Investment Q&A

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

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.

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.

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

Q: which companies that you guys have covered could be the most negatively affected by a surprise interest rate increase, thanks?

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

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?

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.

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.

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.

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!

Q: Would you consider offering a "top picks" of 5 or so companies, that get updated every quarter or half year?.

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

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.

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.

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?

Q: We've talked in the past about screaming buys and it begs the question, how would you disseminate word to the members if you came across any stock that was, for one reason or another, a compelling buy. Indeed, would you even tell the members?

Q: Hello to all.
OK so this is the first adjustment in the model portfolio (AYA) ... I thought any moves would be much more dramatic,my allotment is not as precise as yours due to re-buying my dividends into Goldcorp and also I had DRIP which also has taken me away from exactley 5% holdings. Should a fella just stay where I am at or drop some Amaya. TY and thanks for the 28% !!!

Q: When I analyze the 5i Model Portfolio and the assignment of securities to sectors I see that some stocks get tagged with "Services" which could just as easily be tagged with something else. For instance AYA and CSU ("Services") are ones I would tag "Technology" along with ESL and SYZ and if they were thus tagged it would make Tech a 20% portfolio weighting based on cost and 23% based on current value (Sept.30). If you agree with this assumption would it be an indication that 5i highly favours the Tech sector over others, even though Tech is less than 2% of the TSX Composite? There's no doubt the performance of the 5i portfolio going forward is going to be vastly different than the TSX where 72% of the composite is Financials, Energy and Materials.

Q: I really appreciate your service guys.

I have a few stocks that I have made very good gains on this year. RFC.V, CSU.TO, STN.TO are all up by more than 45%. I see more upside for all of them. I was wondering from your guy’s point of view would you sell a portion of these to insure your gains or do you also see good upside on these stocks and would you hold on for now.
Thanks