Wednesday’s action saw the S&P 500 up 0.1% and Toronto up 0.35%.
Constellation Software was up 3.2%. I’m not aware of any specific reason but it has just been such a well managed and highly profitable company since about forever!
AutoCanada was up 4.1% to about $22. I added a little to my position yesterday at $20.69. I was then reluctant to buy today at closer to $22. That’s called anchoring. I am mentally “anchoring” on yesterday’s price of under $21. It’s not a logical or smart way to think. Yesterday’s price is really irrelevant to my decision to buy or not today. But being human, I can’t help being reluctant to add another 100 shares today at $22 when I thought about adding that extra 100 yesterday below $21 and did not do it. If I had been running with a very substantial cash position such as 20 or 30% I think I would have bought more AutoCanada yesterday. But my cash position remains fairly thin (about 9%) and I want to be disciplined. I’m trying to only buy after selling something. Yesterday I reluctantly sold half of my very small position in Restaurant Brands in order to buy the AutoCanada. AutoCanada is certainly not without risk but it seems to me that it could easily run back up to say $30 if it has some good quarters later this year. It’s well managed and ambitious and the company itself was buying back shares last Fall and Summer and $27 and $28.