Seven Mind-Blowing Charts from the COVID-19 Crisis That Deserve Your Attention

By Justin Carbonneau (@jjcarbonneau) They say a picture is worth a thousand words. The pictures and charts outlined below may actually be worth much more: 30 million unemployed. $7 trillion on the Fed’s balance sheet. Just how much the Amazons, Googles and Large Cap technology stocks have delivered over other areas of the market like value. A 250% increase and a 50% decrease in Internet search trends and behavioral shifts. 40 years of falling interest… Read More

Why has Warren Buffett Gone Quiet in the Market?

Last year, Warren Buffett resisted pressure to buy back Berkshire Hathaway stock, pay a dividend or “be more aggressive with investments,” a strategy that seems to be paying off. This according to a recent Barron’s article.  “Instead, Buffett let cash build on Berkshire’s balance sheet,” the article notes. “With some $128 billion in cash and equivalents on hand, he stood poised to capitalize as the markets imploded in March.” The 89-year-old investing legend has been… Read More

Buffett’s Berkshire Hathaway Sells Part of Delta and Southwest Stakes

Regulatory filings show that last week, Berkshire Hathaway sold nearly 13 million of its Delta shares (for about $314 million) and about 2.3 million in Southwest shares (for about $74 million). This according to a recent CNBC article. Berkshire—among the biggest shareholders of the four largest U.S. airlines, offered no reason for the sale but the article noted that they came “as the coronavirus pandemic drives the airline industry into perhaps its biggest crisis ever.” It… Read More

A Look at Warren Buffett’s Portfolio Might Make You Feel Better

“If you stick around long enough, you’ll see everything in markets,” said Warren Buffett earlier this month in an interview with Yahoo Finance. This according to a recent article in MarketWatch. And conditions have only gotten worse since then, the article reports, noting that the stock market “continues to spin out of control in both directions.” Although Buffett’s Berkshire Hathaway is sitting on a pile of cash that “has him prepared to pick up the… Read More

Buffett: Negative Rates Are More Puzzling Than Scary

The prospect of negative interest rates confounds Warren Buffett but doesn’t frighten him, according to a recent Bloomberg article. “U.S. policy makers have been seeking to grapple with the economic fallout of the coronavirus pandemic, “ the article notes, citing the Fed’s cutting of its benchmark rate to zero earlier this month. In his annual shareholder letter (released in February), Buffett contended that equities would outperform long-term, fixed-rate instruments in the long run if current… Read More

Learning from Buffett and Others During Market Crises

By Justin J. Carbonneau As of this writing, the S&P 500 will have dropped close to 30% in less than 20 trading days. The decline is the fastest drop into bear market territory ever. The degree of health related and economic damage for businesses, profits and employment, a result from fallout of the coronavirus, remains so unknown that stocks in general are getting significantly hit and some industries, like airlines, cruise liners and entertainment concerns,… Read More

How to Be Like Warren Buffett in Times Like These

“When fear defines financial markets, remember Warren Buffett,” says a recent Barron’s article. Buffett once asserted that the secret to beating the market was to “be fearful when others are greedy and greedy when others are fearful,” a simple idea that the article notes can be difficult to follow, “especially now, when no one knows what the coronavirus might do.” The negative market reaction to the recent health threat, the article points out, raises a… Read More

Highlights: Buffett’s Annual Letter to Shareholders

Berkshire Hathaway’s annual report included Warren Buffett’s much anticipated letter to shareholders. Here are highlights from the letter: Retained earnings. Buffett dedicated the first several pages of the letter to defending his position on reinvestment of earnings: “At Berkshire, Charlie and I have long focused on using retained earnings advantageously. Sometimes this job has been easy—at other times, more than difficult, particularly when we began working with huge and ever-growing sums of money.” When investing… Read More

Berkshire Hathaway and a Buffett-less Future

As Warren Buffett approaches his ninetieth birthday, Berkshire Hathaway shareholders might be worrying about the company’s future, according to a recent article in Barron’s. But the article outlines several issues that could be “resolved in a post-Buffett era.” Here are some highlights: New leadership could “break up the conglomerate to unlock value—or at least be more amenable to an idea that Buffett opposes:” Although Buffett has long argued that Berkshire is better as a conglomerate,… Read More

Buffett Sells Newspaper Business

Warren Buffett and Berkshire Hathaway have agreed to sell BH Media and the Buffalo News to Lee Enterprises, Inc., for $140 million in cash, marking a “rare divestiture after he spent years snapping up local newspapers.” This according to an article in Bloomberg. Buffett, who reportedly first invested in the industry to capitalize on strong local advertising revenues, said last year that most newspapers are “toast” because of changing economics. The article notes that BH… Read More