SoftBank will get the ‘last laugh’ when a ‘profitable’ WeWork goes public one day, Bernstein says

Son initially valued WeWork at $47 billion, a number public market investors viewed as nearly four times too high. Still, Lane of Bernstein believes WeWork could still be disruptive to the existing real-estate market so long as SoftBank restructures WeWork’s business plan. “We think investor should think of the basic business similar as being similar to Starbucks,” Lane said. SoftBank recorded a $3.4 billion writedown on its WeWork investment about two weeks after taking 80% control of the compa


Son initially valued WeWork at $47 billion, a number public market investors viewed as nearly four times too high.
Still, Lane of Bernstein believes WeWork could still be disruptive to the existing real-estate market so long as SoftBank restructures WeWork’s business plan.
“We think investor should think of the basic business similar as being similar to Starbucks,” Lane said.
SoftBank recorded a $3.4 billion writedown on its WeWork investment about two weeks after taking 80% control of the compa
SoftBank will get the ‘last laugh’ when a ‘profitable’ WeWork goes public one day, Bernstein says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: yun li
Keywords: news, cnbc, companies, bernstein, profitable, investment, lane, wework, billion, starbucks, public, softbank, weworks, goes, business, market, think, laugh, day


SoftBank will get the 'last laugh' when a 'profitable' WeWork goes public one day, Bernstein says

WeWork’s dramatic fall has led to SoftBank CEO Masa Son’s questioning his own judgement, but one analyst still believes the bank will come out on top eventually with the massive investment in the reeling space-sharing company.

“Despite the huge embarrassment WeWork has been for SoftBank this year, we suspect SoftBank will have the last laugh when they bring the company back to market in a few years – bigger and profitable,” Chris Lane, senior research analyst at AB Bernstein, said in a note on Friday.

WeWork pulled its IPO filing in September after investors balked at its mounting losses and unusual corporate governance structure. Son initially valued WeWork at $47 billion, a number public market investors viewed as nearly four times too high. The CEO acknowledged making some mistakes in his investment strategy and said he questioned the viability of SoftBank’s massive Vision Fund.

Still, Lane of Bernstein believes WeWork could still be disruptive to the existing real-estate market so long as SoftBank restructures WeWork’s business plan. The analyst compared WeWork’s model to Starbuck’s where the profitability comes from big scale.

“We think investor should think of the basic business similar as being similar to Starbucks,” Lane said. “While profitable, the scale of profits that can be generated from single site is small. Starbucks as a corporation only makes sense if you plan to open thousands of outlets.”

SoftBank recorded a $3.4 billion writedown on its WeWork investment about two weeks after taking 80% control of the company with a new $5 billion financing package.

“We think the investment will ultimately prove to be value-creating,” Lane said. “Post the restructuring, SoftBank will emerge with 80% of the equity of what we believe remains a very promising business.”


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: yun li
Keywords: news, cnbc, companies, bernstein, profitable, investment, lane, wework, billion, starbucks, public, softbank, weworks, goes, business, market, think, laugh, day


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Stocks surge on strong jobs report—what 5 pros see ahead for the US economy

A stronger-than-expected November U.S. jobs report sent stocks soaring Friday, with the Dow Jones Industrial Average rallying over 300 points intraday on word that the economy added 266,000 jobs last month, mainly in education and manufacturing. Economic and market professionals largely see the results as yet another catalyst for the U.S. stock market’s record bull run. Here’s what five of them — two economists, two strategists and one investment chief — see ahead for stocks. You saw the real we


A stronger-than-expected November U.S. jobs report sent stocks soaring Friday, with the Dow Jones Industrial Average rallying over 300 points intraday on word that the economy added 266,000 jobs last month, mainly in education and manufacturing.
Economic and market professionals largely see the results as yet another catalyst for the U.S. stock market’s record bull run.
Here’s what five of them — two economists, two strategists and one investment chief — see ahead for stocks.
You saw the real we
Stocks surge on strong jobs report—what 5 pros see ahead for the US economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: lizzy gurdus, thomas franck
Keywords: news, cnbc, companies, long, strong, economy, surge, recovery, stocks, weve, report, market, think, ahead, late, real, thats, jobs, investment, pros, reportwhat


Stocks surge on strong jobs report—what 5 pros see ahead for the US economy

Talk about getting the job done.

A stronger-than-expected November U.S. jobs report sent stocks soaring Friday, with the Dow Jones Industrial Average rallying over 300 points intraday on word that the economy added 266,000 jobs last month, mainly in education and manufacturing. Economists polled by Dow Jones expected closer to 187,000 nonfarm payroll additions.

Economic and market professionals largely see the results as yet another catalyst for the U.S. stock market’s record bull run.

Here’s what five of them — two economists, two strategists and one investment chief — see ahead for stocks.

Andy Green, managing director of economic policy at the Center for American Progress, was a bit less enthusiastic about the report than others on Wall Street:

“What we’re seeing is a result of a tremendous crash and a very long recovery. You saw the real wealth of the average middle-class American family collapse by 49% between 2001 and 2010. It was a deep financial crash and recession. It’s taken a long time to come back, and that’s great. But the real point is this recovery is an Obama-Yellen recovery. It is in spite of everything that [President Donald] Trump is doing, not because of it. If it were because of it, we would see higher gross private investment. … I think there’s a lot of caution signs out there, and so I obviously am not quite as rosy as … others.”

