Berkshire Doubles Down on Housing as Investors Pile Into Canadian Stocks

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The Canadian Investor 46 min 2 speakers 5 chapters transcribed 3 hours ago
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Simon Belanger 0:00
Whoever kind of found this one at the peak, which was probably a lot of people, because that's kind of when it started to come to the surface, is still kind of taking it on the chin because it's down quite a bit. If sales start to struggle and you all of a sudden have to start marking stuff down more, the margins will absolutely cave. Because right now, they get by only marking down clothing 5% or 10%. But if the brand kind of falls out and you have to start marking it down 30%, 40%, that's when you really start to see a huge impact.
Brayden Dennis 0:31
So you get people that are kind of stuck in their homes. So they can either, I guess, renovate, make it larger, or they just kind of suck it up because if they move to a bigger home, it's like a double whammy.
Simon Belanger 0:44
I think in this situation, more dilution, more debt is coming, almost a guarantee. Company is burning through money and they only have around 4 million in cash.
Brayden Dennis 0:52
Welcome to the Canadian Investor Podcast. I'm Simon Belanger, I'm back with Dan Kent. We have a fun episode lined up for you. So switching things up a little bit just because it is a bit of a slower week in terms of earnings of companies, but we still have plenty to talk about. First, I found a really interesting report from TD Securities that will be going over August ETF flows for both the US and Canada, just to see exactly what... what essentially investors have been buying in the last month in August. And what's interesting with the report is actually it comes out weekly, but the report that I got also had the monthly information. So it was at the beginning of September. So we'll go over that. After that, we'll also touch quickly on just the...
Brayden Dennis 1:40
Statistics Canada, Canada's international transaction in security. So what some of the trends are. You'll see there's a little bit of a continuation there from the ETF flows. So it'll be interesting to look at that. And then we'll look at Pesorama. Yes. Yes, it's Pesorama, which I thought it was a joke, but it's a real company listed on the venture. We'll look at Leonard Homes, so the US home builder and Berkshire that actually upped its stake in the home builder recently in the last couple of days or in the last week. And then we'll finish with Grubznamit as well as WSP withdrawing a bid for Arcadis, so an engineering firm that they decided to not pursue anymore. fun episode ahead let's get started here with the fun flow so did you have a chance to look at those fun flows or not quite no i didn't look at them that's okay that's all good so um overall in august some it's very similar on the us and canadian canadian front of things overall canadian etfs saw
Brayden Dennis 2:45
a 16.1 billion in inflow that was a decline though versus july decline of 11 but july was exceptionally strong and then equities saw the most inflows for august with 8.8 billion Followed by fixed income at 4.7 billion. When you include fixed income, but also money market, I tend to put those in the same basket, but they do break them apart in the result itself. Mixed allocation ETF with 2.8 billion. Just think about mixed allocation. You can have like these all in one ETFs, for example, would fall into that where they have some equities, but they also have some bonds and fixed income in there. You can even have some, I think Fidelity also has some with a little bit of Bitcoin. BMO has some with a fixed income and equities.
Brayden Dennis 3:36
So you see that from most of the big firms in Canada. U.S. equities took in 33% of the inflows, international 27 and Canadian equities at 26%. So pretty Pretty even here. The rest was spread out between other types of equities ETF. Fixed income inflows were up 27% versus July. So despite the strong inflows, though, in the fixed income space, there was one area that actually had some trouble. So it's those high interest savings ETF. So Haisa, Haisu, I think PSA is also one. So those actually saw a slight decline here. and actually saw some slight outflows in July.
Simon Belanger 4:20
Yeah, I think HSAV would be another one, like the one that doesn't pay a distribution,
Brayden Dennis 4:24
but
Simon Belanger 4:24
you kind of get the tax favorability of it just growing in unit value.

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