Q: Which is a better rail to buy currently, for a 5 year hold? My portfolio is very diverse (25 companies) but I do not have any railroads.
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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.
- Canadian National Railway Company (CNR)
- Suncor Energy Inc. (SU)
- Canadian Natural Resources Limited (CNQ)
- Canadian Pacific Kansas City Limited (CP)
- CGI Inc. Class A Subordinate Voting Shares (GIB.A)
- Alimentation Couche-Tard Inc. (ATD)
Q: I’m 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 don’t care about the stock market. They both say you don’t need very many stocks, no more than 5 or 6. They also say their approach is not for the average person, who usually doesn’t 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 don’t 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.
Buffet says you are buying a piece of a business; you are not buying a stock. He and Munger don’t care about the stock market. They both say you don’t need very many stocks, no more than 5 or 6. They also say their approach is not for the average person, who usually doesn’t 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 don’t 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.
- Canadian National Railway Company (CNR)
- Canadian Pacific Kansas City Limited (CP)
- Toromont Industries Ltd. (TIH)
- TFI International Inc. (TFII)
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.
- Canadian National Railway Company (CNR)
- Canadian Pacific Kansas City Limited (CP)
- WSP Global Inc. (WSP)
- TFI International Inc. (TFII)
- Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
- Old Dominion Freight Line Inc. (ODFL)
- Boyd Group Services Inc. (BYD)
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.
Q: Can you compare the dividend growth at CN and CP over time? It looks to me that CP hasn’t 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.
Q: Please comment on CP's earnings report.
Thank you
Thank you
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
Many thanks
- Mastercard Incorporated (MA)
- Moody's Corporation (MCO)
- Enbridge Inc. (ENB)
- Canadian Pacific Kansas City Limited (CP)
- TMX Group Limited (X)
- Fair Isaac Corporation (FICO)
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 it’s one of it?
Thanks. Alnoor
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 it’s one of it?
Thanks. Alnoor
- O'Reilly Automotive Inc. (ORLY)
- Booking Holdings Inc. (BKNG)
- AutoZone Inc. (AZO)
- Canadian Pacific Kansas City Limited (CP)
- CGI Inc. Class A Subordinate Voting Shares (GIB.A)
- Dollarama Inc. (DOL)
- BRP Inc. Subordinate Voting Shares (DOO)
- Alimentation Couche-Tard Inc. (ATD)
- Ulta Beauty Inc. (ULTA)
- Hilton Worldwide Holdings Inc. (HLT)
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?
- Canadian National Railway Company (CNR)
- Canadian Pacific Kansas City Limited (CP)
- iShares S&P/TSX Composite High Dividend Index ETF (XEI)
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.
Thanks for the great service, a different ETF or investment idea for consideration would be welcomed.
Q: i am thinking of switching from CP (2%) to BIP. Looking for growth and div with this move.
Don't like CP drifting lower.
I already own 4% BN. Do you think BIP stock can grow faster then BN?
Don't like CP drifting lower.
I already own 4% BN. Do you think BIP stock can grow faster then BN?
- Canadian National Railway Company (CNR)
- Canadian Pacific Kansas City Limited (CP)
- TFI International Inc. (TFII)
Q: I am wondering about cnr or cp.
Are there any other transportation companies that you find interesting these days?
Are there any other transportation companies that you find interesting these days?
Q: Hi 5i,
I want to add a rail position. What’s your thesis on CNR vs CP?
Thank you!
I want to add a rail position. What’s your thesis on CNR vs CP?
Thank you!
Q: Own BOS and am thinking of switching to CP as I feel that with its recent acquisition it has growth potential. Your thoughts on this switch and CP and BOS in general.
Thanks
Thanks
- CSX Corporation (CSX)
- Norfolk Southern Corporation (NSC)
- Union Pacific Corporation (UNP)
- Canadian National Railway Company (CNR)
- Canadian Pacific Kansas City Limited (CP)
- Berkshire Hathaway Inc. (BRK.B)
Q: Please give me your view on Norfolk Southern Corp.
Thank You in advance.
Thank You in advance.
- Canadian Pacific Kansas City Limited (CP)
- Constellation Software Inc. (CSU)
- Descartes Systems Group Inc. (The) (DSG)
- Thomson Reuters Corporation (TRI)
- BMO Canadian Dividend ETF (ZDV)
- iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ)
- Vanguard Balanced ETF Portfolio (VBAL)
- Brookfield Corporation Class A Limited Voting Shares (BN)
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
Thank you
- Canadian National Railway Company (CNR)
- BCE Inc. (BCE)
- Enbridge Inc. (ENB)
- Canadian Pacific Kansas City Limited (CP)
- Hamilton Utilities Yield Maximizer ETF (UMAX)
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
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 don’t 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.
Q: Please comment on latest earnings reports and your recommendations on these. Thank you.
Q: Hi Peter, why the sell of on the rails - in particular to CN and CP. Was there any news that affected them directly. Also would you consider them a buy and if so which one would you add. Can you also speak to evaluation. Thank you