Investment Q&A

Q: I am thinking of making the following move. Selling my TECH and then on the US side of my portfolio buying the top three from the fund. I am thinking MSFT, AAPL and GOOG. Do you agree with these three as the best of the six? And if not which would you switch out and why? Please note that for any buys that I am currently making companies need to be in a net cash or minimum debt situation. And am I right in presuming that I could claim the capital loss on TECH even though there is technically considerable overlap here? Thank-you.

Q: Hi, we are trying reduce our Technology exposure in US stocks. These are the companies held in our portfolio, in this sector, with weighting in descending order as follows: AAPL,MSFT,AMZN,MA,V,GOOG,PYPL,NVDA and ISRG.

How would you rank them, Today, based on the current valuation, growth prospects and risk ?

Also, should MA,V and PYPL be considered different than others ?

Thank You

Q: Re your response to John, January 17th, you answered "it's hard to beat a single great company that compounds year after year".
Could you please recommend 5 Canadian and 5 US companies that fit into said catagory that have declined recently due to the tech sell off, and represent a good buy/nibble point,
Please include a mix of larger e.g CSU and Google, along with more recent up and comers e.g. Shop and Roku, which seem to be among your most obvious favourites.
Thanks Peter.

Q: Hi Peter,

I have been a big fan of the FAANGM group and have been fortunate to invest in all of these companies.

What is your ranking over the next three to five years of the above group of stocks from a risk-return perspective?

Thanks,

George

Q: Hi,

I'm looking for an average beta US ETF with some growth, to hold forever.
VOO has a beta 1. Over five years its done 17.86 % annually
IUSG has a beta 1.1 Over five years, its returned 23.4% annually
VGT .has a beta of .9 over five years, 31.46% annually.
So both IUSG and VGT have lower beta and higher returns than VOO?? And both VGT and IUSG have done much better in the recent tech selloff? Seems hard to believe? While past performance is no guarantee, the numbers suggest I should choose VGT. What do you think?

Q: Hi, Technology is the largest weight at about 45% ( even after the recent sell off) in our investment portfolio. Most of these holdings have been down 25-50% from the highs, over past 2-3 months, following the general market trend of indiscriminate selling in High multiple Tech stocks. LSPD and NVEI, of course, saw much steeper losses.
We do have the rest of the portfolio invested in Cdn large cap banks, industrials, utilities and telcos, generating decent dividend income.
We recently retired and as a part of portfolio planning/risk management, would like have a strategy to reduce the Technology weight to less than 35%, over next 2-3 years. The plan could be executed in phases, once the current tech rout is over and valuations have recovered.

From the perspective of risk, growth, stability and valuation, what would be the recommended/desired weighting for each company, balancing these factors. What would you suggest to be order of priority for the purpose of initiating sale of each stock. Also, it would be really helpful, if you could provide a reasonable price range for sale/trimming of these companies, based on price history and future expectation over 2-3 years.

CSU 14.5%
SHOP 9 %
TOI 5.2%
SYZ 3.5 %
LSPD 3 %
KXS 2.5%
NVEI 1%
US Large Cap Tech ( AAPL,AMZN,MSFT,MA,V,PYPL etc) 8% (we want to keep as is)

Thank You for your insight, which we value so much.

Q: I am a little overweight techs in a well diversified portfolio. Considering valuation contraction where do you see a new normal forward P.E. the S&P in 2022 and for those stocks highlighted?
Please provide forward P.E. and multiples for those that make profits and guestimate where the low end could be for the others.

Thanks

Yves

Q: What are your thoughts on this etf? Are there any similar options to get exposure to these companies?

Q: Hello,
Are you able to rank these companies (best to worst) for entry today for long term hold.
Thank you

Q: I would like to add to my TECHNOLOGY sector. I own Apple/ AAPL
, Microsoft Corp / MSFT, Open text/OTEX
, and EVOLVE CYBER SECURITY INDEX ETF UNIT/CYRB for a total of 13%. Would Costar group CSGP be a good addition for both diversification and as a growth stock.

