Berkshire Hathaway – Body Saron Siki http://www.bodysaronsiki.com/ Mon, 21 Nov 2022 11:01:54 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://www.bodysaronsiki.com/wp-content/uploads/2021/04/default.png Berkshire Hathaway – Body Saron Siki http://www.bodysaronsiki.com/ 32 32 Could Berkshire Hathaway beat the market in 2023? https://www.bodysaronsiki.com/could-berkshire-hathaway-beat-the-market-in-2023/ Mon, 21 Nov 2022 10:15:00 +0000 https://www.bodysaronsiki.com/could-berkshire-hathaway-beat-the-market-in-2023/

With just over a month in the year, Berkshire Hathaway (BRK.A 0.99%) (BRK.B 1.08%)the big conglomerate led by legendary investor Warren Buffett, is looking to put the finishing touches on what could be a big win over the S&P500a broader benchmark for the market.

Berkshire’s stock is up more than 3% this year, at the time of this writing, while the S&P 500 is down more than 17%. Winning this year would put Berkshire back on a two-year winning streak on the S&P 500, and Berkshire has consistently outperformed the market since 1965.

Will the Oracle of Omaha and Berkshire be able to continue this streak in 2023? We’ll take a look.

Why Berkshire Wins

Berkshire made a small gain in the market in 2021, a year in which the technology absolutely exploded. Berkshire has done well thanks to the many stocks it holds in its large equity portfolio, including Appleand strong performance in the other businesses it operates.

Image source: Motley Fool.

But when inflation got high in 2022 and the Federal Reserve had to quickly and intensely raise interest rates, investors hastily dumped the technology. The Nasdaq Compound is down nearly 30% this year. Investors have flocked to the security, and Berkshire is certainly a name with a strong balance sheet and an incredibly experienced management team with a proven track record.

Berkshire also operates several large businesses in sectors that have performed well this year, such as energy and insurance. The company can also hedge rising interest rates to some extent, as it holds about $95 billion of US Treasuries and other fixed income maturities, which have seen their yields rise and led to higher the company’s investment income.

What will 2023 look like?

Of course, there is still a lot of uncertainty about what will happen in 2023. Will there be a recession? Will there be a Deep recession? Is the Fed almost done with its rate hikes? Will inflation turn out to be more rigid than expected, forcing the Fed to remain hawkish?

It’s a lot to try to figure out. The S&P 500 is full of many big tech stocks that have been really hammered this year, so if the Fed does indeed slow down and eventually stop raising rates, then tech stocks could rebound quickly.

It will also depend on whether there will be a recession next year and how deep that recession will be. Slower rate hikes and an eventual halt, coupled with no recession or a modest recession, could give the S&P 500 the edge. Berkshire also benefits from a rise in the tech sector, but perhaps not as much as the market at large.

Then, of course, if there’s a bigger recession and the rate increases end up being bigger than what the market is currently expecting, I’d probably give Berkshire the edge as a safe haven. The company has more than $105 billion in cash and cash equivalents and is ready to weather the storm.

Here is what I choose

Ultimately, I like Berkshire in 2023, and not necessarily because I think it’s definitely going to beat the market. On the contrary, I think Berkshire is better prepared to deal with a range of scenarios given the uncertainty in the air.

Even if conditions end up favoring the technology, Berkshire could still do well. Also, while the company currently trades at around 1.5 times its book value, towards the higher end of the range where it has historically traded, that doesn’t strike me as a particularly demanding valuation considering its performance and continued strong cash position.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: $200 long calls in January 2023 on Berkshire Hathaway (B shares), long $120 calls in March 2023 on Apple, short $200 calls in January 2023 on Berkshire Hathaway (B shares) , short calls of $265 in January 2023 on Berkshire Hathaway (B shares) and short calls of $130 in March 2023 on Apple. The Motley Fool has a disclosure policy.

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Nelnet: A Berkshire Hathaway baby that deserves to be in your wallet today https://www.bodysaronsiki.com/nelnet-a-berkshire-hathaway-baby-that-deserves-to-be-in-your-wallet-today/ Fri, 18 Nov 2022 10:45:00 +0000 https://www.bodysaronsiki.com/nelnet-a-berkshire-hathaway-baby-that-deserves-to-be-in-your-wallet-today/

Many value investors want to find the next Berkshire Hathaway. The company taken over by legendary investor Warren Buffett 60 years ago has generated phenomenal returns for shareholders since he bought shares in the textile factory for $7.50 and turned it into a sprawling investment conglomerate. Today, the company’s publicly traded Class A shares are worth about $462,000, or about 62,000 times its original purchase price. This means that if you invest just $100 in Berkshire Hathaway at the same time as Buffett, it would be worth $6.2 million today. It is a creation of wealth that changes the lives of people who held stocks for the long term.

Many companies claim to be the next Berkshire Hathaway. My best candidate is a small cap conglomerate from Nebraska (just like Berkshire) called Nelnet (NNI -0.56%), a company with a consistent track record of creating value for shareholders. Here’s why the stock belongs in your portfolio today.

Nelnet: A Berkshire Hathaway clone that goes its own way

Founded in the 1990s, Nelnet is a diversified company focused on the financial and credit sector. She went public in 2004 when she was still primarily a student loan originator. Since then it has grown into a fully-fledged conglomerate and has an excellent track record to show. Book value per share, including dividends (a standard measure for valuing a financial stock), compounded 17.2% per year from 2004 to 2021, outperforming the total return of 10.6% for the S&P500 over this same period of time. It’s not as good as the 20.1% compound growth that Berkshire Hathaway saw, but it’s close.

