Karl Berger

Makes sense for people to extend the term a little bit. He's not keen on owning 15-25 year bonds at this point, because the curve is fairly flat. Owning something in the 3-5 year range will be far more accretive than just buying really short bonds and maturing them. You can ladder both corporate and government bonds, it comes down to your risk tolerance in terms of credit.

It's a bit different in the US, where there's a much more inverted curve than there is in Canada.

He doesn't actually know what annuity rates are offering at this point, but beware of the tax consequences for sure.

Preferred shares have done exceedingly well over the past 18 months. Partially because the market has shrunk so much. Banks have started issuing a different kind of non-recourse capital lending. Lots of buybacks of preferreds, shrinking supply and liquidity.

He'd have no problem buying a number of different ones, don't concentrate on just 1 or 2 names. Nothing wrong with the George Weston preferreds. The only challenge with the preferred market is lack of liquidity, so difficult to get in or out at any kind of scale, but likely not an issue for the individual investor. Generally, treated very well from a tax perspective.

Mining shares have been on a tear recently; copper and gold have performed exceedingly well. Outlook for mining materials is still probably OK. Especially if Trump is re-elected, there's the belief that there's going to be more growth going forward, and this is what typically drives the mining sector.

He doesn't have a lot of this type of exposure. He tends to gravitate away from any company whose earnings and revenue depend on a tradeable commodity; makes it very difficult to predict cashflow 5-10 years out. It doesn't mean that the shares can't be accretive, but the path to cashflow is less visible.

Markets. Whatever happens, we are going to continue to be in a low growth economic environment into 2013 and we need to accept that. Whether the driver comes out of the US, out of Europe or out of China, there are some positive things that we can look to in each of those different scenarios. Global growth is going to remain slow and we are going to have to deal with that environment. People need to be very cautious in this environment about precisely what kind of companies they own and what the yield represents. However, they also need to be cognizant of the alternatives to the equity market of very low yielding fixed incomes.

There are headline risks with any of the pharma stocks and this is not an area that he gravitates to despite the fact the dividends are reasonably solid, have been paid for some time, and would likely be paid for some time. Issue for many of the big pharmas is the risk of the shift away to generic drugs and the lack of growth prospects that result from that dynamic.

Had a pretty decent run over the last little while. Pretty good defensive company. Likes the mix of revenues that come from emerging markets. Given the run-up it has had, he would recommend watching it and trying to get it a little cheaper or put only 50% in and add to it when the opportunity arises.

Just announced they are acquiring Plains and McMoran for $9 billion so are getting deep into oil now. Whenever a company like this dilutes their product offering or their focus, it can be very good or sometimes a challenge. Market is treating this as a challenge but he doesn’t know that he would jump to that conclusion. Well managed. Don’t expect they would get into an endeavour like this without having done thorough research.

Caller is thinking of putting 30% (3 of his stocks) of his RRIF into Singapore. Notion of putting 3 stocks as 30% of your portfolio seems excessive. He would much prefer to see a portfolio that was diversified with no more than 3%-5% in each holding. No problem with putting 30% of your portfolio outside of Canada.

Not a stock that he would be keen on at this time. Dividend has disappeared but he believes it will be coming back. Heavy levels of debt and the Spanish economy is still not in particularly good shape.

British economy is still struggling. You have to look at any European bank at this point as having an awful lot of exposure to an area that has a very uncertain economic future ahead of it. Still too many headwinds.

He exited their positions recently because of concerns over the euro. Pays a solid dividend and the dividend is safe. This will be a boring, defensive holding that should just churn along with possible marginal dividend increases.

(A Top Pick Nov 22/11. Up 27.46%.) Still likes. Has managed decent same-store sales growth. Not overvalued yet.

(A Top Pick Nov 22/11. Up 16.63%.) Videotron 6.875% bonds maturing July 15/21.

(A Top Pick Nov 22/11. Up 3.61%.) Dividend is solid, very sustainable and will likely grow. A little disappointed that company management hasn’t grown at a more active pace. A little conservative. If the price of oil stays reasonably consistent, he expects they could get spectacular dividend growth over the next little while.

Loves the theme of food commodity price appreciation, which he thinks will play out over quite a period of years. Prefers Agrium (AGU-T) as a way to play this theme because of the exposure it gives to nitrogen-based fertilizers. Going through some challenges on the pricing front right now because of India and China holding off. Also, expect new players will start producing potash as well.