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2022-03-06

A

US STOCKS-Wall Street Ends down as Ukraine Fears Eclipse Solid Jobs Data

2022-09-04

Thanks for sharing

3 Penny Stocks That Could 10X by 2023

2022-03-06

A

3 Top MLPs to Buy For High Yields

2022-02-20

Thx

CrowdStrike: Keep This Cybersecurity Leader On Your Watchlist

2022-07-02

Great info

Better Augmented Reality Stock: Apple vs. Nvidia

2022-03-17

Ok

Apple Stock: Look Up Above, Is $3 Trillion Next?

2022-02-27

Wow!!

Buffett Full Annual Letter：Apple is One of ‘Four Giants’ Driving the Conglomerate’s Value

2022-02-26

Good

Buffett Full Annual Letter：Apple is One of ‘Four Giants’ Driving the Conglomerate’s Value

2022-09-30

$Roche Holding Ltd(RHHBY)$bullish??

2022-02-28

Tq

Zoom’s Earnings Are Today. What to Expect.

2022-11-23

Thanksss

Apple And Taiwan Semiconductor: Let's Ask Buffett

2022-03-17

A

What Does Tesla's Delay of Bond Issue Mean for its Stock?

2022-02-20

Thank you

Better Video Game Stock: Roblox vs. Nintendo

2022-01-09

👍

3 COVID Stocks That Will Make Billions in 2022

2022-11-25

Okieee

Palantir: I Am Still Not Willing To Gamble

2022-02-23

Thx

S&P 500 Is in a Correction: History Favors Bulls, but Bears Have the Fed

2022-11-25

Thanksss

3 Big Reasons To Love Apple Stock

2022-11-25

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What should we do now?&nbsp;","listText":"Good or bad time? What should we do now?&nbsp;","text":"Good or bad time? What should we do now?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/235420278960344","isVote":1,"tweetType":1,"viewCount":194,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9957271395,"gmtCreate":1677340478318,"gmtModify":1677340482557,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Good time? Bad time?&nbsp;","listText":"Good time? Bad time?&nbsp;","text":"Good time? Bad time?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9957271395","isVote":1,"tweetType":1,"viewCount":250,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9957300731,"gmtCreate":1676964688324,"gmtModify":1676964690505,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Thxx","listText":"Thxx","text":"Thxx","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9957300731","repostId":"1186621911","repostType":2,"repost":{"id":"1186621911","pubTimestamp":1675302228,"share":"https://www.laohu8.com/m/news/1186621911?lang=&edition=full","pubTime":"2023-02-02 09:43","market":"sg","language":"en","title":"3 Singapore Stocks to Keep Your Eye on in February","url":"https://stock-news.laohu8.com/highlight/detail?id=1186621911","media":"The Smart Investor","summary":"These three companies reported interesting news that may act as catalysts for their business and sha","content":"<html><head></head><body><p>These three companies reported interesting news that may act as catalysts for their business and share prices.</p><p><img src=\"https://static.tigerbbs.com/6bf515f6847902b0dbfefe7db2e29f39\" tg-width=\"800\" tg-height=\"533\" width=\"100%\" height=\"auto\"/></p><p>It’s always useful to look out for catalysts that can propel a business to greater heights.</p><p>These catalysts can be in the form of a merger and acquisitions (M&amp;A), a spin-off, the clinching of a significant contract, or a potential buy-out offer that helps to unlock value.</p><p>Whatever the case, it pays to scrutinise the information to determine if the business will enjoy better business prospects.</p><p>These corporate moves could help you to decide if it’s worthwhile to park some money in these stocks.</p><p>Let’s take a closer look at three Singapore stocks that recently announced newsworthy corporate developments.</p><p>As February approaches, this trio of companies could make it into your buy watchlist if you decide to rejig your investment portfolio.</p><p><b>Olam Group Ltd (SGX: VC2)</b></p><p>Olam Group is a leading food and agri-business supplying food, ingredients, feed, and fibre to 20,900 customers worldwide.</p><p>The group has a presence in over 60 countries and has a sourcing network involving around five million farmers.</p><p>In early January, Olam Group announced its plan to list its agricultural division, Olam Agri, as early as the first half of 2023 (1H2023).</p><p>The primary listing will take place on <b>Singapore Exchange Limited</b> (SGX: S68), or SGX, with a potential concurrent listing in Saudi Arabia.</p><p>Olam Agri is present in more than 30 countries and employs 9,100+ employees.</p><p>For fiscal 2021 (FY2021), Olam Agri handled 41 million tonnes of agricultural products and owned more than 50 manufacturing and processing facilities.</p><p>As part of the IPO process, Olam Agri will be demerged from Olam Group via a dividend-in-specie (i.e. distribution of shares in the former) to eligible Olam Group shareholders.</p><p>Olam Agri’s operating profit has risen by 40.1% per annum from 2019 to 2021, an impressive performance against the backdrop of the pandemic, supply chain disruptions and geopolitical tensions.