Nelnet’s management and ownership structure is similar to that of Berkshire Hathaway. Nelnet’s founder, Michael Dunlap, remains Chairman of the Board and actively participates in the vision and direction of the company. He owns 42% of Nelnet’s outstanding shares and has majority voting rights, giving him firm control of the shares, like Buffett. With the track record of growth in book value per share since 2004, investors should expect Dunlap and the rest of the management team to remain with Nelnet for many more years.

Loan portfolio provides reliable cash flow

Nelnet’s most important asset today is its student loan portfolio, which is expected to generate $1.66 billion in government-protected cash flow over the next decade or more, including more than $200 million in dollars in each of the next three years.

This loan portfolio provides the cash flows that Nelnet uses to invest in other assets. Given the reliability of student loan repayments and government protection against defaults, cash flow from these student loans is highly predictable. However, one thing shareholders should note is that Nelnet and other private lenders were not allowed to originate new student loans after the government decided to take the process in-house in 2011. This does not affect the value of Nelnet’s existing loan portfolio, but means it is a slowly melting ice cube that will eventually disappear.

Fortunately, Nelnet has invested in other valuable assets and businesses to replace the cash flow from these student loans.

Other assets offer options

There are a few important segments of this business that will generate shareholder value after the student loan portfolio is gone. First, it operates a payment processing and software business for private school and college administrative departments. This segment has grown steadily over the past decade, generating $107 million in revenue and $18.6 million in operating profit last quarter. If it maintains its long-term growth rate, the unit will produce over $100 million in annual profits within a few years.

Secondly, Nelnet has launched a private bank, Nelnet Bank, which deals in student loan refinancing and private student loans. The bank was only incorporated at the end of 2020, so it is still in its infancy, but all signs show that it will become a major part of Nelnet’s business within a few years. Last quarter, net interest income after loan losses (a standard measure of profitability for a bank) was $3.8 million, down from $1.75 million a year earlier.

Finally, Nelnet has made numerous investments in real estate, venture capital and solar energy over the past 10 years – $1.45 billion since 2013 to be exact, and $726 million in 2021. These are primarily seed investments held at cost and valued at $2.06 billion on Nelnet’s balance sheet.

As of this writing, Nelnet has a market capitalization of $3.6 billion, which is almost exactly the same as the book value of its investments and the cash that will be generated from its student loan portfolio. From where I stand, that means that at today’s prices, you get the education software and payment processing business from Nelnet and Nelnet Bank for free. For a company that has a history of growing its book value at a rate above the market, Nelnet stock seems like an easy buy at these levels.

Brett Schafer holds positions at Nelnet. The Motley Fool holds positions and recommends Berkshire Hathaway (B shares) and Nelnet. The Motley Fool recommends the following options: $200 long calls in January 2023 on Berkshire Hathaway (B shares), $200 short puts in January 2023 on Berkshire Hathaway (B shares) and short calls of $265 in January 2023 on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.

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Do you have losing stocks? Here’s what Warren Buffett says to do https://www.bodysaronsiki.com/do-you-have-losing-stocks-heres-what-warren-buffett-says-to-do/ Mon, 14 Nov 2022 11:06:00 +0000 https://www.bodysaronsiki.com/do-you-have-losing-stocks-heres-what-warren-buffett-says-to-do/

You can be the best stock market investor on earth, and you’ll still have regrettable investments. Your wallet will always have a few stinks in which you have lost money. It’s happened to Warren Buffett and surely every lesser investor.

As you strive to become a better investor over time, making fewer mistakes and making more money, you’ll need to figure out what to do with those losing stocks. Here’s a look at what Buffett, the CEO of Berkshire Hathaway himself, recommends.

Image source: The Motley Fool.

Your choices with losers

If you’re looking at an underperforming stock in your portfolio, there are several things you could or should do:

  • Assess its potential. Yes, it may be down, but is it a big company with a rosy future that is temporarily down, like many great stocks are these days? Or is the company facing unsolvable problems? Look more closely.
  • Consider hanging on. If the company’s problems seem temporary, consider hanging on. Remember that just about every great long-term performer you can think of, such as Apple, Microsoft, Costcoand so on rose in value phenomenally – but they didn’t do it in a straight line.
  • Consider selling. If the business is facing one or more problems that seem difficult to overcome, such as a new competitor eating their lunch or a debt that is piling up faster than it is manageable, it may be a good idea to sell.

What Warren Buffett recommends

Here’s what superinvestor Warren Buffett advises about losing stocks in your portfolio — he said it at one of his annual shareholder meetings in the 1990s:

It is true that a very important principle in investing is that you don’t have to get it back like you lost it. …And actually, it’s usually a mistake to make, to try to get back the way you lost it.

Buffett probably said this because he knows many investors make this mistake. Here’s what it looks like: Imagine your portfolio has good and great performers, and a dud or two. You invested, say, $5,000 in one of these underperformers, and that stake is now worth $2,000. You’ve lost $3,000!

Perhaps sales are low and declining, with few people interested in the company’s products or services. The future doesn’t look good for the business, but you don’t want to sell, because then you would suffer a loss of $3,000. So you hang in there, hoping stocks will rebound somehow. Well, that’s not very likely to happen. This strengthmaybe, but it’s unlikely.

If you were to simply sell what’s left of that position, bringing in about $2,000, you could move that money into a different stock that you have much more confidence in, a stock with a greater chance of rising in value. You box make up for the lost $3,000, but you have a better chance of making it up with a different, more promising action. As Buffett advised, don’t try to come back like you lost it.

Keep Buffett’s advice in mind whenever considering losers in your portfolio.

Selena Maranjian holds positions at Apple, Berkshire Hathaway (B shares), Costco Wholesale and Microsoft. The Motley Fool holds and recommends Apple, Berkshire Hathaway (B shares), Costco Wholesale and Microsoft. The Motley Fool recommends the following options: $200 long calls in January 2023 on Berkshire Hathaway (B shares), long $120 calls in March 2023 on Apple, short $200 calls in January 2023 on Berkshire Hathaway (B shares) , short calls of $265 in January 2023 on Berkshire Hathaway (B shares) and short calls of $130 in March 2023 on Apple. The Motley Fool has a disclosure policy.

