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 […]
In the last post, I looked at how to measure risk from different perspectives, with the intent of bringing these risk measures into both corporate finance and valuation. In this post, I will close the circle by converting risk measures into hurdle rates, critical in corporate finance, since they drive whether companies should invest or […]
I think that all investors would buy into the precept that investing in equities comes with risk, but that is where the consensus seems to end. Everything else about risk is contested, starting with whether it is a good or a bad, whether it should be sought out or avoided, and how it should be […]
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 […]
I am quoted in this NBC News article on the Uber IPO: “It’s the speculative attraction, the excitement, similar to going to Las Vegas to gamble for a big winning,” David Kass, a professor of finance at the University of Maryland, said. “But, like Las Vegas, the odds are against you.” “Stock will be […]
I am quoted in this University of Maryland (Robert H. Smith School of Business) article on Warren Buffett. SMITH BRAIN TRUST – It turns out, even the Oracle of Omaha has investment regrets. Famed investor and Berkshire Hathaway CEO Warren Buffett says he wishes he had bought shares early in some of the giants of tech, the […]
Warren Buffett, Charlie Munger, and Bill Gates were guests on CNBC this morning from 6 a.m. – 9 a.m. ET. The highlights were: (1) Buffett: A trade war is bad for the world. It is easier to start than stop. Negotiations are a dangerous game. Cannot shake your fist first then shake your finger later. DJIA […]
These are 5 highlights of the Berkshire Hathaway annual meeting: (1) Apple – Both Warren Buffett and Charlie Munger are very bullish on Apple. “We like the fact that it is our largest holding” ($54 billion). They would buy more shares at a lower price. (2) Amazon – The recent investment by Todd Combs or […]
I am quoted in this Channel News Asia article on the Berkshire Hathaway annual meeting. David Kass, finance professor at University of Maryland, has made the trip each year for the past decade, sometimes with MBA students – a number of whom were granted private meetings with Buffett. “It’s pretty much a hobby,” said Kass, […]
I am quoted in this article: “Most portfolio managers would be considered successful when they are right 70% of the time. Warren Buffet is right 90% of the time,” said David Kass, a finance professor at the University of Maryland and the author of a blog on Buffett and Berkshire Hathaway. “This is what differentiates […]
VIBRANT Group, through its various units, will be disposing its stake in the vehicle that owns the manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit), and units in the Reit for around S$62.2 million in net proceeds.
THE former interim chief executive officer and executive chairman of Pine Capital Group’s 51 per cent-owned subsidiary, Advance Capital Partners Asset Management (ACPAM), is suing Pine Capital for alleged discrimination and/or prejudice.
INVESTMENT holding company Adventus Holdings said on Tuesday night that it has disposed 45 per cent of its stake in subsidiary ADV S3 for US$1.1 million to one of the latter’s joint venture partners for a residential project in Vietnam.
INTERNATIONAL Cement Group (ICG), formerly Compact Metal Industries, has raised S$3.6 million through the placement of 80 million shares at S$0.045 apiece to an individual investor, Wu Xinghui, after the Singapore Exchange (SGX) gave conditional in-principle approval for the deal on Wednesday.
SINGAPORE shares trended upward after Tuesday's losses, buoyed by relief over Washington's temporary relaxation of curbs against China's Huawei Technologies. That said, a sense of caution remains among investors here and in the region over ongoing trade frictions between the US and China.