Investment Q&A

Q: good afternoon 5i,
On December 3 you responded to a question by Curtis by saying, "We also think a low cost index product for the majority of a portfolio overlain with a basket of individual stocks to generate alpha is also a pretty good strategy, for those inclined to hold 6 or 7 individual stocks. "

This is a strategy that I more or less use, at least for my US and International holdings. I haven't done this with my Canadian holdings because of capital gains, which would imply tax, and also because it seems to me that the Canadian etf's are heavily weighted towards the few sectors we have in Canada. Therefore, I think I would be better in individual stocks rather than an etf. I would appreciate your take on that perspective.
Also, I am wondering which four or five stocks you would look at in the US for such a strategy for a retired person. And how would you weight them given that an etf strategy was used. The stocks I have listed are the ones I own. How would they fit in such a portfolio? The only one I might kick out for someone my age is Docusign. Any others that could be suggested?

Thanks for the great service

Q: We are looking to adds some US positions to our TFSA. We currently have AMD, DAL, DOCU, BRK-B, and ROKU. Could you suggest 5 growth names for long term holds that you would feel comfortable entering new positions in today? And would you add to ROKU at present?

Thanks in-advance.

Q: Hi,
Which do you prefer, for a holding company that is diversified and kind of gives you a mini-mutual fund effect, without the ongoing cost of an MER. ( I already own BAM.A).
FFH provides a dividend. Do you think BRK.B will ever initiate a dividend? Thx.

Q: Hi Team,

What are your 3 favorite value stocks in Canada and 3 in the USA?

Thanks!

Q: I would appreciate your comments on BRK.B latest quarter.
Many thanks.

Q: What 3 Cdn and 3 US equities would you currently select (without regard to sector) as your best picks for an investor seeking both a) the six "safest" equities over the next 12 months as in lowest downside risk in your opinion, and b) the six most likely to provide at least a 5% total return over that period? Tough one but perhaps very helpful for part of an overall portfolio - Ken

Q: I have accumulated far to many Insurance stocks over the years and need to trim a couple. Which of the above companies do you think offer the best capital appreciation over the long term?
Thanks

Q: Berkshire Hathaway is now the single biggest owner of AAPL, and AAPL is now a substantial fraction of Berkshire's value. With the spectacular recent run-up in the AAPL share price, why hasn't BRK.B risen more? Thanks.

Q: According to an Aug. 14 news release Berkshire Hathaway has sold US Bank shares and also QSR . They have bought Barrick gold. Do you read much into this? Comments please. Thanks as always. Frank

Q: Hi i5,

According to "Buffett Indicator", when it's in the 70% to 80% range, it is time to throw cash at the market. When it moves above 100%, it's time to lean toward risk-off. Now Market Cap to GDP Ration > 100% means stocks in bubble territory. Do you think Canadian stocks may also in bubble territory? If US in bear market, do you think the above Canadian stocks which I am holding can be survived? Perhaps, should we start to off load which may be in danger during the bear market into cash, or switch among balance or income portfolio. Any suggestion?

Q: Hi 5i,

Please comment the second-quarter report, do you consider in strong buy? Many thanks.

Q: Good morning 5i,
I appreciated your recent article, as usual. I find them helpful to understand what is going on in the investing world. You mention that the fang stocks comprise most of the gains over the past few months and that much of the market hasn't kept up. Some people are talking about a rotation out of technology into I suppose, more value oriented stocks. I don't know if this thesis is true. The Fangs seem to keep going up. But, do you think it might be a time to start a switch for a cautious investor? If so, would rsp , an equal weight US market etf, and brk, probably the definition of value, be a good way to approach this change
thanks

Q: Hi 5i,

I am Canadian and I have purchased BRK.B around few months ago around US$180. However, it doesn't move up much and seem like underperform.
Do you think BRK.B is undervalued stock and it will catch up better performance in 2020 since APPL just released an outstanding report. The reason I asked because I am thinking to sell some of them to buy APPL. However, I don't want to change back to Canadian dollar, the Canadian dollar was lowest ever during the time I purchased BRK.B. Now I am facing the currency risk and slow moving up price for BRK.B. In your opinion, should I keep it and wait for long time until it offset the currency risk, or any suggestion. Would you please kindly advise.

Q: I have just $10,000 U.S. to purchase something with. I heard Brookshire Hathaway is sitting on a whack of money and that the valuation was pretty good. This will be my only US holding currently and wondered if an ETF would be better? Not worried about risk and could get 100 Roku, if you think that might be rewarding? Thank you so much for making the stock market fun and interesting for an amateur.

Q: Portfolio Analytics indicates I am over allocated and perhaps over diversified in Financials: BAM.A 2%, BNS 2%, TD 4%, X 2%, BRK.B 4%, MA 6% and Industrials: CCL.B 1%, CNR 4%, NFI 1%, FDX 3%, HON 3%, LMT 6%.
Which positions would you recommend trimming or eliminating?

Q: Hi 5i -- my son (age 26) has recently started working in a well-paying job in the US. He's saving a good portion of his salary and has asked me what he should be investing in. No debt. He's looking to invest for long-term growth for retirement in 40 years or so. About 1/3 of his holdings right now are in Brookfield Asset Management, 1/2 are split between VIG and USMV, and the rest is Berkshire Hathaway and CN for his non-registered accounts. Right now non-registered savings are $75k.
His 401k is separate in Vanguard SP500 index fund. He is a believer in pay yourself first and has been able to save and invest 5,000/month US!

He's looking for good growth stocks or funds that will increase steadily over the long term. He's earning enough now that he doesn't need dividends in the short term but he's not opposed theoretically if everything fits together. Any thoughts on what he should be investing in? Thanks.

Q: What did you think of the earnings report of BRK.B? What do you think about Warren Buffets comments?

Interested to know what your thoughts of this market moving foward (e.g. re-test the lows in March, low downward drag, best to continue to buy small and steady over time, sell anything that might have been bought too high at the rally)? I ask this question as I assume all your subscribers are wondering as these markets are difficult to navigate.

Thanks so much for your fantastic service. Best investment decision I have ever made. Hope you and yours remain safe and healthy.

Q: Over the weekend, Warren Buffet is going to addressing his fans and no doubt all of the investment community is anxious to hear his views. I have no doubt he must be quite nervous for he and Charlie Munger since they are both in the late 80's . None the less , he will probably say some soothing words and it may give the market a bit of a boost, but how long it will hold is anyone's guess. As the economy reopens as early as next week, I think the "market" is going to feel better.

Q: Good morning everyone. Would you beable to give me a few ideas of value stocks and also growth stocks that will be moving in this market. If you have time possibly in both Canadian and US mkarkets. Enjoy reading all your articles. Thank you for all your insight.

Q: Hi 5i! Hope all of you and your families are well and safe.
Myself, being in a enthousiastic investment shopping mode, I'm looking for a BRK.B type of investment in canada. Which do you prefer between FFH, BAM.A, ONEX and why?
Any other suggestions?
Many thanks!