fact that the above 6 banks takes turn to lead.So it is time to buy some BNS.Thanks for u usualgreat services & views.

Q: In light of the Globe's vague yet suggestive article yesterday, https://www.theglobeandmail.com//report-on-business/streetwise/manulifes-us-arm-swept-up-in-ges-95-billion-insurance-writedown/article37628227/, how would you interpret this to impact manulife's overall business? The article implies that many insurers are ill prepared for the degree long term claims with this aging population. I recognize this is regarding the John Hancock business in the US and I am interested in your take on how this might impact the stock overall? Is it time to switch to Sunlife? Any of your well thought out advice is much appreciated.

Q: I sold EFN and bought ECN for hopefully more growth 6 months ago. Just looked and EFN is back down around 9$? I would have thought that EFN would be a big beneficiary of the strong US economy. What are you're thoughts? Do you think EFN is undervalued and a good investment?

Q: Hi Team,

What is your opinion on POW? It appears to be globally diversified and a decent bet in a higher interest rate / potential NAFTA changing environment . What is your midterm outlook for this company as compared to a standard insurance company?

Thanks!

Q: I am having a hard time deciding if I should add to my financials with individual stocks or buy an ETF. XLF and MTUM have holdings that I already own and am ok with adding to these via the ETF and they also hold BAC and JPM which I do not own. Can you please give me your opinion. Sectors and weightings are fine. Thank you.

Q: I would like to add to my position in efn since the stock is down again today. My time frame is 5 years its in my tfsa . I already took your advice and add ecn its worked out great . thank you.

Q: Andrew McCreath had a banker on his Friday show that made a good case for buy outs coming this year in US banking industry just not the very large banks. The large banks would not be allowed to merge/takeover more banks because of regulatory concerns.
Could you meanttion some of the stronger mid size US banks that would be good candidates for take over and their related dividend as he mentioned that big dividend increases are on the way.
Mike

Q: ZUB rose 2% today despite the fact that the US market was closed. How is this possible?

Q: In financials I own about 2.5% of my overall portfolio in both TD and RY with about 1% in ECN (total of 6%). What would be your recommendation if adding more to the financial sector. Stay with Canadian banks (add to TD or RY or possibly BNS) or add something like SLF OR MFC? Any other suggestions?
Thanks.
Brian