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Brick-Front Colonial can be your peaceful oasis in the city of Fairfax https://www.bodysaronsiki.com/brick-front-colonial-can-be-your-peaceful-oasis-in-the-city-of-fairfax/ Fri, 11 Nov 2022 21:58:17 +0000 https://www.bodysaronsiki.com/brick-front-colonial-can-be-your-peaceful-oasis-in-the-city-of-fairfax/

FAIRFAX CITY, VA – Gorgeous colonial brick facade in Fairfax Acres! With nearly 4,000 finished square feet above ground and upgrades throughout, this home and its location is sure to please!

You’ll forget you’re minutes from I-66 when you enter this serene green setting on over half an acre and it’s flat too!

Enter into a stunning first level with a formal dining room, living room, office, powder room, kitchen that opens to a dining area and large sunroom and a stunning split-level family room with stone gas fireplace. Not to mention a separate laundry room, a pantry and two other cupboards to store your treats!

  • Address: 10507 Oak Place, Fairfax, Virginia
  • Price: $1,400,000
  • Square feet: 3,941
  • Bedrooms: 5
  • Bathrooms: 4
  • Listing Description: Upstairs you will find a large master bedroom with en-suite bathroom and an incredibly large walk-in closet! In addition, there are 3 spacious bedrooms and two full bathrooms upstairs. The backyard is not to be missed either. Have fun or escape the hustle and bustle in this peaceful setting! Close to shops, restaurants, parks, major highways and much more. Don’t miss the opportunity to own this beautiful home!

Listed By: Tiffani Blomster, Berkshire Hathaway Home Services Pen Fed Realty

For more information, click here. See more photos from the listing below, courtesy of Berkshire Hathaway Home Services Pen Fed Realty:

For more real estate news, follow Patch on Facebook

Listed By: Tiffani Blomster, Berkshire Hathaway Home Services Pen Fed Realty
Listed By: Tiffani Blomster, Berkshire Hathaway Home Services Pen Fed Realty
Listed By: Tiffani Blomster, Berkshire Hathaway Home Services Pen Fed Realty
Listed By: Tiffani Blomster, Berkshire Hathaway Home Services Pen Fed Realty
Listed By: Tiffani Blomster, Berkshire Hathaway Home Services Pen Fed Realty
Listed By: Tiffani Blomster, Berkshire Hathaway Home Services Pen Fed Realty
Listed By: Tiffani Blomster, Berkshire Hathaway Home Services Pen Fed Realty
Listed By: Tiffani Blomster, Berkshire Hathaway Home Services Pen Fed Realty
Listed By: Tiffani Blomster, Berkshire Hathaway Home Services Pen Fed Realty
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This investment advice from Warren Buffett could make you a stock market millionaire https://www.bodysaronsiki.com/this-investment-advice-from-warren-buffett-could-make-you-a-stock-market-millionaire/ Wed, 09 Nov 2022 10:40:00 +0000 https://www.bodysaronsiki.com/this-investment-advice-from-warren-buffett-could-make-you-a-stock-market-millionaire/

For some investors, the phrase “stock market millionaire” conjures up glamorous images of fast-paced, adrenaline-fueled trading. But the truth is usually more mundane. In most cases, stock market wealth stems from boring decisions made regularly over long periods of time.

Warren Buffett has often recommended a low-cost S&P500 index fund as the most sensible option for the vast majority of investors, noting that “by periodically investing in an index fund, the clueless investor can actually outperform most investment professionals”.

To prove his point, Buffett once bet $500,000 that a passively managed S&P 500 index fund could outperform a group of actively managed hedge funds over a 10-year period. Protégé Partners accepted this challenge. The company selected five hedge funds and commissioned more than 200 fund managers to select stocks.

The betting began during the financial crisis of 2008, a tumultuous period that ultimately saw the S&P 500 lose more than half of its value. But Buffett emerged victorious, and he won by a wide margin. Its S&P 500 index fund had returned 126% (net of fees), while Protégé Partners’ top performing fund was up only 88%.

In a nutshell, Buffett beat a team of highly trained professionals without doing any work. Any investor can achieve the same success by imitating their strategy.

How to Build a Million Dollar (or More) Portfolio

Buffett currently owns two S&P 500 index funds through Berkshire Hathawayinvestment portfolio of: Le SPDR S&P 500 ETF (TO SPY -0.83%) and the Vanguard S&P 500 ETF (VOO -0.83%). The first is managed by State Street Global Advisors, and it supports an expense ratio of 0.0945%. The latter is managed by The Vanguard Group, and it bears an expense ratio of 0.03%.

Other than these differences, index funds are essentially the same. Both offer exposure to 500 of the largest US companies, representing a diverse mix of value stocks and growth stocks that span all 11 equity sectors. This means that either ETF is a great option for investors looking to build a million dollar portfolio.

The most important variable is your holding period. The S&P 500 has produced a total return of 1,520% over the past three decades, the same as 9.73% per year. At this rate, $150 invested in an S&P 500 index fund on a weekly basis would be worth just over $1 million after 28 years.

This graph shows how three different weekly contribution amounts would increase over four different holding periods. All scenarios assume an annualized return of 9.73%.

Holding period

$50 per week

$100 per week

$200 per week

25 years

$257,536

$515,073

$1 million

30 years

$426,258

$852,518

$1.7 million

35 years

$694,668

$1.4 million

$2.8 million

40 years

$1.1 million

$2.2 million

$4.5 million

Data source: Graph by author.

This chart also showcases the power of compounding. It may take three or four decades to earn your first million dollars, but the second million comes faster and the third million comes even faster.

