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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: For the past while I've been hearing about an opportunity in small caps and how they are undervalued versus large caps. Typically I consider diversification between fixed income vs equity, and then diversifying by geography and then by sector. However, I'm curious on your thoughts on the proportion of an equity portfolio that is invested in small cap vs large caps?

Of course, understanding that you can't provide personal advice and it highly depends on an individuals timeframe and risk tolerance.
Read Answer Asked by Chris on January 08, 2025
Q: Hi Peter,
I want to invest in a large cap energy stock that is well run, with solid balance sheet and generate increasing free cash flow. Valuation is lower than peers with lots of upside for capital gain. I’m debating between SU, CNQ and CVX. Which one of these would you pick and why? Or if there is another better candidate? Thanks.
Read Answer Asked by Willie on January 08, 2025
Q: Hello,

I understand Warren Buffett recently purchased OXY and I was wondering if you might share a rationale that would favor this stock versus CNQ, TOU,IMO or other CAD producers trading at approx. equally low 52 week levels, with higher mkt cap, dividends and dividend growth.

Thank you and all the best to you and your families in 2025.
Read Answer Asked by Delbert on January 08, 2025
Q: Questions on QSR:

- Are falling margins on rising revenues a concern at all (maybe the cause of the drop in stock price)? Maybe continued digitalization helps margins in the future? I noticed that they had a Technology Officer hired in 2018.

- The current P/E looks good relative to historical, but is the somewhat high-ish P/S ratio normal for the restaurant industry?

- Regarding long term safety and quality, would you consider QSR in the top 10% of all Canadian stocks, and do you have any long term concerns?

- Any thoughts on their ambitious international expansion goals including China?

- Is the stock price more influenced by the direction of the TSX or NYSE or not necessarily either?
Read Answer Asked by James on January 08, 2025
Q: How do this companies forward PE and cash flow multiples compare to those of its 2 closest US competitor and compared to its own historical #'s. Has it made progress on its profitability and ROIC measures which as you have said the company uses to measure its own performance. Would you buy it now with the thought that the freight recession is largely over, and the metrics previously mentioned are attractive, or would you wait until after January 20th when we find out more about tariffs and how that will impact TFI?
Read Answer Asked by John on January 08, 2025
Q: Hello 5i,

We were reading a report on the risk for corporate bonds due to a tightening of spreads. Our goal from a previous question is to protect funds needed in the next 3 years to augment CPP and OAS (no pensions).

We added bonds, but that plan may require a new assessment. Currently, our portfolio has a small position (2%) of Bonds consisting of AGT, VCLT, VCIT, & VAB. We also have laddered GIC’s for 5 years, plus PSA & BIL (for vacations in the US).

We are looking at replacing AGT & VAB with PSA and VCLT & VCIT with BIL. Do you have any other suggestions that may meet our goals?

Thank you
D&J
Read Answer Asked by Jerry on January 08, 2025
Q: My long term etf, HTA has just announced a distribution increase of approximately 7.7 %. How do they manage this as the underlying stocks have not increased their dividends anywhere near this % ?

HTAE holds HTA and uses leverage for enhanced performance ( up and down .) It borrows 25 % of the portfolio value to do this. What are the typical terms regarding such borrowing ? Is this liability reflected in unit price ? Is a liability of the etf provider or the unit holder ?
Any light you can throw on these questions would be appreciated. Thanks. Derek.

Read Answer Asked by Derek on January 08, 2025
Q: Please advise which is more benefit to hold in unregistered accounts. Also are they both the same stocks and it looks like BIPC has outperformed.

Thanks for the great service.
Read Answer Asked by Hector on January 08, 2025
Q: Comparing ETF's to mutual funds, the argument is that the higher MER is worth it in the mutual fund because the fund is managed. What are your thoughts on this topic?
Read Answer Asked by Cathy on January 08, 2025
Q: Are you aware of any other public companies that require employees/management to purchase shares on the open market with portions of their salaries/bonuses?
Thanks
Read Answer Asked by Curtis on January 08, 2025
Q: In my US fixed income I have a half a position in TLT. Im down 10% and looking to add to this position or buy another stock with yield and some capital gain. I believe the US bond market is selling another round of bonds today and tomorrow without much interest in long term bonds.

Thanks Greg
Read Answer Asked by Greg on January 08, 2025
Q: Hello

I have been accumulating short term bonds ETFs and ladder ETFs. Now in a new cycle should one focus on accumulating long binds such as XLB. Also do you have a active bond
ETF name you recommend?

Thank you

Thank you
Read Answer Asked by Stephane on January 08, 2025
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