Investment Q&A

Q: I’m 71 years old. As I get older I’ve tried to simplify my portfolio, going from about 50 stocks years ago, to my current portfolio of about 16 stocks, 3 ETFs and 15% cash.
I am a subscriber to your Portfolio Tracking and Analysis service and I’m told I need to make changes to reach a suggested asset allocation and portfolio diversification. Right now I’m tech, utilities and financial services heavy.

Here’s what I’d like to do:
The following set up gives me an allocation of 70% equities, 20 % bonds and 7% cash. I’m comfortable with this and have gone through many 20 and 30% corrections in the past 30 years without too much despair.

In my Canadian cash account I’d have CDZ, FTS, AQN.
Locked in RSP (LIRA) I would have AAPL, ZSP, ZEM.
Unlocked RIF I ‘d have CLF, ZAG.
TFSA would have QQQ, ZEM, ZDI, CSU, TOI, SIS.
I’d like cash around 8% of portfolio.

I’m wondering if I have my portfolio diversification covered and if the right stocks or ETFs are in the appropriate accounts for best tax efficiencies?
Your input would really be helpful.
Thanks
Frank

Q: Hi Guys,
I am trying to reduce the number of stocks inside my portfolio. Your thoughts on a full position (5%) for the above stocks for a 5 year hold, within a balance/growth portfolio? Any revisions would be appreciated.

thanks

Jim

Q: Please explain why a company, such as CSU, would offer such a small dividend (0.27% annually) despite sound performance over the years/decades. What is the strategy?

Q: There’s a recent decision whereby CSU intends to convert their preferred shares in TOI. Want I’m trying to understand is if there is transfer of funds to TOI as part of this transaction?

Q: I have more tech equities than I want going forward. Please help me strike one or two off my list by ranking these in order of potential growth over the long term /min 5 years. For fun (since it probably won't affect my decision), please also rank from least volatility to most volatility. Thank you very much!

Q: Hi, If you wanted to own one stock in Canada on the TSX, which company would you buy? I realize you would never recommend doing this at all, thanks. This would be owned for roughly five to ten years.

Q: Hello Peter, here's a twist on one of your readers' favourite questions.

What three Canadian stocks and three US stocks have your highest confidence level that they will be higher in two years than they are today, regardless of the size of the return. (I suppose this question combines your confidence in the companies' management, industry and macro factors, etc. but also with a view to preservation of capital.)

Q: As I write this, Friday mid afternoon, all of the markets are sharply higher. Gains seem to be pretty much across the board. I like to look at outliers that are bucking the trend. There are a few stocks that you have been optimistic about that are actually down today. Wondering if any of these are not as favoured by the market, given their performance today. Perhaps issues with recent results. Understanding that you can't read too much into one day's trading, but several of these have dropped quite a bit lately, and I'm wondering what your current feelings would be on buying these today for a long term hold in a diversified portfolio. Would you give each a rating from 1 to 10 as to how strongly you would want each of these in a portfolio? BYD, CSU, CTS, DOO, DND, ENGH, LNF, PBH, REAL, STC.

Q: Hi team, I have a couple of questions.

First, looking into an unseen future, what are the odds of DOL and ECN being acquired? And which companies would be interested in acquiring them?

Second, I am looking to buy MG but I don't have any free cash available. Would need to sell one of my tech holdings.(CSU, SHOP, KXS, LSPD) My gut tells me to sell KXS.
Would like to get a second opinion.

Thank you.

Q: did you garner any more info. with regards to the source for organic growth and the earnings discrepancy? Thx

Q: Choosing between ENGH, TOI or CSU, what will be the name to add to at the moment?

Q: you make reference of points to address in your answer about CSU earnings what might these points be? Thx

Q: Can you contrast revenue growth and free cash flow growth between these two companies and their relative valuation? Thanks.

Q: May you please comment on both of these companies earnings? Thank you kindly

Q: what does the market expect from CSU today?

Q: I'm looking to reduce the overall amount of positions. Of my tech names which would you suggest selling?

From what I can gather you prefer NVDA to AMD and would suggest one of either SHOP or LSPD. Is this accurate? Other suggestions or ideas to pair down?

Thank you very much

Q: Great article on Csu and its founder Leonard by Andrew Willis, Apr26 Globe and Mail Report on Business

Q: Can you list 3 (sleep at night) companies you would initiate a buy today for growth and why/thesis?

Q: Constellation reports in approx. 3 weeks - TD WebBroker shows an estimate of $10.13 on 4 analysts, down from 7 last year, whereas 5i (using Bloomberg?) shows $12.82 on 2 analysts, if I read and interpret correctly.

How do the analyst numbers normally work - as the date approaches more of them weigh in and the different services come closer to dovetailing the actual earnings or...? Please explain the present discrepancy with TD & 5i. Evidently TD casts its net wider in the analyst poll so would you say 5i uses analysts with a better proven track record?

Q: Does CSU maintain an economic interest in Topicus? Based on my review of the final long form prospectus for Topicus and insider reporting it looks like CSU holds voting control and a significant number of pref shares in Topicus. What I'm trying to confirm is whether I need to buy Topicus to obtain exposure to its growth or whether as a CSU holder I will already have some exposure.