Is it the right time to invest in the stock market?

The answer is still Yes. No one knows the future, but regularly investing small amounts of money in an S&P 500 index fund helps correct the natural ups and downs of the stock market. This principle is known as average purchase price. That said, now is a particularly good time to invest

Warren Buffett offered the following advice in his 2013 letter to shareholders: “A climate of fear is your friend when investing; a euphoric world is your enemy.”

The financial world is currently mired in fear. Inflation is near a four-decade high, interest rates are rising at their fastest pace since the early 1980s, and both forces threaten to tip the US economy into recession. This worry sent the S&P 500 into a bear market, and bear markets have always been a great time to invest.

Trevor Jennewine has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares) and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: $200 long calls in January 2023 on Berkshire Hathaway (B shares), $200 short puts in January 2023 on Berkshire Hathaway (B shares) and short calls of $265 in January 2023 on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.

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Berkshire Hathaway’s operating profit will rise (NYSE:BRK.A) https://www.bodysaronsiki.com/berkshire-hathaways-operating-profit-will-rise-nysebrk-a/ Sun, 06 Nov 2022 13:08:16 +0000 https://www.bodysaronsiki.com/berkshire-hathaways-operating-profit-will-rise-nysebrk-a/

Paul Morigi

The interesting thing about 10-Q

Writing regularly on Berkshire Hathaway (NYSE:BRK.A) (NYSE: BRK.B) can sometimes be a challenge as the company periodically goes through periods of inactivity in its investments and M&A operations. For an investor, it’s not necessarily a bad thing when operations and stock selection are good to start with and don’t need to change. One of Buffett’s best qualities is ignoring calls from “Swing, you tramp!” from the crowd. As you can see on my past items, Berkshire experienced a frustrating period of inactivity in 2019 and 2020 as its cash pile continued to grow while earning near-zero interest rates. In 2021, the company significantly increased its share size redemptions, buying $27 billion that year. Buffett started swinging even more in Q1 2022when the company spent more than $50 billion on new investments, including in energy companies such as Chevron (CLC) and Occidental Petroleum (OXY). Berkshire too announcement the agreement to acquire another insurer Allegheny Corp. for $11.2 billion in cash. This case firm in October, after the end of the quarter just published.

Since then, the company has entered a new period of calm. In Q3, redemptions were just $1 billion and equity investment cooled. Berkshire spent about $9 billion on new stock purchases and sold about $5.3 billion worth of stock in Q3. Berkshire’s cash balance rose again to $105 billion at the end of the quarter, although $11.2 of that amount was spent in October on Allegheny. Operationally, insurance underwriting is having a tough year, with $3.4 billion impacted by Hurricane Ian ($2.7 billion after tax). At least higher interest rates contribute to income from insurance investments. BNSF faces higher fuel and personnel costs as shipping volumes decline. Manufacturing, services and distribution have held up well so far, except in consumer-related activities where margins have fallen. Berkshire Hathaway Energy continues to be the star with even bigger tax subsidies for wind energy this quarter. The real estate business integrated into this utility division has seen a serious slowdown, however, which could be a harbinger for some of Berkshire’s other businesses.

Overall, the quarter was exactly what one would expect with an economy on the verge of recession. I have no concerns about Berkshire’s ability to weather a downturn, but I won’t spend much time this quarter on detailed analysis or assessment. Instead, I want to review a big change in Berkshire’s financial reporting that will lead to increased operating profits. Berkshire has exceeded 20% ownership of Occidental Petroleum and now accounts for it using the equity method.

Berkshire Extract 10-Q

Berkshire Hathaway 3Q 2022 10-Q

Berkshire also accounts for its ownership of Kraft Heinz (KHC) this way. Berkshire also owns 20.3% of American Express (AXP) but does not use the equity method due to an agreement with the Federal Reserve to vote with board recommendations and not exercise influence on operations.

If Berkshire had owned the 20.9% stake in Oxy over the past year and accounted for it using the equity method, reported operating income would have been about $1.7 billion higher. after-tax dollars, or about 7% of Berkshire’s year-to-date operating profit.

This change in accounting policy does not impact the intrinsic value of Berkshire or its interests in Oxy. Warren Buffett has always viewed Berkshire’s share of his investees’ earnings as “transparent earnings” with economic value to Berkshire, even if they are not reported under the equity method because ownership is less than 20%. Buffett even used to include a transparent earnings calculation in his annual shareholder letters like this one from 1994. If you look at the chart in that letter, you’ll see that those unreported transparent earnings were almost as much as the revenue. declared.

Oxy’s move to the equity method is only an accounting change, but it serves to make reported operating profits more representative of Berkshire’s true economic earning power. Investors should be aware of this shift when comparing performance from different time periods.

So how does the equity method work?

Until this quarter, Berkshire’s holdings in Oxy were marked-to-market on the balance sheet. Dividends from Oxy were recorded in the income statement as investment income, while changes in the share price from quarter to quarter were recorded in the income statement as gains and investment losses.

Going forward, the value of Oxy is recorded on the balance sheet as investments using the equity method. This value is calculated by taking Berkshire’s original cost of its Oxy stock, adding Berkshire’s share of Oxy’s earnings (20.9% of Oxy’s reported net income) and subtracting dividends received. (Dividends are always declared as investment income.)

Revenue, less dividends, will now appear on the summary income statement in the “Non-controlling companies” line. It will therefore be recorded in Berkshire’s operating profit and will not impact investment gains and losses.

Due to Oxy’s reporting schedule, equity earnings will be recognized one quarter late. Berkshire therefore recorded no earnings from Oxy shares this quarter, but will include its share of Oxy 3Q earnings (to be released 8/11) in Berkshires Q4 results.

