Warren Buffett's Berkshire Hathaway is out with its annual letter to shareholders. "Over the years, I’ve often been asked for investment advice, and in the process of answering I’ve learned a good deal about human behavior," Buffett said in the letter.
The Great Restructuring in retail continues. In the wake of a disappointing holiday season, J.C. Penney (JCP) said Friday it will close 130 to 140 stores by the second quarter. The store closures represent 13% to 14% of the company's current store base and less than 5% of annual sales. They have a negligible impact on net income. J.C. Penney said same-store sales at the locations were "significantly below" the remaining store base and operate at a much higher expense rate due to poor productivity. The company expects $200 million in annual costs savings from the efforts. "We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of
Plus, the first day of every month, a specific amount from my checking account is sent directly to my Roth IRA and my Ally high-interest savings account. Since my savings goals are taken care of each month — along with my fixed costs, such as rent and insurance — I feel free to spend the rest of my paycheck as I please. My system is a seemingly well-oiled machine: At the end of the day, I cover my expenses and set aside enough to hit my savings goals.