Investment Q&A

Q: I've been looking at investing in one of the FAANG's + Microsoft. Some I don't find attractive despite their fairly attractive valuations:

Amazon - poor outlook

Apple - China production

Google -perhaps lower ad revenue near term, and it's such a large part of their business model.

Meta - uncertain future after change in business model.

I guess the above are cheaper for a reason. Would you see reason for optimism on any of the above?

I like MSFT and NVDA but can't get past current valuations. NVDA in particular looks attractive. AI seems to be a major disruptor going forward and it appears to me that NVDA has a moat in some parts of the AI world. Would you feel that it has the most avenues for growth too compared to the others ? How quickly can it grow into its current P/E, P/C and P/B valuations? They seemed so much more reasonable 10 years ago.

Q: I heard today that Meta announced (rather quietly) that they will be diluting shareholders by printing $425M more shares to give employees in SBC to try to keep them after the big price drop over the last while. I was continuing to hold META because I think it still has a decent shot at growing in some of its rev streams and the metaverse could be successful for them. But this dilution irks me more than the the price drop. What are your thoughts on this? Do you see this as being more of a reason to maybe exit a position in META?

Q: I currently have the following positions in the "FAANG" stocks: GOOGL (5%), MSFT and META (each less than 2%), AAPL (less than 1%).

Not interested in NFLX since I already have positions in DIS and ROKU, but I'm open to AMZN (although I have a small position in SHOP, less than 2%).

I want to reduce the number of stocks I own, so I'm looking to consolidate my FAANG positions. In what order would you rank the FAANG stocks at today's prices for potential future returns?

I have a long time horizon (decades) and a very diversified portfolio, so not worried about short-term declines in share price.

Q: Hello Peter

Best wishes for the Season

I owne the above in my non taxable accounts with a considerable loss. I am a senior who tended to invest in growth stocks with some sucess exept in the last 12 months.
I consider that above list has some potential for recovery.
I would like to concentrate on the bests with the greatest potential recovery in 2023.
I will appreciate your advice on the stocks I could sell or add on or replace.
I always value your opinion
Raouf

Q: Hi team, I just sold this position for tax loss purposes ( -45%). Still like the future of this company but still debating on repurchase it later or meta. What would be your choice for 2/4 years and why? Thank you and happy holidays to all of your staff!

Q: Hi, thinking about one of the two to start a new full position for 2 to 5 years minimum in unregistered account. What would be your thoughts? Secondly, without trying to time the purchase, would you go ahead anytime or wait awhile?
Thank you!

Q: The following are some of the companies I’ve lost money with and will sell for tax purposes. I am wondering what your opinion is re their repurchase as commented on below.

The following I don’t feel I need to buy back, unless you feel differently.
NFI, QST

The following I would like to buy back ASAP unless you feel otherwise. Considering the state of the market do you think I would need a proxy for the next 30 days?
CRWD, GSY, META, NVEI, ROKU, WELL

The following are stocks I would like to buy back but don’t see the urgency, considering how the market currently views these companies, notwithstanding their financial outlook.
COIN, LSPD (I already own SHOP), U, UPST

Thank You.

Q: I need to raise some cash in my RIF and I have narrowed my choices down to either selling META or selling TOI.
Which one would you let go and what is your reasoning.

Q: I am thinking about purchasing shares in some companies where the shares may be depressed currently due to year end tax selling. do you have any suggestions?

Q: Hi there,

I’ve often heard that a handful of stocks can provide life changing returns. If you had to pick 5 (or more) that could be life changing, which would they be in preferential order?

Thanks!

Q: Want to sell META and buy one of the others. Which would you chooses?
Thanks

Q: lspd meta pypl are the worst performers in my portfolio . is any of these worth keeping long term .
Is aqn a buy at tthheselevel

i

Q: What is your outlook for GOOG if we get a "hard economic landing" ? Will their Cloud business help soften the blow?

Maybe 5i can have a bit of fun with this........ Looking out into an uncertain future, what would you currently see as a screaming buy, and what would be a good stink bid (you know, a crazy bid that has a slim, but not impossible odds of hitting)?
I'm not worried whether or not it actually strikes that price. If I get it, it's a bonus.

One other comment. Although I read comments from the odd subscriber voicing their displeasure when things don't pan out, and attempt to hold you accountable for your advice, I am one to realize that not a single investor / advisor / expert on this entire planet has a perfect investment record.... not even close !

Q: Hello , following is my list of losers .. and I am assessing which ones to sell this month for YE capital loss. I appreciate your comments.

As an aside; in watching the huge drop in some of these stocks, one certainly wonders about the wisdom of their CEO's ... as an example META, they are spending billions on Metaverse so that people can work and play and interact in virtual reality .. maybe in the year 2050 !!. and many others that just didn't adopt their businesses to people post Covid returning to work and shop at malls... truly incompetent .. For me, this crash has convinced me to buy shares in companies that are making money and have a strong management team.

Thank you
Carlo R.

Q: Can you rank these companies from most attractive to least attractive to purchase for a long term hold in an rrsp? Thank you

Q: Hi 5i
Earlier today you offered Amazon and Meta as possible proxies forAlphabet. I thought i saw some ambivalence regarding Meta in recent questions. At least much more ambivalent than you have ever been towards Alphabet. I know that you must feel that your readers sometimes have a tendency to parse every answer you give. Sometimes right down to each syllable! But, that’s because we respect your knowledge and want to be really clear :).

Q: What a remarkable market. GOOG has been my largest holding. I have a significant loss and am looking to take a tax loss. First, with a FOMO fear that it might bounce, I am thinking of selling 1/2 my position; if you were me, would you simply sell 100%? Second, would Apple be a suitable substitute? For 30 days or long term? Thanks much.

Q: Hello 5i!
At this point in the cycle can you please rate the following as buy, sell or hold. I know you sometimes say in a different kind of market high growth can do well. Can you please comment on whether one should decrease technology holdings in general or just wait for tech to shine again one day. Thank you!

Q: In an answer, you said a good entry price for META is between here and all the way down to its IPO price of $40. That would be another long way to fall. Sounds like it is very cheap and getting cheaper every day. What is your definition of a value trap and is META now a prime example?
Thanks.

Q: Down approx 25% in each of Goog, Msft and Amzn. Down 45% in Meta. I have a 5 year window and am looking for total return and less volatility. I am inclined to keep the first 3 and switch Meta for Cost or Aapl. Please critique my plan. Thank you