An easier way for Canadians to join the Warren Buffet Empire. Plus two tasty stock market bargains and a trillion dollar bet that interest rates won’t go up much

We understand – tech stocks are very popular with investors these days.

But it’s nice to see some non-tech names being added to the list of US stocks that can be purchased as Canadian certificates of deposit. Traded on the NEO of Canada, CDRs are essentially a fractional investment in an underlying US company with built-in currency hedging. No matter how much US stocks rise or fall, that’s what your CDR does. There are no static changes in the Canada-US exchange rate.

The latest batch of eight new CDRs includes tech companies, but also big names from other industries. There’s Pfizer Inc. (PFE-NEO), the pharmaceutical giant behind one of the key COVID-19 vaccines, as well as big box retailer Costco Wholesale Corp. (COST-NEO) and the credit card company Mastercard Inc. (MA-NEO). The most intriguing addition for investors with a contrarian view might be Berkshire Hathaway Inc. (BRK-NEO), the legendary holding company of Warren Buffett.

On the New York Stock Exchange, Berkshire shares were trading at just under US $ 280 in early December. The CDR version traded at just under $ 22 Canadian. This price comparison highlights how CDRs make stocks of large US companies more accessible to Canadian investors. Another benefit is profitability – retail investors get a better Canada-U.S. Exchange rate when they buy BRK-NEO than if they use an online broker to buy BRK.B on the NYSE. Foreign exchange for clients who buy and sell US stocks is a profit center for brokers.

The list of BRK subsidiaries is long and varied – insurers, but also manufacturers of brickyards, batteries, industrial lubricants, underwear, candy and furniture. There’s not a whole lot of tech in the mix, which helps explain why the BRK hasn’t been the S&P 500-beating juggernaut it once was in recent years.

Up around 24% in total over the past two years, BRK isn’t exactly beaten. But against the 44% gain of the highly technical S&P 500, BRK appears to be somewhat out of favor. Six-month numbers accentuate this hold – BRK was down 4.3%, while the S&P 500 gained 8%.

A legitimate concern if you are considering CDRs is whether they catch enough to ensure a tight supply-demand spread when buying and selling. With low volume stocks and exchange traded funds, you may have to pay more than the current market price to complete a stock purchase and accept less than the market price to sell.

CIBC reports that the average number of CDR client trades per day fell from 700 in September to 5,500 in early November, and assets reached more than $ 290 million. This is not about explosive growth, but it is enough to suggest that investors are definitely interested in CDRs. Widening the selection of available actions can only help.

– Rob Carrick, Personal Finance Columnist

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Actions to think about

Oatly AB Group (OTLY-Q) and Beyond Meat Inc. (BYND-Q): Investors are treating producers of plant-based foods like week-long kale salads. Maybe it’s time for them to stop looking up. As bad as things look right now, the long-term arguments for betting on plant-based foods have not changed. Environmental pressures, health concerns and growing qualms about animal suffering are expected to keep people eating more green things and less bloody things in the years to come. Someone is going to take advantage of this trend. Of course, there are many uncertainties, especially with regard to timing. To that, add some ugly recent results. But as Ian McGugan argues, the fall in the stock prices of two of the major vegetarian food makers suggests that the market may overreact to temporary factors.

Alimentation Couche-Tard Inc. (ATD-BT): On November 18, the stock price closed at a record high of $ 52.30. However, it has since fallen 12%, closing below $ 46 on December 1. The stock is currently trading at an attractive valuation with a price / earnings multiple (P / E) of 14.7 times the consensus earnings estimate for fiscal 2023, well below its historical average multiple. The stock has a 12-month expected return of 24% and 13 analyst buy recommendations. Jennifer Dowty examines the case for buying stocks during the recent decline.

The summary

Are you looking to protect yourself from market volatility? Here is something that no longer works

Investors followed a manual during the recent wave of market volatility linked to the pandemic. When the major indices collapse, ditch airlines, energy stocks, and anything associated with a return to normalcy. For added security, buy tech heavyweights that can withstand more blockages. But some observers have found that at least one typical response to volatility is gone: the US dollar’s reputation as a safe haven in times of turmoil. David Berman explains.

Canadian dollar set to rise if Bank of Canada takes the lead in rate hikes

Analysts stick to bullish forecasts for the Canadian dollar despite the uncertainty over the Omicron COVID-19 variant, expecting oil prices to rebound and the Bank of Canada to raise interest rates ahead the US Federal Reserve. Here’s what a Reuters poll of 32 strategists found.

See also: Global Equity Rally Expected to Moderate Next Year, Correction Likely: Poll

A trillion dollar bet that interest rates won’t go up far

Bond markets are betting that the Federal Reserve’s policy tightening could end before interest rates hit the Fed’s 2% inflation target. And it might not be that far in the future. Reuters’ Yoruk Bahceli explains.

Others (for subscribers)

The highest yielding stocks on the TSX, plus risk data

John Heinzl Model Dividend Growth Portfolio as of November 30, 2021

Number Cruncher: 10 well-valued American industrials in an improving sector

Friday Analyst Improvements and Downgrades

Thursday Analyst Improvements and Downgrades

Friday Insider Report: Director Invests Over $ 1 Million In Small-Cap Stock

Thursday Insider Report: President Seizes Buy Opportunity In This REIT Amid Market Volatility

Globe Advisor

Omicron Induced Market Volatility Could Allow Better Businesses During Lossy Selling Season

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Compiled by Globe Investor Staff

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