</p><p>Olam International’s original reorganisation plan split the group into three separate entities – Olam Group, Olam Agri, and Olam Food Ingredients (ofi).</p><p>On this note, Olam Group intends to list ofi on the premium segment of the London Stock Exchange with a concurrent listing on SGX.</p><p>No timeline has been provided for ofi’s eventual listing, but it will take place after Olam Agri’s successful IPO.</p><p><b>APAC Realty (SGX: CLN)</b></p><p>APAC Realty is a real estate services provider that holds the ERA regional master franchise rights for 17 countries in the Asia Pacific.</p><p>Through this network, the group has a significant presence in Asia with 20,600 advisors across 654 offices.</p><p>APAC Realty acquired an additional 22% stake in ERA Vietnam for S$4.9 million which comes with an earn-out incentive of S$10.5 million.</p><p>The aggregate consideration amounts to S$15.4 million but the incentive will only be paid to the sellers if they achieve the performance targets set out in the sale and purchase agreement.</p><p>For context, APAC Realty acquired an initial 38% stake in ERA Vietnam back in February 2020. Upon completion, the group’s stake in ERA Vietnam will rise to 60%, making it a subsidiary of the listed property services group.</p><p>ERA Vietnam was set up in 2017 and has grown its salesperson numbers from less than 100 at its founding to around 3,900 as of 31 December 2022.</p><p>The division has also grown its revenue significantly from around S$4.4 million in 2020 to around S$7 million in the first nine months of 2022.</p><p>Vietnam has ambitious plans to become a developed country by 2045.</p><p>The government has planned for 5,000 kilometres of expressways by 2030 along with a 1,545-kilometre high-speed railway by 2045.</p><p>These infrastructure developments should drive healthy real estate development, thus providing a bright future for ERA Vietnam.</p><p><b>Sabana Industrial REIT (SGX: M1GU)</b></p><p>Sabana Industrial REIT owns a portfolio of 18 properties in Singapore amounting to S$900 million as of 31 December 2022.</p><p>In mid-January, Volare Group AG (the “offeror”) made a voluntary conditional partial offer for 10% of the units of Sabana Industrial REIT at an offer price of S$0.465 per unit.</p><p>The offeror currently owns 5.4% of the REIT and is one of Switzerland’s leading suppliers of fossil fuels.</p><p>Volare Group AG also provides vehicle care, wood production, and construction services and owns investments in real estate and property companies.</p><p>This partial offer was made as the offeror wishes to diversify its business away from fossil fuels and believes there is inherent long-term value in Sabana Industrial REIT’s units.</p><p>The REIT had just announced its FY2022 earnings with gross revenue rising by 15.9% year on year to S$94.9 million.</p><p>Net property income inched up 2.6% year on year to S$53.3 million but distribution per unit remained unchanged at S$0.0305.</p><p>Units of the REIT offered a trailing distribution yield of 6.9%.</p></body></html>","source":"lsy1602567310727","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Singapore Stocks to Keep Your Eye on in February\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-02-02 09:43 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/3-singapore-stocks-to-keep-your-eye-on-in-february/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>These three companies reported interesting news that may act as catalysts for their business and share prices.It’s always useful to look out for catalysts that can propel a business to greater heights...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/3-singapore-stocks-to-keep-your-eye-on-in-february/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"VC2.SI":"Olam Group","CLN.SI":"APAC 产业","M1GU.SI":"胜宝工业信托"},"source_url":"https://thesmartinvestor.com.sg/3-singapore-stocks-to-keep-your-eye-on-in-february/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1186621911","content_text":"These three companies reported interesting news that may act as catalysts for their business and share prices.It’s always useful to look out for catalysts that can propel a business to greater heights.These catalysts can be in the form of a merger and acquisitions (M&A), a spin-off, the clinching of a significant contract, or a potential buy-out offer that helps to unlock value.Whatever the case, it pays to scrutinise the information to determine if the business will enjoy better business prospects.These corporate moves could help you to decide if it’s worthwhile to park some money in these stocks.Let’s take a closer look at three Singapore stocks that recently announced newsworthy corporate developments.As February approaches, this trio of companies could make it into your buy watchlist if you decide to rejig your investment portfolio.Olam Group Ltd (SGX: VC2)Olam Group is a leading food and agri-business supplying food, ingredients, feed, and fibre to 20,900 customers worldwide.The group has a presence in over 60 countries and has a sourcing network involving around five million