August 26, 2014 Comments

On Tuesday the S&P 500 rose 0.1% to finish at an even 2000. Toronto also rose 0.1%.

Liquor Stores N.A. rose 5.9%. I did not see any news to justify the recent gain. Presumably some investors have taken a sudden interest.

Tim Hortons rose 8.1% after it was announced that the Burger King deal would be mostly hash and was worth about $84 per share with $65 of that in cash and the rest in shares of the new combined company. Burger King fell 4.3%. Whiel the rise in Tim Hortons is understandable, the big gain in Burger King (yesterday) is more of a puzzle. Burger King is apparently paying 30 times earnings for Tim Hortons. That would certainly not appear to be a bargain.

They are going to have to leverage the heck out of it and also squeeze costs out like crazy.

Buffett is apparently just collecting 9% on his $3 billion investment. Good for him.

I did sell 150 B shares of Berkshire that I bought about 3 weeks ago. I got a very quick 9% gain. I still own 400 shares in another account. I may sell those because a tiny conflict of interest may arise due to one of Berkshire’s pending acquisitions.

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