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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: I always hear that we should not hold more than 5% or max 12% on any given stocks. So why would PAY hold one company that is the majority of their income. If that is the case would 5i management would be comfortable buying any of their stocks.
My question does any of the Growth, Balanced or Income portfolio stocks holds where above 50% of their income comes from one source. If yes please share the company name since I usually buy from that portfolio. I don’t want to see another company collapse if they lose that contract or they don’t renew.

Thanks for the great service
Read Answer Asked by Hector on October 04, 2024
Q: Hi,

Do you think that the Growth Portfolio is poised to outperform the balanced portfolio moving forward? You've mentioned in other threads that small caps have underperformed in the past 5 years; is that compared to large caps, or is that compared to an index?

Also, when comparing both portfolios to American ETFs such as VFV, they both seem to underperform. Which portfolio would you recommend for a long-term 40-year hold in a TFSA to maximize returns? Or would you recommend a different investment into an American fund to maximize returns over that same time horizon?

I like the strategy of investing in small-cap stocks for higher growth but also don't want to disregard the balanced portfolio if you believe that small-caps will continue to underperform moving forward.

Looking forward to hearing your thoughts
Read Answer Asked by Bill on September 27, 2024
Q: When looking at the results since inception for both Growth and Balanced Portfolios I find that ultimately the BPORT generates a lot more return than the Growth .
BPORT generated 263% since inception against the S&P 229% during the same period. The GROWTH is not even close to that of the S&P and the growth part of my portfolio suffer from that . Do you have a comprehensive explanation?

I love the service but I can't wait to hear from you on this topic.

Yves
Read Answer Asked by Yves on October 30, 2023
Q: Take the growth portfolio as an example, but this could be applied to any of the 3.
Let's say I only want to focus on 5 companies in this portfolio that would make up 100% of my investments could I assume that the top % allocation would be similar to saying these are the ones that we endorse the most? Or is this simply a construct based on the total number of stocks and other factors that you are considering (risk, diversification...). Said differently, how can we use/interpret % allocation of the model portfolios if we are not buying every company in the portfolio? What assumptions can we make, if any? And yes, I understand you can't give direct advice on % allocations as everyone has different levels of risk, goals, etc but simply trying to understand what is the best way to use that information. Thanks!
Read Answer Asked by Marco on November 04, 2022
Q: I would very much value your opinion /comments about Larry Swedroe's October 11, 2013 article in ETF.com entitled "The 'Black Hole Of Investing'" ( https://www.etf.com/sections/index-investor-corner/20092-the-black-hole-of-investing.html ) about why small cap growth stocks are the worst-performing segment of the investment market. And why you recommend them in your Growth portfolio (IWO) instead of small cap value, for example - Thank you.
Read Answer Asked by David on February 04, 2022
Q: In September you considered it a hold but are not adding to your position. Based on the last growth portfolio update, it has a weighting of ~1.2%. You have also indicated that there will likely be some tax loss selling.

I am down ~45% in my TFSA on this one and makes up 1.1% of all holdings.

What discussions are going on with 5i in regards to your position with the growth portfolio. Is patience wearing thin? Are you looking to remove it because its stuck in "show me" mode and management fails to improve margins? I am trying to decide whether to cut my losses and move onto something with better growth, execution, and conviction.
Read Answer Asked by Justin on October 20, 2021
Q: I have done well on PHO, thank you! I have a large position and considering to trim it to lock some gains and keep a normal position for a possible upgrade to the offer.

With the correction occuring, i'm looking to invest the gains somewhere else when the market cooldown. I'm mostly following the growth portfolio and considering these stocks :

- ATA : I have an half position
- DOL
- GDI
- TRI

- AC
- MG
- TFII
- NVEI

How would rank them? Feel free to add better suggestions (canadian stocks).
Read Answer Asked by Francois on May 13, 2021
Q: Can you please advise which one would you consider as a value stock as of today price from your Model, Growth, Income portfolio?

Thanks for the great service.
Read Answer Asked by Hector on March 30, 2021
Q: New to the site here. Why are there companies in the model portfolios that are not rated? If you are recommending them why wouldn't you rate them? Thanks!
Read Answer Asked by Lindsey on March 29, 2021
Q: Hello,

I just started subscribing to your service in October which began my journey in to the stock market. While I get started I have decided to mimic your growth portfolio and spread out $25k over those stocks. I tried to follow the weighting of the portfolio at the time. I now have an additional $15k to invest in my TFSA and was hoping you could suggest the following:

1. Which 10 stocks in the growth portfolio should I add to right now? I don’t want to split my buy too finely across all stocks in the portfolio. My strategies are consistent with the overall goals of the portfolio.

2. Thinking of the same strategies in the growth portfolio, what are 3 US stocks that I should newly acquire?

3. What are two stocks that I could acquire for a short term 2-3 month hold?

Thanks very much. Have really enjoyed your service.
Read Answer Asked by Geoffrey on February 19, 2021
Q: Some help for Paul asking for ideas to invest in his TFSA. In February (13)?, 2017, 5i answered a request for the top 10 picks harvested from the 5i portfolios. They were as follows: GSY, SHOP, SLF, WSP, GUD, OTEX, SIS, KXS, PBH, and one other I lost track of. Over the 4 years the return, if still held, would be +280%, but even without SHOP or GUD, the return is a respectable +96%. So for Paul and me would you do it again from current portfolio holdings. My New Years resolution is to pay more attention to your picks...........thx. Lionel
Read Answer Asked by Lionel on January 15, 2021
Q: Hi,
Question 1: When do you plan to add the new positions in the growth portfolio? If you can't share that information, would you be able to share the short list of what you are considering?

Question 2: If you were able to add US positions what would they be?

Thanks again for your wonderful service and happy holidays.
Read Answer Asked by Marco on December 23, 2020
Q: Wondering if you can confirm what Benchmarks are used for the 5i Model Portfolios.
I may be wrong but from passed members questions I gather you may use XTR for Income, XCS for Growth. What about Balance Equity portfolio benchmark?
Many Thanks
Frank
Read Answer Asked by Frank on July 08, 2019
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