Investment Q&A

Q: Understand size and sector differences. Adding to a diversified portfolio, + 3 % in dollars of current. What rank in order to purchase for 3-5 year hold? (I see CLS moving favourably in pre-market).

Q: This is a follow up to Dennis‘s question on the number of stocks to hold in a portfolio. You have suggested that about 20 (15-25) is all that you need. This may be correct for a conservative investor, but I feel your client base is a little bit more aggressive. Hence 20 conservative stocks, and a dozen more aggressive ones. I have used your advice to help me invest in a dozen smaller or unknown companies of which some have done great, some have done well, some are treading water and some have done poorly. I have started all these at a quarter position, which has worked well over the years. My biggest problem is knowing when to trim the great stocks as a fourfold increase only brings them to a full position. A great problem to have. Thanks for your advice over the years.

Q: My TFSA portfolio has done exceptionally well in large part due to the invaluable information and coaching provided by Peter and the rest of the 5i team since 2013. Thank you very much for helping to build our intergenerational legacy.

I plan to use a fraction of the assets in my TFSA to set up a high-growth, moderate high-risk concentrated 10 stock six-digit sub-portfolio with a 10 year time-frame and hoping for a 5-10 fold target. The idea is to select the best high conviction durable names, maximize capital gains compounding, and minimize dividend drag such as US withholding tax in the TFSA. With the help of my chatbot assistant, it looks like a base case of 17-25% annualized is required to reach the 5-10x target, even with periods of significant drawdowns and bull cases. Obviously stock selection and staying invested for the long term are key.

My initial tentative selection of 10 stocks NVDA, ASML, MSFT, AVGO, NBIS, GOOG, TSLA, CCO, NVO, and SHOP with weightings ranging from 6% to 16%

Could you please critique my strategy and the stocks selected. Suggest improvements including alternative names to consider as replacements that you feel might work better.

If you were creating such a portfolio for yourself which 10 names would you select.

Q: Somewhat related to an April 23 question asked by Paul F...Kraken has grown and now has a market cap of $2.51 B. Do you still see it as a small cap? With its increased size would you see it as less exposed to what was previously the small cap risk, or does its history as a small cap still make it one to be cautious with? Put another way, if one previously started with a small position and still has it as a relatively smaller weight, should an investor who likes the story be ready to add now that its market cap has grown? Many thanks for your excellent service.

Q: If YOU were starting a portfolio right now in this market, which 10 stocks (more or less in order) would you buy with pure growth on your mind? Ignore diversification for the purpose of this question. 3 - 5 year hold. Canadian or US Stocks.

A brief explanation for each.

Thanks so much!

Q: What are your thoughts on Char Technologies? Too early to invest? What other small caps would you invest in instead for a 5-year hold?

Q: First, want to thank you for the service provided over the years. I recently reached a financial milestone (another 0 at the end of the net worth statement at age 33) and 5i played a massive part. Biggest elements were the great stock picks (obviously) which allowed me to outperform the market quite a bit, as well as the reassurance to stay long when the market has a fit.

My question is can you provide a list of top picks for long term growth that are less associated with AI. I'm heavy in AI, want to stay overweight, however would like to slowly diversify a bit over time. Open to a mix of risk levels.

Q: One of the members mentioned feeling bad that he had missed the boat on the rising tide. I am also in that boat. I had planned to buy something but kept putting it off. That being said, are there still some bargains around? I am thinking of the usually favoured stocks such as Shop, Google, CSU etc.
Thanks for the greatest service

Q: PNG released results this morning. Looks good but not sure if good enough to sustain its strong price movement. Your comments after the call would be helpful. How do you see things progressing price-wise over the next 6-12 months? Still looking like a top performer?

Q: Thoughts on the quarter please, if not already asked.
A prior question on the Q expectations you had indicated...'Revenue expectations are $39.36 mln for the quarter'..... but it looks like the 'Consolidated revenue for the quarter was flat at $28.4 million.'
Is this a concern? Or is there a difference between 'consolidated' and 'revenue'?
The forward guidance without the new acquisition looks good and probably even better with the acquisition (to be announced post completed acquisition).
Do you see any obstacles with the potential acquisition, ie anything that might prevent it?
I have owned the stock since about 18-24 months...and I thank-you for the suggestion!!!

cheers,
Steve

Q: I appreciate your guidance, and I don’t reach out often, so thank you in advance for your time. For a retired investor with a reasonably safe and conservative RRIF—who also does some consulting and has accumulated some extra cash—could you recommend two stocks with strong potential to double within the next year?

I understand that opportunities with this level of upside are inherently volatile and could decline 50–75%, but I’m comfortable with that risk for a small portion of my portfolio. It still feels like a better bet than buying hundreds of lottery tickets.

I’d appreciate a brief explanation of the rationale behind your two selections.

Q: I am looking to deploy cash sitting in my TFSA. I have "full" positions in NVDA, SHOP and GOOG. "Partial" positions in BN, CLS, BANK, NBIS, RKLB and PNG. And finally, "starter" positions in HOOD, GLXY and App.

1) Would you be comfortable with the overall balance in the account?
2) Would you deploy the funds into 2 or 3 of the existing holdings and if so, which ones?
3) Would you start a new position(s) to increase diversity and if so where would you go?
4) Would you eliminate any of the current position dues to overlap or other reasons?

Thanks,
Terry

Q: I asked question last Sunday past regarding top 6 sectors (in order of preference complete with top 2 picks in each sector along with reasons behind the picks again everything in order of preference please. No sure what happened but no answer was given...thanks

Q: Good Morning, I’m looking to round out my TFSA. Excluding Celestica, Shop, BN and Kraken what Canadian company would you recommend for a 3 year hold.
Thank you

Q: Does PNG report this week on April 16? What's generally expected and what does 5i expect? What are the results, both hard and soft, that could move the stock higher or lower? What's is the one result that could hurt the stock and the one result that could move it much higher?

Q: Can you compare these as to growth outlook, valuation and overall market. Thank you

Q: My kids RESP currently hold CSU, SHOP, SIS, ATZ, XIC, BN, PNG, VTI. CSU was purchased at $3,250 and SHOP at $210. Is it wise to average down now or is there another one or two that will be good to add to this mix?

Thank you!

Q: Two stocks, 2 questions. PNG has fallen from over $10.50 to $7.60. Was the stock run up to get favourable rates for when they raised money? Also, did it make the deal for their acquisition swim a bit easier? Where do you see things going from here? When do you think it will recover? Still a top 5i pick?
ZDC is another issue. Stock has been quite weak. I'm starting to think it may not work out all that well. They have no real moat and others can enter their market. But they have done well and recently raised money. What do you see for it going forward? Does it still make your favourite list of top stocks?

Q: With the VIX above 30 and sure to continue to be volatile in the coming weeks, how would you advise investors to step into the current market? Can you provide a couple of examples of companies you would be buying into this volatility?

Thank you
Tim

Q: What's the perceived/real problem with PNG lately?