Investment Q&A

Q: I have held Brookfield for 15 years. I have reviewed their investor presentation several times in the last week. With the Wealth Solutions and carried interest projected growth they forecast a 25% Distributable earnings growth is possible over the next 5 years. It looks like they have shifted gears and the next 15 years of business growth should be better than the last 15. Any comments

Q: Hi Peter,

Thank you for your answer. I would appreciate it if you could answer the second part of my question as well.

"Q: Hi Peter,

I have a question about Nvidia’s proposed $100 billion investment in OpenAI. From my understanding, the funds will be used to purchase Nvidia’s own GPUs. How should investors interpret this circular funding in terms of valuation integrity and long-term sustainability? Does it raise red flags about inflated revenue or distorted market signals? Considering the deep entanglement between Nvidia, OpenAI, and Microsoft, at what point does this trio resemble a functional monopoly in the AI ecosystem? If it walks and quacks like a duck, it is a duck! Is it time for regulators or competitors like Google and AMD to step in and balance the power? I doubt the government knows or will to do anything. I would love to hear your perspective.

Best,
Matt


5i Research Answer:
Certainly NVDA is trying to tie up the ecosystem, that we are fairly sure of. It wants to control the datacentre market, which of course means a captured market for its GPUs. It is a virtous cycle (invest in a company, it buys chips, sells out space in its datacentre, and gets cash flow to buy more space). However it does rely on incremental demand, and this could be a problem. CRWV, for example, is using debt for much of its funding, and this could certainly backfire when demand slows. For now, it is an arms race, though, with insatiable demand requiring massive funding. NVDA has the ability to fund these companies. However, it does not have $100B sitting around. It will come over time (the deal right now is just a letter of intent). NVDA has said that, in a $10B data centre, as an example, it would sell about $3B of GPUs to it. It is not quite a 100% 'selling to itself' as some believe. But it is a circular event, and some accuse NVDA of essentially funding sales to itself. It is more than this, but does carry risks. "

Best,
Matt

Q: What do you think of kinaxis as a growth stock? In the canadian landscape what would be 2 or 3 best choices in this aera (except Cls et Shopify )?

Thank you very much for your excellent service.

Q: This could help JEFF with his question on September 19.
There is a CLO ETF in US, JAAA Janus Henderson CLO ETF that has a longer history and good track record.

Q: Current thoughts on NXT in relation to green energy (solar) on a global (non-U.S) context?
Are they leaders in their particular field?
Long term aspects/outlook?

Q: Good afternoon;

My initial question was going to be solely about On Holdings. It is almost getting to be one of those companies that'd capture the interest of Peter Lynch, as it is showing itself across sports these days. Yet the real question is likely a bit bigger picture...

Could you provide me with your take on the "Active Wear" apparel market these days? I've provided a few names that may be competitors and there are more. All things being equal is this a sector worth investing in at this time given what seems to be lacklustre performance of many companies and "turnaroud" becoming a bit of a buzzword.

If you could also provide a best - least best top 5 to consider in this sector that would be appreciated.

Thanks as always,

Dave

Q: My TFSA consists of these 6 stocks and I am looking to add to probably 2 of them. Can you give your opinion as to which you would pick based on current price and future long term (3 to 5 years) growth. Use as many credits as you see fit. Thank you

Q: What is your opinion and valuation on this? Good time to buy it vs other mid caps because it may be temporarily discounted due to 2 large investors recently selling their positions or do you feel thats a vote of no confidence in their prospects going forward. Less likely to be taken over vs. Newmont and Agnico just raising funds for other purposes.

Q: Any reason that you know of for today's drop in ATRl's stock price?

Q: Seems investors are not impressed by CSU and continue to sell off all these names. I have around a 10% allocation to the family (4% CSU, 4% LMN, 2% TOI). I'm contemplating reducing my positions and adding to MDA, ZDC, CLS, ISRG, TOU. What are your thoughts? I'm concerned because CSU and LMN are one of the larger positions in my portfolio. Thank you!

Q: Hi Peter,

I have a question about Nvidia’s proposed $100 billion investment in OpenAI. From my understanding, the funds will be used to purchase Nvidia’s own GPUs. How should investors interpret this circular funding in terms of valuation integrity and long-term sustainability? Does it raise red flags about inflated revenue or distorted market signals? Considering the deep entanglement between Nvidia, OpenAI, and Microsoft, at what point does this trio resemble a functional monopoly in the AI ecosystem? If it walks and quacks like a duck, it is a duck! Is it time for regulators or competitors like Google and AMD to step in and balance the power? I doubt the government knows or will to do anything. I would love to hear your perspective.

Best,
Matt

Q: I am thinking of selling BIP.UN; held in a TFSA where growth is something of a goal. It has not done much for some time and I have good sized positions in other Brookfield entities. What is your current outlook for BIP.UN…worth holding or time to move on? Possible replacements could be GSY or PRL; if there is a move, which of those 2 would you favour? Many thanks for your excellent service.

Q: Everyone, my spouse and I have eight different accounts and all have cash that valves less than $500 in each account. The total amount is less than $2000. I never like cash because it’s doesn’t appreciate in value. So do you have any micro-cap stocks that you would recommend? With the assumption that they could go to zero. Clayton

Q: Hi I was hoping you could help explain where an RRSP is preferred in investing over a TFSA. I consistently try to offset my income by contributing annually to my RRSP, however unsure the types of stocks or ETFs I should be holding. I currently pay into a pension, hence (pension + RRSP money) results in a higher tax bracket at retirement leading to more taxes down the road. I hold mostly high growth stocks as I feel I have time on my side with my age of 41, although don’t want to get bailed on taxes down the road. Something I feel I can’t avoid.

My question is, should I be holding such high growth stocks in my RRSP or consider other options ? If so, what?

I do understand TFSA’s are generally preferred for tax free reasons. This being said, my RRSP is steadily growing year after year.

Any guidance is much appreciated.

Q: What is your opinion of this company?

Q: FTN announced today that for every 100 shares you own they will issue you 10 more shares.I imagine the price of the shares will drop approx. 10% the day they are issued.My question is why wouldn't they just increase the dividend 10%?

Q: Csu, Atd both are acquisitors,have excellent management and are down sharply from their all time highs
In your opinion which one would provide the best return over the next 3 to 5 years?

Q: These stocks are all losing ground lately in my portfolio. Please reply in what order and at what price you would add to them I want to ensure I add valve at this point;

Also should i add to my holding in GDXJ? or start a position a silver stock (please recommend several in order of preference ) same recommendation for US bank ETF....Thanks

Q: All 3 stocks have recently been down and are continuing to drop today (Tuesday). Your blog on the CSU/Leonard call about AI recapped what was said and indicated premiums assigned to these stocks may be lowered. Looks like it's now underway. I was hoping for more thought on what might happen in the future? As many of your customers own these stocks, it would be nice if 5i could issue quick reports on them. Are they still rated high or have they gone down a notch, or two or three? Are they rated buy, hold or sell? Where does 5i see these stocks' prices in 3, 6 and 12 months from now? I realize there are many unknowns and predicting the future is tough, but 5i has done this generally quite well in the past. These 3 stocks appear to widely held and deserve more attention at this time.

Q: Thank you for the timely and well-done blog on CSU.
Two questions:

1) Would YOU put new/fresh money into CSU TODAY? Please give a brief reasoning for your answer.

2) If YOU had owned CSU shares for a number of years, what would you do with them today (irrespective of portfolio make-up)? Please give a brief reasoning for your answer.

Thank you