Investment Q&A

Q: Hi 5i -- my son (age 26) has recently started working in a well-paying job in the US. He's saving a good portion of his salary and has asked me what he should be investing in. No debt. He's looking to invest for long-term growth for retirement in 40 years or so. About 1/3 of his holdings right now are in Brookfield Asset Management, 1/2 are split between VIG and USMV, and the rest is Berkshire Hathaway and CN for his non-registered accounts. Right now non-registered savings are $75k.
His 401k is separate in Vanguard SP500 index fund. He is a believer in pay yourself first and has been able to save and invest 5,000/month US!

He's looking for good growth stocks or funds that will increase steadily over the long term. He's earning enough now that he doesn't need dividends in the short term but he's not opposed theoretically if everything fits together. Any thoughts on what he should be investing in? Thanks.

Q: Looking to invest my CRA return in two of the above companies. I am well diversified, growth oriented and looking at a 3 to 5 year timeframe. Please rank the named companies with any appropriate comments.
Much appreciated as usual. ram

Q: I’ve continued cautiously to hold GSY, not withstanding strong unemployment numbers which have to affect the company’s ability to avoid bad bets. Tomorrow will report some dismal news on jobs but today GSY stock, even after a recent lackluster reporting, up 23% as I write. Makes me think there is no logic in these current market conditions, that favorable or dismal stock performance could affect any company at any time. I’m getting very skeptical about the markets and as a senior, this is becoming quite unnerving. I’d appreciate your valued comments.

Q: Quarterly was not too good yet it is up 21% as of noon 7 May. Also, the longer people are out of work the more unlikely they will be able to pay their bills. It seems to me that the first to default would be those who have weaker credit ratings and likely to go to an institution such as GOEASY. I hold GOEASY and am doing well but I am a bit concerned. What am I missing?

Q: Hi 5i,

Please provide comments on the earnings released today.

Thanks!

Q: Given the bounce back has been "quicker" than expected, what would be your top 5 US and CDN growth picks ranked in order with a strong management and balance sheet that would be considered "on sale" still from the Covid effects? Given I have a 5-10 year timeframe. Thanks.

Q: At today's prices, what Canadian stocks look most attractive to you for a long-term hold?

Q: How healthy is the comp. and is the div. safe ?

Q: Morning:
I own equal weightings of these equities in my TFSA. I have some cash to invest, which one of these would you buy more of at their current market valuations? Looking for capital appreciation over the next 8 to 10 years. Thanks!

Q: Can you please provide me your top 6 Canadian financials that you would buy at this time. Please rank:
Thank you

Q: Good morning,

I read that Lenderclub in the US laid off 30percent of there workforce yesterday with considerably fewer loans. Similar companies or not? Would you expect a similar decrease for GSY, and do you believe that is already priced in? Thanks in advance.

Q: Hello 5i team,
I greatly enjoyed your report on Covid 19 and investment themes. I have a pretty good idea as to 10 to 20 names of stocks that could fit into those themes.
Could you name just 10; I'd be curious to see how close I am.
Thanks,
Antoine

Q: Between these 3 stocks which one would you have the most faith in and in what order would you rate them. Volatility is not an issue for me and I'm looking at a 5 plus year time frame.

Q: Hello 5i Team,
Thank you for all your guidance throughout this type of market. I'm sure all the Canadians are greatly appreciating your impeccable work for us DIY investors.

If you have ~$20k of cash today and your goal is to appreciate this into a much larger amount not too long after coming out of the other side of this market (i.e. after a recession), which 10-15 Canadian equities would you go after with a good sector diversification?

Since I am younger and my nest egg is still small, I'm not too concerned or rely on dividends. I'd much rather have stocks whose valuations may appreciate greatly rather than going for the slow and steady dividend aristocrats and blue-chips.

I have been eyeing the large discounts on Canadian equities such as the following: AC, CAE, SLF, GSY, LSPD, PLC, GIL.

Q: Hello 5i,

Imagine that you already have a diversified portfolio you are happy with and plan to keep intact with no changes over a 10+ year investment horizon.

Now, you've watched the recent few months of meltdown sitting with $50,000 of cash that you're considering putting to work, representing maybe 6-7% of your total overall portfolio value/net worth.

Give absolutely no consideration to sector/position weightings, geography (CDN or US or gloabl), or risk tolerance. The only consideration is a 10+ year time frame. You're investing in things for the long term. No trading.

Imagine this was YOUR $50,000. You show up to the office on Monday, April 13. What do you buy today, if anything?

Thanks for all your advice. Read the questions daily. Your takes on this current meltdown I have found to be quite insightful and of far more value than most financial news out there. For this alone I consider my subscription to be money well spent.

Keep yourselves and your families safe!

Ryan

Q: Hi

I know you have recommended this in the past based on valuation and it has recently rebounded almost 100% off the lows.

As someone with a 5 year+ time horizon, but concerned about capital preservation, is this a good place to be right now

My concern is that if people are struggling to pay bills, rent, buy food, these loans will fall first.

A secondary concern given the present environment is government intervention to reduce the interest rates GSY can charge which would fundamentally impact the business.

Thoughts?

Q: I hold both of these and believe they are in somewhat of the same business, and while both have only recovered to approx 1/2 of their previous highs before the virus problems, GSY has recovered substantially better in the last few days. Is there a problem with HCG or just a lagger at this point???

Many thanks for all your good advise
Ken

Q: Happy Easter. I have only been subscribed to your service 3 weeks and I already know it will be invaluable- thank you. I have started 1/2 postions in all 4 of these companies as per your recommendations. I have a 5yr plus time horizon and I am very comfortable with volatility. What I am struggling with is in how to approach taking larger positions in all four, when I suspect they will report in very different fashiosn over this quarter, the second and third quarter, and maybe several more. From reading your responses to the questions, GSY could report just fine and continue showing ok results. LSD will likely look so-so for a few quarters but has some recurring revenue. Finally, DOO and GC will likely look terrible for several quarters with poor boat/ATV sales and nobody sitting at a poker table in a big room with others. If I am a long term investor do I just dive into full positions in all of them in what could be great valuations 5 years from now? Do I approach the four companies differently? I understand your comments on slowly entering into this market because it may have dips over the next 1/2 year and they could be lower, but if i am looking 5 years out do I care, not wanting to chase if we proceed slowly up from here? Thanks in advance.

Q: Hi Guys, looking to buy some partial positions on the following stocks, I own banks and telecoms plus SHOP and LSPD and a few others, would like your opinion with this 10 pack and do you see any issues with any these companies going forward.
Thanks for your great service
Anthony

Q: What would be your top stock picks for the best returns over the next 2 years? US & CDN.