November 26, 2012 Comments

And so begins another week in the market as the year rushes to a close now…

Dow down 0.3%, Toronto down 0.2%

Our stocks picks appear to be down a bit more than that, notably Stantec down 2.1% and Shaw down 1.8% and it seems almost everything on our list was down.

But tomorrow will be a new day and perhaps a better day. Apparently Greece has some kind of new debt deal (yawn).

Warren Buffett had an op-editorial piece in the New York times today. This was about asking he Us government to cut spending and to raise some taxes, especially on the rich and to enact the higher taxes on the rich, right now. It’s wonderfully written. Withering logic really. Many of the other members of the Fortune 400 are going to hate this.

See the editorial here:

http://www.nytimes.com/2012/11/26/opinion/buffett-a-minimum-tax-for-the-wealthy.html?smid=pl-share&_r=0http://www.nytimes.com

Reading the comments below the editorial is a bit scary. Most of those speaking against Buffett appear to have mis-read the editorial. A few others fall to the old advise for Buffett to just send in extra taxes if he wants to. Or complaints that Berkshire sometimes (horrors) tries to minimize its own taxes. Of course it does and has a fiduciary duty to shareholders to take reasonable and always lawful actions to minimise its income taxes. No one ever mentions though that almost all insurance companies have re-insurance subsidiaries in tax havens where they transfer most of their profits to. Berkshire does not do that and in fact its overall tax rate is pretty hefty.

Buffett is trying to solve an important problem here. Dopey suggestions for billionaires to just mail in some extra money don’t cut it.

Quite honestly whenever I frequent areas where people post comments on line it is very frightening. Either most people are bitter anti-free market types or those people are simply over-represented in the community of people who post comments on line. I suspect it is the later. On-line posting is a wonderful invention for the lunatic fringe of society. And if you notice about 99% of people who post online tend to use screen names. (I suppose they would say they would be crazy not to, but some are definitely crazy either way).

And in case the Buffett editorial is not excitement enough, we got news of Mark Carney moving to become governor of the Bank of England and Toronto’s mayor kicked out of office. Never a dull moment it seems.