Douglas Holtz-Eakin, president of the American Action Forum, figured the U.S. could do “even better” in terms of growth:

“If you take a look at our best indicator of wage gains, which is the employment cost index, which has both benefits and cash compensation, that’s rising, in real terms, at about 1.1%. That’s about the rate of productivity growth, that’s exactly what you would expect, and it’s 50% higher than it was in 2016. And, hopefully, it will get stronger. Everyone, I think, would agree: We can do even better. This is a good report; we could do better.”

J.P. Morgan Asset Management’s Oksana Aronov, who leads the firm’s market strategy and alternative fixed income divisions, said this report didn’t give the Federal Reserve cause to alter its monetary policy just yet:

“We certainly have a long way to go until inflation sort of enters the narrative in any meaningful way, but I think that we’ve, as a marketplace, certainly in the fixed-income space, we’ve completely discounted it as a risk. … A stronger-than-expected print is not going to bring the Fed in, but it can change the expectations in a market where yields are so depressed.”

Jason Trennert, the co-founder, chairman and CEO of Strategas Research Partners, found the economic strength somewhat ironic:

“It’s just hard to get inflation, in my opinion. All of the inflation is in financial assets, it’s not in goods and services. … Listen, I think the irony here is that despite the duration of the expansion, which is the longest expansion in postwar history, we’re not particularly late in the business cycle. Everyone has been saying that we’re late in the cycle. This suggests that … we’re not as late in the cycle as we think.”

Lori Henel, State Street Global Advisors’ deputy global chief investment officer, predicted the market’s “upward momentum” would persist:

“It was pretty strong across the board, not just the print, but also some of the revisions from past months. Look, we’ve been pretty encouraged about the global economy all this year. We’ve seen improvement. Even in the dark of the summer when a lot of other people were thinking that we were going to go into recession, we sort of felt that the consumer and the services sector would help us kind of power through. And this is just validation that we are in a bit of an upward momentum here.”

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: lizzy gurdus, thomas franck
Keywords: news, cnbc, companies, long, strong, economy, surge, recovery, stocks, weve, report, market, think, ahead, late, real, thats, jobs, investment, pros, reportwhat


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What a ‘Santa Claus rally’ is — and whether investors can expect such a gift in their investment portfolio

Historically speaking, there’s been a small lift to stock-market portfolios at the end of the year — a phenomena that many in the financial industry call “the Santa Claus rally.” “The Santa Claus rally is when the market tends to do well over the last two weeks of the year,” he says. It does happen — not 100% of the time, but around 60% of the time,” Lambert says. Some years, investors get coal: Last year, for example, the S&P 500 dropped almost 20% by late December. But historically, Lambert sa


Historically speaking, there’s been a small lift to stock-market portfolios at the end of the year — a phenomena that many in the financial industry call “the Santa Claus rally.”
“The Santa Claus rally is when the market tends to do well over the last two weeks of the year,” he says.
It does happen — not 100% of the time, but around 60% of the time,” Lambert says.
Some years, investors get coal: Last year, for example, the S&P 500 dropped almost 20% by late December.
But historically, Lambert sa
What a ‘Santa Claus rally’ is — and whether investors can expect such a gift in their investment portfolio Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: sam becker
Keywords: news, cnbc, companies, small, portfolio, week, investment, gift, tends, rally, historically, claus, market, financial, santa, lambert, investors, expect, weeks


What a 'Santa Claus rally' is — and whether investors can expect such a gift in their investment portfolio

Historically speaking, there’s been a small lift to stock-market portfolios at the end of the year — a phenomena that many in the financial industry call “the Santa Claus rally.”

Because Christmas lands within the last week of the year, Santa often gets credit for a small but measurable boost in the markets during that time, says Jason Lambert, the president and CEO of Northwest Financial & Tax Solutions near Portland, Oregon. “The Santa Claus rally is when the market tends to do well over the last two weeks of the year,” he says.

“It’s a real effect. It does happen — not 100% of the time, but around 60% of the time,” Lambert says. Some years, investors get coal: Last year, for example, the S&P 500 dropped almost 20% by late December.

But historically, Lambert says, the stock market tends to gain between 1% and 2% during the last 10 trading days of the year.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: sam becker
Keywords: news, cnbc, companies, small, portfolio, week, investment, gift, tends, rally, historically, claus, market, financial, santa, lambert, investors, expect, weeks


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SoftBank Vision Fund 2 has held talks to invest $150 million in home health-care start-up Honor, sources say

SoftBank’s Vision Fund 2 has held talks to invest about $150 million in home health-care company Honor, according to people familiar with the matter. “Fundraising is progressing as expected as investors assess potential commitments to Vision Fund 2,” said a Vision Fund spokesperson, who declined to comment on the Honor acquisition specifically. Other investors in Vision Fund 2 are likely to include Abu Dhabi state fund Mubadala and Saudi Arabia’s Public Investment Fund, though neither is expecte


