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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: Do you have any guidelines for individual stock weightings based on market cap using less than 1 billion for small cap, 1 to 10 as mid cap and greater than 10 billion as large cap? Would the weightings apply to both the initial purpose and current market value?
Read Answer Asked by Lynda on July 18, 2019
Q: Your Analytics program has provided a convenient tool to see the weightings in my overall portfolio. From this I have learned that while there are some with larger percentages I have many positions between 1 - 2% weighting. Sometimes this resulted from my having initiated small purchases and sometimes from falling share values. In any event, I wonder if I am spread too thin? I guess one part of this is that the small positions will not move the dial. On the other hand, quite often your members ask what you might recommend when looking at choosing between 2 stocks and the answer suggests having both, for better diversification.
1. So my first question is whether positions of 1 - 2 % are too small or is this good diversification?
2. In this context, my next questions are about positions of 1.57% and 1.42% in Enghouse and Kinaxis; are these positions too small and if so, which would you sell and which to keep / add to? And similarly, positions of 1.39% and 1.18% in Parex and Suncor. If these positions are too small, which to sell and which to keep / add to?
3. In a similar vein, I have one or two positions that have suffered from considerable declines in share value and there is .36 and .56 of a position. What should I do if I do not want to sell, either because I still believe in the prospects or because it is too painful to sell just now. I often see your answers suggesting you do not believe in averaging down but holding such a small position seems not effective.
4. My last question is about Constellation Software. It is of course one of the better performers and partly as a result presently I have a weight of just under 3.5%. Given its success, would you recommend adding to have a larger position, and if so, how much?

Thanks for your excellent service.
Read Answer Asked by Leonard on July 18, 2019
Q: I have less than a 2% allocation and in the negative with the following stocks, GC, PEO, ENGH, VB, TOY, PHO, NFI, TSGI, TCL.A, CLIQ, WCP, ADW.A, RAY.A, and RME. With a growth outlook and a longer timeframe of 5-10 years+. What do you need still as a BUY to top up, HOLD, or SELL?
cliq, adw, engh, gc, nfi, peo, pho, rme, toy, ray, tsgi, tcl, vb, wcp.
Read Answer Asked by Andrew on July 16, 2019
Q: HI,

I have about a 15% position of TRP in
my RRSP and was thinking of selling and replacing with a non-energy related equivalent dividend stock. I also have large positions of GSY, TD, SHOP, ENB, BNS, AAPL, GOOGL, SPY, V, JPM so would not add to these.

What would you recommend? Thank you.
Read Answer Asked by Mary on July 08, 2019
Q: Hi 5i and team
I presently own WSP which ran up to 5% of holdings and SIS. I'm considering selling SIS and adding BYD.UN and or CAE. That move could bring me to 10% industrial. Should i trim WSP and keep industrial to a prefered percentage or Let it run which brings Me to my other question if allowed. I get confused with all sectors ie: cyclical, non cyclical, defensive etc...i would prefer having 7 if possible. I'd appreciate your thoughts with this.
Thanks for your valuable advice as always.
Read Answer Asked by Gilles on July 08, 2019
Q: Interested in selling puts. Have taken your advice in past on selecting companies with low debt, dividend, short term weakness, long term positives. Any specific companies to recommend now? I am aware and comfortable with the requirement for some volatility to provide reasonable premiums.
Read Answer Asked by Gary on June 26, 2019
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