Berkshire Hathaway balance sheet

Berkshire Hathaway 3Q 2022 10-Q

Berkshire Hathaway Summary Income Statement

Publication of Berkshire Hathaway third quarter 2022 results

Future impact on Berkshire’s revenue

Analysts estimate Oxy to earn $2.45 per share this quarter and $8.25 over the next four quarters. Assuming a quarterly dividend of $0.13 per share, 915 million shares outstanding, 20.9% ownership of Berkshire and a 21% tax rate, Berkshire will post an additional operating profit of 350 million in Q4 and $1.17 billion in 2023.

Impact of Oxy stock earnings on Berkshire

Author’s worksheet

The change adds about 5% to 4Q and 3% to 2023 operating earnings per share. Berkshire. They could go down if Oxy increases its dividend, but that would mean more investment income in Berkshire’s accounts.

Conclusion

Not much happened in Q3 to change the intrinsic value of Berkshire Hathaway, but Occidental’s 20.9% ownership now forces Berkshire to use the equity method to account for this investment. This will boost the value of Berkshire’s reported operating earnings, a key quarterly metric that Buffett has focused Berkshire shareholders on for the past few years. This change must be taken into account when comparing the operating result of 2023 with previous years. 2023 will also see increased revenues from wholly-owned Allegheny and a larger stake in Pilot Flying J. These are real economic additions to Berkshire’s earning power. Combined with Oxy’s accounting change, Berkshire is continuing its transition to be valued more on its operating profits than on its equity investments.

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The Bowdoin Award: Kenneth I. Chenault ’73, H’96 Receives College’s Highest Honor https://www.bodysaronsiki.com/the-bowdoin-award-kenneth-i-chenault-73-h96-receives-colleges-highest-honor/ Fri, 04 Nov 2022 00:36:39 +0000 https://www.bodysaronsiki.com/the-bowdoin-award-kenneth-i-chenault-73-h96-receives-colleges-highest-honor/

Currently chairman and chief executive of venture capital firm General Catalyst, Chenault served as chief executive and chairman of American Express from 2001 to 2018 and has been called “the best CEO of his generation.”

The evening’s program included a conversation moderated by Ford Foundation President Darren Walker H’16. During an extensive discussion, Chenault shared how his family, his experiences at College and Harvard Law School, and his career inspired him to be what he calls an agent of change.

The conversation with Walker focused on Chenault’s relationship with Berkshire Hathaway Chairman and CEO Warren Buffett, who called Chenault “the gold standard for corporate leadership and the benchmark by which I measure others. But the real test of leadership is when you climb the mountain and your troops follow you. And they follow you because they believe in you. They believe you see the valley above the top of the mountain. And even if they can’t see it, they follow.

The terrorist attacks of September 11, 2001 cemented Chenault’s reputation for exemplary leadership. Eleven American Express employees lost their lives that day, and the company’s headquarters adjacent to the World Trade Center was badly damaged. Chenault had only been President and CEO for a few months, but his careful and humane management of the company, its customers and its employees during this traumatic and demanding period has been widely described as a classic example of leadership and integrity in times of crisis. . Chenault then had to lead American Express through a global economic downturn and the financial crisis of 2008.

In discussing leadership and its qualities, Chenault emphasized the importance of values ​​and character and the need to be both compassionate and decisive. “The most important legacy you can have is making a meaningful difference in people’s lives.”

Chenault, along with former Merck CEO Ken Frazier, who attended the ceremony, led the charge of more than seventy black business leaders to call on American companies to oppose ongoing efforts in many many states to suppress the vote. “We decided to do something that had never been done before – to get black people in corporate America to stand up and say, ‘We have to fight for the right to vote,’” Chenault said. “This impacts all Americans, but as black descendants of slaves and people who were lynched and killed trying to exercise their right to vote, we had to stand up.” He said corporations owe something to society, “And what’s more important than having a vibrant democracy?”

Accepting the award from Bowdoin Board Chairman Scott Perper ’78 and Bowdoin President Clayton Rose, Chenault thanked his family and the Bowdoin teachers with whom he had formed close friendships and of whom he says that he still feels the major impact today.

Earlier in the evening, members of the Bowdoin College Black Alumni Association (BCBAA) had the opportunity to speak with Chenault about their experiences at the College. In accepting the award, Chenault spoke of the sense of community he felt as a student. “I want to thank my black colleagues at Bowdoin, because we were pioneers,” he said. “It was a special bond that we formed.”

The Bowdoin Award was established in 1928 in memory of William John Curtis, Class of 1875, by his wife and children in recognition of “the most distinctive contribution in any field of endeavour”. Curtis was a native of Brunswick, a prominent lawyer and a generous benefactor, both of Bowdoin and his home town. When he died in October 1927, he was so revered in the city that all businesses in Brunswick were closed for his funeral. And as the New York Alumni Association said of him at the time,He deeply loved the College, he deeply believed in it, he looked to his future with confidence and he gave his time, energy and money with unfailing generosity in its service.

In her introductory remarks to the event, Rose shared information that had recently come to light – that William Curtis’ father, Captain John Curtis, had direct ties to slavery as a shipowner and merchant seaman. who frequently transported cotton from Mobile, Alabama, to England in the years before the Civil War. Rose noted that Captain Curtis’s son, William Curtis, while succeeding on his own, directly benefited from his father’s deep ties to slavery through the station in life into which he was born, the privileges that this conferred upon him and through his probable inheritance.

“It is widely known, though until recently almost never part of the common historical narrative,” Rose said, “that slavery and the industries associated with slavery were a vital part of the economy. of New England in the 17th and 18th centuries, and for much of the 19th century and that prominent figures in New England communities accumulated substantial wealth and power through these industries and their direct ties to slavery.

