November 7, 2017

On Tuesday, the S&P 500 was about unchanged while Toronto was up 0.25%.

Wells Fargo and Bank of America were each down 2.0%.

RioCan was up 1.7% to $25.35. It had released earnings late last week.

Linamar was down 1.9% and then released earnings after the close. On an adjusted basis the earnings were up 9.4% but were down on a GAAP basis.

On Wednesday I will post an update for Berkshire. The stock is up 14% this year to date (and up 30% since it was rated (lower) strong Buy one year ago) while operating earnings are down. It’s tough to get a handle on what its normalized level of earnings is. With a price to book value ratio of 1.49, the stock is not cheap. But it may get a big benefit from proposed corporate income tax rate reductions due to its huge deferred tax “liability”. So i would rate it probably (lower) Buy.  I hold it and I am inclined now to hedge my bet by reducing my position somewhat which will help me in my goal of raising my cash percentage. The Senate will reveal its income tax proposal on Friday which could affect the optimism for the tax cut and therefore the share price of Berkshire. Every time I have sold Berkshire in the past it later seemed like a mistake to have sold though that’s hard to say as it would depend where I invested the cash after selling.