Economy stonks v26
- Thread starter rob mafia
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Warren Buffett's Berkshire Hathaway has bolstered its stakes in Japan's five largest trading houses, continuing a historic spending spree that shows few signs of stopping.
The famed investor's company revealed 5% stakes worth a combined $6 billion in Itochu, Marubeni, Mitsui, Mitsubishi, and Sumitomo in August 2020. It has now bolstered those positions to between 6.2% and 6.8%, Tokyo Stock Exchange filings revealed on Monday.
Berkshire's enlarged stakes in the Japanese quintet are valued at around $11 billion. The increase in worth reflects the recent purchases, and the five stocks rising by an average of 99% since Berkshire first disclosed its positions in August 2020. However, the yen has fallen by more than 20% against the dollar over the same period, tempering the gain in dollar terms.
Following the news, Berkshire filed a preliminary prospectus for a yen-denominated bond offering. It has issued yen debt in the past to hedge against the currency weakening against the greenback, which would reduce the dollar value of its investments in Japan.
The five businesses, known as the "sogo shosha," are sprawling holding companies with operations ranging from mining and energy to finance and real estate. Notably, their interests in oil and natural-gas projects have benefited from the surge in energy prices this year fueled by Russia's invasion of Ukraine...Buffett has mostly stuck to domestic investments throughout his career — Berkshire's biggest holdings include Apple and Coca-Cola, and it owns scores of American businesses including See's Candies and Geico. That may be starting to change, as Berkshire continues to ramp up its Japan bets, and recently built a $4 billion stake in TSMC, a Taiwanese chip manufacturer.
On the other hand, Berkshire has sold about $900 million of shares in Chinese electric-vehicle maker BYD since July, after not touching its wager on the Tesla rival since 2008.
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Still holding on to my Itochu ITOCY shares I bought Sept-Dec 2021. Impressive business. I'm only up about 5% on it so far, but we'll see how it goes. No plans to sell.
The famed investor's company revealed 5% stakes worth a combined $6 billion in Itochu, Marubeni, Mitsui, Mitsubishi, and Sumitomo in August 2020. It has now bolstered those positions to between 6.2% and 6.8%, Tokyo Stock Exchange filings revealed on Monday.
Berkshire's enlarged stakes in the Japanese quintet are valued at around $11 billion. The increase in worth reflects the recent purchases, and the five stocks rising by an average of 99% since Berkshire first disclosed its positions in August 2020. However, the yen has fallen by more than 20% against the dollar over the same period, tempering the gain in dollar terms.
Following the news, Berkshire filed a preliminary prospectus for a yen-denominated bond offering. It has issued yen debt in the past to hedge against the currency weakening against the greenback, which would reduce the dollar value of its investments in Japan.
The five businesses, known as the "sogo shosha," are sprawling holding companies with operations ranging from mining and energy to finance and real estate. Notably, their interests in oil and natural-gas projects have benefited from the surge in energy prices this year fueled by Russia's invasion of Ukraine...Buffett has mostly stuck to domestic investments throughout his career — Berkshire's biggest holdings include Apple and Coca-Cola, and it owns scores of American businesses including See's Candies and Geico. That may be starting to change, as Berkshire continues to ramp up its Japan bets, and recently built a $4 billion stake in TSMC, a Taiwanese chip manufacturer.
On the other hand, Berkshire has sold about $900 million of shares in Chinese electric-vehicle maker BYD since July, after not touching its wager on the Tesla rival since 2008.
...
Still holding on to my Itochu ITOCY shares I bought Sept-Dec 2021. Impressive business. I'm only up about 5% on it so far, but we'll see how it goes. No plans to sell.
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They made a killing on BYD btw.
edit..Hmm...I didn't remember reading they actually did try to sell their entire position. That's interesting:
Warren Buffett's Berkshire Hathaway has cashed in about $600 million of BYD stock in under two months, pocketing a roughly 35-fold profit on the Chinese rival to Elon Musk's Tesla, a Markets Insider analysis shows.
