Investment Q&A

Q: What US equity ETF do you suggest for a very long time horizon (I’m in my 20s so likely will keep investing for decades)?

Earlier this year I had been adding to RSP since most of the gains were concentrated in the Mag 7. With the market having broadened out a bit, I’m not sure if I should keep adding to RSP or if I’m better off investing new money in VOO (or VTI).

Which of the 3 ETFs (RSP, VOO, VTI) would you expect to have the best long-term total return?

Q: Hi 5i

CCO ($49.70) hit my radar due to the roughly 33% pullback since the high in May. A couple questions: How does TA look to you? I've had success buying around 30 RSI and CCO is near this.
-It looks like CCJ trades about 3 times the volume compared to CCO. I've noticed US investors are more prone to pounding a stock lower than deserved, and on the flip side, will also push companies way higher than they should go sometimes. Would you agree? Do you think this applies to the run up in May (went higher than it should) and now perhaps is lower than it should be?

Thanks,
Greg

Q: Blake on September 7th ask about valuations for CSU, LMN and TOI. If you inherited $10,000 and had to invest it by Monday evening, how would you allocate or split the difference between these three stocks?!? The usual thinking ahead three to five years. Thank you for what looks like a fine service!

Q: Sold 1/2 my portfolio (except CSU, TOI, LMN) at the end of August. First week into Sept and I'm looking smart. While I think it's still too early, when and how do I get back into market? Holdings (some sold out in August) include AMZN, META, NVDA, AMD, VRT, BN, SHOP, AXON, SNPS, NOVT, GOOG, NU, ELF.

Q: Your opinion on this company for a nice way to invest in health care with good growth and not a lot of risk?
Thanks Again

Q: Is MG a "safe" contrarian play yet? Thanks Ron

Q: Good morning,

In an answer to Danny on August 13, you said that BCE's trailing twelve months dividend is around $3.7B, which is covered by the operating cash flow of $7.6B, I read a post from Reddit yesterday that says BCE's free cash flow payout ratio is 109% stating that its dividend is covered by debt and equity dilution. Can you explain why these numbers are so wildly different? Thanks very much,

Q: A week back or so you stated one might be lucky to get NVDA at 110, and now it appears to be approaching the 95 support level back in the spring. I realize these type of questions are predictive in nature, but here goes, what do you see as a long term floor for entry into NVDA.

Also please provide valuation metrics if it hits this target,
Thx

Q: So not long ago when it over a $1000 and being recommended still as a buy, today with it being under $400 is buying today like robbing the bank or does the knife continue to fall? Is 5i buying today?
Thanks Again

Q: Hello 5i,
I have, below, cut and pasted a segment of a press release:

"A&W Food Services of Canada Inc. ("Food Services") will also receive a similar dividend from Trade Marks on its investment in Trade Marks.

Food Services also announced today that it has declared a dividend in the amount of $1.0 million to its shareholder. The dividend will be paid out of Food Services' available working capital and is separate and distinct from distributions declared by the Fund to unitholders of the Fund..."

I have looked at the Investor Page of the AW.UN website and can find no clarity around what happens to the $1.0 million dividend. I am surmising that it goes into the larger fund for whatever purpose they deem necessary, but will NOT trickle down to individual unitholders. It seems the regular monthly dividend of $0.16 is all that we will receive, as per usual. Does this interpretation seem correct?

This confusion over the 3 entities, and who gives/gets what, goes a long way towards explaining the need for a much simplified corporate structure, imho!!

Thanks for any clarity you can provide!!
Cheers,
MIke

Q: Good afternoon. GSY is struggling a bit lately but so is the rest of the market. I read an article that said GSY has high debt levels that are not well covered by cash flow. This got me wondering why does GSY have high debt levels and where does it get its money to lend? If they borrow to raise money to lend and rates drop could they not get into a squeeze where the margin between money they loan out and loans they have to reply narrows?

