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NormR

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Posts posted by NormR

  1. Companies in the US also sell 10 times the product they do in Canada so they can offer cheaper prices in the US. It's more expensive to set-up shop in canada.

     

    There are still frictions at the border from duties, exchange rates, etc.  Add in higher costs for retail from wages/benefits/real estate, and the gap is fairly easy to explain. 

  2. Two other data points, Canadians have a wealthier middle class, and as a whole are much wealthier than Americans.  So maybe the prices are just reflecting that Canadians can and will pay more for places?

     

    You can get some truly cheap housing in the US.  My brother rents an apartment that's probably 800 sq ft two bedroom.  He has a roomate, they each pay $250 a month.  It's in a nice city, and the building is in nice shape.

     

    I wonder if anyone's living in Buffalo and commuting into Toronto each day?  Making Canadian money and paying Buffalo prices, the new wealthy... I guess the same could be true for BC as well.

     

    There are less expensive places in Canada too.  Rural areas, smaller cities (Windsor, etc.)

     

    Also, keep in mind that the figures I linked are for family income (generally 2 earners).  It'll be a bit higher in the big cities.

     

    In addition, many big cities follow policies that tend to boost prices.  Zoning restrictions, anti-sprawl legislation.  The feds help boost prices on the insurance side via the CMHC.  Etc.

     

    All that said, young families generally have a hard time buying - even with the low rates - without help from family. 

     

    The real estate market seems quite stretched to me.  It's got to the point where you could buy a house in a big centre, or opt for one in a smaller town (or the U.S.) and enjoy a modest retirement based on the price difference.

  3. I liked it.

    Good stories about Graham, Icahn, Pickens, Buffett, Greenblatt, Nifty Fifty Conglomerate area.

    Some quant backtesting, but much less than his previous book.

    ;)

     

    I'll be picking up a copy, too bad about the relative lack of quant tho.

    On the other hand, that should make it more popular around these parts. ;)

  4. Other than the arithmetic average versus geometric point, I'm not sure I understand either what he is saying or the use of what he is saying.

     

    e.g., if you take actual returns over the history of the S&P over 25 years, the complete data are (from the distribution of CAGR for rolling 25 year periods from 1871-2013 (where the rolls are performed monthly)):

     

    Minimum - 3.79%

    Maximum - 17.08%

    Average - 9.36%

    Median - 8.71%

     

    There were no negative returns.  This data seems more useful than what the article posits, to me.  Perhaps I am missing something, however?

     

    FYI, there are no negative returns after 15 year rolling periods, and even at 15, the minimum is -0.3%.

     

    You're looking at one of the winners globally.  The experience in other countries isn't as good.

  5. While it can be infuriating looking at instances of excess, the situation is more akin to giving a dog food and then snatching it away while it's eating.  The result isn't pretty even if they were given too much to begin with.  If you want to keep the dog around, the situation has to be handled delicately or it risks going south quickly. 

  6.  

    How much is their land worth?  Probably a good fraction of that $150m...

     

    Do they own land? They seem to have leases on the One Yonge Street building, the Harlequin HQ and the Waterloo paper HQ.

     

    Last I checked, they own a big parcel in Vaughn.

  7. Now the question is,  are Torstar's remaining media assets (primarily the Toronto Star and the Metro commuter papers and about 100 regional newspapers) worth $150 mn?

     

    How much is their land worth?  Probably a good fraction of that $150m...

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