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 […]
I am convinced that each of us is granted moments of grace, where, if we are open to the possibility, we find out what we are meant to do with our lives. For me, one of those moments occurred in the second year of my MBA program at UCLA, when, cash poor, I decided to […]
Every year, for the last three decades, I have spent the first week of the year, looking at numbers. Specifically, as the calendar year ends, I download raw data on individual companies and try to decipher trends and patterns in the data. Over the years, the raw data has become more easily accessible and richer, […]
I must admit that I don't pay as much attention to fixed income markets, as I do to equity markets, other than to use numbers from the markets as inputs when I value companies or look at equity markets. This year, I decided to look at bond market movements, both in the sovereign bond and […]
In bull markets, investors, both professional and amateur, often pay lip service to the notion of risk, but blithely ignore its relevance in both asset allocation and stock selection, convinced that every dip in stock prices is a buying opportunity, and soothed by bromides that stocks always win in the long term. It is therefore […]
After the market closed on February 14, Berkshire Hathaway released its SEC-13F filing for the quarter ending December 31, 2018. The largest changes were as follows: New positions: (1) Red Hat ($700 million) (Note: Likely merger arbitrage – IBM to acquire Red Hat in late 2019 at $190 per share in cash.) (2) Suncor Energy […]
Berkshire Hathaway Vice Chairman Charlie Munger (age 95) will be interviewed on CNBC on Friday, February 15 at 7:00 a.m. On February 14, he will be answering shareholder questions at the Daily Journal annual meeting in Los Angeles. Also, on February 14, Berkshire Hathaway will be releasing its SEC 13F filing after the close of […]
After the market closes on Thursday, February 14, Berkshire Hathaway will release its SEC 13F filing for the fourth quarter of 2018. Since the S&P 500 (total return) declined by 13.5% during the fourth quarter, it is very likely that Warren Buffett invested a substantial portion of Berkshire’s cash position of over $100 billion. In […]
As of the market close on January 7, 2019, the five largest companies by market capitalization are: (1) Amazon – $797 billion (2) Microsoft – $784 billion (3) Alphabet (Google) – $746 billion (4) Apple – $702 billion (5) Berkshire Hathaway – $485 billion
I am quoted in The Washington Post on “Tech Stocks Have Sold Off Sharply — Is It a Blip or Something More?” “Momentum builds going up and it could suddenly build in the other direction,” said David Kass, a finance professor at the University of Maryland. He argued, however, that most of the sell reflects anxiety […]
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 […]
F&B chain BreadTalk has bought out its partner in a joint venture in Thailand, acquiring the remaining 50 per cent interest in the company that it does not own from The Minor Food Group (MFG) for 160 million baht (S$6.96 million), it said on Wednesday.
CONSTRUCTION firm SHS Holdings' delayed solar power project in Bangladesh could face default and a termination of key agreements if required financing is not obtained on time, the company said on Wednesday before the market opened.
IFAST Corporation's fourth-quarter profit gained 46 per cent to S$2.6 million for the three months ended Dec 31 from S$1.8 million for the year-ago before, even as revenue fell, thanks to its operations in Singapore, Hong Kong and Malaysia.
OFFSHORE engineering group Sembcorp Marine's fourth-quarter net profit fell 94.9 per cent to S$5.9 million from S$117.3 million a year ago on continued low overall business volume, impairment of an asset and accelerated depreciation.
WITH US markets on a break on Monday, trading was muted in Singapore with investors looking for direction. That said, recent gains in the local stock market meant that there were profit-taking opportunities.