farmers.In early January, Olam Group announced its plan to list its agricultural division, Olam Agri, as early as the first half of 2023 (1H2023).The primary listing will take place on Singapore Exchange Limited (SGX: S68), or SGX, with a potential concurrent listing in Saudi Arabia.Olam Agri is present in more than 30 countries and employs 9,100+ employees.For fiscal 2021 (FY2021), Olam Agri handled 41 million tonnes of agricultural products and owned more than 50 manufacturing and processing facilities.As part of the IPO process, Olam Agri will be demerged from Olam Group via a dividend-in-specie (i.e. distribution of shares in the former) to eligible Olam Group shareholders.Olam Agri’s operating profit has risen by 40.1% per annum from 2019 to 2021, an impressive performance against the backdrop of the pandemic, supply chain disruptions and geopolitical tensions.Olam International’s original reorganisation plan split the group into three separate entities – Olam Group, Olam Agri, and Olam Food Ingredients (ofi).On this note, Olam Group intends to list ofi on the premium segment of the London Stock Exchange with a concurrent listing on SGX.No timeline has been provided for ofi’s eventual listing, but it will take place after Olam Agri’s successful IPO.APAC Realty (SGX: CLN)APAC Realty is a real estate services provider that holds the ERA regional master franchise rights for 17 countries in the Asia Pacific.Through this network, the group has a significant presence in Asia with 20,600 advisors across 654 offices.APAC Realty acquired an additional 22% stake in ERA Vietnam for S$4.9 million which comes with an earn-out incentive of S$10.5 million.The aggregate consideration amounts to S$15.4 million but the incentive will only be paid to the sellers if they achieve the performance targets set out in the sale and purchase agreement.For context, APAC Realty acquired an initial 38% stake in ERA Vietnam back in February 2020. Upon completion, the group’s stake in ERA Vietnam will rise to 60%, making it a subsidiary of the listed property services group.ERA Vietnam was set up in 2017 and has grown its salesperson numbers from less than 100 at its founding to around 3,900 as of 31 December 2022.The division has also grown its revenue significantly from around S$4.4 million in 2020 to around S$7 million in the first nine months of 2022.Vietnam has ambitious plans to become a developed country by 2045.The government has planned for 5,000 kilometres of expressways by 2030 along with a 1,545-kilometre high-speed railway by 2045.These infrastructure developments should drive healthy real estate development, thus providing a bright future for ERA Vietnam.Sabana Industrial REIT (SGX: M1GU)Sabana Industrial REIT owns a portfolio of 18 properties in Singapore amounting to S$900 million as of 31 December 2022.In mid-January, Volare Group AG (the “offeror”) made a voluntary conditional partial offer for 10% of the units of Sabana Industrial REIT at an offer price of S$0.465 per unit.The offeror currently owns 5.4% of the REIT and is one of Switzerland’s leading suppliers of fossil fuels.Volare Group AG also provides vehicle care, wood production, and construction services and owns investments in real estate and property companies.This partial offer was made as the offeror wishes to diversify its business away from fossil fuels and believes there is inherent long-term value in Sabana Industrial REIT’s units.The REIT had just announced its FY2022 earnings with gross revenue rising by 15.9% year on year to S$94.9 million.Net property income inched up 2.6% year on year to S$53.3 million but distribution per unit remained unchanged at S$0.0305.Units of the REIT offered a trailing distribution yield of 6.9%.","news_type":1},"isVote":1,"tweetType":1,"viewCount":162,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9968477985,"gmtCreate":1669308819547,"gmtModify":1676538181789,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Thanksss","listText":"Thanksss","text":"Thanksss","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9968477985","repostId":"1184446148","repostType":4,"repost":{"id":"1184446148","pubTimestamp":1669303814,"share":"https://www.laohu8.com/m/news/1184446148?lang=&edition=full","pubTime":"2022-11-24 23:30","market":"us","language":"en","title":"3 Big Reasons To Love Apple Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=1184446148","media":"TheStreet","summary":"Let’s take a step back from the news of the day: why is AAPL a great stock to own? Today, I list my ","content":"<html><head></head><body><p>Let’s take a step back from the news of the day: why is AAPL a great stock to own? Today, I list my top 3 fundamental reasons.</p><p>When it comes to <b>Apple</b> stock, even I am sometimes to blame for focusing a bit too much on the “here and now”. What do iPhone sales in the holiday quarter look like? Is Apple pulling back production in China? Can the stock build upon recent momentum?</p><p>So now, I take one step back. More fundamentally, what are some of the main reasons why investors might want to own AAPL shares? There are probably many of them, but I will start with my own top 3 list today.