Q: Peter with so many unions going on and threatening stikes in Canada I believe it will effect the owners ie shareholders to a negative affect . Can you give us companies with 5% div or more that are not banks and are not unionised. Thanks Ken

Q: What is your opinion of ATGE in an otherwise financial equity, diversified etf, and REIT-oriented portfolio? Also, how does it stack up against such firms as Franklin Covey or TAL Education Group?

Q: When looking at this group how do the present values compare to the historical valuations ?

Thx

Q: Hello 5i,
I have a follow=up question about HIND:CA. When I look at the data on your company profile, the market cap shows as being 2.5 million. Both GlobeInvestor and the company website peg it at around 26 million. I am guessing that your feed has a typo?
Also, on the company website, they reference a number - "126 B" as being their "Average Market Capitalization". What does this reference in relation to the fund's market capitalization of 26.5 M?
I note, incidentally, that this fund's market cap seems to be slowly increasing. At what point should one take this fund seriously? Would increasing market cap need to be considered in conjunction with length of time as an operating fund before jumping in?
I am not quite ready to "pull the trigger" on this one, but it is very high on my list, and I am looking for "buy signals" as opposed to buying blind.
Many thanks for any insights you can offer.
Cheers,
Mike

Q: Hi 5i

I have less than 1% in VEEV and have become frustrated with it after 3 years. I noticed that in an answer in June, someone at 5i held it, but an answer in August did not include the disclosure. So either it was sold or it was an oversight. Can you say which?
With the pullback in NVDA ($102) I'm getting very tempted to punt VEEV (S214) and use the proceeds and some of my cash pile to pick up NVDA. Would appreciate your thoughts.

Greg

Q: Hi again,

I just want to confirm that my investment strategy aligns with our prior discussions (Questions on this forum) and see if you have any recommendations for improvement. Here’s the plan I’m considering:

1. FHSA: I’ll be investing in the VFV ETF over the next 8-10 years, aiming for solid growth with moderate volatility, to support my goal of purchasing a home within that time frame.
2. TFSA: I plan to fractionally invest in your growth portfolio over the next 45 years. I’ll be contributing bi-weekly to both my FHSA and TFSA until they are both maxed out, reviewing and adjusting the portfolio as necessary every month based on the portfolio reports.
3. Bitcoin: I intend to allocate 15-20% of my overall portfolio to Bitcoin (in self-custody). Currently, Bitcoin makes up 8%, and I’ll continue to average into it alongside my other investments until I reach my target allocation.

At this stage, my portfolio would consist of approximately 66% in VFV, 25% in the growth portfolio, and 8% in Bitcoin. Moving forward, I plan to:
- Max out my FHSA (VFV) contributions each year.
- Match or exceed those contributions in my TFSA (growth portfolio). Ideally, over time, the growth portfolio would come to make up the majority of my overall portfolio.
- Gradually increase my Bitcoin allocation to reach my target of 15%, then maintain that percentage.

Does this strategy look solid to you, and would you suggest any adjustments before I move forward?

Thank you for all of your help!

Q: I just read an article in the western Investor online saying that WELL is going to split into 2 companies. I would like to know your thoughts on this and do you feel this could unlock some value or is it a non event. Would you still endorse holding this company/stock

Q: SMR from $2 to $16 To $8 .. do they have anything? I don't see any real projects. Who is building the SMRs for OPG? Would they be worth looking at?

Thanks for all you do. Danny-boy

Q: Hi,

Haivision has announced a few new contracts or collaborations in the last few weeks and has hit a new 52 week high today (Sept 04).
Can you please provide your thoughts on the recent news and if they are significant (from a revenue/earnings view) going ahead.
They are due to report their 3Q soon I believe.
I currently have about a 1/3 position. Would you top up to a 1/2 position based on recent developments....assuming a diversified portfolio?
I recall ET had made a play for them awhile ago and assume that is now off the table given the increased share price.

cheers,
Steve