Q: Hello Peter, I like your article on the National Post about the five areas to invest in for 2022. I have a few questions: for the small cap space, would Aritzia , ATS Automation and Topicus fit the category? In the large cap space, would AMZN be a good stock (instead of AAPL) as it has not done much in 2021? what do you think of the renewable energy space as it did not do well in 2021 (i.e BEP, etc). Lastly is the definition of small caps in relation to market caps less than $1 billion or ? Thanks very much. Happy new year

Q: Thank you for your rapid response! Followup question (feel free to deduct extra credits as needed), If I were to replace SLQT, FIVE, and PAYC with three new US positions, which would you recommend? Please exclude these equities as I already have positions in them: MSFT, PFE, IBM, MDT, ADBE, PYPL, GOOG, NVDA, TOL.

Again, for longterm growth in my US dollar TFSA, risk profile in-between 5i Growth and Balanced Portfolios, disregard sector/market cap considerations.

Thanks again!

Q: Hi 5i team. Thanks for the great service over the years and looking forward to a great 2022!!

What would be your top 5 ranked stocks both US and Canada for growth in the next 5-10 years+ with strong balance sheets and strong management ?

Q: Thanks for all the work that the 5i team does. I just retired and saved a good nest egg. I should note that about 45% of my portfolio is in fixed income and it is not included in this question. I enjoy keeping an eye on the market and investing. I read your answers to questions daily. I like about 20% exposure to tech stocks (good ones like aapl, goog, shop, etc).
I have selected a total of only 20 stocks in all sectors and I have weighted them as best I could to meet the portfolio analytics suggestions (adjusted by me for more tech). I have say $170K in Unregistered, $150K in TFSA and a much bigger chunk in SDRSP (Minus the 45% Fixed income), I would like to put the same 20 stocks (weighted as per above) in each portfolio BUT in the bigger chunk SDRSP put 60% of the SDRSP funds into the 20 stocks and put the remaining 40% of SDRSP funds in 4 Value ETFs (2 CDN, 2 US) and 2 INTL ETFs. Therefore, I would have the same 20 stocks in three portfolios and 6 ETFs in the SDRSP.
This makes perfect sense to me … but maybe you have other thoughts. I would like your expert opinion on this approach please.
Thanks so much and happy holidays

Q: What a dilemma. Apple is the best performing stock in what is supposed to be a relatively safe and balanced RRSP portfolio. But it has grown to represent 20% of the portfolio. I feel I have to sell a good chunk of this high performance stock in order to correct the balance. Can you suggest what I could buy to replace the shares of Apple I sell?

Q: Hello 5i,
My investments have grown nicely in 2021: thank you!
I’ve categorized the above assets into three buckets:
Technology: nvda,kxs,toi,csu =12.8%

Communication: goog,apps,kind =6.5% (goog is 5%)
Consumer discretionary: appl,shop,lspd =8% (lspd=<1)
Total= 27%
Please comment on outlay and provide ideas for improvement. Am I being too cute with my categorization buckets?
Many thanks for your opinion.

Q: My TFSA has too many holdings (with various weightings from 3 to 13%), and there appear to be some good buying opportunities at the moment with some of these. I quite like all of these stocks and need some help identifying which 5 or 6 to sell and which 5 or 6 to buy with sale proceeds (those which have been most punished for no good reason and fundamentals are still sound).

AAPL, ATA, BAM.A, ENPH, GSY, KXS, MMX, PBH, SIS, SHOP, TFII, VEEV, WELL, WSP

So far all I’ve come up with is

One on the chopping block: cleanup small position: MMX – also it strikes me as neither a growth nor income stock.

Definite keepers: ATA, ENPH, TFI, WSP (all seem to be thriving)

Thanks

Jim

Q: Hi guys,

I have been a holder of AAPL for years with some excellent returns. Increasingly however I wonder whether this is a sustainable growth pace for the world’s richest company, and whether they are able to hold their multiple. The phones are expensive and their watch, AirPods and other accessories are successful, but again can they sustain replacement of these expensive products and actually grow their markets for such a huge company.
Their recent rally has been shocking to me, as the only recent news provided was of supply disruptions and an insider statement to suppliers that demand for the 13 is less than expected.

Do you see AAPL as worthy of holding for years to come with its now elevated multiples or is this possibly a good time to jump to another peer that has more left in the tank, like MSFT or AMZN?

Thanks as always.

Q: Could you please rate the above best to least for growth in the next few years
Thank you for all your great advice.

Q: My virtual 'conservative growth' portfolio has the above 10 stocks in equal wights. What two stocks would you add to round it out please? Please assume that I have 45% outside of this portfolio in fixed income. Are 12 stocks enough in your view? I know there are many factors but please answer the best that you can ... maybe assume it is you.