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a934c8d32eb2b80a07cf98af6caf9467\" tg-width=\"1240\" tg-height=\"827\" referrerpolicy=\"no-referrer\"/><span>Figure 1: 3 Big Reasons To Love Apple Stock</span></p><h2>AAPL Reason #1: Massive ROIC</h2><p>ROIC, or return on invested capital, is a metric that many analysts and investors like to track. It contrasts a company’s earnings (numerator) against the cash raised from debt and equity investors (denominator). Think of the formula:</p><p>ROIC = NOPAT ÷ Invested Capital, in which:</p><ul><li>NOPAT is the net operating profit after tax, a similar concept to net income</li><li>Invested capital is largely equity plus debt investments minus cash</li></ul><p>The higher the ROIC, the better. It means that the company is able to “deliver more with less”: lots of profits with relatively small quantities of capital invested into the firm.</p><p>Companies in a good competitive position whose wide moat protects the business model well tend to have high ROIC. On the other hand, cut-throat competition that chips away at a company’s profits and margins tends to lead to low ROIC.</p><p>Apple’s ROIC hovered around 35% in 2010, within three years following the launch of the iPhone and the iPad. That’s really not a bad number at all, considering Apple’s weighted cost of capital that is probably short of 10%.</p><p>But since then, Apple’s ROIC has skyrocketed (see below). Today, the number is a staggering 56%. Relative to the investment that debtholders and equity holders have placed into the company, Apple is a massive profit-producing machine.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/fbc66682044c0970e857a65b8974a103\" tg-width=\"1178\" tg-height=\"336\" referrerpolicy=\"no-referrer\"/><span>Figure 2: AAPL&#39;s ROIC.</span></p><p>There are two main reasons why Apple has been able to increase its ROIC, especially in the past five years. First, profits (the numerator) have increased as (1) the 5G-capable iPhone models became a hit among consumers, (2) Apple was able to maintain pricing power, and (3) margins improved with the growth of the services segment.</p><p>Second, investments in the company (the denominator) have decreased sharply, mostly due to Apple’s aggressive strategy of buying back shares since 2012(more on this below).</p><h2>AAPL Reason #2: Highly Efficient</h2><p>Although services represent a sizable 20% of total sales, Apple is still primarily a consumer products vendor. Companies like it live and die by how tightly it manages working capital – that is, receivables and inventory on the asset side, payables on the liability side.</p><p>The less cash a company ties up in receivables and inventory, and the longer it takes a company to pay its own vendors, the better. Introducing the concept of cash conversion cycle: the time it takes a company to convert cash into inventory, and then back into cash via sales.</p><p>On working capital management, Apple stands out. According to Finbox, Apple’s cash conversion cycle is -62 days – yes, a negative number. It effectively means that Apple does not tie up cash in operations at all: instead, operations are financed by Apple’s vendors.</p><p>The Cupertino giant is one of the few tech companies in the world that can pull this off.</p><h2>AAPL Reason #3: Shareholder Friendly</h2><p>One of the reasons why Apple has been able to increase its ROIC drastically (see #1 reason above) is due to share buybacks. Cash return to shareholders alone, in fact, is a great incentive to own Apple stock.</p><p>The chart below shows how Apple has been aggressive at buying its own shares since 2012 – shortly after CEO Tim Cook took over from legendary founder Steve Jobs. From 26 billion shares outstanding in 2013, the count has been cut by nearly half now.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/edc0fe435dfa3b213c100c70c5fed531\" tg-width=\"1186\" tg-height=\"339\" referrerpolicy=\"no-referrer\"/><span>Figure 3: AAPL&#39;s diluted shares.</span></p><p>The benefits have been twofold. First, fewer shares outstanding mean that net income is distributed across fewer shareholder units. As a result, earnings per share, a metric closely tracked by investors and analysts, have increased.</p><p>Second, Apple’s stock buyback program allows the company to be an ever-present bullish force in the market. Even when other investors turn sour on Apple stock, at least the Cupertino company can be there to create demand for its own shares.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Big Reasons To Love Apple Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Big Reasons To Love Apple Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-24 23:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.thestreet.com/apple/stock/3-big-reasons-to-love-apple-stock><strong>TheStreet</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Let’s take a step back from the news of the day: why is AAPL a great stock to own? Today, I list my top 3 fundamental reasons.When it comes to Apple stock, even I am sometimes to blame for focusing a ...