Investment Q&A

Q: Is it time to dump this stock.

Q: How does the valuation of Fairfax compare to other insurance companies such as Sun Life and Manulife? And how does the future earnings growth rate in the next 5 years compare to these two companies? Thanks.

Q: Could you have a look at this and offer a comment on the merger price of $13.00 and the current share price of $11.71. With an April 1 closing seems like quick 10% upside.

Q: Hello to all at 5i!!! Fair fax seems to have had a good run in the past. Is it still a worth while investment for a 5-10 year hold? It has a hefty price tag. If you think not, could you give me a suitable stock alternative of a similar nature. Thank you, Tamara

Q: Hello Team,

If you could only pick one of these two companies for an investment, what are the pros and cons of each and which would you choose? Please assume an already well-diversified portfolio and a long-term horizon (e.g., 10 years).

Many thanks.

Michael

Q: Could you please comment on GMP's results.
Thanks.

Q: Appreciate your thoghts on recent results.
Thanks
john

Q: GS is down 9% today in conjunction with an announcement about the resolution of a dispute between GS and its founders. Although very annoying, should I be fundamentally concerned with the company?

Q: Hi can you please comment on the (potential) money owed to the founders of the company? How likely will this need to be paid and what impact would it have? Would you consider GS a buy right now, or a hold if I presently own it?

Q: I own some of each of these Pfd's...one has the symbol BM in it's name, the other BK...would you be kind enough to make the distinction for me , please and thank you...also if you would comment on their credit quality ...and whether the reset rates in 5 yrs time is the minimum rate or whether the rate is reduced if we have negative interest rates...many thanks ...cheers

Q: Good Morning Peter, Ryan, and Team,
Fiera Capital reported this morning and the numbers looked fairly good, at least to me. I have the company in my wife's RRSP account, primarily for its 4% plus dividend yield and future dividend growth. They seem to be growing their AUM quite nicely in difficult markets. Finally the valuation seems inexpensive compared to other Canadian asset managers. I would like your take on the above. Thank you as always for your sage insights. (PS- I just purchased the book "Market Masters" and I thoroughly enjoyed the section devoted to 5i Founder and CEO Peter Hodson. Great interview and wonderful book. I highly recommend it to other 5i subscribers)

Q: Can you please give me your thoughts on POW and VEE? I am considering a 6% position in each, in my TFSA, with 3-5 year time frame. Thanks
Grant

Q: I know you generally recommend that anyone who is worried about the market move to cash, but I am curious as to how a professional hedges. When Prem Watsa says that Fairfax is 100% hedged what does that mean? If Fairfax’s market holdings drop 30% does it mean that their hedge will earn them the equivalent amount so that the net will be neutral? Does it work the same if their holdings increase in value? (i.e. any gains would be offset by losses in the hedge) What investment vehicle would Prem Watsa likely be using to hedge and what would the cost likely be in terms of percentage of total holdings?

Q: Please comment on recent quarterly and annual results and compare to First National.
Based on current valuations and future potential would you take profits on FN and buy SCB.
Thanks,
Hugh

Q: Whats your view on the recent commentary by Fairfax CEO Prem Watsa on stocks being very risky still.

Q: What are your current thoughts on Power Financial for a long term hold ?

Q: Good day,
I have been considering trimming if not selling my insurance exposure out right because of falling interest rates. With more and more Central Banks experimenting with negative rates it is possible that eventually Canada and the USA try out negative rates. Would there be any merit in selling GWO,MFC,SLF to buy FFH? My rationale is I could maintain some insurance exposure but if the whole system implodes (this is why they are considering negative rates to begin with because traditional monetary stimulus isn't working), clearly there must be some risks of a black swan event out there. Like you, I don't like to go zero weight any sector so this way I could maintain insurance exposure but also have down side protection? Or should I keep it simple and simply reduce my insurance weight.. Thanks.

Q: I would like to know your opinion on FN. I saw that this stock is now at his 52 weeks high. Is there a reason for that and should I continue to keep it or do you suggest that I take profit and put the money in another stock? and if so, what could you suggest?

Thanks for your good work. I am always impressed by the quality of your answers.

Michel

Q: Between these 2 stocks, they represent about 8% of my overall portfolio. Trying to bring my allocations back inline ...would you keep both ? If you had to choose which one to sell, which would it be ? FSZ/MIC

Q: With the recent bump in Cdn Bank stocks would you add to existing positions or do you think they've moved ahead of themselves in the short term? Thanks.