May 5, 2019

Futures indicate the market could open down about 2% as Trump has escalated the trade war with China imposing higher tariffs, apparently hoping to jolt China into fast agreement on a trade deal.

On Friday, the S&P 500 was up a hefty 1.0% and Toronto was up 0.5%.

Shopify was up 3.3%, Amazon was up 3.2%.

Canadian Western Bank was up 1.5%, Canadian Tire was up 1.6%, Toll Brothers was up 1.6%, American Express was up 1.8% and Andrew Peller was up 1.9%

Linamar was down 3.6% after reporting a decline in Q1 earnings. This stock certainly looks cheap. But 2019 is expected to be a weak year in which it will struggle to achieve any earnings growth. Therefore it may well remain cheap for some time.

AutoCanada was down 7.8% after reporting a loss in Q1 and after withdrawing its guidance regarding its expected 2019 EBITDA from Canadian operations. The withdrawal of guidance is something that tends to upset analysts. Management is still expressing a lot of confidence that things are getting better.

Warren Buffett and Charlie Munger once again answered questions for about five hours (with a break for lunch) at Berkshire’s annual meeting. Yahoo Finance livestreamed it:
https://finance.yahoo.com/brklivestream (The questions start about an hour into the recording).

In responding to one question about how to invest successfully, Charlie Munger said “Figure out what works, and then do it.” That strikes me as useful advice for any aspect of life.

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