</p>\n\n<a href=\"https://www.thestreet.com/apple/stock/3-big-reasons-to-love-apple-stock\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://www.thestreet.com/apple/stock/3-big-reasons-to-love-apple-stock","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1184446148","content_text":"Let’s take a step back from the news of the day: why is AAPL a great stock to own? Today, I list my top 3 fundamental reasons.When it comes to Apple stock, even I am sometimes to blame for focusing a bit too much on the “here and now”. What do iPhone sales in the holiday quarter look like? Is Apple pulling back production in China? Can the stock build upon recent momentum?So now, I take one step back. More fundamentally, what are some of the main reasons why investors might want to own AAPL shares? There are probably many of them, but I will start with my own top 3 list today.Figure 1: 3 Big Reasons To Love Apple StockAAPL Reason #1: Massive ROICROIC, or return on invested capital, is a metric that many analysts and investors like to track. It contrasts a company’s earnings (numerator) against the cash raised from debt and equity investors (denominator). Think of the formula:ROIC = NOPAT ÷ Invested Capital, in which:NOPAT is the net operating profit after tax, a similar concept to net incomeInvested capital is largely equity plus debt investments minus cashThe higher the ROIC, the better. It means that the company is able to “deliver more with less”: lots of profits with relatively small quantities of capital invested into the firm.Companies in a good competitive position whose wide moat protects the business model well tend to have high ROIC. On the other hand, cut-throat competition that chips away at a company’s profits and margins tends to lead to low ROIC.Apple’s ROIC hovered around 35% in 2010, within three years following the launch of the iPhone and the iPad. That’s really not a bad number at all, considering Apple’s weighted cost of capital that is probably short of 10%.But since then, Apple’s ROIC has skyrocketed (see below). Today, the number is a staggering 56%. Relative to the investment that debtholders and equity holders have placed into the company, Apple is a massive profit-producing machine.Figure 2: AAPL's ROIC.There are two main reasons why Apple has been able to increase its ROIC, especially in the past five years. First, profits (the numerator) have increased as (1) the 5G-capable iPhone models became a hit among consumers, (2) Apple was able to maintain pricing power, and (3) margins improved with the growth of the services segment.Second, investments in the company (the denominator) have decreased sharply, mostly due to Apple’s aggressive strategy of buying back shares since 2012(more on this below).AAPL Reason #2: Highly EfficientAlthough services represent a sizable 20% of total sales, Apple is still primarily a consumer products vendor. Companies like it live and die by how tightly it manages working capital – that is, receivables and inventory on the asset side, payables on the liability side.The less cash a company ties up in receivables and inventory, and the longer it takes a company to pay its own vendors, the better. Introducing the concept of cash conversion cycle: the time it takes a company to convert cash into inventory, and then back into cash via sales.On working capital management, Apple stands out. According to Finbox, Apple’s cash conversion cycle is -62 days – yes, a negative number. It effectively means that Apple does not tie up cash in operations at all: instead, operations are financed by Apple’s vendors.The Cupertino giant is one of the few tech companies in the world that can pull this off.AAPL Reason #3: Shareholder FriendlyOne of the reasons why Apple has been able to increase its ROIC drastically (see #1 reason above) is due to share buybacks. Cash return to shareholders alone, in fact, is a great incentive to own Apple stock.The chart below shows how Apple has been aggressive at buying its own shares since 2012 – shortly after CEO Tim Cook took over from legendary founder Steve Jobs. From 26 billion shares outstanding in 2013, the count has been cut by nearly half now.Figure 3: AAPL's diluted shares.The benefits have been twofold. First, fewer shares outstanding mean that net income is distributed across fewer shareholder units. As a result, earnings per share, a metric closely tracked by investors and analysts, have increased.Second, Apple’s stock buyback program allows the company to be an ever-present bullish force in the market. Even when other investors turn sour on Apple stock, at least the Cupertino company can be there to create demand for its own