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.Read more
The potential of this are absolutely staggering. Just a few of the things Uncle Warren can do with all that cash include:
Buy America’s second largest grocer; Kroger (NYSE: KR), outright and still have $75.56 billion left in the bank. That’s amazing because Kroger reported revenues of $118.05 billion on 31 July 2017. Kroger had an enterprise value of $32.74 billion on November 10, 2017.
This exposes the Canadian Pacific’s greatest problem: its resources are simply too limited. The railway barely seems to make enough money to cover the cost of operations, let alone expand or modernize.Read more
Sports fans know that even the greatest winning streaks end sooner or later. The same can be said of stocks,Read more
Amazon (NASDAQ: AMZN) – The Everything Store is basically a logistics company and Hyperloop is a next generation logistics solution. Hyperloop One CEO Rob Lloyd has even described his company’s technology as “Amazon Prime on steroids.” Hyperloop would make Amazon more profitable by greatly reducing transportation costs while speeding up delivery times. A fulfillment center in Ohio would be able to provide same day delivery for merchandise ordered in Chicago or New York by utilizing Hyperloop.Read more
A leaderless Uber with its value destroyed will be a natural acquisition target.Read more
Between February 2016 and February 2017, Rite Aid’s revenues increased by $2.11 billion. The revenues rose from $30.74 billion in 2016 to $32.85 billion in 2017. There’s a lot of cash flowing through Rite Aid that might make somebody a lot of money if he can figure out how to capture it.Read more
There is one scary figure in Berkshire’s first quarter results and that’s cash and short-term investments. Why has Uncle Warren stashed $96.46 billion in the bank?
An obvious and frightening reason is that Buffett and crew think the U.S. economy is on shaky economic ground. They think something is about to give in the American economy, and when it does they plan to go shopping.Read more
General Motors has not made money off vehicle sales in Europe since the 20th Century; an analysis by Karain indicates, yet it waited until March 5 to sell its European Division. That division includes two storied brands Germany’s Opel and Britain’s Vauxhall, a European financing division, 11 manufacturing plants and an engineering center.Read more
Buffett likes Amazon and dislikes Walmart. Something that a lot of us stock geeks overlook is that Buffett has been bullish on Amazon for a long time. Uncle Warren has never been fond of the Everything Store’s stock, but he’s been investing in the company’s debt for a long time. He bought $98.3 million worth of its junk bonds back in 2003. Therefore Buffett was an Amazon bull long before it was fashionable. He’s also on record as a Jeff Bezos fan.Read more