Silicon Valley's housing crisis is serious. A new report from Open Listings reveals that workers at five major tech companies, including Apple, Facebook, and Google, would have to spend over 28% of their salary to pay a monthly mortgage on a home near work. Software engineers at Apple have it worst.
The updated accounting standard, which will take into account revenue from long-term contracts, will result in a 13 cent cut in reported earnings per share for 2016 and a cut of 16 cents per share for 2017, according to the company's 10-K filing. GE is adopting the new accounting standards as the Securities and Exchange Commission investigates the company over its accounting for long-term service contracts. The changes also come as the company struggles to reverse steep declines in some of its businesses and is looking to sell off $20 billion of assets.
Warren Buffett says: Bring it on. In his annual letter to shareholders of Berkshire Hathaway Inc , Buffett said "no company comes close" to his conglomerate in its ability to financially withstand even a mega-catastrophe that causes $400 billion of insurance losses. Buffett said the odds of such a catastrophe in any year is just 2 percent, but that Berkshire would lose only about $12 billion, a sum more than offset by annual profits from its non-insurance businesses.
Billionaire Warren Buffett prodded ordinary investors on Saturday to stay invested in U.S. stocks, ignoring price swings, guidance from people with fancy credentials and the temptation to load up on bonds. Buffett said it is a "terrible mistake" for investors with long-term horizons - among them, pension funds, college and endowments and savings-minded individuals - to measure their investment "risk" by their portfolio's ratio of bonds to stocks. The long-time bull on U.S. companies and the economy issued his latest letter to Berkshire Hathaway Inc shareholders on Saturday.
It’s impossible to accurately know when the next market decline will be, according to legendary investor Warren Buffett. It’s important to remember that even Buffett’s Berkshire Hathaway (BRK-A, BRK-B) hasn’t been immune to significant swings in its stock price either. “This table offers the strongest argument I can muster against ever using borrowed money to own stocks.
Some of the assets bought by Chinese firms like Anbang were not core to the business, says Peter Churchouse of The Churchouse Letter.
In his annual letter to Berkshire Hathaway (BRK-A, BRK-B) shareholders, legendary investor Warren Buffett muses on the M&A environment, his aversion to leverage, opportunities to buy during downturns, and his disregard for fees charged by active managers.
Hey want to know how to get paid even in a down market? Here's a hint though: Own some dividend stocks. You essentially get paid to ride out a falling market. And then when the market finally turns around -- you get paid again! Dividends often come from the old guard -- companies like JNJ (JNJ) , Colgate-Palmolive (CL) and Coca Cola (KO) -- because they're financially strong and actually have extra cash to give back to their shareholders. And also that often means they have less debt. Which is exactly why you should consider owning some dividend paying stocks. Sure they may lag when the markets on fire -- but they're probably going to outperform when the market is in the toilet. These are the
Saudi Arabia hopes OPEC and its allies will be able to relax production curbs next year and create a permanent framework to stabilise oil markets after the current supply cut deal ends this year, its oil minister said on Saturday. The Organization of the Petroleum Exporting Countries is reducing output by about 1.2 million barrels per day (bpd) as part of a deal with Russia and other non-OPEC producers. The pact, aimed at propping oil prices, began in January 2017 and will run until the end of 2018.
There were a few notable topics that Warren Buffett did not want to talk about in his latest letter to Berkshire Hathaway shareholders. Warren Buffett’s latest letter to Berkshire Hathaway (BRK-A, BRK-B) shareholders was released Saturday, and a few major themes were missing. The last 18 months at Wells Fargo, Berkshire’s largest public market equity investment by market value, have been tumultuous. The bank has been embroiled in a scandal over opening millions of fake accounts for customers, which cost former CEO John Stumpf his job, and continued missteps at the firm have led some lawmakers to call for current CEO Tim Sloan to be ousted from his post.
