Investment Q&A

Q: Hello,

In regards to Jules’ comment I would agree with the open next day pricing, that way the stated returns are the same as investors. The reason I say this is because I view 5i as industry leaders in no conflict advising and transparency. I am always leary of stock picking firms who sell a stock, record the gains or losses at an advantage to regular investors. It inflates gains and makes losses appear less than they are.

I would say that taking the opening price into account would add to your credibility as different from the entire industry.

Having said this, returns are what get you more clients so I understand the need to perform.

I am okay with it either way, because you are so transparent, but I think it would add to your overall high credibility! Thanks for the amazing service you provide!

Q: I would strongly agree with Jules comments quoted below;
"5iResearch announces portfolio changes after markets close and uses the previous day closing prices in costing out portfolio changes. But members don’t have this luxury of selling or buying a stock at the closing price of the day before. They line up in queue and do their transaction at the start of the following market day. My suggestion is for 5i to be transparent and price all trades at the opening prices of the following day. That way there is a sense of alignment with what the stated portfolio returns are and what members can expect to get. "
Please accept this simple recommendation so your published rates of return are representative of what can be expected by the average investor. Otherwise add a statement to the effect your rates of return are calculated based on trades conducted after market close and as such do not reflect the rates of return achievable by the individual investor.

I've followed 5i almost from inception and am deeply indebted to them for holding many stocks that I wouldn't have otherwise purchased and many have returned well over 100% such as: CSU, CCL.B, SIS, KXS, AYA (now changed), ENGH. So I thank 5i for their service and only ask when they make changes to the portfolio they state changes are in effect at market open the following morning. Never mind what mutual funds and other do. Stick with the 5 i's.

Steve

Q: Hi there, thanks for the updates on your portfolios! I mostly follow your Balanced Equity Portfolio with a few swap in towards growth (ie: KL, SHOP, PHO, PEO, COV, GSY, DOL etc) - in other words I dont' mind risk, but not on the extreme end of the risk spectrum. I like the names like PBH, KXS, SIS, TOY as well. That being said, If I wanted to buy 3 of 5 names that were added to the BE and Growth Portfolios, which would be best suitable for me: RHT, WEF, TCK.B, VB, LIQ

Thanks so much!

Q: Pretend you just came into $20,000.00. You deposit it to your RRSP so you can take advantage of the reduction to your income and lower marginal tax rate. Without any consideration to the current portfolio, which stocks would you purchase today with growth and/or dividend income in mind OR would you wait for another market correction?

Q: Following the balanced portfolio. Please rank your new equities in the order they should be bought. Which 2 have greatest growth potential. Also will AVO hang around the 26.80 mark until the sale?
T as always

Q: In your different portfolios which stocks are dept free and have lots of cash
Thanks

Q: I am in the process of building the Balanced and Growth portfolios, and I would like to take advantage of the recent pullback. I had been waiting for a correction to buy SHOP, but I notice that not only did it not decline much, but that it has recovered extremely quickly. I was under the impression it would be very volatile. Apparently not.
Anyway, could you please help me order in terms of priority to buy the top three or so securities that I don't currently have in the two portfolios:
Balanced: CAE, Celestica, Altus, Parkland, Sun Life, Stella, Sylogist
Growth: Dollarama, Covalon, Photon, Shop, IWO
In terms of best in the sense that they were unfairly punished and therefore have the most potential going forward?
Thanks for always great insight.

Q: If one was currently setting up a diversified portfolio including the following classifications - real estate, financial, health, technology, materials, utilities, energy, consumer discretionary, consumer staples, industrials and telecom - and wanted one core investment in each classification (either a specific larger established company or an ETF where there is no such company in Canada (such as tech and health)) what companies/ETFs would you suggest by classification. Thank you for your exemplary work and suggestions over the last few years.Mike
Mike

Q: If someone is sitting with cash to invest and does not have very much in the market currently which 5 to 15 (or more) companies would you suggest? Please consider the recent sell off. Also consider picks from your various portfolios with emphasis on your balanced portfolio or even other stocks that are not in your portfolios.

Q: Considering the big drop today is a great buying opportunity, which would be your top picks from the balanced and growth portfolio ?

Q: Hi,
Please recommend 2 names to purchase from the balanced portfolio with the current market conditions.
Thanks,
Brent

Q: A balanced portfolio should have representation from most sectors of the economy. Canada's economy does not contain good representation in Technology, Healthcare and Industrial sectors.
Why do you not include some American stocks that represent these areas in your portfolio?

Q: S&P,DOW & NQ are up between 7% to 9% YTD after huge advances in 2017.But the TSX is up less than 1% YTD after 5.5% in 2017.A shameful display,being one of the worst performer in the world in 2017.Thank goodness for the consistently good results of 5I year after year since inception in 3/13.So I need your expertise here again.Please advise 1) BEPORTa)Best 5 overall & b) best 10,one from each sector. 2)GROWTH a)Best 5 overall & b)best 10,one from each sector. Please rank the best 5 from the above 2 portfolios.Thanks a lot for u usual great services & views.

Q: A hypothetical. If one had enough money to purchase the entirety of one of your portfolios, would you recommend an even percentage of each stock, or should one also look at the relative volatility of the stocks?

Q: What would you add to today in BE, regardless of sector, current holding size, etc.? What looks good? Many thanks.

Q: This list of companies from the Balanced Portfolio were all beaten up a bit last year. Which of these do you now consider buying opportunities? Are any of these on your list to watch & discard if performance doesn't improve? If I were to add some of these to my relatively diverse portfolio, how would you order them in terms of anticipated total returns?

Q: I am transitioning from a growth portfolio to an income producing portfolio. Should I buy the dividend stocks in the model portfolio one at a time or buy small portions of each?

Q: I plan to shuffle my RRSP to include your Balanced Equity Portfolio and the three ETFs above. Would you recommend any exposure to bonds through a fourth ETF?

Q: Hello Peter/5I Team
Please list your top 10 stocks from the Balance or Growth portfolio that you think will have the greatest upside potential in 2018.With no consideration to diversification or weighting.Thank you for your great advice in 2017.
Merry Christmas and a healthly New Year.
Regards
Claudio

Q: I am balancing out my portfolios and was just wondering if I should be looking at trimming (and adding) in the Balanced Equity Portfolio so that each stock is lets say 3.8 % holding?? I see your CSU (as is mine) is over 6% (I have others) so should I trim and balance or sit and wait. TY for your sage advice and just wanted to wish everyone a safe and happy festive season.