SoftBank’s Vision Fund 2 has held talks to invest about $150 million in home health-care company Honor, according to people familiar with the matter.
“Fundraising is progressing as expected as investors assess potential commitments to Vision Fund 2,” said a Vision Fund spokesperson, who declined to comment on the Honor acquisition specifically.
Other investors in Vision Fund 2 are likely to include Abu Dhabi state fund Mubadala and Saudi Arabia’s Public Investment Fund, though neither is expecte
SoftBank Vision Fund 2 has held talks to invest $150 million in home health-care start-up Honor, sources say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: alex sherman christina farr, alex sherman, christina farr
Keywords: news, cnbc, companies, honor, invest, fund, million, held, person, billion, sources, softbank, vision, investments, investment, talks, say, potential, startup, including


SoftBank Vision Fund 2 has held talks to invest $150 million in home health-care start-up Honor, sources say

SoftBank’s Vision Fund 2 has held talks to invest about $150 million in home health-care company Honor, according to people familiar with the matter.

While the Honor investment hasn’t been approved by the Vision Fund’s investment committee yet, it marks one of the first known potential bets for the massive new fund. There are several Vision Fund 2 investments in the works, including some that have already been approved by the investment committee, said two of the people, who asked not to be named because the discussions are private. None of the investments will be publicly disclosed until the fund concludes its fundraising, the people said.

SoftBank founder and CEO Masayoshi Son has told Vision Fund partners scouting deals that he wants to slow the pace of new investments and focus on companies that have a clearer path to profitability for his second Vision Fund. The change was precipitated by the public market’s negative reaction to money-losing investments from the first Vision Fund, including Uber and WeWork, the latter of which SoftBank has now acquired to stave off potential bankruptcy. SoftBank reported its first quarterly loss in 14 years last month, a result of an $8.9 billion quarterly loss at the Vision Fund.

SoftBank said in July it planned to raise $108 billion for Vision Fund 2 with investments from companies and sovereign wealth funds including Apple, Foxconn, Microsoft, National Investment Corporation of National Bank of Kazakhstan, and major participants from Taiwan. Not all of the stated contributors are still planning on investing in Vision Fund 2, according to a person familiar with the matter, but SoftBank is still focused on raising about $100 billion or more for the fund, the person said.

“Fundraising is progressing as expected as investors assess potential commitments to Vision Fund 2,” said a Vision Fund spokesperson, who declined to comment on the Honor acquisition specifically.

Other investors in Vision Fund 2 are likely to include Abu Dhabi state fund Mubadala and Saudi Arabia’s Public Investment Fund, though neither is expected to contribute as much as they did to SoftBank’s first Vision Fund, the person said. Mubadala committed $15 billion and Saudi’s PIF committed $45 billion to Vision Fund 1. SoftBank is expected to be the largest equity investor in Vision Fund 2, just as it was in Vision Fund 1, the person said.

“Vision Fund 2 is going to be launched as scheduled,” Son said last month.

SoftBank’s first Vision Fund, which raised $100 billion, is no longer committing capital to new deals and plans to use its remaining funds for follow-on investments, people familiar with the matter told CNBC in October.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: alex sherman christina farr, alex sherman, christina farr
Keywords: news, cnbc, companies, honor, invest, fund, million, held, person, billion, sources, softbank, vision, investments, investment, talks, say, potential, startup, including


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Facebook could someday pay an Apple-like dividend, says co-founder of social network forerunner

Facebook will probably institute a dividend in the future, Divya Narendra, who co-founded Harvard Connection, a predecessor to Facebook, told CNBC on Thursday. is to sit on cash until you reach a certain maturity level where you do an Apple-like dividend,” said Narendra, who owns shares of Facebook. In 2002 as a student at Harvard, Narendra co-founded Harvard Connection, which became ConnectU, alongside Cameron and Tyler Winklevoss. He added, however, that he does not believe Facebook will commi


Facebook will probably institute a dividend in the future, Divya Narendra, who co-founded Harvard Connection, a predecessor to Facebook, told CNBC on Thursday.
is to sit on cash until you reach a certain maturity level where you do an Apple-like dividend,” said Narendra, who owns shares of Facebook.
In 2002 as a student at Harvard, Narendra co-founded Harvard Connection, which became ConnectU, alongside Cameron and Tyler Winklevoss.
He added, however, that he does not believe Facebook will commi
Facebook could someday pay an Apple-like dividend, says co-founder of social network forerunner Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, facebook, forerunner, cofounder, significant, applelike, narendra, zuckerberg, billion, wrote, investment, think, network, pay, someday, harvard, social, dividend


Facebook could someday pay an Apple-like dividend, says co-founder of social network forerunner

Facebook will probably institute a dividend in the future, Divya Narendra, who co-founded Harvard Connection, a predecessor to Facebook, told CNBC on Thursday.

Narendra’s comments on “Halftime Report” came in response to a question about what the social-media giant will do with its $52 billion of cash on hand. The size of the stock pile has fueled all manner of speculation, including that founder and CEO Mark Zuckerberg could take it private.

“I would expect that at some point in the future you will probably see a Facebook dividend,” said Narendra, who is now CEO and co-founder of SumZero, a platform where investment professionals can share research and investment ideas.