The famed investor's conglomerate spent $232 million to acquire 225 million shares of the electric-vehicle maker in 2008. It listed the entire position on the Hong Kong Stock Exchange's clearing system on July 12, then cut it by 8% to 207 million shares by September 1, exchange filings show.
Berkshire paid around $1 a share when it invested in BYD, and has now sold nearly 18 million shares at a weighted-average price of $35, based on the stock's trading range in recent weeks.
The disposals, and fears that Buffett and his team will keep selling or even eliminate the holding entirely, have sparked a 30% plunge in BYD's stock price since July 11, the day before Berkshire's stake appeared in the clearing system.
The conglomerate's remaining BYD stake is worth about $5.7 billion on paper, down 35% from a peak of $8.8 billion in late June.
Under stock-exchange rules, Berkshire only has to disclose transactions that change its percentage stake by a whole number. As a result, Buffett's company can sell another 9.6 million shares before its ownership of BYD's Hong Kong-listed shares drops below 18% and it's required to update the market.
Berkshire's decision to trim its BYD stake this year was foreshadowed by Buffett's business partner, Charlie Munger, ostensibly selling $50 million of the automaker's stock in December. Munger was introduced to BYD by a hedge fund manager named Li Lu, whose fund also sold more than a quarter of its BYD shares last summer, and may have exited the position entirely since then.
Munger persuaded Buffett to invest in BYD by championing its CEO, Wang Chuanfu, as "Thomas Edison, Henry Ford, and Bill Gates all in the same person."
edit..Hmm...I didn't remember reading they actually did try to sell their entire position. That's interesting:
Warren Buffett's Berkshire Hathaway has cashed in about $600 million of BYD stock in under two months, pocketing a roughly 35-fold profit on the Chinese rival to Elon Musk's Tesla, a Markets Insider analysis shows.
The famed investor's conglomerate spent $232 million to acquire 225 million shares of the electric-vehicle maker in 2008. It listed the entire position on the Hong Kong Stock Exchange's clearing system on July 12, then cut it by 8% to 207 million shares by September 1, exchange filings show.
Berkshire paid around $1 a share when it invested in BYD, and has now sold nearly 18 million shares at a weighted-average price of $35, based on the stock's trading range in recent weeks.
The disposals, and fears that Buffett and his team will keep selling or even eliminate the holding entirely, have sparked a 30% plunge in BYD's stock price since July 11, the day before Berkshire's stake appeared in the clearing system.
The conglomerate's remaining BYD stake is worth about $5.7 billion on paper, down 35% from a peak of $8.8 billion in late June.
Under stock-exchange rules, Berkshire only has to disclose transactions that change its percentage stake by a whole number. As a result, Buffett's company can sell another 9.6 million shares before its ownership of BYD's Hong Kong-listed shares drops below 18% and it's required to update the market.
Berkshire's decision to trim its BYD stake this year was foreshadowed by Buffett's business partner, Charlie Munger, ostensibly selling $50 million of the automaker's stock in December. Munger was introduced to BYD by a hedge fund manager named Li Lu, whose fund also sold more than a quarter of its BYD shares last summer, and may have exited the position entirely since then.
Munger persuaded Buffett to invest in BYD by championing its CEO, Wang Chuanfu, as "Thomas Edison, Henry Ford, and Bill Gates all in the same person."
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First time I'm selling stocks.
AMD up about 26.5% since I bought it. It was pennys but cool.
AMD up about 26.5% since I bought it. It was pennys but cool.
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Solid article about Taiwan/China relations and the risk of war. Not directly related to investing but they touch on TSM and how it plays into everything.
https://www.newyorker.com/magazine/2022/11/21/a-dangerous-game-over-taiwan
Most relevant section:
One of the most important deterrents to war is Taiwan’s role in producing semiconductors. Seventy per cent of the world’s most advanced chips are manufactured there, many of them at the Taiwanese Semiconductor Manufacturing Company. “Banks, iPhones, laptops, cars—almost every piece of modern equipment has a chip from Taiwan,” an executive in the industry told me. “A world without Taiwan is a world back to the Stone Age.” America has purchased some three hundred billion dollars’ worth of chips from Taiwanese factories in the past twenty years. “Apple, Dell, Google—they wouldn’t know how to function without them,” the executive said.
