Investment Q&A

Q: Visa’s business model has come under attack this year by alternate digital payment systems, including coins. And this morning KLARNA which goes public, and its Swedish CEO confidently asserted it will take business away from credit card companies. Swedes are not given to bragging so I take KLAR seriously. I am tempted to sell Visa and invest the proceeds in COF or AXP, whom I see as credit card companies that do more than collect tolls.

Am I wrong in thinking this? Is Visa management’s past record such that they are nimble enough , tech-savvy enough to deal with recent challenges?

Q: You recently answered a question about HDIV and ETSX. I currently own ETSX and have been happy with the income and growth it has generated. I am thinking of adding HDIV or EIT.UN.
Could I get your comments on EIT.UN as a comparison to the other 2 funds?
I am a retiree looking primarily for steady income with some growth.

Q: Why do you feel that AXP has fallin more off it highs than the V and MA, which one is the buy today?
Thanks Again

Q: Trying to decide whether to sell stocks in my TFSA now as they are in US dollars and I might want to purchase a condo in next 4 years. I am worried now that if dollar continues to rise and if stocks go nowhere or even up a little I'll take a big hit. All great, blue chip companies that have done well in past ten fifteen years.. American Express, Chubb, Bank of America, Eli Lily, Nvidia, etc.... Any predictions on how high the CAD could go and how does one figure out a strategy when dealing with currency and declining stock prices. Thank you for your wisdom!

Q: I have made some updates to my portfolio before heading into the new year and am looking for your thoughts on total portfolio. I have it all in TFSA and am 28 years old with a long time horizon. Could you give me your opinion over next 1, 3, 5 years of portfolio.

What changes might you make to this portfolio to stengthen it?

Portfolio Breakdown:
Stock Amount Invested (USD) % of Portfolio
NVDA $6,500 12.04%
SHOP $2,840 (converted from CAD) 5.26%
AMZN $2,650 4.91%
MSFT $2,520 4.67%
MELI $2,483 4.60%
PLTR $2,250 4.17%
TSM $2,000 3.70%
CRWD $1,830 3.39%
GOOGL $1,780 3.30%
TTD $1,767 3.28%
ISRG $2,180 (converted from CAD) 4.04%
META $2,150 (converted from CAD) 3.98%
BRK.B $1,470 2.72%
AXP $1,560 2.89%
LLY $1,500 2.78%
DIS $1,280 (converted from CAD) 2.37%
NBIS $840 1.56%
CELH $700 1.30%
SMCI $392 0.73%
SPCE $188 0.35%
XRP $120 (converted from CAD) 0.22%

Thanks,
Dan

Q: With new funds, looking to allocate for growth - but bearing in mind risk.
Which ones would you focus on [what's their "add"], with your expectations over 3+ years, and entry prices.
Thanks

Q: Hi There, I am trying to stear my portfolio decisions going into 2025, and looking for some of your feedback. I am 28 with 55k in myTFSA ( all after home purchase, so longer time horizon), I have about 5K of the 55K to invest, and the other 50K in the stocks below with their respective weightings of the 55K. I am trying to decide if I should add any other specific stocks or top up weightings to 2% on BSX / BKNG / ISRG / TSM / CELH / SMCI and add to CRWD, DIS, GOOGl, another 1.0%.

Are there any other stocks you would recommend to diversify this portfolio some more. Do you have any concerns with any holdings or their weightings?

Please deduct however many questions you feel necessary, I don't often ask Q's.

NVDA - 15%
SHOP - 10.7%
MELI - 9.8%
TTD - 9.2%
PLTR - 9.0%
MSFT - 7.6%
AMNZ - 7.6%
META - 4.1%
GOOGL - 3%
DIS - 2.5%
AXP - 2.45%
CRWD - 2%
NBIS - 2%
SMCI - 1.75%
NU - 1.64%
CELH - 1.54%
BSX - 1.12%
BKNG - 1%
ISRG - 0.7%
TSM - 0.7%


Thanks,
Dan

Q: Is this one AXP a better buy over Visa and MA, right now?
Thanks Again

Q: What is your current opinion of EIT.UN.ca - is it a good investment or would you have alternatives that are better?
Thanks

Q: Hello, it would seem that AXP has experienced a pullback and looks undervalued compared to its peers. Would you consider AXP a buy over MA and/or V ?

