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Buffett’s big bank bet explained using a simple measure of stock market value

“Everyone is concerned about an overvalued stock market” writes Josh Elelson for cnbc.com. It would seem that there is good reason to be reminded of Buffett’s words about interest rates.Some of today’s tech giants would have been good long-term bets regardless, but about many other stocks, Buffett was right.A simple explanation that Warren Buffett once gave for knowing when the market is overvalued doesn’t present a full-throated endorsement of market bargains being plentiful right now.You don’t reach a full decade of a bull run without asking the reasonable question about…

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With gobs of cash and few places to put it, Buffett spends nearly $1 billion on share buybacks

“Despite prices that have thwarted any major deals, Buffett has found stocks he likes” reports latimes.com. He purchased $12.6 billion of equity securities on a net basis during the third quarter, the most in more than four years. A regulatory filing indicated Berkshire added billions to its stake in Bank of America in the third quarter, continuing a trend from the second quarter of adding to positions in financial stocks. Source: latimes.com Share This:

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Buffett’s Berkshire doubles profit, repurchases $900 million stock in third quarter

“Helping the company’s massive insurance operations were lower estimated liabilities from property and casualty insurance in prior years and lower taxes” writes Midwest Communications Inc for 95kqds.com. After relaxing a policy that had effectively prevented Buffett from buying back the company’s shares at current prices, Berkshire said it bought $928 million of its own shares in the third quarter. Source: 95kqds.com Share This:

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Warren Buffett on why interest rates matter so much for investing

“The most important item over time in valuation is obviously interest rates,” Buffett said last year” writes David A for cnbc.com. Real estate yields adapt quite quickly and fairly directly with interest rates,” he added.In a 2017 interview video clip found using CNBC’s Warren Buffett Archive, the investor explained why rates matter so much for investors.The discounting back is affected by whether you choose interests rates like those of Japan or interest rates like those we had in 1982,” he said in 2017.”If interest rates are destined to be at…

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Dimon and Buffett’s call to stop quarterly guidance by companies may already be having an impact

“Just months after Jamie Dimon and Warren Buffett issued a call for an end to quarterly earnings guidance, companies may be heeding the call” writes Dylan Martinez for cnbc.com. Thus far, 98 members of the S&P 500 have issued guidance, a decline from the average 112 and below the typical 107 for any given quarter, according to FactSet.With third-quarter earnings season less than three weeks away, fewer companies than normal are issuing pre-announcements than the norm. “Companies frequently hold back on technology spending, hiring, and research and development to meet…

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Warren Buffett on why bubbles happen: People see neighbors ‘dumber than they are’ getting rich

“Warren Buffett warns that another financial crisis is inevitable” writes David A for cnbc.com. Buffett was asked by CNBC’s Andrew Ross Sorkin if he is worried another crisis will happen again.ET/PT. This week marks the 10th anniversary of Lehman Brothers’ bankruptcy, which many investors regard as the seminal event of the financial crisis. Source: cnbc.com Share This:

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John Malone: ‘I told Warren Buffett not to invest in Bill Gates before Microsoft went public’

“The veteran cable entrepreneur John Malone has told how he wrongly warned Warren Buffett against what would have been a highly lucrative investment in Microsoft before it went public” writes Jon Holt for telegraph.co.uk. Warren says, ‘John, you know something about these technology companies, would you invest in that?’ “And I said, ‘s***, I don’t think so Warren.Mr Malone said at a private gathering in Dublin that he advised the legendary Berkshire Hathaway investor not to back Bill Gates at the Sun Valley conference for media moguls. Source: telegraph.co.uk Share This:

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