What investors then need instead is an ability to both disregard mob fears or enthusiasms and to focus on a few simple fundamentals. In other words, the takeaway is that everyday investors can beat the so-called “smart money” and they don’t have to shell out hefty investment fees or execute a lot of trades to do it. Buffett, who has argued that investors — both small and large — would be better off putting money in low-cost index funds, wrote in his 2005 shareholder letter that active management professionals (hedge funds), as a group, would underperform the returns achieved “by rank amateurs who simply sat still.” His thought was that the active managers who collect massive fees would leave their clients “worse off” than the amateurs who simply invested in unmanaged low-cost index funds.
Nvidia (ticker: NVDA) is slowly picking up some formidable competitors in the A.I. chip-making business. Amazon (AMZN) has joined Alphabet (GOOGL) and Apple (AAPL) in designing its own custom chips, according to a report in The Information. Amazon is making specialized chips for its Alexa home speakers, and may be eyeing chips for its Amazon Web Services data centers, the report said. Either scenario could spell potential trouble for A.I. chip leaders Nvidia and Intel (INTC). Amazon's acquisition of Annapurna Labs, an Israeli-based chip maker for $350 million in 2015, and Blink, a maker of low-power security cameras for $90 million last year, has enhanced its chip-making operations. Alphabet,
Feb.25 -- Berkshire Hathaway reported record fourth quarter and fiscal 2017 earnings, with more than $32 billion in net income coupled by a $29 billion U.S. tax reform windfall after the company's rate fell to 21% from 35%. Warren Buffett says he's looking to make a new mega-deal but can't find a "sensible purchase price" as yet. Bloomberg’s Ramy Inocencio reports from The Wall with the Bloomberg terminal charts you need to know on "Bloomberg Daybreak: Asia."
In the wake of the mass shooting in a Florida high school last week, companies are dropping their partnerships with the National Rifle Association (NRA), which touts 5 million members. According to a list compiled by ThinkProgress, an advocacy organization, there are at least 22 corporations, including car-rental companies and financial institutions that have been offering discounts to NRA members. –First National Bank of Omaha: The largest privately held bank announced it will stop issuing the NRA Visa Card due to “customer feedback” on Thursday.
The Tax Cut and Jobs Act was passed last month by Congress and signed by President Trump. The final bill reflects some compromises and is substantially different than the earlier House and Senate bills. The new law includes many expected changes, some unexpected ones, and some changes that were expected but didn’t make the cut. Here are the most important things that individual taxpayers need to know. 1. New individual tax rates and brackets For 2018 through 2025, the new law keeps seven tax brackets, but six are at lower rates. In 2026, the current-law rates and brackets would return. The temporary rate brackets under the new law are as follows. Most folks will benefit from the new rates, but
Philippine central bank Governor Nestor Espenilla’s admission that he’s recovering from cancer hasn’t stopped investors from pushing for more action on monetary policy. Espenilla said he was diagnosed with “very early stage” tongue cancer in November, but has since had the tumor removed and successful radiation treatment, in written remarks to reporters Sunday. The governor also said the central bank can adjust monetary policy without lifting interest rates, while stressing the decision to cut banks’ reserve requirement ratio wasn’t an easing of policy and won’t fuel price pressures. “If he’s really cancer free now then it won’t cause jitters in the market anymore,” said Michael Gerard Enriquez, chief investment officer at Sun Life of Canada Philippines Inc. in Manila.
China's banking regulator has introduced steps to cut the red tape for foreign banks, state media agency Xinhua said on Saturday, as part of the government's ongoing effort to promote investment in the country's fast-growing financial sector. The China Banking Regulatory Commission (CBRC) has revised its rules for foreign banks, scrapping approval procedures in four areas including overseas wealth management products and portfolio investment funds, the report said.
Apple (ticker: AAPL) co-founders Steve Jobs and Steve Wozniak made headlines for entirely different reasons this weekend. A job application in 1973 from Jobs, who co-founded Apple in 1976 with Wozniak, was listed by RR Auction. The handwritten is noteworthy for its misspellings and scant details: He lists his address simply as "reed college" (the school is in Portland, Ore.) and work experience at "Hewitt-Packard." The Boston-based auction house expects to fetch $50,000 for the application. Jobs passed away in 2011. Half a world away, Wozniak used the Economic Times Global Business Summit in Delhi to excoriate President Donald Trump. "I cannot stand Donald Trump," Woz said. "The way he treats
The European Central Bank said Saturday it has determined that Latvia's crisis-struck ABLV Bank is failing or likely to fail, and the bank will be wound up under its home country's law. Latvia's financial regulator on Monday ordered ABLV, Latvia's third-largest bank by assets, to cease all payments at the ECB's request amid U.S. accusations of money laundering and breaching sanctions on North Korea. "Due to the significant deterioration of its liquidity, the bank is likely unable to pay its debts or other liabilities as they fall due," the ECB said.