Narendra noted that Facebook does have a “pretty significant” stock repurchase program, which began in the first quarter of 2017 as a way to reward investors. It increased the program by $9 billion in 2018, in addition to the $15 billion that was already authorized.

“I think kind of the tech M.O. is to sit on cash until you reach a certain maturity level where you do an Apple-like dividend,” said Narendra, who owns shares of Facebook.

In 2002 as a student at Harvard, Narendra co-founded Harvard Connection, which became ConnectU, alongside Cameron and Tyler Winklevoss.

The trio approached classmate Mark Zuckerberg about joining the team the next year. Later, Narendra and the Winklevoss twins filed a lawsuit against Zuckerberg, accusing him of intellectual property infringement after he founded Facebook. Zuckerberg would settle the case for $65 million.

Shares of Facebook are up more than 50% in 2019, trading around $199 on Thursday, despite growing scrutiny of the company around antitrust and data privacy concerns. Its approach to political advertising has also drawn criticism in recent months.

For those reasons, some wonder whether Facebook’s acquisition strategy will be as aggressive as it had been, when it purchased Instagram and WhatsApp.

While Facebook is aware of that, reportedly ditching at least one deal over antitrust fears, Narendra said he believes the company is not done in the acquisition space.

“I do think that once in a while they’ll come across a significant investment opportunity where they’ll be able to deploy, not all of it, but a significant portion of that capital, especially after some of this regulatory scrutiny tapers down,” he said.

Facebook also will continue to invest in research and development, Narendra said.

He added, however, that he does not believe Facebook will commit to a “giant special dividend” any time soon. A special dividend is a non-recurring payment that happens outside of the traditional payment schedule.

Conversation about when, or if, Facebook will issue a dividend is not new. Generally, technology companies are slower to pay dividends as the competitive nature of the industry leads companies to reinvest profits in pursuit of further growth.

The fact Facebook has been public for nine years without a dividend is not unusual, The Motley Fool’s Dan Caplinger wrote earlier this year.

But, Caplinger wrote, Facebook would be one of the largest dividend payers in the corporate world if committed $9 billion in an annual dividend.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, facebook, forerunner, cofounder, significant, applelike, narendra, zuckerberg, billion, wrote, investment, think, network, pay, someday, harvard, social, dividend


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These are investment opportunities in Asia that Credit Suisse and UBS are bullish on in 2020

Qilai Shen | Bloomberg | Getty ImagesIn 2020, stocks won’t see the returns investors enjoyed this year, according to Credit Suisse and UBS Asset Management. Chinese property sectorCredit Suisse predicts that revenue and earnings in the Chinese property market will leap by 21% and 18%, respectively next year. In a research note on Monday, Japanese investment bank Nomura also pointed to positive signals from authorities on the Chinese property market that “could indicate loosening of property sect


Qilai Shen | Bloomberg | Getty ImagesIn 2020, stocks won’t see the returns investors enjoyed this year, according to Credit Suisse and UBS Asset Management.
Chinese property sectorCredit Suisse predicts that revenue and earnings in the Chinese property market will leap by 21% and 18%, respectively next year.
In a research note on Monday, Japanese investment bank Nomura also pointed to positive signals from authorities on the Chinese property market that “could indicate loosening of property sect
These are investment opportunities in Asia that Credit Suisse and UBS are bullish on in 2020 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: weizhen tan
Keywords: news, cnbc, companies, credit, property, asia, yields, 2020, investment, bullish, ubs, suisse, opportunities, chinese, bonds, market, bond


These are investment opportunities in Asia that Credit Suisse and UBS are bullish on in 2020

A pedestrian crosses a road in front of residential buildings in Beijing, China. Qilai Shen | Bloomberg | Getty Images

In 2020, stocks won’t see the returns investors enjoyed this year, according to Credit Suisse and UBS Asset Management. But markets should still be resilient, Credit Suisse said. The investment bank’s chief investment officer, Ray Farris, told CNBC on Monday that Credit Suisse projects average returns of 6% for U.S. and Asian equities, barring any developments that could affect the forecast — such as U.S.-China trade. In a briefing on Monday, UBS predicted a shift to a “more active” fiscal policy — from the current predominantly monetary stance — from next year, which could potentially drive up yields. Here are some sectors or investment picks they singled out for 2020.

Chinese property sector

Credit Suisse predicts that revenue and earnings in the Chinese property market will leap by 21% and 18%, respectively next year. The bank said in a Monday briefing that Chinese authorities are likely to be more supportive of investment growth in the real estate sector next year. “Valuations are at attractive levels. If policies are relaxed, valuations could mean-revert to their historical average, offering 20% upside,” it said, adding that property stocks also pay high dividend yields of 6.3%. In a research note on Monday, Japanese investment bank Nomura also pointed to positive signals from authorities on the Chinese property market that “could indicate loosening of property sector liquidity.” Sales of Chinese developers were already up in November by 24% year-on-year, according to a Nomura analysis of 17 companies. Nomura’s top stock picks with a “buy” rating include China Resources Land, Sunac and KWG — all listed in Hong Kong.

