In a big year for initial public offerings (IPOs), with Uber, Lyft, Pinterest and Zoom, to name just a few, already having gone public and more companies waiting in the wings, it is ironic that it is not a tech company, but a food company, Beyond Meat, that has managed to deliver the most dazzling […]
It should come as no surprise to anyone that Tesla is back in the news, though it seems to be for all of the wrong reasons. From Musk's Twitter escapades with the SEC, to talk about electric lawn blowers to concerns about a debt death spiral, the company has managed, yet again, to get in […]
After Lyft’s IPO on March 29, 2019, it was only a matter of time before Uber threw its hat in the public market ring, and on Friday, April 12, 2019, the company filed its prospectus. It is the first time that this company, which has been in the news more frequently in the last few […]
Last week, Lyft became the first of the ride sharing companies to announce plans for an initial public officering, filing its prospectus. It is definitely not going to be the last, but its fate in the market will not only determine when Uber, Didi, Ola and GrabTaxi will test public markets, but what prices they […]
On February 22, Kraft Heinz shocked investors with a trifecta of bad news in its earnings report: sub-par operating results, a mention of accounting irregularities and a massive impairment of goodwill, and followed up by cutting dividends per share almost 40%. Investors in the company reacted by selling their shares, causing the stock price to […]
In my last eight posts, I looked at aspects of corporate behavior from investments to financing to dividend policy, using the data that I collected at the start of 2019, to examine what companies share in common, and what makes them different. In summary, I found that the rise in risk premiums in both equity […]
In my series of data posts, I had always planned to get to dividends and buybacks, the two mechanisms that companies have for returning cash to stockholders, at this point, but an op ed on buybacks by Senators Schumer and Sanders this week, in the New York Times, will undoubtedly make this post seem reactive. […]
Debt is a hot button issue, viewed as destructive to businesses by some at one end of the spectrum and an easy value creator by some at the other. The truth, as is usually the case, falls in the middle. In this post, I will look not only at how debt loads vary across companies, […]
In my last post, I looked at hurdle rates for companies, across industries and across regions, and argued that these hurdle rates represent benchmarks that companies have to beat, to create value. That said, many companies measure success using lower thresholds, with some arguing that making money (having positive profits) is good enough and others […]
I am quoted in this Smith Brain Trust (Robert H. Smith School of Business, University of Maryland) article: “2019’s (Midyear) Stocks To Watch”. Professor David Kass’s six stocks to watch in 2019 have been on something of a winning streak. Now, as we approach the midway point of the year, he recommends keeping your eye on four […]
I am quoted extensively in this article: When giving career advice to college students, Buffett says to “find a job you have a passion for because once you are in that path you will be noticed and promoted and stand out from all the others,” recalls David Kass, a professor of finance at the University of Maryland […]
Berkshire Hathaway Annual Meeting May 4, 2019 (Notes taken by Professor David Kass, Department of Finance, Robert H. Smith School of Business, University of Maryland) A humorous film was shown containing scenes (1) from Warren Buffett in a classroom speaking to young children about investing, (2) Warren Buffett and Bill Gates walking around […]
I am quoted in this Smith Brain Trust (University of Maryland) article: “Why This Year’s Warren Buffett Charity Lunch is Different” AND WHY ‘BUFFETT COULD BE LEARNING MORE FROM THE PERSON BUYING THE LUNCH’ Jun 05, 2019 Finance SMITH BRAIN TRUST – One imagines that Warren Buffett has some pretty interesting lunch meetings. But this one is […]
I am quoted in a Fortune article on Presidential influence on financial markets and the economy. “presidents can have a major impact on the financial markets in the short run,” said David Kass, professor of finance at the University of Maryland.
The 2019 winning charity bid on eBay for lunch with Warren Buffett was $4,567,888. This was the 2oth annual lunch with Warren Buffet to benefit the Glide Foundation and it set a new record, exceeding the previous highest bid of $3,456,789 in 2012. There were only 4 bidders who submitted a total of 17 bids […]
Kraft Heinz (KHC) is currently trading below Berkshire Hathaway’s (BRK.A, BRK.B) cost basis. Berkshire Hathaway owns 26.7%, or 325,442,152 shares, of Kraft Heinz and in 2015 purchased its stake with a cost basis of $9.8 billion, or $30.11 per share. At its current price of $28.60, Berkshire’s stake is valued at $9.3 billion, representing an […]
After the market closed today, Berkshire Hathaway filed its SEC Form 13F revealing its stock portfolio as of March 31, 2019. There were several major changes (by at least $500 million): Additions: (1) Amazon (483,300 shares) (AMZN) currently valued at $900 million (initial investment) (Todd Combs or Ted Weschler) (2) JP Morgan Chase (JPM) – stake […]
SEMBCORP Industries' (SCI) S$2 billion on-lending to its subsidiary Sembcorp Marine (SMM) is essentially a lifeline thrown to the struggling shipbuilder, which only in recent quarters returned to the black. The exercise makes a lot of sense for SMM, but perhaps less clearly so from the view of SCI minorities.
THE Singapore Exchange (SGX) has rejected International Cement Group's (ICG) proposed US$104.4 million purchase of Schwenk Namibia for failing to meet certain thresholds relating to a very substantial acquisition (VSA), said the watch-listed cement producer on Monday.
VIETNAM, the best performing stock market in South-east Asia, is not as yet officially recognised as an emerging market by the global index agency, Morgan Stanley Capital International (MSCI). The non-recognition denotes the country's unpreparedness, and deters many large funds from investing.
SINGAPORE shares started the week down slightly, following US and Europe markets which closed lower on Friday after a stellar week of gains. The Straits Times Index edged down 11.51 points or 0.35 per cent to 3,309.89 as at 9.04am on Monday .