Description: Warren Buffett made a $1 million bet in 2007: that hedge funds would not outperform index funds over the next 10 years. WSJ’s Nicole Friedman checks the numbers and handicaps Buffett’s chances of winning the bet on Lunch Break with Tanya Rivero. Photo: Bloomberg Source: WSJ.com – video report Date: Feb 24, 2017 Link:… Read more »
Monthly Archives: February 2017
Burger King Agrees To Pay $1.8 Billion To Acquire Popeyes
Description: Popeyes’s stock jumped 19% with the announcement. Source: Fortune.com – video report Date: Feb 21, 2017 Link: http://for.tn/2m8wGHU Questions for Discussions: Explain the jump in Popeyes’ stock value. Do you think this acquisition makes sense financially and otherwise?
Stocks and bonds tell investors two different stories
Description: Treasury yields are falling, but the VIX has remained steady Source: MarketWatch.com Date: Feb 24, 2017 Link: http://www.marketwatch.com/story/stocks-and-bonds-tell-investors-two-different-stories-2017-02-24 Questions for discussion: Explain the analysis presented in this report. What do you think these indicators are suggesting?
Peak Market?
Description: Like any good private-equity investor, Carlyle has demonstrated a knack for buying when others are selling, and vice versa. Source: NYTimes.com Date: Feb 24, 2017 Link: https://www.nytimes.com/2017/02/24/business/dealbook/carlyle-distressed-assets.html?ref=dealbook&_r=0 Questions for discussion: Summarize the arguments presented in this article. Do you agree with this line of thinking?
Warren Buffett Has a Paper Gain of $13.5 Billion From His Bank of America Bet
Description: They don’t call him the Oracle of Omaha for nothing. Warren Buffett’s $5 billion bet on then-struggling Bank of America in 2011 has resulted in around $13.5 billion in gains for Berkshire Hathaway, the investment company he heads. Source: Fortune.com Date: Feb 24, 2017 Link: http://fortune.com/2017/02/24/warren-buffett-bank-of-america/?iid=leftrail Questions for Discussions: What was Buffett’s bet? Do… Read more »
Delta Employees Are Getting a Huge Bonus
Description: Thanks to profit sharing. Source: Fortune.com – video report Date: Feb 16, 2017 Link: http://for.tn/2lWFlfH Questions for Discussions: What do these numbers say to employees and investors? Would you be buying shares today?
Snap Inc’s IPO Just Got a lot Cheaper
Description: It’s now valued at billions of dollars less. Source: Fortune.com – video report Date: Feb 17, 2017 Link: http://for.tn/2lPuMiB Questions for Discussions: Do you think Snap Inc.’s IPO price reduction makes sense? How do you think IPO investors will respond to the reduction?
General Motors, Considering Exiting Europe, Talks About Selling Opel
Description: FRANKFURT — General Motors floated the possibility on Tuesday that it could exit the large but troubled European market by selling its chronically unprofitable Opel unit to the French maker of Peugeot and Citroën cars. Source: NYTimes.com Date: Feb 14, 2017 Link: https://www.nytimes.com/2017/02/14/business/dealbook/general-motors-peugeot-opel.html?ref=business Questions for Discussions: Summarize the reasons for GM’s thinking. Do you… Read more »
Toshiba’s Thin Ice
Description: How the mighty have fallen. Toshiba Corp., a company that was worth more than Apple Inc. as recently as 2004, could soon be effectively worthless. Source: Bloomberg.com Date: Feb 14, 2017 Link: https://www.bloomberg.com/gadfly/articles/2017-02-14/toshiba-s-thin-ice Questions for discussion: Summarize the financial story of Toshiba’s decline. Can the firm recover, in your opinion? How should investors deal… Read more »
Apple’s stock surges to all-time intraday high
Description: Shares of Apple Inc. AAPL, +1.16% rallied 1.2% in afternoon trade Tuesday to reach an all-time intraday record, extending the run of gains following strong quarterly results and amid growing optimism over new iPhone releases. Source: MarketWatch.com Date: Feb 14, 2017 Link: http://www.marketwatch.com/story/apples-stock-surges-to-all-time-intraday-high-2017-02-14 Questions for discussion: What explains Apple’s recent stock performance? Do you… Read more »