Q: We hear a lot about which companies might do well with AI, but we don't hear much about who does not. Surely there must be losers, perhaps companies that currently offer services that will be turned over to cheaper bots as AI progresses through the economic system? Your thoughts are appreciated.

Q: I currently hold MS. I am considering selling MS and buying American Express. Would you recommend this trade?

thanks

Kim

Q: Good morning, I would appreciate your thoughts on acquiring both or one of these at this time and any preference whether TFSA or RSP. Thanks

Q: Good morning,

I currently have AXP, V, MA and PYPL in my portfolio. I’m wondering if I should sell something to reduce redundancy and if so, in which order, given the outlook for growth?

Also in the same sector, I have on my watchlist AFRM, NVEI and SQ, all of which seem to have a long runway ahead. Should I add one or more of these new names either by selling from the first group or just as an add?

I’m new to this forum and I’m very appreciative of your insights. Thank you in advance!

Doris

Q: I had recently saw a comment on Seeking Alpha that Visa was a good holding during a period of runaway inflation. Regardless of whether or not you see inflation reaching that level., would you agree that V as a good holding in that environment? Would you include any others (Canadian or US) ?

Q: Good Morning
You have mentioned the interest in the IPO for AFFIRM will be high. Is there service being copied by others in the space( you have mentioned PYPL) and do they have any discernible advantage.
Thank you

Q: Hello 5i Team. I have a moderate risk tolerance and am looking to make a long term contrarian play with up to 10% of my portfolio on a couple of well established names that have been squeezed by COVID, but will ultimately endure (strong balance sheets) and prosper in a post COVID world. I can stomach volatility, but want to stay away from companies that have a higher chance of going to zero. Air Canada has caught my attention and it is well covered in your question bank. I was planning on pulling the trigger on it, but before I do, can I get a risk/reward comparison between it and Southwest Airlines. Between the two, which would you go with? For my second play, I am considering MGM Resorts International and American Express. Can I get your take on these two, and specifically for American Express, whether its business model is more inclined to benefit than the other major credit card companies once a vaccine arrives and travel starts to pick up. I realize that these are two very different businesses, but which would you go with and why?
Thank-you.

Q: Which one credit card company would you prefer today? I am looking at Visa, Master Card and American Express. Thanks.

Q: We currently have 100 shares of Visa and believe the cc space is a strong area to invest in with the cashless trend in business, while we feel Visa and Mastercard are the dominant players we personally use our Amex card extensively and would like your opinion of adding axp to our portfolio or should we add to Visa.
Doug

Q: I was planning to sell DFS but stopped when the stock price fell almost 10% after earnings release. Were the results THAT bad? The company stated its expenses were significantly higher than budgeted. There is insufficient information in the release or the call transcript for me to determine if the high expenditure is INVESTING in the business ---or just very poor management .

What is wrong with this idiot management... To wit: the company claimed expenses will be high due to tech. But the need for financial institutions to spend on technology is not new--- that’s been known for decades!

Earnings grew by 22% last year but are forecast not to grow at all next year.... does this sound correct or is the company setting a low bar for itself? Shares are now some 45% below fair value , it seems (?)

Can management be trusted after the incredibly poor budgeting and even worse marketing ? To quote Warren Buffet, “...be aware idiots will one day run the company you invest in” ( Source is the book “Snowball”). My efforts to escape dumb managements the world over have proven to be as futile as attempts to escape gravity.
Notwithstanding my above-noted frustrations, do you think its fine as a continuing hold based on:
PEG ; ROE ; ROCI and other measures like FCF etc