Investment Q&A

Q: Hello 5i
I'm hearing noise about a rotation away from the Mag7 type companies. Could I have your perspective please?
Also what are the expected EPS growth for each of the MAG7 for 2025?
Thank you so much!
Dave

Q: Hi Team,
TTD is plunging after earnings so far this afternoon. What's your take? Has the outlook here soured that quickly? Would you be a buyer, seller, or hold into this extreme weakness?

Thanks,
Shane.

Q: Quantum Computing.

Is there a Quantum Computing stock that you would be interested in buying?

Thank you.

Q: Hi 5i Team,

I'm curious about your thoughts on sentiment turning against US equities in the coming months. I'm already exhausted seeing all the foolish tweets and news clips coming out of the Trump administration and I have to believe many others are too. Trump 2.0 seems much worse than 1.0! Also, I've been hearing that European markets are already outpacing the US market so far this year and I'm wondering if the US market deserves its current valuation given the increased volatility and increased risks?

I own many US stocks (e.g., 5 of the Mag 7, COST, ISGR, HD, TT, SYK, RS, ZS, HON, V) and I'm thinking for the first time of selling/trimming some of these. I would look to increase my dividend-paying Canadian stocks to generate more income. I'm also thinking about European dividend payers?

I'd appreciate your general views along with any comments you might have related to selling/trimming some of the stocks I've mentioned above. I'd look to sell into the end of this month and buy favourite TSX dividend payers (e.g., ENB, SLF, CNQ, BEP.UN, BIP.UN, T) or others you might suggest after the next tariff decision in early March.

Like many members, I have to thank you again for the wonderful service you provide. Your Q&A section and market reviews are fabulous, especially during difficult times! I also realize this is a long question and the answers are worth more than one credit.

Lisa

P.s. I had registered to attend this week's webinar which may have answered some of my questions. Unfortunately, something came up over lunch and I missed the webinar. Please let me know if there's a chance of catching a replay.

Q: Rob's question regarding Constellation not issuing new shares and any other companies, I thought maybe BRK fit that or because of BRK.B guess not.

Also not to nitpick but CSU and GOOG can't be compared in the non issuing equity even though not a direct comparison as you did say "To our knowledge, GOOG has not issued shares other than for acquisitions, which is not quite the same" as GOOGLE has issued insane amounts of shares via SBC and of course they buyback to keep share count BUT Is there not a better way? BEN HUNT says it well I think:

"When stock buybacks are used to sterilize stock-based comp (i.e., a company gives managers stock with one hand and buys it back from them with the other hand), no money is “returned to shareholders”. This is true whether or not management actually sells its shares into the buyback program.
Stock buybacks only “return cash to shareholders” to the degree that the buyback program reduces the share count. To the degree the buyback program does not reduce the share count, but simply sterilizes new issuance to management, it is purely a transfer of wealth from shareholders to management."

Thoughts or rebuttal to that?

For readers on Constellation:
Mark Leonard was funded with 25 million from OMERS in 1995 to start, they had one private placement in 2000 that Leonard regrets for 60 million (TD Capital – Birch Hill and OMERS), then going public in 2006 no shares were issued just provided exit for OMERS/Birch Hill.

The best things about them among never issuing new shares for acquisitions etc is they have no Stock Based Compensation or RSU/ESO and that combo is not replicated anywhere (plus executives and employees having to buy stock with parts of their bonus and hold for 4 years is great alignment).

This along with numerous other factors are why its my highest holding and you never worry about it, ever, 10 years reading your answers and your views have never changed on this company, you have always been a big bull and wish I didn’t wait until 2022 to buy or really understand the company!

Q: To maintain comm sector exposure and to raise some USD thinking of selling my BCE holding in my USD cash account to buy one of the other two. Which one would be your choice today?

Q: Hi,

I've been in and out of GOOG many times over the years, and love their products. Recently I've been more and more interested in the robo-taxi development and really think there could be something there, but I'm admittedly not so up to speed. I know TSLA is on to something, but I just can't get behind that one...

Can you drop the Coles notes on Googles WAYMO division and your thoughts on their position in this space, and how their tech compares to others in the space as far as how far along they are in going commercial?

Thx,

Cam.

Q: What would be your pick right now for a tech stock for the long-term in a RRSP (3+ years)? Can you provide a few names in order of preference?

Q: Hi 5i Team - Constellation Software is a company that has never issued shares beyond their initial IPO. I'm pretty sure this applies to LMN and TOI as well but could you confirm. In all three, is there any possibility of them issuing more shares in the future.
Also could you name a few other companies that have never issued shares, Canadian, U.S., any size market cap, any sector.
Thanks.

Q: Hi can you please rank in order from best to least for the following FAANG + NVDA stocks for the next +5 years? An explanation why is much appreciated along with a management rating for each. Thank you

Q: I don't really want to spend C$1.45+ for each USD cash. So to gain US market exposure, does it make sense to buy CDRs of US companies (Cdn $ version of their large cap stocks) ? for example JPM, MSFT, GOOGL, BRK.B etc.

Q: Hi 5i,

Can you comment AMD and GOOG earnings? Both are droping 7%+ after market.

Thank you

Q: Hi 5i,

I have some USD cash available, which stocks would you consider buying today for balanced/growth portfolio?

If holding longer on cash, where would you park it? Something equivalent to CSAV on US side maybe.

Thank you,

Q: 3 month treasury TBIL any restrictions on adding or taking money out. I want to buy US to try and off set the fall in CAD. What does the 3 month designation mean. What's your 3 US equities ...Plus 3 Canadian. And short description why and in what order you like them.

Q: Good morning 5i,

I'm expecting some turbulence coming for sure. I doubt all is priced in with the tariff battle. Of course nobody knows. But opportunity may be knocking.

I refreshed myself on Peter's cover call write up from years past. I'd love a new take on selling covered calls to enhance your income and some strategies relating to it. ie, OTM, time frame etc.

And some top stocks in your view for writing on. Excluding NVDA, already sell OTC cc on my position.

Thank you very much.

Q: If you could only buy 5 stocks today in North America what are they and why?

Q: resp for grandkids just wondering buying the canadian cdrs of google [goog] will the canadian dollar hitting lows affect this stock at all or does not matter. thanks

Q: One of my children (early 20's) has funds in a TFSA they are looking to put in a high risk/high return stock. I'd asked them to do some homework on their own and they've (with some back and forth) come up with 3 names; 2 of which do not register when symbols entered.

Already owned are ASCU (1/2 position), Full positions of BN, LMN, RY, TCS, 1.5x positions of TVE, GOOG and 3x position of NVDA.

Biotech or tech seem to be the preferred themes but are not "must own" if there is something better,

The top 3 names so far are Coveo, Cardiol and Oncolytics Biotech. I would appreciate your thoughts on these 3 options, perhaps place them in order of preference and add 2 you would recommend as a high risk/high reward test.

Great work all....thank you.

Q: Mid-20’s investor looking for your top 3 Canadian and top 3 US “buy and forget” compounders, regardless of sector, for a long-term hold within a TFSA. Can you please rank from 1 (highest confidence) to 6. Looking for companies that I can periodically but continually add to over time without worrying about having to be a “trader” and move into and out of positions as trends, themes and market momentum shift. I already have BN and NVDA (both of which may have been candidates for your top 6 list). Would this list be any different had the question been asked a week ago – before all the DeepSeek anxiety? Thanks.

Q: Hi there,

If you were to create a US Balanced Equity Portfolio using CDRs only, what would it look like?

Thank you!