Markets were strong on Monday on the news that a proposed vaccine has achieved a 94.5% success rate so far in a Phase III clinical trial. And this one does not require ultra cold storage in distribution. While it would be some months before the vaccine is widely available, the market is looking past the next few months to better times ahead.
Almost all the stocks on our list were up. Of particular note:
AutoCanada was up another 11.2% to $29.03. This is a remarkable turnaround. I will look closer at its report and have further comments tomorrow.
Canadian Western Bank was up 4.1%.
Boston Pizza Royalty units were up 5.8% to $8.88. I thought these units might slip back due to a new round of partial lockdowns. But, especially given the vaccine news, perhaps markets are looking past that to better days in the Spring.
Costco announced a $10 special dividend after the close. No-doubt the stock is expensive in relation to earning but it has been a real powerhouse throughout the pandemic. Apparently Berkshire Hathaway has sold its position in Costco. I suspect this was not Buffett’s trade but rather one of his two portfolio managers. Buffett has praised Costco many years ago in the annual letter and his aged partner Charlie Munger has been on the Costco Board for many years. As far as I know, Buffett never bought Costco. He may have stayed away to avoid any perception that he would get inside information from Munger.
Near the closer of Markets, Biden made a speech in which he promised higher taxes on the rich and on some corporations and promised a $15 federal minimum wage. I think that would be negative for stock prices but nevertheless it sounds like good policy to me. There truly has to be a more equitable division of wealth in the U.S.