October 1, 2014 Comments

On Wednesday the S&P 500 was down 1.3% and Toronto was down 1.0%. But the S&P is still up 7.3% year to date and Toronto is up 10.3% year to date, so really there is not much to complain about.

Melcor managed a 1.2% gain today although on very little volume. Constellation Software was up 1.1%. My strategy when the market is falling has always been to sort of nibble and add to positions but to do so patiently and slowly. I believe the only order I have in is to buy a bit more Melcor at $23.10. It touched that price a few days ago but my order was not filled as there must have been orders ahead of me at the same price.

I noticed TD Waterhouse has had a couple of new issues of 5 year rate reset shares 3.9% National Bank and 4.5% Brookfield Asset Management. The market apparently has a big appetite for these. If you are interested in getting these when issued you have to register for new issue alerts with your broker and then pounce on them. I bought some earlier this year figuring they were relatively low risk and at least beat holding cash.

Warren Buffett traces his starting point with Berkshire Hathaway back to 50 years ago today. He took over control of the company 50 years ago next May 10. But he counts the year ended September 30, 1966 as his first year for his performance history in running the company. Possibly he was already having an influence on the company somewhat before the May 10, 1965 coup d’etat when he ousted the long-time CEO. At the end of February Buffett will release his annual letter and will review the results of his first 50 years on the job. He has asked his partner Charlie Munger to write about why did their methods work and will Berkshire continue to work in the future. That letter will be absolute must reading.

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