Rose noted that the Curtis family history is particularly relevant in the context of an ongoing project in Bowdoin that initially examines Bowdoin’s history as it relates to Black and Indigenous communities. The first phase of the project is expected to be completed and made available to the Bowdoin community this spring. As Rose said, it will “help create a fuller and more complex history of the College.”

“Why am I raising this, as we come together on this joyous occasion to celebrate Ken Chenault?” Rose asked. “To that question, I would say this: because it is a real and important part of our past and who we are, and a part that is closely tied to this award. Like other important parts of our history that have been ignored and never discussed, this is something we need to recognize, illuminate and add to the reality of our history. We only remain a great educational institution if we live up to our obligation to seek the truth, to provide as full an understanding of our history as possible, to recognize and engage that history, and to allow it to inform and shape our coming.

Rose said Chenault had lived this philosophy for a very long time. “Some of you may know that his honors thesis at Bowdoin was a story of the Black male experience at the College, a story that revealed some very difficult truths, as well as incredible courage and accomplishments. “

When the program was nearly over, Chenault stood up and returned to the pulpit to congratulate Rose and Bowdoin for sharing what he called “the complete story of Bowdoin College.” He added that the impact of slavery is indeed still felt in this country and said there is redemption in its recognition.

“Truth. It is the oxygen of a healthy society, of a democracy,” he concluded.

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Top 5 trades of the 3rd quarter of TH https://www.bodysaronsiki.com/top-5-trades-of-the-3rd-quarter-of-th/ Tue, 01 Nov 2022 14:09:47 +0000 https://www.bodysaronsiki.com/top-5-trades-of-the-3rd-quarter-of-th/

THOMAS STORY & SON LLC recently filed its 13F report for the third quarter of 2022, which ended on 2022-09-30.

The 13F report details the stocks that were in a guru’s stock portfolio at the end of the quarter, although investors should note that these filings are limited in scope, containing only an overview of long stock positions. listed in the United States and American certificates of deposit at the end of the quarter. They are not required to include international holdings, short positions or other types of investments. Yet even this limited repository can provide valuable information.

900 JORIE BOULEVARD SUITE 188 OAK BROOK, IL 60523

According to the latest 13F report, the guru’s stock portfolio contained 53 stocks valued at a total of $190.00 million. The leading stocks were TSCO (6.38%), V (6.22%) and JNJ (6.17%).

According to data from GuruFocus, these were THOMAS STORY & SON LLC’s top five deals of the quarter.

Berkshire Hathaway Inc.

During the quarter, THOMAS STORY & SON LLC purchased 6,502 shares of NYSE:BRK.B for a total holding of 15,737. The transaction had a 0.92% impact on the equity portfolio. During the quarter, the stock traded at an average price of $284.56.

On 11/01/2022, Berkshire Hathaway Inc traded at a price of $298.2625 per share and a market capitalization of $650.95 billion. The stock has returned 2.82% over the past year.

GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.

In terms of valuation, Berkshire Hathaway Inc has a price/earnings ratio of 61.26, a price/book ratio of 1.42, a price/earnings/growth (PEG) ratio of 2.00, an EV/Ebitda ratio of 27.25 and a price-to-sales ratio of 2.49.

The GF price/value ratio is 1.14, giving the stock a GF value rank of 3.

Cigna Corp.

The guru sold his investment of 5,399 shares in NYSE:CI. Previously, the stock had a weighting of 0.68% in the equity portfolio. The shares traded at an average price of $281.41 during the quarter.

On 11/01/2022, Cigna Corp traded at a price of $324.22 per share and a market capitalization of $98.57 billion. The stock has returned 53.28% over the past year.

GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.

In terms of valuation, Cigna Corp has a price/earnings ratio of 19.24, a price/book ratio of 2.22, a price/earnings/growth (PEG) ratio of 0.88, an EV/Ebitda ratio of 11.58 and a price-to-sales ratio of 0.59.

The GF price-to-value ratio is 1.17, giving the stock a GF value rank of 3.

O’Reilly Automobile Inc.

THOMAS STORY & SON LLC reduced its investment in NAS:ORLY by 2,111 shares. The transaction had an impact of 0.63% on the equity portfolio. During the quarter, the stock traded at an average price of $699.44.

On 11/01/2022, O’Reilly Automotive Inc traded at a price of $834.5446 per share and a market capitalization of $52.40 billion. The stock has returned 34.65% over the past year.

GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 10 out of 10.

In terms of valuation, O’Reilly Automotive Inc has a price/earnings ratio of 25.47, a price/earnings/growth (PEG) ratio of 1.38, an EV/EBITDA ratio of 17.85 and a price/ sales of 3.92.

The GF price-to-value ratio is 1.15, giving the stock a GF value rank of 3.

Apple Inc.

THOMAS STORY & SON LLC reduced its investment in NAS:AAPL by 8,180 shares. The transaction had an impact of 0.53% on the equity portfolio. During the quarter, the stock traded at an average price of $156.95.

On 11/01/2022, Apple Inc traded at a price of $154.45 per share and a market capitalization of $2,439.35 billion. The stock has returned 2.96% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 10 out of 10.

In terms of valuation, Apple Inc has a price/earnings ratio of 25.10, a price/book ratio of 48.25, a price/earnings/growth (PEG) ratio of 1.44, an EV/EBITDA ratio of 19.34 and a price-to-sales ratio of 6.36.

The GF price/value ratio is 0.89, giving the stock a GF value rank of 6.

Williams-Sonoma Inc

THOMAS STORY & SON LLC reduced its investment in NYSE:WSM by 5,887 shares. The transaction had an impact of 0.31% on the equity portfolio. During the quarter, the stock traded at an average price of $141.94.

On 11/01/2022, Williams-Sonoma Inc traded at a price of $127.06 per share and a market capitalization of $8.45 billion. The stock has returned -30.91% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 10 out of 10.

