The title of this post is not original and draws from Nate Silver's book on why so many predictions in politics, sports and economics fail. It reflects the skepticism with which I view many 'can't fail" predictors of economic growth or stock markets, since they tend to have horrendous track records. Over the last few […]
In September, I took a look, in a series of posts, at two companies that had crested the trillion dollar market cap mark, Apple and Amazon, and concluded that series with a post where I argued that both companies were over valued. I also mentioned that I was selling short on both stocks, Amazon for […]
It seems like ancient history, but it was just 2001, when GE was the most valuable company in the world, commanding a market capitalization in excess of $500 billion. The quintessential conglomerate, with a presence in almost every part of the global economy, it seemed to have been built to withstand economic shocks and was […]
I don't know what it is about October that spooks markets, but it certainly feels like big market corrections happen in the month. As stocks have gone through contortions this month, more down than up, like many of you, I have been looking at my portfolio, wondering whether this is the crash that the market […]
In 1992, when Bill Clinton was running for president of the United States, and was asked whether he had ever smoked marijuana, he responded that he had, but that he did not inhale, reflecting the fear that being viewed as a weed-smoker would lay low his presidential ambitions. How times have changed! Today, smoking marijuana […]
In my last post, I looked at Apple and Amazon, as their market caps exceeded a trillion dollars, tracing the journey that they took over the last two decades to get to that threshold and valuing them given their current standing. While you can check out the stories that I told and the details of […]
For most of us, even envisioning a trillion dollars is difficult to do, a few more zeros than we are used to seeing in numbers. Thus, when Apple’s market capitalization exceeded a trillion on August 2, 2018, it was greeted with commentary, and when Amazon’s market capitalization also exceeded a trillion just over a month […]
In the last few weeks, the market capitalization of Apple and Amazon each hit a trillion dollars, a threshold not seen before in public markets. Predictably, that has drawn press attention and commentary about what this moment means for markets, investors and the companies themselves. As readers of this blog know, I have followed both […]
This has been a year of rolling crises, some originating in developed markets and some in emerging markets, and the market has been remarkably resilient through all of them. It is now Turkey's turn to be in the limelight, though not in a way it hoped to be, as the Turkish Lira enters what seems […]
I was interviewed in this Smith Brain Trust (University of Maryland) article on the 2019 outlook for the economy and stocks. THESE COMPANIES ARE POISED FOR EXCITEMENT IN 2019 Dec 10, 2018 Finance SMITH BRAIN TRUST – Like the big man in the North Pole, Maryland Smith’s David Kass spends the waning weeks of the year making a list […]
I am quoted in the Washington Post (December 2, 2018): “Technology and capitalism take their toll, said David Kass, finance professor at the University of Maryland. “Of the original 12 stocks in the Dow Jones industrial average in 1896, only General Electric survives today — just barely,” Kass said. And in time, “Apple and Microsoft […]
In an SEC 13F filing after the market closed today, Berkshire Hathaway revealed a net increase of $14 billion in its common stock portfolio during the third quarter of 2018. This is the largest quarterly increase in its common stock investments in many years. These increases, primarily in the banking sector, were: (1) Bank of […]
Berkshire Hathaway today released its Form 10-Q for the third quarter of 2018. Five highlights during the third quarter were: (1) Berkshire’s operating earnings increased by 100% as compared to the third quarter of 2017. (2) Berkshire repurchased $928 million of its stock, indicating that both Warren Buffett and Charlie Munger conclude that Berkshire’s current […]
I am quoted in “Why GE’s Penny Dividend Signals a Sad Turn for Widow and Orphan Stocks” that is likely to appear in the Business Section of the Washington Post on Sunday, November 4: “Widow and orphan stocks were designated as such for their safety and income,” said David Kass, a finance professor at the […]
I am quoted in The Wall Street Journal on Berkshire Hathaway investing in Fintech: “Todd and Ted bring additional expertise to the table,” said David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business and a Berkshire shareholder. “They’re broadening the perspective of Berkshire and broadening the opportunities where they […]
I am quoted in a Washington Post article: “Larry Culp’s Long To-Do List To Fix GE“. “Culp will need to decide whether to fix GE’s power division or scrap it. David Kass, a finance professor at the University of Maryland, thinks he should sell it because of its “substantial” underperformance. “The remainder of GE can […]
In this Jeff Bezos interview (1 hour and 9 minutes) the Amazon CEO quotes from Warren Buffett and explains why he bought the Washington Post which is now profitable and hiring additional staff by becoming a national and global newspaper via the Internet. Amazon located in Seattle, Washington so they could draw from the talent […]
HYFLUX has suspended a contract for a seawater reverse osmosis desalination package in Iran, which the company said on Friday is expected to have a material adverse effect on its financial performance.
OCBC Investment Research initiated coverage on ESR-Reit (real estate investment trust) on Friday with a "buy" call and S$0.59 target price, noting its low valuation compared to peers with similar-sized portfolios.
DUAL-listed AIMS Property Securities Fund is “strategically positioned” to take advantage of a downturn in the Australian commercial real estate market, which has begun to show signs of weakening, chairman George Wang wrote in a letter sent to unitholders.
PAY attention to the financial markets. If the Great Recession and 2008-09 financial crisis taught us anything, that was it. Until then, the Federal Reserve had focused mainly on fighting inflation and unemployment. What we learned is that overborrowing, shaky mortgages and inflated stock and home prices could also plunge the economy into crisis.
The Cambodian financial markets have welcomed with gusto the first issue of a corporate bond in the country, with a Phnom Penh-based microfinance institution, Hattha Kaksekar, listing its bonds on the Cambodia Securities Exchange (CSX) on Dec 6.