China’s onshore bonds

China will “stand out” as a key bond market in 2020, says UBS. Chinese onshore bonds will benefit from central bank rate cuts in the first half of 2020, it predicted. Bond prices move opposite yields, which means as yields plummet, prices will rise. Already, foreign money into the Chinese onshore bond market is on the rise. The amount of such bonds held by foreign investors have grown at an annual compounded rate of 30% per annum in the past five years, UBS noted. The flagship bond benchmark Bloomberg Barclays Global Aggregate Index started adding Chinese bonds in April this year — with the inclusion expected to take place over 20 months. Analysts estimated that the full inclusion will attract around $150 billion of foreign inflows into China’s roughly $13 trillion bond market — the third-largest in the world after the U.S. and Japan. J.P. Morgan has also said it will add Chinese government bonds to its Government Bond Index Emerging Markets from February 2020, which are also expected to attract billions to China’s markets.

E-commerce, real estate


Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: weizhen tan
Keywords: news, cnbc, companies, credit, property, asia, yields, 2020, investment, bullish, ubs, suisse, opportunities, chinese, bonds, market, bond


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In 2019, almost every investment worked

The S&P 500 is up more than 25% and counting. Treasurys, which tend to fall when risk assets rally, also gained in 2019. For stock investors specifically, it was hard to guess wrong. A look at the S&P 500 companies’ internal performance shows only 64 names, or 12%, are down this year. All 11 S&P 500 sectors are ending the year with positive returns.


The S&P 500 is up more than 25% and counting.
Treasurys, which tend to fall when risk assets rally, also gained in 2019.
For stock investors specifically, it was hard to guess wrong.
A look at the S&P 500 companies’ internal performance shows only 64 names, or 12%, are down this year.
All 11 S&P 500 sectors are ending the year with positive returns.
In 2019, almost every investment worked Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: yun li
Keywords: news, cnbc, companies, sectors, investment, 500, rates, investors, 2019, stock, sheet, markets, corporate, worked, returns


In 2019, almost every investment worked

Traders work on the floor of the New York Stock Exchange Lucas Jackson | Reuters

This year is shaping up to be one of the best ever for investors of all stripes with nearly every single asset class on track to finish 2019 in the green. From stocks to government debt to corporate bonds to commodities, no matter where you went, you reaped a profit this year. The S&P 500 is up more than 25% and counting. Treasurys, which tend to fall when risk assets rally, also gained in 2019. Oil, gold and corporate bonds all scored double-digit returns. For stock investors specifically, it was hard to guess wrong. A look at the S&P 500 companies’ internal performance shows only 64 names, or 12%, are down this year. All 11 S&P 500 sectors are ending the year with positive returns. Tech is the biggest winner this year with a 41.5% gain. Communication services, industrials, financials, real estate, consumer sectors all skyrocketed more than 20% this year.

‘Buy everything’

It might seem a little too good to be true as the markets have been grappling with a handful of risks that are almost unprecedented — a costly trade war with China and a bid to impeach the president. But thanks to the Federal Reserve for coming to the rescue. The central bank pulled a 180, cutting rates three straight times this year. The Fed has also been pumping billions into the financial system after the mid-September tumult in very short-term lending markets. “We’ve gotten three rate cuts as we know and a dramatic rise in the size of their balance sheet in a very short period of time,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. The markets “see an expansion of the Fed’s balance sheet to the extent it’s grown and the only response is, it’s QE. Buy everything.” The stimulus has lowered interest rates, pushing all assets up at the same time.

Will the markets hold up?


Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: yun li
Keywords: news, cnbc, companies, sectors, investment, 500, rates, investors, 2019, stock, sheet, markets, corporate, worked, returns


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Here’s a full list of every book Warren Buffett has recommended this decade—in his annual letters

Since we bought MiTek in 2001, it has made 33 ‘tuck-in’ acquisitions, almost all successful,” Buffett wrote in 2011. Loomis’ offers readers insights into Buffett’s investment strategies, along with his wisdom on management, philanthropy, public policy and even parenting. ″[‘The Outsiders’] is an outstanding book about CEOs who excelled at capital allocation,” Buffett wrote in 2012. It “includes an index that I find particularly useful, specifying page numbers for individuals, companies and subje


Since we bought MiTek in 2001, it has made 33 ‘tuck-in’ acquisitions, almost all successful,” Buffett wrote in 2011.
Loomis’ offers readers insights into Buffett’s investment strategies, along with his wisdom on management, philanthropy, public policy and even parenting.
″[‘The Outsiders’] is an outstanding book about CEOs who excelled at capital allocation,” Buffett wrote in 2012.
It “includes an index that I find particularly useful, specifying page numbers for individuals, companies and subje
Here’s a full list of every book Warren Buffett has recommended this decade—in his annual letters Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: tom popomaronis
Keywords: news, cnbc, companies, warren, investors, buffett, wrote, investment, investing, book, recommended, letter, heres, decadein, list, annual, wisdom, buffetts, letters


Here's a full list of every book Warren Buffett has recommended this decade—in his annual letters

1. ‘Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger’

Edited by Peter D. Kaufman This book offers a treasure trove of financial wisdom in the form of speeches and essays written by Charlie Munger, Buffett’s longtime business partner and vice president of Berkshire. If you enjoy Buffett’s unique sense of humor, wit and insights, you’ll certainly get a kick out of “Poor Charlie Almanack.” One favorite among many Munger fans is “The Psychology of Human Misjudgment,” an essay in which he writes about the cognitive traps that investors often fall into. “Just buy a copy and carry it around; it will make you look urbane and erudite,” Buffett joked in his 2010 shareholder letter.

