Fri, 20th January 2017

Anirudh Sethi Report


Archives of “berkshire hathaway” Tag

The Dow Is The Most Overbought In Over 20 Years (And Options Traders Have Never Been More Bullish)

The Dow Jones Industrial Average has only been more overbought than it is today four times in the last one hundred years.

Having risen for 21 of the last 25 days, The Dow is the most overbought since 1996:

Overnight Dow Jones closed up 65 points.New High Continues….

Stocks gained Thursday, the Nasdaq joining the Dow, S&P 500 and Russell 2000 in record territory as all four indexes hit new all-time closing highs.

After a quiet start, major U.S. stock indexes jumped in afternoon trading as the market built on a surge the previous day. Banks and basic materials companies made the biggest gains, and technology companies also climbed. Defense contractors and other industrial companies took losses.

The small-stock Russell 2000 surged 1.5%.

Meanwhile the Dow Jones industrial average ended up about 65 points, or 0.3%. The Standard & Poor’s 500 index rose 0.2%. The Nasdaq composite jumped 0.4%.

These are the new closing highs for the four indexes:

► Dow: 19,614.81
► S&P 500: 2246.19
► Nasdaq: 5417.36
► Russell 2000: 1386.37

U.S. government bond prices fell, sending yields higher. The yield on the 10-year Treasury note rose to 2.40% from 2.34%. That drove banks stocks up since higher interest rates will allow banks to charge more for lending money. Goldman Sachs (GS), which has surged 32% since the presidential election and is trading at a nine-year high, was up 2.5%, and Bank of America (BAC) picked up 1.7%.

European stocks climbed for the second day in a row. Germany’s DAX index was up 1.8% and France’s CA 40 index gained 0.9%. London’s FTSE 100 rose 0.4%.

Buffett Wins Again: Berkshire To Get $29 Billion Boost Under Trump Tax Plan

Something curious happened as Trump was “draining the swamp” – the man who by some accounts owns the swamp, Hillary Clinton’s billionaire backer Warren Buffett, may be about to get some $29 billion richer, if only on paper, thanks to Trump’s tax-rate cut policies which would boost the book value of Berkshire by as much as $29 billion.

According to an analysis by Barclays, Berkshire may soon enjoy a $29 billion boost to its book value under Trump’s proposed tax reform. “We would view this magnitude of increase as favorable for Berkshire shares since it is generally valued on price to book value,” Barclays analysts led by Jay Gelb said in a note to investors Monday first reported by Bloomberg. Berkshire’s book value was more than $270 billion as of Sept. 30; it would surpass $300 billion should Trump’s proposal for a 15% corporate tax rate be enacted.

Joining in the overall market frenzy, Berkshire has jumped about 8% in New York trading since Trump won the November 8 election, helped by the increasing value of Buffett’sholdings in bank stocks as interest rates climbed, however it appears the prospect of sharply lower taxes has helped.

No Mistry at Tata Consultancy Services as chairman replaced

Tata Consultancy Services, the main source of profits for India’s Tata conglomerate, has removed Cyrus Mistry as its chairman – the first operating company to do so following his dismissal from the chair of group holding company Tata Sons.

The IT services company said in a stock exchange announcement that it had received a letter from Tata Sons nominating the existing director Ishaat Hussein as its chairman, and that he had therefore replaced Mr Mistry “with immediate effect”. It did not disclose whether any board meeting had been held to discuss the matter

Tata Sons has also called for an extraordinary general meeting of shareholders to remove Mr Mistry as a director of TCS, the announcement said.

Mr Mistry was dismissed from the chairmanship of Tata Sons on October 24, in an unexpected move that he has since publicly protested. He remains a director of the holding company, in which is family controls an 18 per cent stake.

Bill Gates Net Worth Tops $90 Billion For First Time: 0.5% Of US GDP

The richest man in the world… just got richer.

The net worth of the world’s richest person – Bill Gates – reached $90 billion on Friday for the first time in history, thanks to gains in his holdings such as Canadian National Railway Co., and Ecolab…

Source: Bloomberg

He is now almost $14 billion richer than the second richest person in the world – Amancio Ortega – Spanish mogul behind the fashion retailer Zara; and a shocking $23 billion richer than biggest loser Warren Buffett who is now worth just $67bn

For some context:

If Bill Gates was a company, he would be ‘bigger’ than 440 of the S&P 500 components

If Bill Gates was a country, he would be ‘bigger’ than 125 nations by GDP tracked by The IMF (bigger than Ukraine and almost as big as Puerto Rico)

If Bill Gates collected cars, he could buy 18 Koenigsegg CCXR Trevitas (and have change to pay for the insurance… but not the gas)

Still money can’t buy happiness… right?

Warren Buffett’s Berkshire lifts Apple stake.AAPL -Heading Towards $113–115+ soon

Warren Buffett’s Berkshire Hathaway increased its headline-making stake in Apple in the second quarter, from $1.1bn at the end of March to $1.5bn at the end of June.