In terms of valuation, Williams-Sonoma Inc has a price/earnings ratio of 7.91, a price/book ratio of 6.65, a price/earnings/growth (PEG) ratio of 0.33, an EV/ Ebitda of 5.49 and a price-to-sales ratio of 1.07.

The GF price-to-value ratio is 0.77, giving the stock a GF value rank of 9.

Please note that figures and facts quoted are at the time of writing this article and may not reflect the latest business data or company announcements.

You want to give your opinion on this article ? Do you have questions or concerns? Contact us here or email us at [email protected]!

This article is general in nature and does not represent the views of GuruFocus or any of its affiliates. This article is not intended to be financial advice, nor does it constitute investment advice or recommendation. It has been written without taking into account your personal situation or financial objectives. Our goal is to bring you data-driven fundamental analysis. The information on this site is in no way guaranteed to be complete, accurate or in any other way.

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Senior Health Insurance Market 2022: Size, Business Advancement, Supply and Potential Opportunities 2029 | AIG, Chubb, Berkshire Hathaway https://www.bodysaronsiki.com/senior-health-insurance-market-2022-size-business-advancement-supply-and-potential-opportunities-2029-aig-chubb-berkshire-hathaway/ Sat, 29 Oct 2022 15:26:12 +0000 https://www.bodysaronsiki.com/senior-health-insurance-market-2022-size-business-advancement-supply-and-potential-opportunities-2029-aig-chubb-berkshire-hathaway/


Reading time:3 minutes, 44 seconds

New Jersey (USA) – The Senior Health Insurance Market report offers a unique perspective on the global market. Analysts believe that changing consumption patterns will greatly influence the overall market. The research report provides an executive summary for a brief overview of the global Senior Health Insurance Market. It explains the various factors that constitute an important part of the market. It includes market definition and scope with a detailed explanation of market drivers, opportunities, restraints, and threats.

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“Senior Health Insurance market size was estimated at reasonable USD Million in 2021 and is projected to reach healthy USD Million by 2022, and is expected to grow at a steady CAGR to get significant USD Million by 2029 .”

The senior health insurance market player with the greatest technological innovation will gain the largest market share. Top companies in this report are: AIG, Chubb, Berkshire Hathaway, Metlife, Munich Re, AXA, Japan Post Holdings, Ping An Insurance, Generali, Allianz, Allstate, Nippon Life Insurance, Manulife Financial, CPIC, Aviva, Zurich Insurance, Prudential PLC, China Life Insurance

Senior Health Insurance Market Overview:

The Senior Health Insurance industry report provides a comprehensive analysis of the Senior Health Insurance market including its definition, size, growth and key segments. The report analyzes the senior health insurance industry landscape, including key drivers and restraints. The report also examines the opportunities available in the Senior Health Insurance market including new product developments, market expansions, and market growth during the forecast period. Some of the current text comes from the previous paragraph, and the body of the current text continues; The report has been prepared based on the current data of the Senior Health Insurance market.

Segmentation

The market is driven by the need for advanced technological applications of health insurance for seniors in various fields. The major reason for the growth of the senior health insurance market is the growing use of senior health insurance in various applications.

Type

Health Insurance
Medical help
Private health insurance
Medicare supplemental insurance
Others

Application

50-60 years old
60-70 years old
Over 70 years

The senior health insurance market has been studied across the Americas, Asia-Pacific, Europe, Middle East, and Africa based on region. The Americas are further explored in the Senior Health Insurance report in Argentina, Brazil, Canada, Mexico, and the United States. The United States is studied in more detail in the Senior Health Insurance report in California, Florida, Illinois, New York, Ohio, Pennsylvania and Texas. Asia-Pacific is further analyzed in the Senior Health Insurance report in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand . Finally, Europe, the Middle East and Africa are studied in more detail. Senior report on health insurance in France, Germany, Italy, Netherlands, Qatar, Russia, Saudi Arabia, South Africa, Spain, United Arab Emirates and United Kingdom.

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Report on the cumulative impact of COVID-19 on senior health insurance:

Our ongoing research on the Senior Citizens Health Insurance report amplifies our research framework to ensure inclusion of underlying COVID-19 issues and potential pathways forward. Additionally, the updated study provides insights, analysis, estimates, and forecasts, considering the impact of COVID-19 on the Senior Health Insurance Market.

The Porter Matrix evaluates and ranks senior health insurance providers in the market based on business strategy (industry coverage, business growth, financial viability, and channel support) and product satisfaction. senior health insurance (ease of use, product features, value for money, and customer support) that helps businesses make better decisions and better understand the competitive landscape.

Senior Health Insurance Market Share Analysis: Knowing the senior health insurance market share gives an idea of ​​the size and competitiveness of the providers for the reference year. It reveals the characteristics of the senior health insurance market in terms of accumulation, dominance, fragmentation and merger.

The report answers questions such as:

  1. What is the senior health insurance market size and global market forecast?
  2. What are the inhibiting factors and impact of COVID-19 shaping the Global Senior Health Insurance Market during the forecast period?
  3. In which products/segments/applications/areas to invest during the forecast period in the global senior health insurance market?

4. What modes and strategic moves are suitable for entering the global senior health insurance market?

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Roger Smith

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+1 775 237 4157

]]> Mortgage rates hit 7% as Federal Reserve slows economy https://www.bodysaronsiki.com/mortgage-rates-hit-7-as-federal-reserve-slows-economy/ Thu, 27 Oct 2022 15:44:01 +0000 https://www.bodysaronsiki.com/mortgage-rates-hit-7-as-federal-reserve-slows-economy/

Comment

Mortgage rates rose above 7% this week, the highest level in 20 years and the latest sign that the Federal Reserve’s aggressive moves to slow the broader economy are already hitting the housing market hard.