2. ‘The Intelligent Investor’

By Benjamin Graham Buffett has praised “The Intelligent Investor” on several occasions. “In my early days, I, too, rejoiced when the market rose. Then I read chapter eight of Ben Graham’s ‘The Intelligent Investor,’ the chapter dealing with how investors should view fluctuations in stock prices,” he wrote in his 2011 letter. “Immediately, the scales fell from my eyes, and low prices became my friend. Picking up that book was one of the luckiest moments in my life.” The billionaire investor mentioned it again in 2013: “Of all the investments I ever made, buying Ben’s book was the best (except for my purchase of two marriage licenses). In contrast, Ben’s ideas were explained logically in elegant, easy-to-understand prose (without Greek letters or complicated formulas).”

3. ‘Mitek: A Global Success Story, 1981-2011’

By Jim Healy You might not have much luck finding this one on Amazon, but it can be purchased online from The Bookworm, an Omaha-based independent bookstore (and Buffett’s go-to for must-reads). MiTek Industries Inc., a supplier of engineered products for construction, is known as one of Berkshire’s very successful subsidiaries. This book tells the story of how MiTek, which started out as a small Midwestern firm in 1955, went from being on the verge of financial collapse to becoming a dominant supplier in its industry. “You’ll learn how my interest in the company was originally piqued by my receiving in the mail a hunk of ugly metal whose purpose I couldn’t fathom. Since we bought MiTek in 2001, it has made 33 ‘tuck-in’ acquisitions, almost all successful,” Buffett wrote in 2011.

4. ‘A Few Lessons for Investors and Managers From Warren Buffett’

Edited by Peter Bevelin This is a short (roughly 81 pages) and easy must-read for managers and investors looking to soak up timeless wisdom from the Oracle of Omaha. In his own words, Buffett explains how to think about important topics such as business valuation, traits of good and bad businesses, acquisitions and their traps, how to reduce risk, corporate governance and the importance of trust. It essentially “sums up what Charlie and I have been saying over the years in annual reports and at annual meetings,” he wrote 2011.

5. ‘Tap Dancing to Work: Warren Buffett on Practically Everything’

By Carol J. Loomis In his 2012 letter, Buffett gave a shout-out to Carol Loomis, a former editor-at-large at Fortune magazine and author of “Tap Dancing to Work.” She “has been invaluable to me in editing this letter since 1977,” he wrote. Loomis’ offers readers insights into Buffett’s investment strategies, along with his wisdom on management, philanthropy, public policy and even parenting. (In case you’re curious: the billionaire plans to leave his kids “enough money so they would feel they could do anything, but not so much that they could do nothing.”). Also included in one of the chapters is a 1996 essay from Microsoft co-founder Bill Gates,’ describing his early impressions of Buffett as they struck up their close friendship.

6. ‘The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success’

By William N. Thorndike In “The Outsiders,” William N. Thorndike, a graduate of Harvard College and the Stanford Graduate School of Business, details the extraordinary success of eight successful CEOs who took a radically different approach to corporate management. You might not recognize all their names, but you’ve probably heard of their companies: General Cinema, Ralston Purina, Berkshire Hathaway, General Dynamics and Capital Cities Broadcasting, to name just a few. ″[‘The Outsiders’] is an outstanding book about CEOs who excelled at capital allocation,” Buffett wrote in 2012. “It has an insightful chapter on our director, Tom Murphy, overall the best business manager I’ve ever met.”

7. ‘The Clash of the Cultures: Investment vs. Speculation’

By John C. Bogle This is another book from Buffett’s 2012 letter. In “Clash of the Cultures,” John C. Bogle, founder of The Vanguard Group (who has been credited as the creator of the first index fund), writes about the changing culture in the mutual fund industry, how speculation has invaded our national retirement system and the need for a federal standard of fiduciary duty. For investors, the most valuable takeaway is his list of 10 simple rules of “Common Senses Investing.” According to Bogle, it “may not be the best strategy ever devised. But the number of strategies that are worse is infinite.” One of my favorite lines from the book: “Where returns are concerned, time is your friend. But where costs are concerned, time is your enemy.” (Why? Because it can pretty much apply to all aspects of your life, not just investing.)

8. ‘Investing Between the Lines: How to Make Smarter Decisions by Decoding CEO Communications’

By L.J. Rittenhouse Buffett also recommended this title in his 2012 shareholder letter. Drawing from more than 10 years’ worth of research, L.J. Rittenhouse, a trust and valuation expert, outlines a system to measure organizational trustworthiness as a predictor of investment potential. “So many books have been written on how to analyze a company, but so few have been written on how to analyze the person in control of a company,” according to one Amazon reviewer, who gave Investing Between the Lines a five-star rating. “This book solves that problem.”