shares.","news_type":1},"isVote":1,"tweetType":1,"viewCount":229,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9968474714,"gmtCreate":1669308767538,"gmtModify":1676538181784,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Okiee","listText":"Okiee","text":"Okiee","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9968474714","repostId":"2285840582","repostType":4,"isVote":1,"tweetType":1,"viewCount":335,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9968474496,"gmtCreate":1669308722816,"gmtModify":1676538181781,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Okieee","listText":"Okieee","text":"Okieee","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9968474496","repostId":"1193359618","repostType":4,"repost":{"id":"1193359618","pubTimestamp":1669293016,"share":"https://www.laohu8.com/m/news/1193359618?lang=&edition=full","pubTime":"2022-11-24 20:30","market":"us","language":"en","title":"Palantir: I Am Still Not Willing To Gamble","url":"https://stock-news.laohu8.com/highlight/detail?id=1193359618","media":"Seeking Alpha","summary":"SummaryPalantir is still not profitable but reported solid third quarter results and is still growin","content":"<html><head></head><body><h2>Summary</h2><ul><li>Palantir is still not profitable but reported solid third quarter results and is still growing with a healthy pace.</li><li>The company could continue to grow with a high pace in the years to come.</li><li>Stock-based compensations and the resulting dilution of outstanding shares are still discouraging for shareholders.</li><li>Although Palantir&#39;s stock has declined already 80% from its previous all-time high, the stock is still overvalued in my opinion and not a great investment.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a010feafd9264848fea7b7e30ebe25cb\" tg-width=\"1080\" tg-height=\"720\" referrerpolicy=\"no-referrer\"/><span>Scott Olson</span></p><p>My first and only article about Palantir Technologies Inc. (NYSE:PLTR) was published in February 2022. At that point, the stock was trading for $14 and although the stock had already declined 67% at that point from its previous all-time highs, I stated thatPalantir was a risky bet. In the meantime, the stock has been cut almost in half again and is now trading about 80% below its previous all-time high. Nevertheless, Palantir is still not a good investment, and I will explain why I am still cautious about the stock.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7dde9d87a6c57be44bdc788e65a9bda1\" tg-width=\"635\" tg-height=\"417\" referrerpolicy=\"no-referrer\"/><span>Data by YCharts</span></p><h2>Quarterly Results</h2><p>We can start by looking at the third quarter results, which Palantir reported at the beginning of November. And for starters, we must point out that Palantir is still increasing with a solid growth rate while other technology companies are already struggling and are not able to report double-digit revenue growth anymore.</p><p>Revenue in the third quarter increased from $392.1 million in the same quarter last year to $477.9 million in this quarter – resulting in 21.9% year-over-year growth. Loss from operations declined from $91.9 million in Q3/21 to $62.2 million in Q3/22 and although Palantir could improve, the business is still not profitable. But diluted net loss per share increased from $0.05 to a loss of $0.06 in this quarter.</p><p>Additionally, the total customers for Palantir increased from 203 in the same quarter last year to 337 right now – resulting in 66% year-over-year growth. And compared to the previous quarter, Palantir added 33 net new customers.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/775a52ff7988f009fb5679e4a65341e4\" tg-width=\"640\" tg-height=\"358\" referrerpolicy=\"no-referrer\"/><span>Palantir Q3/22 Presentation</span></p><p>During the third quarter of fiscal 2022, Palantir closed 78 deals of at least $1 million with 32 of these deals being at least $5 million and 19 deals were at least $10 million.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/44937fe9eca5417fd0c51facb9d3648f\" tg-width=\"640\" tg-height=\"358\" referrerpolicy=\"no-referrer\"/><span>Palantir Q3/22 Presentation</span></p><p>And when looking at the guidance for fiscal 2022, Palantir is now expecting $1.9 billion to $1.902 billion in revenue. Palantir raised its guidance and is now expecting an adjusted income from operations to be between $384 million to $386 million.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/54098b8b48757becfeea0894faab6e65\" tg-width=\"640\" tg-height=\"359\" referrerpolicy=\"no-referrer\"/><span>Palantir Q3/22 Presentation</span></p><h2>Growth Opportunities In Challenging Times</h2><p>But despite the raised guidance, when listening to Alexander Karp during the earnings calls or in interviews, he is seeing difficult times ahead. During the last earnings call, Alexander Karp made the following statement:</p><blockquote>By the way, that&#39;s why we prepared and then that&#39;s the technical thing. Why do we have 8 quarters of free cash flow? Do you think it&#39;s a coincidence, we were preparing for this. We have -- why do we have $2.4 billion in the bank and no debt? We weren&#39;t living in the metasphere. We were living in this world in the way we thought it would be -- and we&#39;ve been essentially -- you could even look at this as a prep. We&#39;re a prepper company. We&#39;ve been preparing it&#39;s like -- preppers have their rucksack and a rifle. We have PG, GAIA, Foundry and $2.4 billion in the bank and no debt. That&#39;s our company.