Investment Q&A

Q: Can you give me 3 US strong conviction growth stocks in tech?
Thank You

Q: I plan to reluctantly trim CSU from 15% down to 10%. I have sufficient LMN, TOI and WSP. Can you give me 3 growth stocks to consider for my TFSA with the CSU proceeds? I tend to be a long term investor with not many trades.

Thanks for the tremendous service!

Doug

Q: CLS or CSU - which one would you buy today?

Q: Hi Team,
I currently hold fairly high positions of both LMN and TOI. I invested in these positions as opposed to CSU on the view that they would provide more growth over the long term as they are essentially smaller companies, under CSU guidance and play book. Would you agree with this strategy? Assuming I continue to hold both is there still a need to purchase CSU or would holding a mix of LMN and TOI be sufficient exposure for maximum growth within the family?

Thanks,
Shane.

Q: Rob's question regarding Constellation not issuing new shares and any other companies, I thought maybe BRK fit that or because of BRK.B guess not.

Also not to nitpick but CSU and GOOG can't be compared in the non issuing equity even though not a direct comparison as you did say "To our knowledge, GOOG has not issued shares other than for acquisitions, which is not quite the same" as GOOGLE has issued insane amounts of shares via SBC and of course they buyback to keep share count BUT Is there not a better way? BEN HUNT says it well I think:

"When stock buybacks are used to sterilize stock-based comp (i.e., a company gives managers stock with one hand and buys it back from them with the other hand), no money is “returned to shareholders”. This is true whether or not management actually sells its shares into the buyback program.
Stock buybacks only “return cash to shareholders” to the degree that the buyback program reduces the share count. To the degree the buyback program does not reduce the share count, but simply sterilizes new issuance to management, it is purely a transfer of wealth from shareholders to management."

Thoughts or rebuttal to that?

For readers on Constellation:
Mark Leonard was funded with 25 million from OMERS in 1995 to start, they had one private placement in 2000 that Leonard regrets for 60 million (TD Capital – Birch Hill and OMERS), then going public in 2006 no shares were issued just provided exit for OMERS/Birch Hill.

The best things about them among never issuing new shares for acquisitions etc is they have no Stock Based Compensation or RSU/ESO and that combo is not replicated anywhere (plus executives and employees having to buy stock with parts of their bonus and hold for 4 years is great alignment).

This along with numerous other factors are why its my highest holding and you never worry about it, ever, 10 years reading your answers and your views have never changed on this company, you have always been a big bull and wish I didn’t wait until 2022 to buy or really understand the company!

Q: Hi 5i Team - Constellation Software is a company that has never issued shares beyond their initial IPO. I'm pretty sure this applies to LMN and TOI as well but could you confirm. In all three, is there any possibility of them issuing more shares in the future.
Also could you name a few other companies that have never issued shares, Canadian, U.S., any size market cap, any sector.
Thanks.

Q: Hi 5i Team - Could you name a few publicly traded companies, besides CSU, that have no analyst coverage and have never had analyst coverage. Any market cap, any sector, U.S. or Canadian. Thanks.

Q: If you could only buy 5 stocks today in North America what are they and why?

Q: Hi Peter and Team,

Our Technology exposure across all accounts is 20.52%, which is concerning me. Without selling any CSU or LMN, which I plan to keep 'forever', could you please rank the following ETFs in order of which to sell outright, or reduce. Each ETF is followed by the percentage of Technology stocks that it holds:

QQC.F (62.51%)
VFV (39.6%)
XGRO (21.06%)

We have some other ETFs that we want to keep, and their Technology holdings are all less than 15%.

The proceeds from the sale/reduction in the three ETFs above will be used to increase holdings in under represented sectors.

The three ETFs noted all have good profits. No commissions will have to be paid with these transactions.

Thanks as always for your insight.

Q: I'm over weight Technologies with the following securities KSX, SHOP, CLS, TOI, PLTR, CSU and NVDA. If you had to sell one or two which ones would you sell, or would you trim some from each and keep all?

Q: Your parents give you $100k CAD and $100k USD to invest on behalf of your family for the next 5 years. They instruct you to invest $20k in five Cdn stocks and $20k in five U.S. stocks to hold over the duration. Considering current valuations, the fact this is your family's money, and the objective of maximizing total return over the period, what are your 10 picks?

Q: I have the above tech stocks sitting at just over 30% weighting in portfolio. Could you please rank them as to which you might sell first. I sadly sold Crowdstrike last summer when they had their issues and I am thinking I need a cybersecurity stock. Would you buy Crowdstrike or Palo Alto or half of both. Also, What do you think about Saleforce? With the thought of cheaper AI, is that one that would possibly benefit and how where would it rank within my aboce tech stocks? Thanks for all your help. With all your advice, last year was awesome and still up this year following yesterday’s falloff.

Q: Greetings 5i Team,
I hold these securities in a TFSA and am looking to add a new position. At the same time, I will be trimming some of these as they have done very well.
Could you make a few suggestions for a new addition? Growth is the objective and diversification need not be overly considered (I am well diversified within other accounts).
Thank you for providing this great service.
Steve P

Q: Although I'm generally a fairly conservative retired investor, I do have a small portion allotted to small caps. I'd like to pick up some LMN. However I wondered about the potential negative impact on share price in a challenging economic environment.

Not sure if this is a good reference / comparison, but I noticed CSU had four significant drawdowns of between 24-29% between the GFC and COVID time periods. I actually thought it would have been worse than that. Considering LMN is already down 15%, and assuming possible similar stock price action, I'm getting a bit more comfortable pulling the trigger even now.

I don't want to make this a predictive question, but do you think this stock price action is a reasonable comparison? Perhaps this is oversimplifying? Do we know if the valuation of LMN today lines up with the valuation of CSU back in 2008 prior to its drop?

Q: My partner is opening a new TFSA account. What 5 stocks would you recommend for a 10+ year investment today, emphasis on growth?

Q: Will a 25% tariff affect these companies?

Q: Hi,

I own the above in my TFSA. With limited funds, what is your preferred order in which to add?

Thanks,
Robert

Q: Dear 5i,
Thank you for your awesome work and valuable insights. Would like to invest 7000$ into my 19 year old Son’sTFSA. What stocks or Etfs would you recommend for long-term growth? He currently has ZSP and AMD(20%of portfolio). Also should I replace AMD with a different stock? Thank you!

Q: Some of your favorite stocks are down over the past month. In what order would you DCA?

HPS.A -11.15%
PRL - 7.14%
COST -7.36%
CSU. -4.78%
LMN -9.28%
DOL -6.51%
ROAD -4.13%

Q: Happy New year 5i!

It's been an interesting start to the year, and I've been watching/reading things that seem to be leaning towards or preparing for a 'fearful' period. Thoughts on this? With deployable cash, would you be getting it in the market quickly, or not be in any rush?

That being said, AXON and CSU have all seemed to back up more significantly than they ever have, and CRWD as well with the exception of the update failure event. IESC, PSN, and MU as well trending lower.

I hold none of these and have some USD free for 2 half, or 1 full position. Would paying the FX to get CSU on sale be your top pick? of the ones mentioned, would you rank them in terms of expected growth over the next 1 - 5 years? please add a 3 or 4 more options in there as well if you have other top picks. Small caps are good too.

I currently hold GOOG NVDA AMZN MSFT POWL ISRG CLBT VRT on the US side.

I don't mind managing holdings in a shorter period of time if needed, but aim to find those long term compounders and let them continue to win.

Thanks for everything!