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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: You (and your team) are doing an excellent job. It is definitely evident by your results and the accolades from many of your members. However, I must believe that like many of us, you've had your bad days as well. Are there any lessons learnt that can be shared with all of us. Thank you.
Read Answer Asked by Walter on November 07, 2013
Q: No question, just a comment. Thank-you so much for providing this service. This Q & A forum has taught me so much as an individual investor. When I began with your service I knew very little about stocks and was buying on tips of those that looked to be better off than I. This forum has taught me how to push aside the hype and truly evaluate the potential of a stock, and as proof, I have begun building a consistently positive return portfolio. Thank-you and all the forum participants for sharing your valuable wisdom on a daily basis - Cheers.
Read Answer Asked by Philip on November 06, 2013
Q: I submitted a question regarding portfolio management a few days ago and my thought is that you may not have received it. My question had to do with the number of positions one should hold as the size of your investment portfolio grows. That is, would 20 holdings be appropriate for any sized investment portfolio or is there a point where additional holdings should be considered. Thanks for your help.
Read Answer Asked by John on November 06, 2013
Q: Hi Peter and team. I have another porfolio management question.
We are having trouble allocating equity and ETF's between the regular portfolio we manage on our own and the TFSA. After 5 yrs the TFSA holdings are about half and we've noticed ofcourse that you can not claim losses. This should be obvious but is it better to put the ETF's in the TFSA and stocks outside? Trying to create a sleep at night portfolio has been a challenge.
Thanks for any input. Jan
Read Answer Asked by Janis on November 06, 2013
Q: What is the signifigance of beta? I thought that numbers below 1.0 indicated a less volatile stock, but when I look at some charts I see stocks with betas below 1.0 going up and down like yo-yos.
Read Answer Asked by Edward on November 06, 2013
Q: I want to thank you so much for AVO. I have made amazing amounts of money with this stock and no doubt the good story will continue.Now I am waiting for other great stories over the next week like bad, acq, byd.un aya and another great one which you will be reporting on soon and that is DHX. What are you thoughts regarding their upcoming earnings? I own them all.
Read Answer Asked by Jim on November 06, 2013
Q: Good morning Peter and team.
If one places a market order, in what sequence are orders executed relative to limit orders and all other market orders? In the order that they were placed?
Thanks
Read Answer Asked by Dave on November 06, 2013
Q: which companies that you guys have covered could be the most negatively affected by a surprise interest rate increase, thanks?
Read Answer Asked by Pat on November 06, 2013
Q: Hello Peter.
This may be more of a portfolio management and Investor behaviour question but as everyone wants to own a portfolio that grows and/or grows income, from your experience how does an individual investor balance all the inputs?
Inputs like, Media noting markets appear to have run their distance, Others saying we are in a long-term Bull at least into March next year, technical managers indicating sell when the uptrend is broken.(good investments don't always stay in an uptrend)
I understand most of this is noise and some is out there to generate market activity, but in the mix has to be some truth to be distilled.
As a small investor, I am interested in seeing my portfolio grow over time and would like to not pay 2.5% or more to the banks for keeping my capital in a mutual fund.
I guess the question is, how does a small investor navigate through the noise and what are the important structural inputs for successful investing as a retail investor? What are the important inputs that will support the right moves (portfolio management) at the right time?
Your thoughts on this and any resources or readings in this area you can recommend would be appreciated.
Thanks for this ongoing excellent service
Dave

Read Answer Asked by David on November 06, 2013
Q: Why do some companies announce their latest quarterly earnings (eg., AGU today) after the close of markets? Is this an indicator of impending poor results?
Read Answer Asked by Joseph on November 05, 2013
Q: David's question about profit & DRIP's.
I faced the same question - within RRSP - and have decided - for now - to take profit & reinvest profit into other dividend stock I do not currently own thereby increasing diversity while keeping up the share count.
Read Answer Asked by Craig on November 05, 2013
Q: Hello Peter:
First in a very short duration of membership, I am very impressed with the response and quality of advice provided. I have listened to you for long time on BNN from your stint in Sprott onward and I like your investment style.

I would very much like to learn how you assign rating on a stock and rationale for weighting within portfolio. For example you changed weighting on AYA.

I try to segment portfolio two ways; as the type of investment (Foundational, cyclical, opportunistic) and according to 13 TSX groups (Discretionary, Staples, Energy, Materials …). Segmentation is to have diversification. Each position is not more than 5%. Bond segment is outside this portfolio. Am I on the right track? Finding which TSX group the stock belongs is sometime difficult so I use my judgment. Any insight on portfolio creation and maintenance will be appreciated. Thanking you.
Read Answer Asked by Shah on November 05, 2013
Q: 5i Team,

Can you provide a couple of your favourite consumer cylical names please? I own autocanada and magna but have more cash to deploy in order to get to my 10% sector target. I would prefer a couple of US names... perhaps a large cap and small cap for balance. As always, your opinion is GREATLY appreciated.

THANK YOU.


Read Answer Asked by Ray on November 05, 2013
Q: I have been advised to safeguard my recent portfolio increases, which have been substantial, by selling shares equal to my profits, leaving only my original investment amounts. While an attractive idea, I am a dividend drip investor and removing the profits will reduce the "multiplier" effect they should have in a bull market. What would you advise?
David
PS: And of course keep up the good work!
Read Answer Asked by David on November 04, 2013
Q: Would you consider offering a "top picks" of 5 or so companies, that get updated every quarter or half year?.
Read Answer Asked by william on November 04, 2013
Q: hi team- allow me to apologize if you've answered this ? already.
here goes, will 5i be creating a 2014 model portfolio as well. thanks jane
Read Answer Asked by jane on November 04, 2013
Q: OK, here's one out of left field for ya! Bitcoin. As a speculative long term investment. It still seems quite shady to me, but there are others who feel it's destined to be the "next big thing."
I know it really doesn't have much to do with what 5i is all about but never the less I'm curious what your guys thoughts are.
Read Answer Asked by Andrew on November 04, 2013
Q: I was curious about your recent response to the 'screaming buy' opportunity. I've read a few of your responses about potential 'up and coming' companies that people have inquired about. They don't fit your requirement for a full recommendation but they probably peak your interest as a 'company to watch closely'. Maybe you can a category named in that way....ones on your 'watch List'. That way we know you have an interest in them but you are not giving a 'recommendation'. It would fit all those young companies that have some promising statistics. Just a though. Such a great service ....thanks.
Read Answer Asked by Graham on November 04, 2013
Q: I have become a member recently and want to create an additional portfolio to my investments. Although the model portfolio was created a while ago, can i consider it as a model portfolio to start with if i were to invest today? And if so, do the ratings for each stock reflect the potential as of now, or should I pare them based on the YTD gains?
Read Answer Asked by Rajiv on November 04, 2013