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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: Hi everyone,

I hope everyone at 5i and their families and friends are healthy and getting through the quarantine period.

I have a question about building positions. I assume its generally accepted that a full position is a 5% weight. Do you recommend sticking to full positions (5%) and half positions (2.5%) or can you build positions at 1%, 2%, 3%, 4% and 5%. Assuming a 1% position might be a junior gold miner, a 3% position would be something like Suncor, which is a good company, but volatile because its based on the price of oil and a 5% position being a stable, blue chip like BCE? Is it ok to look at it this way or does it make things too subjective and its best to stick to full positions (5%) and half positions of (2.5%-3%) and perhaps avoid some of the more speculative investments that would be a 1 or 2% weighting. If you're not comfortable holding 3%, maybe its not worth the investment?

Thanks,
Jason
Read Answer Asked by Jason on March 25, 2020
Q: How would someone find a list of companies that have been around since the early 1900's (have gone through the depression, wars, hyper inflation etc) and never cut or suspended their dividend? Would those same companies be theoretically safe and follow the same history if we end up in a prolonged recession/depression now?
Read Answer Asked by david on March 25, 2020
Q: If we have yet to reach the worst of the virus threat and if the current question mark regarding the direction the price of oil will take in the future poses a problem, I think we have yet to see the lowest prices for these companies. The question is how much further down their prices can go. If my theory is correct, at what price would you take an initial position in these companies?
Read Answer Asked by Les on March 25, 2020
Q: What is the one stock you would suggest to go all in with this correction?
Read Answer Asked by Nino on March 25, 2020
Q: What are your comments on MCR reported last night. The numbers seemed a little light but it is now trading at about 3X earnings.
Even though it is small, why wouldn't someone buy this highly profitable company?
Because of its size and present environment, are there any plans on removing it
from your Growth portfolio? Thanks
Read Answer Asked by Herm on March 25, 2020
Q: I currently own positions in ADW.A , SIS and HR.UN in my TFSA.
I am thinking about adding to these positions.
What would be your order of preference with the fact that you do not plan on selling any of these in the next 5 years
Read Answer Asked by James on March 25, 2020
Q: I have few questions regarding preferred shares. Many solid companies ''before covid19'' have preferred shares over 8% div. If that rate is OK for me for long term even without price appreciation, how safe will you quote them in general? What is the risk associated with that investment? Will you favor ''retractable'', ''rate-reset'', ''perpetual'', ''fixed-floating'' or ''floating rate''? How to find the term of a specific share?
Thanks a lot
Read Answer Asked by Daniel on March 25, 2020
Q: Re: Article appearing today. I have never agreed with David Rosenberg. This time I think he might be right. What would you place the odds of his view of the market proving correct?
Read Answer Asked by Dennis on March 25, 2020
Q: What is your opinion of BAM's pivot to a focus on listed stocks and distressed debt as compared to alternative investments?
Thanks
Bob Rose
Read Answer Asked by Robert on March 25, 2020
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