Yes, the Stock Market is Bubbling
Individual stocks are far more frightening than the S&P. For example, Mr. Market paid $199.45 for Union Pacific (NYSE: UNP) shares on 28 September 2020.
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Market Mad House
In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
Berkshire Hathaway (NYSE: BRK.A)
Will Coronavirus destroy Berkshire Hathaway?
Under Buffett’s criteria, Berkshire is not a value investment because of its slow growth rate. Fortunately, Berkshire Hathaway has the resources to fix that flaw fast.
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Will Coronavirus Kill Delta Airlines?
Given this data, I have to wonder if Berkshire Hathaway will take advantage of the pandemic to buy more Delta, or all of Delta.
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Is Warren Buffett right about Wells Fargo?
Consequently, Wells Fargo has serious management and ethical problems. Hence, Buffett could be smart to dump this stock.
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Is Kraft Heinz still a Value Investment?
Thus, Kraft Heinz faces the nightmare of a distribution system rigged against it. Moreover, a large percentage of shoppers grab the store brand (private label) because it is usually the cheapest and just as good as the national brand.
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Warren Buffett’s House of Cash: Berkshire Hathaway
“At Berkshire, the whole is greater – considerably greater – than the sum of the parts.” – Warren E. Buffett Chairman of the Board, Berkshire Hathaway Inc. Taken from the 2018 shareholder letter.
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Will Auto Insurance Companies make more money in California?
Therefore, California could limit the amount of float, Berkshire Hathaway (NYSE: BRK.A) brings in by changing the way auto insurance rates calculated. For instance, women could pay less and men more through gender-neutral auto insurance.
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Climate Change is destroying Everybody’s Property Value – Even Warren Buffett’s
Companies are likely to pull out of reinsurance because of Climate Change. Under those circumstances, publicly-traded insurers are likely to go private or sell out to hedge funds.
Property owners will face rising premiums because insurance companies operating costs are increasing. Reinsurance firms like Gen Re and Aspen underwrite property and other insurance properties. Consequently, insurers will pass higher reinsurance costs onto policyholders.
In summary, sell the beachfront and forest properties now. Prices for such properties are likely to plummet as insurance costs rise.
Billionaires like Kimmel and Buffett are outliers in Climate Change losses. They can afford to take a loss on beach property, most homeowners cannot.
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Berkshire Hathaway Comes Roaring Back
My prediction is that Buffett will buy up lower priced stocks of cash-rich dividend paying companies. Since there are lots of those out there it is hard to predict what will catch his eye.
Berkshire will be confine major investments to private equity, which is booming right now. Likely, private equity targets for Berkshire Hathaway include Lyft, Instacart, and Airbnb.
Lyft and Airbnb which both have the potential to generate a lot of cash will attract Uncle Warren’s attention. Instacart, which has escaped attention by operating in an unsexy; but huge, market groceries might catch Buffett’s eye.
Is Kansas City Southern on Track to Stock Market Catastrophe?
Those who doubt that American stocks might be in a potentially catastrophic bubble need to take a look at the Kansas City Southern (NYSE: KSU). The railroad makes little money, yet its stock is dangerously overpriced.
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