As headlines like "Amazon Is Secretly Becoming a Bank" and "Google Wants to Be a Bank Now" increasingly crop up in the news, tech giants are coming into the spotlight as the next potential payments disruptors. To mitigate potential losses under this scenario, traditional players will have to grasp not only the level of the threat, but also which segments of the financial industry are most at risk of disruption. Google, Apple, Facebook, Amazon, and Microsoft, collectively known as GAFAM, are already active investors in the payments industry, and they're slowly encroaching on legacy providers' core offerings. Each of these five companies has introduced features and offerings that have the potential to disrupt specific parts of the banking system.
There’s always someone somewhere who is worse off than you. Often, you can find them on Reddit. Some people are betting big on bitcoin, others are fretting over the Dow Jones Industrial Average DJIA, +1.39% and S&P 500 SPX, +1.60% Meanwhile, millions of Americans continue to lose their shirt the old-fashioned way. This Reddit user, the appropriately named MaxedOut79, is 28-year-old independent contractor who earns $80,000 to $90,000 per year. He’s doing pretty well for a man of his years, given that he earns 50% more than the median U.S. household. And this week, it all went horribly wrong. “Before this past week, I was only an occasional gambler,” he wrote. “I’d buy $5 to $10 in scratch off
On Monday, the latest letter to Berkshire Hathaway (BRK-A, BRK-B) shareholders from Warren Buffett will likely be a big topic of market discussion, with Buffett revealing that the Trump tax cuts led to a $29 billion gain for Berkshire in 2017. Buffett also declined to comment on bitcoin (BTC-USD), a topic from which his vice chair and right-hand-man Charlie Munger has not shied away, as well as giving limited commentary on his view of the U.S. economy, which has been a staple of recent letters.
If the 10-year U.S. Treasury yield hits 4.5 percent by year-end, the economy would probably muddle through -- stocks, not so much, according to Goldman Sachs Group Inc. Goldman’s base-case scenario calls for a 10-year yield of 3.25 percent by the end of 2018, though a “stress test” out to 4.5 percent indicates such a move would cause stocks to tumble, economist Daan Struyven wrote in a note Saturday. He also said the economy would probably suffer a sharp slowdown but not a recession. “A rise in rates to 4.5 percent by year-end would cause a 20 percent to 25 percent decline in equity prices,” the note said. While a recent drop in stocks may have been fueled by concerns tied to the 10-year yield
One eager reader of Warren Buffett's annual letter will probably be Coca-Cola (KO) CEO James Quincey. Berkshire Hathaway (BRK.A) is a long-time shareholder of Coke, in large part because of the wide moat around its business. The fact Buffett loves drinking Cherry Coke helps, too. Buffett recently disclosed that Berkshire still owns 400 million shares of Coke. Berkshire is Coke's largest shareholder. Asked by TheStreet what he has learned from Buffett in terms of leadership, Quincey said it's a litany of things. "He has literally written several books on leadership and investing, and I think they are always very pragmatic, and commonsense rounded in the fundamentals of business," Quincey said.
For Warren Buffett, sitting down to write this year's annual letter to Berkshire Hathaway Inc. shareholders -- and his fans the world over -- couldn't have been easy. Following a deal-deficient 2017, it was his shortest missive in more than two decades, and arguably one of the least remarkable. While Buffett made his usual upbeat assessment of the American economy and the prospects for his conglomerate, the letter's overarching tone appeared to be one of frustration -- that new accounting rules will cause Berkshire investors confusion, that the M&A environment has lost its senses, and that some spectators don't appreciate the long-term perspective Berkshire takes with investments like Kraft Heinz