Investment Q&A

Q: Where is Palentir headed? Of course, we've known for a long time that it's an overvalued stock; we also know it's in its DNA. But this decline continues even after excellent results, which is more than worrying. Is all this due to its partnership with Google? Can you explain the ins and outs of this relationship? Ultimately, in your opinion, should we sell or hold?

Thank you in advance for your much-appreciated insights.

Q: I am holding Google shares in my TFSA portfolio and with the recent price increase they now represent~ 10% of my total portfolio. Should I consider selling 3% of my Google shares..?

Q: GOOGLE, VRT and CLS need to be trimmed as they now between 15-18% each of my portfolio.

I want to trim them to 10% and reinvest.

I want to invest into other high growth stocks. In what order would you buy BE, GEV, MU and KGS if they are worth buying today for a 2-3 year hold? Do you have other recommendations? I am looking at both Canadian and US stocks.

Thanks

Q: Hi,
How are the CDR ratios established? Are there any rules or guidance? They vary so much, I do not find any logic. Not simple for investors who want to follow any CDR and their parent stock. Thanks.

Q: Hi Peter…the 18 years old grandson of a friend has put $7,000 CAD in his just opened TFSA and has asked for my help.
1) Do you have a reduced membership fee for young people?
2) I think he should structure his account with $5000 for a “core” holding and 2 $1,000 tranches for more risky investments.
3) For core I think GOOG, NBIS or MDA are good candidates.
4) For higher risk candidates I think VNP, CCO, ANRG or OMG might be promising.
5) Do you like Bombardier now that the company seems to have turned around?
6) He is OK with not purchasing dividend paying stocks like the banks and Life Insurance companies.
Any thoughts you have would be appreciated.
Jim

Q: Woops
Hi - my previous question was perhaps overlooked. It asked "If you could only own one other US stock (i.e. besides GOOG) and sought the best risk-adjusted return over 5yrs, what would you initiate a position in today?"
5i answered: GOOG :-)

How about this: If you already owned GOOG and could only own a total of 2 U.S. securities (in any sector):
1) What stock would you pick?
2) What ETF would you pick?

Thank you.

Q: I hold GLXY in my TFSA. Now that it is no longer on the TSX it is a US listing in US currency. I’m down 6% and have not been too impressed with my foray into the crypto world (I also hold HOOD down 50% in a non-registered account). With growth the sole concern, and high tolerance for risk and volatility, what would you do with GLXY? The main reason for asking is now I have paid the currency conversion I could sell GLXY at a small loss and buy either GOOG, AMZN, NBIS or NVDA inside my TFSA. With a 5 year time horizon, could you please rank these 5 if purchased today.
Thanks so much for your expertise!

Q: Trimmed GOOG on apr 30 to keep things reasonable and looking to start a new $US position accordingly. Long-term hold.
Low in healthcare but could also increase technology.

If you could only own one other US stock and sought to best risk-adjusted return over 5yrs, what would you initiate a position in today?

Thank you for your awesome service.

Q: Hyperscalers (AMZN, MSFT, GOOG, META) announced plans for a staggering, nearly one trillion dollars, of spending on AI buildout for the next year. Can you recommend a basket (5?) of companies that represent the best investments to benefit from this massive spend?

Thanks.

Q: When advising children who are young adults on building a portfolio in RRSP, do you recommend ETFs or individual stocks? Assuming one isn't buying and selling what individual stocks (4 in US and 4 in Canada) do you feel will still be around in 50 years and work well in a Gen Z RRSP portfolio. I imagine in 50 years, technology could be vastly different, but a bank or a rail will not disappear. Thank you!

Q: If you were to create a portfolio of USA stocks or International ETFS for lets say a 68 year old person with $$1 million, what would buy for growth and safety protection in todays market. % would be helpful.
Thanks Again

Q: Hi,
In reading a recent article on AMD's move into the NVDA market I read at: https://finance.yahoo.com/markets/stocks/articles/3x-amd-cracked-nvidia-code-133943897.html
I had to wonder about whether it would be prudent to sell some NVDA shares currently held in my TFSA to diversify into AMD, INTC and possibly MRVL. I've done extremely well on NVDA over the years and am starting to think about how much farther NVDA can run, vs some of the smaller semis at this point. I am also concerned with NVDA's price movements lately, as it finally broke out of consolidation, only to drop back today when others are climbing. Are there other names I should be considering as well? I use this account for shorter term momentum stocks, and keep a close eye on it. I would greatly appreciate your thoughts regarding NVDA and other semis - I also really enjoyed your Jan 5 Opinion piece on all things AI related and have been able to do well from a number of the stocks you highlighted - many thanks!
D

Q: What exactly is happening in the world of microprocessors, which experienced a sharp drop yesterday? How exactly are the recent events at OpenAI impacting the microprocessor market? What should we be concerned about in this area in the short and medium term? Your clear explanation would be greatly appreciated.

Thank you in advance

Q: Hi Team,

Appreciate all you do, seldom ask questions...

This is for my Kids RESP (ages 7 & 11). As a means to try and get them understanding stocks a little bit, we basically give them 3-5 basic company reports (that 5i recommends) and ask them to review + choose 1 company to invest in. They own 2 companies thus far... investing approx $5K each in Google and CSU. The current market value is now is $2500 for CSU and $11000 for Google... we now have another $3-$4K cash to invest for each of them.

Questions:
1. What would be 3-5 companies we should point them to now for them to pick from (keep in mind, their 'reviewing' of a company is generally looking at the price chart and understanding a bit about the business... there's no deep thought in their decision, obviously)?

2. Which 1 or 2 of those companies should we try to guide their decision to?

3. Would adding to CSU be a better option for them?

4. Should they be trimming google to add another name for diversification?

Thanks!

Q: NVDA position has reached 12% of my portfolio thanks to it being at all time high.
Google position has become 17% also to it being at ATH.
Together they compose of 29% of my portfolio!!.

I think I have to sell a bit to manage risk. Of course the playbook is to sell a portion of these guys to buy something under valued that has more upside. But what looks better than NVDA and GOOGLE at the moment?

Q: I have full positions in NVDA, NBIS and GOOG and do not need to add. For additional money directed at the AI theme, please suggest 4 US companies and 4 CDN companies to buy today and hold for 3-5 years. A one sentence explanation for each choice would be appreciated. Thanks

Q: What’s your top 10 Canadian and US stocks that has a current decent valuation to purchase for long term? Thanks.

Q: what is your opinion on this company and how do you see it preforming going forward? Would this be a buy and hold as an Ai infrastructure play or s there others you would recomend? I own Goog, NVDA and BN for some exposure already

Q: What % is a good split between holding hardware vs software names? Barbell approach? Do you think the sasspocalypse is over? We've seen these names bounce off the recent lows and you have days where they are leading and days like today where sentiment swings the other way. I believe the names I hold are of good quality and can be patient while I wait for them to bounce. But then you have the opportunity cost of not buying more AI leading names with positive momentum. For example, do I sell some CSU/LMN/TOI and buy more CLS? Or sell some AXON and buy more NBIS? What would be a good approach? Thank you1

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.