The share buying has just been revealed in Berkshire’s 13F filing with the US Securities and Exchange Commission, which also shows that Mr Buffett cut his stake in the retail giant Walmart over the same period.

Apple’s appearance in Berkshire’s investment portfolio raised eyebrows in May because of Mr Buffett’s famous aversion to technology stocks, but it has emerged that it was one of his deputies, Todd Combs or Ted Weschler, who has picked the stock.

As Apple’s share price declined 12.3 per cent over the quarter, they bought 5.4m more shares, taking the total to 15.2m. So far, that looks like a winning bet: the stock has rebounded by more than 14 per cent since quarter-end.

Warren Buffet: I’ll Make Trump an Offer I Hope He Doesn’t Refuse

At a campaign rally for Hillary Clinton in Omaha, Buffet said the American people would learn a lot more about Trump if he produced his income tax return.

“Donald Trump at one point said that he can’t release his tax return because of an audit. I’ve got news for him, I’m under audit too….I would be delighted to meet him any place any time between now and election. I’ll bring my tax return; he can bring his tax return… And just let people ask us questions about the items that are on there,” Buffett said.

The billionaire businessman made his remarks as he welcomed Hillary Clinton to Omaha, Nebraska his home state and headquarters of his conglomerate Berkshire Hathaway (BRK.A).

He led the crowd in chanting “Hillary, Hillary, Hillary.”

Bids for lunch with Warren Buffett hit $2.6million (Rupee 17 crore )

Time is running out to snag a potentially career-changing meeting with Warren Buffett.

The annual charity auction of a lunch date with the famed investor and Berkshire Hathaway boss is ticking down to its last hours – but at this point you will need to have more than $2.6m spare if you want to be in with a shot of winning.

The auction site eBay says that potential bidders should get in touch by midday, Pacific time – that is, about two hours from the time of this post – to be pre-vetted for participation in the auction, which runs until 7.30pm PT tonight

With the current top bid at $2,614,019, it is looking like one of the bigger hauls for Glide, a San Francisco charity which offers meals and services for the homeless in the city’s Tenderloin district.

Mr Buffett’s late wife Susan was a volunteer for the charity and he has been running the annual auction since 2003.

Famous winners have included a number of hedge funds managers: the activist investor David Einhorn; Guy Spier, who wrote a book about how meeting Mr Buffett improved his investing; and Ted Weschler, who impressed Mr Buffett so much that he was offered a job at Berkshire, and now invests $9bn of the company’s money.

Follow the auction here. List of past auction winners below.

Overnight US Market :Dow Closed up 175 points ,S&P 500 up 20 points.

The U.S. stock market, which is looking to snap a three-week losing streak, kicked off the new week  in rally mode Monday as investors eyed more retail earnings, digest news related to corporate deals and await Wednesday’s release of minutes of the Federal Reserve’s April meeting.

The Dow Jones industrial average was about 179 points, or 1.0%, to 17.715.  The Dow’s rise was helped by a nearly 4% jump in shares of Dow component Apple (AAPL), after Warren Buffett’s Berkshire Hathaway reported a $900 million stake in the iPhone maker in an SEC filing.

The S&P 500 was up 1.0% and the Nasdaq composite index gained 1.2%.  Oil prices jumped with U.S. crude gaining more than 3.0% to nearly $48 a barrel.

Both the Dow Jones industrial average and Standard & Poor’s 500 stock index fell for the third straight week last week, hurt by a barrage of weaker-than-expected quarterly profit results from well-known retailers, including department store giant Macy’s and high-end retailer Nordstrom. Weakness in the retail space, however, was offset somewhat Friday by better-than-expected April retail sales data. Still, the stock market rally that began in mid-February has stalled, hurt by rising valuations, weak earnings and continued angst over the timing and impact of the Fed’s next rate hike.

Wall Street is bracing for a busy week. The earnings parade picks up briskly Tuesday with results from home improvement retailer Home Depot, with fellow retailers Lowe’s, Target, Walmart, Gap and FootLocker reporting later in the week. After last week’s poor results, Wall Street will be watching closely to see how other key retailers fared.

Week ahead: US jobs, Berkshire meeting

Having digested the latest monetary policy decision from the US and Japan, investors turn their attention to Berkshire Hathaway’s shareholder meeting and the latest jobs print in the US.

Here’s what to watch for in the coming days:

US jobs

The pace of job creation in the US is expected to have slowed slightly in April. Economists expect the US added 203,000 jobs, compared with 215,000 in March. The unemployment rate is expected to remain unchanged at 5 per cent, while average hourly earnings are projected to have climbed by 2.4 per cent from the previous year, compared with the 2.3 per cent growth registered in March.

“There may be a payback in manufacturing jobs after two sizeable declines in February and March, but the early manufacturing survey data have been mixed,” economists at Bank of America noted. The strength in the US dollar and a drop in crude prices have weighed on hiring in the manufacturing sector.

Buffett shareholder meeting

Berkshire Hathaway will hold its annual shareholder meeting in Omaha, Nebraska on Saturday and for the first time, the meeting will webcast on Yahoo Finance, a US-based business news site.