Investment Q&A

Q: Would you buy a full position in BN and CSU today or would you do it incrementally over the next few months and wait for a potential pullback?

Q: Hello,

We are retired investors and own all three names in the group, with CSU - 13.5%, LMN - 4% and TOI - 3.5% weights. SHOP is the only other Canadian Tech at 5.5%, in addition to US Large caps tech holdings at 7%. So Technology sector is >30% of our combined portfolios. There is enough income through dividends and pensions.

Despite trimming CSU by more than 50%, over past several years, its weight continues to grow. ( Great !! )

1. Do you consider > 30% Tech holdings reasonable as a sector allocation, TODAY, for an investor ( with moderate to high risk tolerance ). If not, in what order would you trim ?

2. Would you be comfortable with 20% of portfolio allocated to Constellation Software family, more specifically 13-15% to CSU and what would be your high watermark for its weight. ( We particularly like CSU for its steady Eddie profile and prospects of more spin offs)

Thank You

Q: Hi 5i Folks,

I am a "rare" questioner. And with 231 question credits. I am a low impact member.

I was fortunate to purchase CSU:CA many years ago when it was considered "an expensive stock". Well, it now has paid for my 5i Membership so far, and for the rest of my life. And I guess still considered "an expensive stock." Thank you 5i.

I just reviewed your most recent update, written in March, 2024. Since some time has passed, would it still earn a grade of "A".

Q: Can you give me your best choice for a new position to add to an RESP that has a long runway (12 years) ..it can be a Canadian traded stock or ETF or a CDR. Thank you.

Q: TOI was spun out of CSU around 4 years ago, with the goal of having a smaller and faster growing company. Since the spinoff, both companies have done very well, yet CSU has outperformed. Do you think that the spinoff thesis is still intact? Or is it too early to make this call?

Thanks.

Q: I hold all 3 companies and have been doing really well with CSU. The other 2 LMN and TOI have been a roller coaster, especially LMN. Luckily, both positions are very small in comparison to CSU (phew!!)
CSU - current price $4142 ish.
LMN - current price $33 ish
TOI - current price $130 ish.
Please recommend in which order you would add to, at today's prices (most preferred to least preferred). All are long term plays. Thank you very much.

Q: Hello,
Given decent results from constellation and Descartes Systems, any reason why the stocks have been declining.. Do you think it is simply profit taking and both are good long term investments? Much appreciated.

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

Thx

Q: I would like to set up a concentrated balanced portfolio of 6 Canadian value and 6 growth companies. I'm looking for the very best companies Canada has to offer, currently. I realize you have a balanced portfolio but I'm looking for the companies that are poised to do the best in the current ecomonic environment. As always, thanks for your much appreciated advice.

Q: Morning, you wonderful people.

Looking to add with your help. I am a believer in tech and growth in my TFSA. Other accounts are balanced.

I hold CSU, AMZN, NVDA, MSFT, GOOG, COST, AVGO, BRK.B, BLK.

Regardless of sector etc. Please let me know your top 3-5 to add to this portfolio. Longterm and conviction!

Thank you muchly.

Q: Is there a US equivalent of CSU that you would recommend as I take profits from growthier AI stocks? Happy to split it between a few stocks, but the big 7 have grown as a large part of my US portfolio.

Q: Now turning to Canada - Will TRI make the list???....Can you please provide your top 10 Canadian Stocks (In order ideally) growth focussed for the next 5-10 years. Please provide a management rating for each, and an entry point for each.....Thanks much-lee.....Tom

Q: Person A has rode cyclical stocks up and then down. What advice would you provide if he is thinking of taking profit from selling his XGD ETF that he has been holding for hedging against inflation?
Thank you.

Q: In the past few months we have purchased a 3% position in LMN at a cost of 33.73 per share. We are currently content to hold these shares indefinitely. Currently LMN's parent (CSU) has about 20 million shares outstanding while LMN has about 250 million shares. As a sometime sceptic, I wonder if the creation of LMN (and TOP) by CSU is a tool for CSU to raise capital? Appreciate any comments you may have on this. Much thanks.
Cyril

Q: I have a question about WTS consolation software INC expiry date 03/31/2040 symbol number C135859 . I own 20 shares with the book value of nothing. This has appeared in one of my accounts and I would be grateful if you could explain what actions I should take. Thank you.

Q: I did appreciate your answer for an equivalent question for US Cies lately...It seems difficult though to find canadian Cies that have long term potential, and financial strength as large US cies..Could you name 5 canadian Cies considered as a " must have" for long term and an entry point ? Regards

Q: This question is about small TFSA with 98% Canadian equities with 32.06% total weight in the technical sector. Weight for LMN, SHOP and DSG are close to 5i Bal portfolio but CSU is at 14.8% (Thank you). All these names are at profit.

Question 1 -I am contemplating selling CSU to reduce Canadian exposure and buying MSFT or NVDA What is your opinion of such a move? Any other suggestions in technical space?

Question 2 - This TFSA has no exposure in Consumer Staples. Would you suggest buying COST instead of US technical name? Any other suggestions and entry price?

Much Thanks for your very valuable comments.

Q: How would you rank the following stocks for long term growth based on their current evaluations?

Q: I learned of something that I had never heard of before when someone adked 5i's opinion of "the magnificiant Seven Companies" and learned they are American companies. Also was impredded with your answers of why they made the list of 7.

This leads me to ask what 5i's opinion of what would you say the Mannificiant Seven Canadian companies been in the last 7 years with the expectation that they will be still in busines 7 years from now?