Among the best business models in the world is the money management one. While fees have come down substantially in recent decades, you can certainly still find examples of financial advisors charging north of 1% on assets under management while another 1% is charged through commissions, 10b-1 fees, and mutual fund costs.
Sum those up and 2% of invested capital is lost each year to these hefty fees.
While Buffett’s massive cash pile of nearly $300 billion on the books at Berkshire Hathaway has been making waves, what few are paying attention to is how much he’s actually earning on that money every day, week or month.
It turns out Buffett is raking in just shy of a cool billion dollars each and every month just from interest earnings on his war chest.
» Read more about: 1 Billion Reasons To Buy Buffett’s #1 Stock »
When insurance technology firm Lemonade first debuted on the markets at an official price of $29 before soaring to $66 per share, it was caught up in a frenzy of bullish speculation that subsequently led the stock to rally to $183 per share.
But the excitement wasn’t to last and now the share price sits about 85% lower.
» Read more about: Is Lemonade Stock a Sweet Deal Down 87% »
If Goldman Sachs is right, the market moves late last week were sufficient to alleviate selling pressure, at least for now. They identified a key line in the sand around 5250 where selling pressure would sharply drop over the coming week from the sell orders that had been slated.
It’s also been a tailwind to see big institutions,
Reddit, often referred to as “the front page of the internet,” has a claim to fame that over 400 million monthly active users engage with it across 130,000 active communities.
There is no two ways about it, Reddit has carved out a niche in the social media landscape that is distinct from giants like Facebook and Twitter.
» Read more about: 1 Social Media Stock Savvy Investors Are Watching »
With over 33 million subscribers as of 2024, Sirius XM seems like a company that has scaled and locked in a wide moat, but is there more to this Buffett stock than meets the eye.
After all, Buffett may be famous for making billions but he’s not immune to picking poor stocks from time to time.
If the idea of brand could be connected to just one company, Coca Cola might well be it. One of the primary drivers behind Coca-Cola’s all-time high is its unparalleled brand loyalty. Coca-Cola has built a global brand that resonates with consumers across generations and that strong brand image has translated into steady sales and revenue growth.
» Read more about: Why Is This Buffett Stock At All-Time Highs? »
When it comes to investing, following the actions of top investors is a much smarter play than following their words. Take Warren Buffett, for example, who has a philosophy of betting on America long-term and a reputation for having a holding period of forever. You could be forgiven for becoming complacent about how long to hold a position if you listened to that advice.
» Read more about: Buffett Has Sold For 7 Quarters In a Row, What Happens Next? »
Lots of finger-pointing has taken place. Was it Buffett selling Apple? The jobs report? The unwind of the Japanese carry trade, which is essentially nothing more than borrowing at low rates in Japan and investing at higher yields in the US. Or was it the re-pricing from inflation concerns to recession worries?
Regardless,
The wild statistics are flying now. At the depths of the price action on Friday, the bearish tape was as bad as any seen since the COVID lows.
2% corrections in the Dow Jones Industrial Average, NASDAQ and S&P 500 all signaled broad-based selling and the obliteration of just about every sector.
Nothing was left unscathed.
