October 25, 2021

So, let’s see what markets did on Monday… They went up again. 2021 has seen the market rise seemingly about 9 days out of 10.

The S&P 500 was up another 0.5% and Toronto was up another 0.3%.

Costco was up $8.11. That’s “only” a 1.8% gain but this pushed it over $490 and it seems like $500 is within reach. But no stock is immune from a pullback. I’ll sell another portion of what I hold if it hits $500. In fact, just while typing this I have gone and put in an order to sell 20% of my Costco shares if it hits $499. Again, this could well be a mistake but with interest rates potentially in the rise the P/E ratio here looks rather rich. Hopefully, I can buy back later at a lower price.

CN Rail was down 1.2% today. I sold a few shares this morning before the price drop. Again, this one looks a bit rich but is also a great long-term hold. 

The control battle at Rogers Communications is entertaining. It’s probably a buying opportunity but I have not analyzed the company. I have always said that family control situations can be potentially a bad thing but often it’s been fine. There are many Canadian companies with family or founder control that have been great investments. Canadian Tire is one. Couche-Tard is another. When there is a family control block it is often held in a holding company and there is usually zero transparency as to how the holding company is controlled. In the case of Rogers the family holding company has some unique features it seems.  It’s interesting to that there is apparently an appeal to the B.C. courts. Why would that be when this is ostensibly an Ontario company. It always bugs me when companies sort of shop for a better jurisdiction to register in for some kind of tax or control-type reasons.

I’m working now on an update for BHP the giant Australian mining company. It might take a while given that the annual report is just over 300 pages! It’s an interesting company and I think a real contributor to society. But whether it is a good investment right now, I will reserve judgement although my suspicion is yes and I would not mind owning some shares. But I will wait until I analyze it further.

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