</blockquote><p>And when looking at the balance sheet, Palantir is positioned quite well. On September 30, 2022, the company had $2,411 million in cash and cash equivalents as well as $57 million in short-term marketable securities. And aside from having no debt on the balance sheet, the company also has no goodwill on its balance sheet. In case of Palantir, 74% of its $3,319 million in total assets are highly liquid assets (cash, cash equivalents and marketable securities), which is good in case of crisis.</p><p>But not only is Palantir prepared for challenging times due to a solid balance sheet, Alexander Karp is also expecting the company to profit from the uncertain times ahead. During an interview with CNBC at the end of September, he made the following statement:</p><blockquote>Bad times are incredibly good for Palantir... bad times really uncover the durable companies, and tech is going through bad times... interest rates are the reason.</blockquote><p>Karp also states that Palantir’s software is at war – in Europe and around the world. And he sees the software as a way for nations to impose and defend their values. And Karp sees great growth potential in the years ahead – not only because Palantir might profit from bad times:</p><blockquote>We recognize that our path to growth is not always linear, but with the opportunity that lies ahead, we continue to recruit and retain the top talent at a time when other companies in the technology sector are slashing their plans and cutting workforces.</blockquote><blockquote>We have spent the last 2 decades building our products for the world in which we actually live. The disruption and uncertainty that we&#39;re seeing around us from Ukraine, the pandemic and inflation, it&#39;s driving customers towards us and to our software.</blockquote><p>In the second quarter earnings call, Alexander Karp said his ambition was to drive the company to $4.5 billion in revenue in 2025. In the same earnings call, Karp also expected that Palantir will finally be profitable in 2025. And of course, it is not unreasonable for Palantir to expect high growth rates. In its Form S-1. Palantir wrote its total addressable market [TAM] should be approximately $119 billion with the commercial sector being around $56 billion and the government sector being around $63 billion. This TAM is excluding institutions and countries where Palantir has chosen not to sell its software.</p><p>This seems to be in line with the expectations of other studies. And not only has Palantir a market share of only around 2% right now – giving the company enough room to grow by gaining market shares. Different studies are also expecting growth rates in the double digits for the market. When looking at the advanced analytics market, some expect even a CAGR above 20% in the years to come.</p><p>And during the last earnings call, Alexander Karp also pointed out where he is seeing the huge competitive advantage of Palantir – especially compared to peers like Microsoft (MSFT) or Snowflake (SNOW):</p><blockquote>The answer is really the ontology. It&#39;s why our platforms remain far ahead of the competition. And that&#39;s because the ontology, it&#39;s the missing link in terms of what you need to realize value from all of these investments. It&#39;s the component and the architecture that&#39;s required to get data apps to actually deliver value on top of cloud data warehouses or to get AI to scale throughout the enterprise or to turn your digital twin into something that&#39;s actionable and operational within the enterprise. And we&#39;ve spent 15 years investing in a road map that&#39;s deep and built upon the ontology, and it continues to be the focus of all the core investments that we&#39;re making around product.</blockquote><h2>Reservation Against Palantir</h2><p>But despite the competitive advantage Karp sees for Palantir in the years to come, the business is also facing risks in its path toward growth. In his last letter to shareholders, Alexander Karp wrote:</p><blockquote>It has been our experience, however, that some countries, particularly in continental Europe, including Germany, have fallen behind the United States in their willingness and ability to implement enterprise software systems that challenge existing habits and modes of operation.</blockquote><blockquote>There have been repeated attempts to build replicas of Silicon Valley in continental Europe, in Germany and elsewhere, but the results have been decidedly mixed.</blockquote><blockquote>We have found that large institutions in the United States have been far more willing to investigate the most significant sources of systemic dysfunction within their organizations, which in the current moment often relate to the ability or rather inability of an institution to metabolize its own data.