Investment Q&A

Q: Hi Peter,
I really enjoyed your appearance recently on BNN. I like the fact that you appear without notes, printouts, “model” prices or table-pounding buys, unlike some of the other guys.

I read your FP article on the weekend on asset and sector allocation. I agree 100% with getting the sector right - just look at commodities over the past many years. It is the larger asset allocation question (stocks vs. bonds) that puzzles me. For me, I am an equity guy and typically run 90-100% equities for better long run returns. Any remainder is cash looking for new opportunities.

I have never in my life bought a bond (or bond ETF), unless you count CSBs 40 years ago when they were at 12% plus; rates we will never see again in our lifetimes. I understand bonds for reducing volatility in your portfolio. Last fall showed the volatility of an all equity portfolio. Yet today, we are making a nice recovery. My question is if or how do bonds enhance your returns?

In Warren Buffett’s recent interview on CNBC, he said that given a choice of holding a 10 year government bond versus holding the S&P 500 for 10 years, he would buy the S&P in a second. He said the same thing for a 30 year comparison. I just can’t get comfortable with the idea of holding bonds to enhance your returns. If the primary advantage of bonds is to reduce the volatility of your portfolio, then I am fine without bonds.

Thanks again for your insight.
Dave

Q: Hello, curious as to your recommendations for my TFSA. I currently hold all stocks in my RRSP, and a mix of mutual funds and etfs in my TFSA. I will soon be making a new TFSA contribution and must decide between adding a new name or topping up existing holdings. Funds likely to be held for a few years. Current holdings, in equal parts are
ETF's RIT, XWD and ZQQ, mutual funds include Fidelity Far East and Canadian Growth.
Have thought of HMMJ as well as TDB 3098 as possibilities.
Your Thoughts Please and Thanks. Lavern

Q: In your last comment on VHI, you mentioned that insiders held 5% of the shares. You may wish to re-check that figure as in December, insider ownership was 17% and there are indications from other Bulletin Board participants that it has climbed considerably from there.

Appreciate all your efforts.

Q: Hello 5i,
It is now into March 2019. Will the new personal portfolio review option soon be available?
Thank you
Oh, will there be a "Women In Finance" lingerie issue of "Canadian Money Saver"?
Stanley

Q: Hi everyone
When investing in an ETF what market cap would make you feel comfortable with liquidity. Would this vary on whether this was on a US exchange or a Can. exchange.
Thanks

Q: What’s going on with Tsgi, it keeps falling? Would you buy more on weakness or hold? Thanks for your help

Q: How can I find the questions I have asked in the past together with the corresponding replies? Thanks

Q: I have funds to add another stock to my grandson's RESP. At the moment it holds the 3 stocks mentioned above. Which would you see as a good complement today?

Q: I currently sit at 2.5% on EIF and GSY, would a top of of one these 2 be in order or add 2.5% of ECN? The only other financial is BNS with 2.5%.

Q: You provided me with 17 names in my previous question I assume this is for diversification, I will likely purchase equals amounts of each and save some for a couple of speculative to keep it interesting. What would your top three speculative (potential home run) stocks be today?

Q: I believe you prefer to have growth equities in one's TFSA. For someone in retirement would it instead be a good plan for a dividend growth investor to use the TFSA to produce regular tax-free dividends for a retiree? If one already has an open account made up of dividend paying stocks, the grossing up of those dividends can potentially create a clawback on your OAS payments. In my opinion, moving as many of those stocks to the TFSA as possible would help reduce this issue. Would you agree?

Thanks.
Jim

Q: Preferred Shares

Upon reviewing the holdings of the four (4) largest preferred share etf, I have noticed the majority of preferred shares are issued by the banks, insurance companies, electrical utilities and pipeline companies. I am a holder of the common shares of the same companies (as they are stable long term dividend payers).
The first question I have is am I increasing my "company" risk by holding both common and preferred shares of the same companies? Should I continue to buy the common shares, which are paying very close to the available preferred share yield and gain long term from dividend increases.
The second question is of the four etf listed, which is your preferred etf. Are there other Canadian Dividend eft I should look at?

Thanks in advance for your excellent service.

Stephen

Q: I AM NEGATIVE ON ABOVE 3 COMPANIES. ARE THESE WORTHWHILE HOLDING OR SELL? UNLESS YOU ADVISE DIFFERENTLY PLANNING TO SELL AND BUY YOUR
RECOMMENDATION OF WHAT YOU CONSIDER 5 BEST CANADIAN AND 5 BEST US GROWTH COMPANIES...……. ANY SECTOR.
THANKS
kLAUS

GCL-COLABOR,HSM:CA,US COMPANY: URI -UNITED RENTAL

Q: TCN's shares have been acting well recently. What are the risks in continuing holding the shares for 3-5 years?

Q: After some impressive gains, PDL has taken a big hit this morning … down 22%. Would you consider it due to profit taking? All metrics seem solid unless the shares are over bought. Thank you

Q: Any particular reason for the large sell off today, particularly with tech stocks? I thought things were looking fairly good in the morning and with the news with China.

Q: Follow up to your reply from my last question. we will max out our TFSA as you suggest. In the past we used our RRSPs in to invest in our business, so we have zero RRSPs. would you suggest placing any in them? We will continue to have income from our business after "retirement age" we intend to live in and operate the business as long has health allows. My though was that RRSP will at to the income tax load when it becomes mandatory to start withdrawals.

Q: Hello

Could you comment on Whitecap’s recent earnings, forward guidance, debt levels and safety of dividend.

Regards

Daniel

Q: Hi, Transcontinental Inc was added to Income Portfolio in June, 2018 at $31.58 for 4% position and later beefed up by additional 1% in October. The thesis was a solid dividend yield of 2.50%, high growth expectations based on transformative Coveris acquisition and a low PE multiple. Stock, however, failed to perform as expected and price fell off the cliff within a short period and never recovered since then. Two subsequent quarters have been disappointing and Coveris integration ( acquisition closed May, 2018) is nowhere in sight. Management has also not been able to address the issues and market concerns, effectively. Company legacy business is already declining. Most analysts have cut their estimates and price targets drastically. One analyst also commented that due to these issues, compnay may even lose some contarct renewals and recurring revenues. Even if we are optimistic and Coveris acquisition issues are resolved by end of 2019, it could take another 2 years, before stock goes back to $31.58, in order to just recover our principal.
So, while the stock is trading at a low multiple and company just increased its dividend 4.6%, keeping its tradition, is it worth the wait (and take the risk) or there are better opportunities to use our capital ? We have gone through a similar scenario with TSGI, only worse and in that case even after almost a year and 55% loss, there seems to be little hope. Thank You

Q: Three stocks, one question. I purchased MedX long ago for pennies and have watched it climb a nickle. Recently purcased Mogo Finance & People Corp. Would sincerely appreciate your review of these stocks and thoughts going forward.... Thanks!

Bruce