China is similarly reliant on the highest-end chips produced in Taiwan; it doesn’t have the equipment or the expertise to manufacture them. If China seized control of Taiwan’s semiconductor factories, it could conceivably force local workers to run them. But the factories depend on a constant flow of Western material, software, expertise, and engineers, without which production would cease in a matter of weeks. Pottinger told me, “If the Chinese took the factories, there’s no way the West would help run them.” The industry executive wasn’t so sure, given the harm that their loss would do to the global economy. “It’s mutually assured destruction,” he said. Colby, the former official in the Trump Defense Department, went so far as to suggest that perhaps it was best for the U.S. to destroy the plants itself: “If we’re going to lose them, we should blow them up.”
https://www.newyorker.com/magazine/2022/11/21/a-dangerous-game-over-taiwan
Most relevant section:
One of the most important deterrents to war is Taiwan’s role in producing semiconductors. Seventy per cent of the world’s most advanced chips are manufactured there, many of them at the Taiwanese Semiconductor Manufacturing Company. “Banks, iPhones, laptops, cars—almost every piece of modern equipment has a chip from Taiwan,” an executive in the industry told me. “A world without Taiwan is a world back to the Stone Age.” America has purchased some three hundred billion dollars’ worth of chips from Taiwanese factories in the past twenty years. “Apple, Dell, Google—they wouldn’t know how to function without them,” the executive said.
China is similarly reliant on the highest-end chips produced in Taiwan; it doesn’t have the equipment or the expertise to manufacture them. If China seized control of Taiwan’s semiconductor factories, it could conceivably force local workers to run them. But the factories depend on a constant flow of Western material, software, expertise, and engineers, without which production would cease in a matter of weeks. Pottinger told me, “If the Chinese took the factories, there’s no way the West would help run them.” The industry executive wasn’t so sure, given the harm that their loss would do to the global economy. “It’s mutually assured destruction,” he said. Colby, the former official in the Trump Defense Department, went so far as to suggest that perhaps it was best for the U.S. to destroy the plants itself: “If we’re going to lose them, we should blow them up.”
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I am shorting NVDA here because zealot loyalist Cathie Wood is selling it.
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maybe!
Another PMI-based rally day.
I'm down on this bet.
Gonna reshort TSLA here up 5%.
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With Ronaldo leaving adds an extra 'bullish vibe to the stonk.
Looking at long dated puts on $SPY 6 months out. Hoping a continued rally. I think next year will be grim IMO.
Lol thanks for the laugh.
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Aha! My premonition looks to be correct.
Activision Blizzard (NASDAQ:ATVI) is 3.6% lower postmarket alongside a holiday eve report that the Federal Trade Commission is likely to file an antitrust lawsuit to block its $69B acquisition by Microsoft (NASDAQ:MSFT).
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Any word on Disney re structuring and rumors of sale? Might be a good moment to buy.
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Disney is not being bought lol
They already announced leadership moves last week.
Still could be a decent buy and hold for slow growth if thats your thing.
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lmao so I started short CELH the overpriced energy drink again @ $100....it spiked to $110 because....wait for it...
...they signed a sponsorship deal with the fucking PFL lmao.
Nearly 1 billion in market cap added by burning cash on a B-Tier MMA league sponsorship while having a P/E of like 400
One energy drink that isn't even wildly consumed is now supposedly worth the equivalent to 20% of the entire Kraft Heinz or General Mills empire would be lmao
...they signed a sponsorship deal with the fucking PFL lmao.
Nearly 1 billion in market cap added by burning cash on a B-Tier MMA league sponsorship while having a P/E of like 400
One energy drink that isn't even wildly consumed is now supposedly worth the equivalent to 20% of the entire Kraft Heinz or General Mills empire would be lmao
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MMA loves their shitty energy drink sponsors. Well...until they don't. It's so damn annoying when I try to watch old mma fights from the UFC's official YouTube page and they desperately try to block out the huge Rockstar Energy logo lmao. Like here:
That fucking goof.
