Investment Q&A

Q: Hi. My daughter is looking to add a US tech stock to a portfolio that follows your balanced portfolio with some added US stocks and International ETFs. She currently owns 4 tech stocks; CSU, LSPD, KXS and NVDA. She is 21 yo and looking for long term growth. We are wondering if U is a better addition than TEAM (I am already following TEAM as I own it, but would consider selling it for a better company as I like to limit myself to following about 35 stocks). Any better suggestions? TTD? We both already own VEEV (under healthcare).

Q: Could you please rank above Tech stocks in order of preference that you would purchase or hold right now. I have all except CRWD and U, but they seem to be coming up in your lists more frequently.

Q: Hi team,

With 22 tech stocks weighting some 34% of my portfolio, I assume you would recommend that I rationalize my approach for a better diversification, both in my tech sector and in my portfolio as a whole.

To accomplish that, while keeping a strong growth approach, could you indicate which are, in your view, 1) the « must own » stocks, in order of importance 2) those which could be dropped because of « double emploi » or high risk, 3) those missing to properly cover the tech sector ?

Please feel free to use as many credits as you see fit.

Gratefully yours,

Jacques IDS

Q: I have to add US tech exposure (missed the boat) and only 4 percent which translates to $350,000. I already have 60 holding (total portfolio) which is already high but I’m ok with it given the size of my portfolio. Which would you pick? Should I just buy all 4 at 1 percent holding increasing to 64 holdings or pick just 1 or 2?

Q: I try to buy best in breed companies or leaders in each sector/industry with the goal of holding for the long term. With the current sell off in high growth tech stocks my buy price alerts in the above companies are starting to get triggered. During times when we get a market sell off or sector rotation, as we may be getting over the next few days or weeks, I like to only buy one or 2 positions per day in order to keep some powder dry if the sell offs continue. If I don't hold positions in any can you rank in order of what you would buy first to last and please feel free to add other companies to this list you feel are good buys. Thanks for all your help.

Q: I'm looking for growth companies that stand a chance for considerable capital appreciation over the short and long term. Please rank these companies from most likely to least likely to increase in value. If you know of other companies that are poised to increase in value please add them.

Q: The company will have slower revenue growth and profitability for the next 1 year or so as they transition their customers to the cloud. Short term pain for long term gain, at least thats their expectation. Still highly profitable, over 2B cash in the bank and investing heavily in their business. Would you suggest holding through this transition, stepping aside for a few quarters or using this as an opportunity to bulk up a long term position?

Thanks.

Q: I bought few of these "cloud stocka " only from what i gatheredQuestions on 5 i .
Veeva and Docu seems well accepted.
Fsly and Ayx very volatile
Do i continue to hold the latter tw or perhaps switch to Team and Roku which 5 i seems considers reasonably attractive

Q: Given that US Stock dividends in a TFSA are subject to US withholding tax, is there any particular type of stock that you would recommend for a TFSA for a senior who has moderate risk tolerance? Thanks for your help.

Q: Brett asked a question today. You mentioned 20 “keeper stock”. You mentioned 2. What would be the others?

Q: Which US and Canadian stocks do you think are the closest to "must owns" for growth investors today?

Q: What are your thoughts on OSTK? Would you start a position with a less than a 1 year outlook? It has had quite the year given COVID, but unsure how it would fare in a post covid world and where it ranks for crypto. Any recommendations you have as alternatives with a high short term growth potential (albeit with higher associated risk) would be welcome.

Q: North America will get hit with a Second Wave of Virus this winter. AMZN will benefit with on line shopping as will WMT and TGT. Truckers like FDX, UPS and TFII CJT will keep busy delivering boxes. What other Industries and Companies do you see benefiting. ? RAK

Q: I hold the above companies in my tech sector. Just bought Apple last week. I would like to buy 2 more us stocks for 3+ years . What would you suggest in terms of leaders in their business that combines future growth and some good momentum. Thank you for the great service.

Q: I have a total of 5% to invest and have chosen these 3 companies as possible investments. I'm a long term growth orientated investor.

Q: I am wondering about what stocks in the US you would see as cratering upon the announcement of an effective vaccine for covid. I see a significant vaccine breakthrough happening sometime within the next 6 months (or sooner) albeit with its attendant issues such as who gets it first, distribution, quantities, cost, etc but at least step 1 would be having the vaccine. I mean, just consider the gigantic effort being put into vaccine development. In particular, I'm wondering about buying ZOOM which now has a P/E in the 600 to 700(!) plus range depending on where you look. CNBC lists Zoom's peers among others as TEAM and DOCU which I already have full positions in. These all look wonderful to me now in a heavily covid world, but are they set up for a huge decline upon a significant vaccine announcement? Thank you.

Q: I have essentially equal holdings in these mega caps and other US and Canadian techs listed. For a new additional tech investment, any thoughts on the best addition? Would you recommend more to an index?
I'm trying not too add too many new names.

Thanks in advance.

Thanks,

Q: Hi 5i Team - In your answer to a previous question you referred to the meteoric rise of Shopify as a pretty unique company where things came together at the right time. Do you see another company in its fairly early stages that might be in the same situation that Shopify was two or three years ago (and still is). This company does not have to be in the tech field - any category is good. If you have ideas for more than one company that fits this description that's fine too. Thanks!

Q: Good afternoon,

The technology portion of my portfolio has grown too large (about 37%) and I’m trying to figure out how to get it back to about 25%? My issue is that I’m interested in too many tech options (I.e., the ones that I own plus others I’d like to buy). I’m looking for suggestions on which I should sell, add to or replace by buying a better option. Some were initiated with half positions that went down and some full positions grew so the proportions all over the place. I have a long time horizon and many are held in a registered account (except SHOP and NVDA). I own: KXS (3.5%), CSU (3.8%), SHOP (2.7%), PHO (<1%), ZS (3.3%), TEAM (1%), NVDA (6.1%), AAPL (11%), MSFT (4.6%) and I’m interested in buying REAL, DOCU and GOOG. I’d like to own what are viewed as solid tech companies for future innovation and growth and I’m willing to add, remove or replace any of these companies.

I also need to add materials and REITs to my portfolio since I currently have no holdings in these. I’ll use my tech trimmings to add to these sectors. Suggestions of top companies for these two sectors would also be greatly appreciated.

Many thanks for all the great work and suggestions you provide,
Lisa

Q: For the above technology companies there has been a huge pullback even though some have beaten nicely on earnings. Is this a buying opportunity for them or wait and see where the NASDAQ settles out before putting new money in. What is the reason for the pullback. Typical profit taking before Labour Day? Of the above Can you rank which you would put new money into first?