May 24, 2018

On Thursday, the S&P 500 was down 0.2% and Toronto was down 0.1% as Trump rattled markets by canceling the meeting with the North Korean leader and by looking into excuses for imposing duties on vehicle imports.

Linamar was down 1.8% to $67.24. I added to my Linamar position today. The market is worried about the outcome of NAFTA. But Linamar is a well run growth company and I am happy go along for the ride since I think Linamar’s management will continue to increase the value of the company over time.

Buying good companies at lower prices will likely work out over time. I’d also like to have the opportunity to do some selling if some shares I own looked over valued. For the moment that opportunity is not present. At last check the P/E ratios on my portfolio amount to a weighted average of 12.5. Lately it seems to be the higher P/E stocks (often called growth stocks) that continue to rise while value stocks with lower P/Es have lanquished. That will not always be the case.

Constellation Software , which by my calculation has an adjusted  P/E around 35 (and Yahoo Finance shows a GAAP P/E of 81 and a forward P/E of 32) rose 2.6% today and is one of those high P/E stocks that has continued to rise.