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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: Iím trying to form a kind of hybrid of the Hodson and the Buffet approach to investing. Hodson: balanced portfolio. Buffet: a few excellent companies. So I would form a fairly balanced portfolio but be overweight considerably in a few.

Buffet says you are buying a piece of a business; you are not buying a stock. He and Munger donít care about the stock market. They both say you donít need very many stocks, no more than 5 or 6. They also say their approach is not for the average person, who usually doesnít know how to value a business and should just stick to EFFs. Their approach is for someone who knows how to analyze and value a business. Peter Hodson and 5i do know how to analyze and value a business. (And in answers to questions 5i has also said several times that the way to build wealth is to own a small concentrated portfolio.)

On the other hand, 5i is all about building and rebalancing a diversified portfolio, covering all, or almost all, sectors. This approach is more concentrated than an ETF, but not as concentrated as a Buffet/Munger small set of quality companies. I donít know anything about Sees Candy, Geiko, or Coke. But they certainly do.

If Buffet/Munger were looking only at Canadian companies, which few would they want to own? Any size, any sector. Just outstanding businesses.

Read Answer Asked by Gordon on March 06, 2024
Q: From reading your recent answers, you like these 4 companies (CNR, CP, TFII and TIH). Would you please rank these 4 companies for growth and rank them again for dividend growth. Which two companies would be your favorite for a combination of growth and dividends for a 5+ year hold? If you can give a brief explanation for the reason(s) over the other 2 companies? Thank you.
Read Answer Asked by Karen on March 05, 2024
Q: How would you value above companies for a long term industrial hold.? Are there other companies in the North American industry you would prefer? Thank you.
Read Answer Asked by Mark on February 16, 2024
Q: Can you compare the dividend growth at CN and CP over time? It looks to me that CP hasnít increased the dividend since Oct. 2020. The longest previous period with no increase in the recent past seems to be July 2012 to July 2016. In contrast, CN seems to increase their dividend every year. But has the rate of increase for both been similar over the long run despite the choppiness at CP? Also, the rate of increase seems to be slowing more recently at CN, it was often double digit increases prior to 2020. Any insights appreciated, thanks.

Read Answer Asked by Stephen R. on February 14, 2024
Q: I have held CP for some time now. Although it has fluctuated somewhat, it seems to be range bound. Do you see it having much potential to increase? I am starting to consider swapping it for FSV, which seems to just steadily increase. Any comment on that switch?

Many thanks
Read Answer Asked by Leonard on January 24, 2024
Q: Hi ,
Can you please identify me with 3 US stocks and 3 canadian who have a monopoly over their business. ?
I already own CN . I hope itís one of it?
Thanks. Alnoor
Read Answer Asked by Alnoor on January 22, 2024
Q: If you were to list favourite US and Cdn companies with the added criteria of high cash flow and significant stock buybacks what would they be?
Read Answer Asked by Jeffrey on January 18, 2024
Q: Good Morning 5i group. What are your thoughts for a recently retired person who has a large gain on CNR in an RRSP to sell the position tax free and buy an ETF say XEI and essentially triple the income and also diversify the portfolio further ?
Thanks for the great service, a different ETF or investment idea for consideration would be welcomed.
Read Answer Asked by STEVE on November 23, 2023
Q: Please give me your view on Norfolk Southern Corp.

Thank You in advance.
Read Answer Asked by John on October 02, 2023
Q: Thank you for your answer on stocks and ETF'S for my son's FHSA account that is starting. The answer included mostly US domiciled names/ETF's and we are looking at Canadian names. Could you recommend a combination of Canadian blue chips and ETF's for a 7 year time frame to monthly contribute and compound before needing funds for a home buyer withdrawal
Thank you
Read Answer Asked by Harry on September 28, 2023
Q: I own CP, CNR, ENB, BCE, in my Rif account and was thinking about selling these to buy UMAX to increase income and keep me in these sectors. They are about 17% of that portfolio and I don't think I am adding risk by doing this but I will be increasing income significantly. Does this move make sense? Thanks, James
Read Answer Asked by JAMES on September 19, 2023
Q: Do you consider either railway a good new investment right now? I used your interactive chart to compare the two, and if you bought CNR 10 years ago you are probably pretty happy, but over the last 5 years CP outperformed, and ytd CP has ground up a bit while CN has drifted down. In the current interest rate environment I donít think anyone is buying either for the dividend? Is there an investment thesis here somewhere or are there just plain better ideas? Thanks for your thoughts.
Read Answer Asked by Stephen R. on September 11, 2023