The average rate for a 30-year fixed mortgage, the most popular home loan product, reached 7.08%, according to data released Thursday by Freddie Mac. The last time mortgage rates climbed this high was in April 2002, and they are expected to continue to climb as the Fed moves quickly to tame a scorching housing market, a key step in reducing rental costs and ultimately fighting inflation across the economy.

The central bank does not set mortgage costs directly, but changes in its key rate – known as the federal funds rate – ripples through the economy and influences all manner of lending. Since March, the Fed has raised rates five times, taking its benchmark rate from near zero to between 3% and 3.25%. The central bank is expected to raise rates by 0.75 percentage points next week.

Calculate the cost of additional mortgages as interest rates rise

These measures have already had major consequences for the housing market, and soaring mortgage rates have prompted some broader concerns that the Fed is holding back the economy with far too much force.

“People can say, ‘Well, you know, one percent [added] on the mortgage rate is still low. But we had several percent off the mortgage rate in a short time,” said Diane Swonk, chief economist at KPMG. “The rapid pace at which they are raising rates is, in itself, destabilizing.”

Post reporters Damian Paletta and Rachel Siegal explain how economic downturns start. (Video: Hope Davison, Drea Cornejo/The Washington Post, Photo: Michael S. Williamson/The Washington Post)

The average mortgage rate has increased at breakneck speed. A year ago, it was 3.09%; even last March, the average rate for a 30-year fixed mortgage was below 4%. The 3.22% increase in January to 7.08 percent now, a jump of 3.86 percentage points, is the largest rate increase in a year. The previous record was 3.59 percentage points in 1981.

Prices rose again in September, securing further interest rate hikes

For much of the pandemic, low rates drove aspiring home buyers into the market, jostling for the few available homes and driving up prices. But now, fearful of shelling out hundreds of dollars more a month on a mortgage, buyers are pulling back, increasing the supply of available homes and helping prices fall overall. This year, when rates were below 4%, a family earning the median household income of $71,000 could afford a $448,700 home with a 20% down payment. This week, with rates around 7%, they could only afford a $339,200 home, according to Realtor.com.

Home prices are falling at a record pace. The Case-Shiller home price index released earlier this week showed prices were 13% higher in August than they were a year ago, up from 15.6% higher the month before. . The 2.6 percentage point difference between those two months is the biggest drop in the history of the index, which debuted in 1987.

Zillow announced on Wednesday that it had laid off 300 workers in several departments, including home loans and closing services, although the company said it was not subject to a hiring freeze.

Demand for mortgages also fell as quickly as rates soared. The total volume of applications is at its lowest level since 1997, according to the Mortgage Bankers Association. Refinances are down 86% from a year ago, and mortgage lenders nationwide, including at major banks, let employees go as the market slowed. And rising rates have boosted interest in variable rate mortgages. The share of ARM applications was 12.7%.

Home builders are also caught off guard. Overall housing starts fell 8.1% to a seasonally adjusted annual rate of 1.44 million units in September, according to a report released earlier this month by the U.S. Department. of Housing and Urban Development and the US Census Bureau. So far this year, single-family housing starts are down 5.6% from this point last year.

Builder confidence also fell for the 10th consecutive month in October, falling to its lowest level since 2012, excluding the two-month period in spring 2020. the pandemic has begun. This is half the level of six months ago.

“This will be the first year since 2011 to see a decline in single-family home starts,” Robert Dietz, chief economist for the National Association of Home Builders, said in a statement. “And given expectations of high interest rates due to Federal Reserve actions, 2023 should see further declines in single-family construction as the housing contraction continues.”

Still, the Fed’s tools are limited, and officials regularly point to the housing market as one of the clearest signs that their rate hikes are having the intended effect.

“We’re starting to see some adjustment to excess demand in interest rate-sensitive sectors like housing,” Fed Governor Christopher Waller said in a speech this month. “But more needs to be done to bring inflation down significantly and persistently.”

When or how Fed rate hikes will outpace inflation elsewhere in the economy is still unclear. The rate hikes are designed to stifle demand, but they do nothing to address supply issues, like oil and gas shortages, affordable apartments or chips for new cars. Overall, consumer prices remain stubbornly high, rising 8.2% in September from a year earlier.

Rents have also increased by 7.2% over the past year, and rents increased by 0.8% from August to September. Goldman Sachs has projected headline housing inflation to peak at 7.5% next spring before slowly decelerating to just under 6% by the end of 2023. This has major implications for Fed policy, as housing costs are a huge part of the basket of goods. used to measure inflation in the economy.

As the Fed battles inflation, concerns grow over its overcorrection

But the slowdown in the housing market could also finally cool rental prices. National rent growth fell to its lowest annual rate (7.8%) since June 2021, according to Realtor.com. The median rental price in the United States recorded its second month-over-month decline in eight months in September.

Rising mortgage rates are slowing the market even in places where it was hot during the pandemic. In 2020 and 2021, sale prices skyrocketed in the Hudson Valley, as transplants in New York and elsewhere clamored for the few available homes. But as mortgage rates soar, the number of available homes has more than doubled in the past three months, from about 150 units to about 380, said Ryan Basten, associate broker at Berkshire Hathaway HomeServices Nutshell Realty.

This is an encouraging sign that the market is returning to some version of normal. But Basten said there was a lot of uncertainty about the future. He reviewed recent mortgage rate hikes: 5% “wasn’t too bad”, he said, and 6% percent was “achievable”. But as the Fed prepares to raise rates twice more before the end of the year, Basten said he and others in the industry are “wondering if there’s going to be a real market downturn. “.

“We can only face what we are facing now. I don’t see mortgage rates going up to 10 [percent]. If they did, it would look like a recession,” Basten said. “Eight [percent] feels bad. Ten percent would be like, ‘Wow, where do we go from here?’ ”

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