Fri, 28th October 2016

Anirudh Sethi Report


Archives of “berkshire hathaway” Tag

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.

Berkshire Hathaway fourth-quarter profit rises 32 percent

Warren Buffett’s Berkshire Hathaway Inc on Saturday said fourth-quarter profit rose 32 percent, helped by improved results in its insurance operations and higher gains from investments and derivatives.

Net income rose to $5.48 billion, or $3,333 per Class A share, from $4.16 billion, or $2,529 per share, a year earlier.

Quarterly operating profit rose 18 percent to $4.67 billion, or $2,843 per share, from $3.96 billion, or $2,412 per share.

Analysts on average had forecast operating profit of $2,814 per share, according to Thomson Reuters I/B/E/S.

Warren Buffett Attacks Wall Street Over ‘Phony’ Earnings

Warren Buffett thinks more and more companies are faking it, and Wall Street is helping them do it.

In his annual letter to shareholders, which was released on Saturday morning, the Berkshire Hathaway CEO took other executives to task for telling their shareholders to ignore what Buffett thinks are very real expenses. In addition, Buffett criticized Wall Street for endorsing and passing along those inflated financial figures to investors.

“Wall Street analysts often play their part in this charade, too, parroting the phony, compensation-ignoring ‘earnings’ figures fed them by managements,” Buffett writes.

 Buffett says it’s possible that the offending analysts “don’t know better.” But more likely, Buffett says, the analysts go along with the phony numbers because they fear losing access to management, which is key to a Wall Street analyst’s job these days. Buffett also says analysts may be swept up by a herd mentality and go along with these inflated financials because everyone else is doing it. None of these reasons lets them off the hook, Buffett says.

“Whatever their reasoning, these analysts are guilty of propagating misleading numbers that can deceive investors,” Buffett writes.

Warren Buffett turns to Yahoo for Berkshire live-stream

Warren Buffett isn’t an investor in Yahoo, but the company will be hoping to get a bounce from the billionaire investor’s decision to webcast Berkshire Hathaway’s annual gathering of shareholders for the first time.

Yahoo Finance, the US-based business news website, will webcast the meeting which takes place on April 30 in Omaha, Nebraska.

The meetings capture the attention of investors across the globe who hope for some inights from the billionaire investor famous for his long-term approach to stock-picking.

Business publications and media networks compete to bring investors behind-the-scenes details from the event, which also showcases Berkshire’s many subsidiaries, such as See’s Candy and Borsheims Fine Jewelry.

Charlie Munger On Trump As President: “Anyone Who Makes Money Running A Casino Isn’t Morally Qualified”

It’s amazing, but nearly a year into the Trump campaign the pundits still don’t get it: the louder established members of the broken, crony capitalist status quo rail against Trump, the higher his popularity. And there are few more entrenched crony capitalists than the partner of Barack Obama’s “tax advisor”, the person who singlehandedly crushed the Keystone XL pipeline project so it would generate more profits for his oil trains, Hillary’s number one supporter (perhaps tied with Lloyd Blankfein), Warren Buffet’s sidekick Charlie Munger.

Earlier today Munger, the vice chairman at Berkshire Hathaway Inc., dismissed Republican Donald Trump’s qualifications to be president, during the annual meeting of his Daily Journal Corp. As reported by Bloomberg, Munger, 92, responded to a question whether a person who couldn’t make money in the gaming industry would be a good fit for the top office in the U.S.

“Well, he did make money for quite a while,” Munger said. “My attitude is that anybody who makes money running a casino is not morally qualified.

The refernce, of course, is to Trump’s several corporate bankruptcies. What was omitted is any discussion of how bankrupt Munger, Buffet and/or Berkshire Hathaway would have been had their extensive financial stakes not been bailed out by the US taxpayer during the financial crisis, something profiled by Reuters in 2009.