9. ‘Berkshire Hathaway Letters to Shareholders’

Edited by Max Olson This is one of Max Olson’s many compilations of Berkshire Hathaway letters, going back to 1965. It “includes an index that I find particularly useful, specifying page numbers for individuals, companies and subject matter,” Buffett wrote in 2013. It might be rare for you to want to read several decades’ worth of annual letters, but I imagine it’d be nice just keep on your bookshelf.

10. ’40 Chances: Finding Hope in a Hungry World’

By Howard G. Buffett In 2006, when Buffett announced he would begin to give away a bulk of his fortune to philanthropy, he challenged his son, Howard G. Buffett, to do something great in the world. So Howard decided to give himself 40 years to put more than $3 billion to work on this challenge. This book, which Buffett said readers “will enjoy,” captures that journey. Some standout principles from “40 Chances”: Roots: “Every goal without a plan is just a wish. Start planning your goals at the root level.”

“Every goal without a plan is just a wish. Start planning your goals at the root level.” Bravery: “Growth comes from taking calculated, smart risks — always with your plan in mind.”

“Growth comes from taking calculated, smart risks — always with your plan in mind.” Lessons: “Many of the things worth doing in life are accomplished because we make mistakes; they’re accomplished because we learn from those mistakes and take those lessons with us into the next chance.”

11. ‘The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns’

By John C. Bogle This second book from Bogle that Buffett recommended is perhaps the most important one one this list for entry-level investors. “There are a few investment managers, of course, who are very good — though in the short run, it’s difficult to determine whether a great record is due to luck or talent,” Buffett wrote in 2014. He continued: “Rather than listening to their siren songs, investors — large and small — should instead read ‘The Little Book of Common Sense Investing.'”

12. ‘Where Are the Customers’ Yachts? Or a Good Hard Look at Wall Street’

By Fred Schwed Buffett recommended this “wonderful” book in his 2014 letter, but it wasn’t the first time he gave it significant praise. “This is the funniest book ever written about investing,” he proclaimed back in 2006. “It lightly delivers many truly important messages on the subject.” In “Where Are the Customer Yachts?,” Fred Schwed exposes the hypocrisy of Wall Street through the story of a visitor to New York who admires the yachts of bankers and brokers. He then wonders where all the customers’ yachts have gone. (Hint: They didn’t have any because … well, they couldn’t afford them — despite the fact that they all followed the advice of their bankers and brokers.) Michael Lewis, best-selling author of “Liar’s Poker,” also approves of the book: “Once I picked it up, I did not put it down until I finished.”

13. ‘Limping On Water’

By Phil Beuth and K.C. Schulberg In “Limping on Water,” Phil Beuth chronicles his broadcasting career at Capital Cities/ABC-TV, which operates in several areas of the media business. The book “tells you a lot about its leaders, Tom Murphy and Dan Burke. These two were the best managerial duo — both in what they accomplished and how they did it — that Charlie and I ever witnessed,” Buffett wrote in 2015. “Much of what you become in life depends on whom you choose to admire and copy.”

14. ‘Warren Buffett’s Ground Rules: Words of Wisdom from the Partnership Letters of the World’s Greatest Investor’

By Jeremy C. Miller Pulling from letters Buffett wrote to his partners between 1956 and 1970, veteran financial advisor Jeremy Miller dissects the billionaire’s “ground rules” for investing. “Mr. Miller has done a superb job of researching and dissecting the operation of Buffett Partnership Ltd. and of explaining how Berkshire’s culture has evolved from its BPL origin,” Buffett wrote in 2015. “If you are fascinated by investment theory and practice, you will enjoy this book.”

15. ‘Shoe Dog’


Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: tom popomaronis
Keywords: news, cnbc, companies, warren, investors, buffett, wrote, investment, investing, book, recommended, letter, heres, decadein, list, annual, wisdom, buffetts, letters


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A simple investment strategy is offering its best return in 26 years

Investors who took a simple portfolio split between bonds and equities in 2019 have enjoyed the best returns in more than a quarter of a century, according to Pictet Asset Management. Luca Paolini, chief strategist at Pictet Asset Management, told CNBC’s Squawkbox Europe Friday that a simple 50/50 equity-bond portfolio has done remarkably well in 2019. As late as January, Goldman Sachs was predicting that the Fed would raise interest rates four times this year. Instead, and to the delight of the


Investors who took a simple portfolio split between bonds and equities in 2019 have enjoyed the best returns in more than a quarter of a century, according to Pictet Asset Management.
Luca Paolini, chief strategist at Pictet Asset Management, told CNBC’s Squawkbox Europe Friday that a simple 50/50 equity-bond portfolio has done remarkably well in 2019.
As late as January, Goldman Sachs was predicting that the Fed would raise interest rates four times this year.
Instead, and to the delight of the
A simple investment strategy is offering its best return in 26 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: david reid
Keywords: news, cnbc, companies, split, investment, trade, simple, returns, rates, times, bonds, trick, war, best, fed, strategy, offering, return


A simple investment strategy is offering its best return in 26 years

Investors who took a simple portfolio split between bonds and equities in 2019 have enjoyed the best returns in more than a quarter of a century, according to Pictet Asset Management.

