Investment Q&A

Q: I asked a question April 23rd regarding your personal holdings. Inquiring on the number of stocks and ETFs. Are you willing to disclose your personal holdings? You mentioned in another question the 3 Income focussed ETFs you hold. Curious on your stock selection. Thank you

Q: I like a lot of ideas that Adam brought up today, and 5i response. Lets take stocks like CSU, LMN, AXON, and i could name many more, they are always BUYS at 5i, at the high and at the low, if you have a 5 year outlook. Maybe say that the stock has run to far and wait for a better buy lower, like Cramer does even on his favourites .
Too many investors feel that everything will always keep going up, and as some of 5i investors have found out . Well maybe we have found the low on some of 5i favourites.
Thanks Again

Q: Hi 5i Team,

Morning.

What would be an optimal number of stocks held in a portfolio?

Regards,
H

Q: A suggestion for 5i: Inclusion of "Buy Below" or Fair Value Ranges for Model Portfolios
I have been a long-time subscriber to 5i Research, primarily for exposure to the Canadian market. I follow only markets outside Canada and am unable to research TSX companies. While I find the quality of MOST (certainly not all) businesses in the model portfolios to be high, I believe there is a significant opportunity to improve the utility of these models for members by including suggested buy ranges or "Buy Below" price targets.
The Rationale: Value vs. Market Timing
Giving a price range that represents fair value at the time of a portfolio update is not "market timing". It would simply be a logical assist to a buy decision. Good companies do reach excessive valuations where they no longer represent a prudent entry point. If you would please provide a "Buy at or Below" guidance, it would really help.
Precedence in your Industry
Several highly regarded research services successfully implement this approach. For example, Crossing Wall Street includes a specific "Buy Below" column for every position, updated weekly by Eddy Elfenbein. See https://www.crossingwallstreet.com/buylist. AAII (American Association of Individual Investors) provides members a grading system across their model portfolios (Growth, Dividend Growers, Income, etc.) to signal to members whether a company is currently trading at a reasonable price.

In my own experience, while I have outperformed the S&P 500 in 9 of the last 11 years (luck plus my primary research), my Canadian investments following 5i models have struggled badly. I don't research Canadian businesses and follow 5i models. Losses and poor performance is largely due to buying good companies in 5i models at "awful" prices. An investment may be a success for a 5i model over years, but it is often in a "no-buy" zone for a new investor. Guidance on entry ranges would mitigate the risk of members (like me) buying at unreasonably high prices and waiting years just to break even-- this, even with good businesses (SHOP, KXS, PSI, BNS, many other).

I suggest you include a Price Range or Fair Value Ceiling for each business in the model portfolios, reflecting what represents a "fair price" at the date of the report. This would bridge the gap between identifying a "good company" and making a "good investment."
Thank you for considering this suggestion for future. :ao:

Q: Anchoring 5i Responses with "Price at Time of Publication":
I have a further suggestion to improve the utility of the Q&A section. Currently, when browsing the Q&A archives, the interface displays the current (live) share price next to every response you give. Real-time data might be useful for active trades, but it lacks context when one reviews a response you provided weeks or months ago.
The problem is Contextual Disconnect:
Displaying today’s price alongside a historical response is misleading. If one reads your answer from three months ago, but the stock price you show is today's price (which may be 25% higher or lower), the original logic of your response is lost. Without knowing the price at the time your comment was written, it is difficult to assess what you were commenting on.

Other research platforms solve this by explicitly depicting the share price at the date the comments were made. This anchors the commentary to the market reality of THAT date , allowing a reader to see exactly what the analyst was looking at when they gave their opinion.
Proposed Improvement
I suggest that 5i include the Price at Date of Response (ideally alongside the current price for comparison).
Adding this historical data point would:
1. Improve Transparency (Shows how the business has performed since 5i provided insight).
2. Provide Better Context: Help us understand if a "Buy" or "Hold" recommendation was based on a valuation that has since changed significantly.
3. Enhance the value of the Q & A: this would turn the archive into a more meaningful and a more reliable tool to review past thesis points.
Thank you for considering this adjustment to the platform. :ao:

Q: Today's question from Ross, regarding Zacks Research: they've been hacked more than once and IMHO do indeed fall into the 'clickbait' category with lots of 'upsell' links of dubious value. I'd avoid them and stick with more reliable sites like 5i.

