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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: Hi 5i Team - Could you name a few start-up companies that have good management and decent growth potential as well as some cash on hand to fund operations, research and development for at least the next year, hopefully more. These would likely be companies that have not yet attracted analyst coverage and are low on the radar screen of investors. Any sectors in the U.S. and Canada are fine and market cap is not a concern. I feel that LMN and TOI might fit this description but I already hold them and am looking for some new ideas. Thanks.
Read Answer Asked by Rob on June 21, 2023
Q: I am seeking to understand geographic diversification as I confine my equity exposure to those listed in Canada or USA. However, many of these equities have international operations outside of North America. I think of this as my international diversification, although I believe this is not how geographic diversification is generally viewed. Appreciate any brief comments or insight you can give. This may be too general a topic to reply to in brief, so perhaps you could advise one or 2 references on the topic.
Much thanks, as always.
Cyril
Read Answer Asked by Pat & Cyril on June 16, 2023
Q: Hi,

I read the piece by Salmaan Farooqui in The Globe and Mail on Saturday, 3rd June , about AI assisted Portfolio mgmt called Portfolio Pilot by Global Predictions. What do you think of it. Do you see folks like you and similar services that offer features that include portfolio analysis will either buy into services offered by such AI driven companies or adopt AI by some other means? I am still in the early stages of exploring it. Afterall it is free!

Are there competitors to Portfolio Pilot?

In what way this is different from your algo driven Portfolio Analytics?
Read Answer Asked by Savalai on June 07, 2023
Q: I note you were asked something similar to this last October, but that was with respect to gold. There is more talk of a desperate Putin using a tactical nuke in Ukraine as this is his only path to victory while failure means his own demise. I know you can only guess but my own guess is the overall markets would go insane, blow through circuit breakers and drop at least 10%-20% on the day. Is your more experienced, more considerate 'guess' somewhat similar?
Read Answer Asked by John on June 06, 2023
Q: My understanding is that if an agreement isn't reached before early June (?) regarding raising the U.S. debt ceiling then there could be significant global economic fallout... leading to unemployment, interest raise hikes, and of course, large market selloffs.

How much weight/attention are you guys putting on this situation? Is this leading to a significant buying opportunity? Is it wise to increase cash position until this plays out?
Read Answer Asked by Brett on May 25, 2023
Q: Looking for some companies that offer the opportunity for short term trading (decent sized price swings) but have the fallback of being a solid long term holding (income, long term growth potential)...should I find myself in a loss position for a while
Read Answer Asked by Brett on May 24, 2023
Q: More than half my portfolio is US stocks or etfs valued in usd with very little fx hedging. In recent history the usd/cad exchange rate has ranged from a low of about 0.95 in 2011 to a high of just over 1.40, and we are at 1.35 now, that is, close to the top end of the range. As I live in Canada, am I taking an outsized risk here based on currency alone? There seems to be a lot more downside potential at 1.35 than upside. If we move ever move to par again, that would be huge hit for me.
Read Answer Asked by William on May 24, 2023
Q: Let’s talk index growth potential, generally.

We see the S&P500 has a 7+% weighting of Apple and a 22% concentration in the top 5 stocks. Reports are that tech drives the index growth much more than the remaining companies. Other indices around the world do not have this anomaly. e.g. TSXComp, MSCI World, MSCI EAFE (all typical of locked pension funds)

As we eventually move past this period where a recession may or may not happen, and market downturns may or may not happen, which areas (and these indices) may enjoy a healthy, lower-risk yet most favourable delta over the next 3-6-9 years? Is Warren Buffet on the right track when he recommends that his wife stay with just the S&P500 when he’s gone?
Clayton
Read Answer Asked by Clayton on May 24, 2023
Q: A general question.
What happens if shareholders don't vote in the annual meeting's voting ballot that we receive from companies in our mail?
Mostly it's about board elections, approving executive pays, approving the auditing company and a few other shareholder proposals that we are not fully aware of and it consumes quiet a bit of our time on voting as sometimes there are 15 or more questions.
If we don't submit our vote is it considered as voted as per management recommendations or management gets to vote on our behalf or its considered abstain ?
Read Answer Asked by Jabs on May 19, 2023
Q: I have always been puzzled by cyclical stocks. By way of example, I hold NTR in a non-registered account and have ridden it up (by 50%) and now down to 15%. Is the strategy for dealing with these stocks simply to ride out the bad times, knowing they will eventually cycle back? Or should I be selling on the way down and trying to figure out the best entry point when the stock starts to rebound? The matter is complicated, of course, by the tax consequences of selling in a non-registered account. Your advice regarding buying and selling cyclical stocks would be most appreciated. Thank you.
Read Answer Asked by Maureen on May 19, 2023
Q: Are there any Canadian and/or American small to mid cap companies in the same field that Score was, that have the potential to do well over the next two to five years. Thanks.
Read Answer Asked by Rob on May 18, 2023
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