Market sentiment at the beginning of this year was shaky, with several analysts betting that rising U.S. interest rates and a withdrawal of central bank stimulus would negatively affect assets.

But the S&P 500 stock index in 2019 has offered gains exceeding 25% so far this year, while at the same time bonds have offered solid returns as trade war fears saw investors seeking safety.

Luca Paolini, chief strategist at Pictet Asset Management, told CNBC’s Squawkbox Europe Friday that a simple 50/50 equity-bond portfolio has done remarkably well in 2019.

“I think what is surprising though is that if you are a global investor and you put 50% in equities and 50% bonds this year, you made 16% — it’s the best year since ’93,” he said.

Paolini said a year ago all the talk was that a global recession, low business confidence and trade war negativity would press up against a Federal Reserve that needed to take the heat out of a peaking U.S. economy.

As late as January, Goldman Sachs was predicting that the Fed would raise interest rates four times this year. Instead, and to the delight of the White House, the central bank actually cut rates three times, offering a big boost to markets.

“Nobody expected the Fed to cut three times. Everybody expected the Fed to hike rates. It as a massive change in the monetary policy,” said Paolini, who warned that the Fed is going to be unable to repeat the trick in 2020.

“We are left with not much upside, apart from a potential recovery in growth,” he warned.

Paolini said that 2019’s 50-50 equity-bond strategy is a trick unlikely to be repeated soon, saying Pictet’s latest analysis shows a negative return for the split over a five-year outlook.


Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: david reid
Keywords: news, cnbc, companies, split, investment, trade, simple, returns, rates, times, bonds, trick, war, best, fed, strategy, offering, return


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Economy growing better than economists had expected just a few weeks ago

Tom Brenner | ReutersEconomists are boosting their fourth quarter growth forecasts after the trade deficit narrowed and business investment showed a surprise pickup in October. The CNBC/Moody’s Analytic’s rapid update of economists forecasts showed a median increase of 0.1 percentage points to 1.8%. Economists are watching to see if October’s business investment rebound is signaling that the slowdown in spending and manufacturing could be coming to an end. Durable goods beat expectations, with c


Tom Brenner | ReutersEconomists are boosting their fourth quarter growth forecasts after the trade deficit narrowed and business investment showed a surprise pickup in October.
The CNBC/Moody’s Analytic’s rapid update of economists forecasts showed a median increase of 0.1 percentage points to 1.8%.
Economists are watching to see if October’s business investment rebound is signaling that the slowdown in spending and manufacturing could be coming to an end.
Durable goods beat expectations, with c
Economy growing better than economists had expected just a few weeks ago Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-27  Authors: patti domm
Keywords: news, cnbc, companies, trade, weeks, growing, economy, expected, showed, investment, ago, business, economists, goods, better, growth, spending, capital, quarter


Economy growing better than economists had expected just a few weeks ago

Flextronics International Apple factory employees work on Apple Mac Pro computer assembly in Austin, TX, November 20, 2019. Tom Brenner | Reuters

Economists are boosting their fourth quarter growth forecasts after the trade deficit narrowed and business investment showed a surprise pickup in October. The CNBC/Moody’s Analytic’s rapid update of economists forecasts showed a median increase of 0.1 percentage points to 1.8%. The government also reported a bigger-than-expected revision to growth in the nation’s third quarter gross domestic product to 2.1% from a first reading of 1.9%. Economists are watching to see if October’s business investment rebound is signaling that the slowdown in spending and manufacturing could be coming to an end.

J.P. Morgan economists Wednesday raised their tracking forecast for fourth quarter GDP to 2.1% from 1.25%, based on data releases this week. The Atlanta Fed’s GDP Now forecaster now sees tracking fourth quarter GDP at 1.7%, from an anemic 0.4% just eight days ago. “The largest contribution to the revision came from yesterday’s October international trade report, which showed a surprisingly large narrowing of the trade deficit,” the J.P. Morgan economists wrote. “But there was also good news in today’s October durable goods report, which indicated some improvement in business capital spending, a category that has been weak for much of the year.” The trade gap narrowed to $66.5 billion, down 5.7%, as both imports and exports declined in October. Durable goods beat expectations, with core capital goods orders up 1.2% in October, while some economists expected a decline. Core capital goods shipments rose by 0.8%. “Although much of October’s improvement was in volatile components, incoming estimates of core capital goods orders place business investment on a more solid footing in Q4 than we had thought,” noted Barclays economists. However, consumer spending which has been the main pillar of the economy seems to be moderating after October real consumption increased by just 0.1%, the smallest gain since February. “Consumption growth has moderated in the last three months from an extremely strong pace in March through July. Still, solid nominal consumption together with momentum from growth in wages and salaries suggests spending can remain the main driver of growth through 2020,” wrote Citigroup economists.


Company: cnbc, Activity: cnbc, Date: 2019-11-27  Authors: patti domm
Keywords: news, cnbc, companies, trade, weeks, growing, economy, expected, showed, investment, ago, business, economists, goods, better, growth, spending, capital, quarter


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