Q: Good Day, Curious about your position of using CDR's in portfolio construction. Advantages or disadvantages for non registered, TFSA, RRSP and RESP.
I recently invested in Palo Alto CDR and Applovin CDR (not in your search to add for Portfolio Analytics), also have Amazon and was thinking of adding Microsoft.

thanks,

Q: Hi i Team - I have taken an initial position in Micron, the US version and may consider adding to it. However I am wondering about buying the CDR (CAD Hedged). Are there any advantages to buying the CDR's over the actual stock. I do not have a very clear understanding of CDR's and hedged equities so any clarification of this would be much appreciated,
Thanks.

Q: Could you explain the differences between:
Time-Weighted Rate of Return (TWRR)
Money Weighted Rate of Return (MWRR)
Which method is more accurate or are they compiimentary?
My investment advisor uses the MWRR
Thank You

Q: Just an observation in response to the author of the recent answer provided to John re PNG on the topic of “consolidation”:

In such responses I often find more useful info in a single paragraph than in several financial articles from other providers. That is why I gladly pay. No ads. No fluff. No hook. Just value for money.

In the packaged glossy digital sheen cast by the Internet whose MO is clearly sizzle over substance (and let’s face it, usually pure sizzle), you are the polar opposite. Thank you for your trusted service and your consistently thoughtful, well-written, well-placed insights.

Q: I placed a limit buy order for Biorem that trades on the venture exchange through TD.The trade was placed under review and it was filled 10 minutes later. Any idea why the trade would be placed under review? Thanks.

Q: Hi,
How are the CDR ratios established? Are there any rules or guidance? They vary so much, I do not find any logic. Not simple for investors who want to follow any CDR and their parent stock. Thanks.

Q: How would the shares of TSLA.NE, or other large cap tech US CDR's (eg NVDA.NE, CRWD.NE, PLTR.NE...) , be treated in the event of a corporate transaction such as a takeover or merger. Would shares of the CDR be treated the same as the US shares with respect to any capital gains or shares in a new entity?

Thanks

Q: Please explain the meaning of the numbers in the P:E ratio.
P:E for Kinross today is 15:38
Thanks.

Q: Please advise which fees should I look on ETF ie Management or MER fees. Ex: BMO ETF website FCCM shows .10 as management fees and .38 on MER fees or total fees ( Management + MER)

When I look at the charts does it includes dividends or price only. Is there a website where we have option to exclude / include dividends.

Thanks for the great service.

Q: Good morning, regarding the answer that you provided to Dennis that references diversification and the amount of stocks one could hold, is this taking into account potentially all three accounts (RRSP, TFSA, non reg)? You suggested 15 stocks may be enough for proper diversification. I'm assuming this is spread among all accounts?

Regards
Seamus

Q: This is a follow up to Dennis‘s question on the number of stocks to hold in a portfolio. You have suggested that about 20 (15-25) is all that you need. This may be correct for a conservative investor, but I feel your client base is a little bit more aggressive. Hence 20 conservative stocks, and a dozen more aggressive ones. I have used your advice to help me invest in a dozen smaller or unknown companies of which some have done great, some have done well, some are treading water and some have done poorly. I have started all these at a quarter position, which has worked well over the years. My biggest problem is knowing when to trim the great stocks as a fourfold increase only brings them to a full position. A great problem to have. Thanks for your advice over the years.

Q: Hi,

The other day I sold 300 shares of a company from an RRSP account. A minute later I submitted a buy order for the same amount of shares in my TFSA. Both the buy and sell were for the same price.

Today I received a call from my broker advising that I had broken the rules(?) and engaged in a wash trade.

Can you enlighten me as to what and whose rules I have broken?

Q: What % is a good split between holding hardware vs software names? Barbell approach? Do you think the sasspocalypse is over? We've seen these names bounce off the recent lows and you have days where they are leading and days like today where sentiment swings the other way. I believe the names I hold are of good quality and can be patient while I wait for them to bounce. But then you have the opportunity cost of not buying more AI leading names with positive momentum. For example, do I sell some CSU/LMN/TOI and buy more CLS? Or sell some AXON and buy more NBIS? What would be a good approach? Thank you1

Q: Digital Subscription credit has been discontinued, effective 2025. Does 5i subscription qualify for Investment Advice Fee (Carrying Charges)? Where can I access a receipt for this expense, on the portal?

Thank You