</blockquote><p>And this is an aspect that should certainly not be underestimated for Palantir’s ambitions to grow in the years to come. And from a German perspective I think Karp is correct in his assessment of people living here (as well as institutions) having strong reservations against Palantir.</p><h2>Stock-Based Compensation Leading To Dilution</h2><p>Not only is the business facing several risks, but shareholders are also facing risks by owning the stock right now. And one huge risk shareholders are facing is the stock-based compensation which is leading to a constant dilution of shares and in the last few quarters, the number of outstanding shares increased with a high pace. Right now, we have 2,073 million outstanding shares compared to 1,964 million one year earlier and 1,763 million after the IPO of Palantir. This is resulting in an increase of almost 18% in less than two years and in my opinion, this is not a good sign for investors. And finally, this dilution has a huge negative impact on the intrinsic value of Palantir.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ba9fe6b4274d2704f89363d89bcddb6a\" tg-width=\"635\" tg-height=\"435\" referrerpolicy=\"no-referrer\"/><span>Data by YCharts</span></p><p>Of course, stock-based compensations can also have a positive side as it is a good way to get great talent for the business and employees, that are behind the company and the company’s goals (as they are also profiting from a thriving business resulting in a higher share price). And this can certainly have a positive effect on the business in the long run. However, diluted in the high single digits annually is extreme – even for a company growing with a high pace.</p><h2>Intrinsic Value Calculation</h2><p>A final risk for shareholders is simply overpaying for a stock that is not worth what it is currently trading for.</p><p>We can start by looking at simple valuation metrics – especially the price-free-cash-flow ratio as well as the price-sales ratio. Looking at the price-earnings ratio doesn’t make much sense as the metric is negative. Of course, the price-sales ratio declined over the last year, but Palantir is still trading for 9 times sales which is certainly not cheap. When looking at the S&amp;P 500 (SPY), there are only about 45 companies trading with a higher price-sales ratio. And the median P/S ratio of the S&amp;P 500 is 2.72 at the time of writing. And even when looking at technology stocks (according to Finviz; market cap above $2 billion), the median P/S ratio is 4.41. But as long as we are talking about price-sales ratios we also have to point out that Snowflake is trading for 28 times sales right now and compared to these valuation multiples, Palantir’s valuation seems to be quite reasonable.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/38f5a49a57b61fa9fbd749ed81950b1d\" tg-width=\"635\" tg-height=\"447\" referrerpolicy=\"no-referrer\"/><span>Data by YCharts</span></p><p>When looking at the price-free-cash-flow ratio, Palantir is trading for a multiple of 84. Although this is below the 2021 P/FCF peak of 750 and below the average of 227, Palantir is still trading for extremely high valuation multiples (and usually even high growth rates can’t justify valuation multiples close to 100). And once again, we can point out that Snowflake is trading for a P/FCF ratio of 155 – twice as high as Palantir.</p><p>When using a discount cash flow calculation, we can take the free cash flow of the last four quarters as basis. But let’s be more optimistic and use the highest free cash flow Palantir could report so far ($320 million in free cash flow). When taking this amount as basis and assume 6% growth till perpetuity (like we always do with high quality businesses) the company must grow its free cash flow about 17% annually for the next ten years to be fairly valued (assuming 2,073 million outstanding shares and a 10% discount rate).</p><p>I would not say such growth rates are impossible for a company – we can find several examples of businesses growing with such a CAGR over 10 years or even longer. But 17% growth for 10 years would probably be one of the highest growth rates I ever used in an intrinsic value calculation just to reach fair value for a stock. And these calculations are assuming no further dilution of shares, which seems rather unlikely at this point. In the last two years, the company has been diluting in the high single digits and to set dilution off, Palantir rather must grow its free cash flow about 25% annually to be fairly valued for the next few years. And 25% growth is also not impossible but no growth rate I would use in any way (in my opinion, this would be investing based on hope).</p><h2>Conclusion</h2><p>Although the stock price is now more than 40% lower than when my last article was published, I am afraid the conclusion must be the same. The stock is still not fairly valued and not a great investment. With thousands of other stocks being available and us being able to identify at least 100 high-quality businesses with a wide economic moat, I don’t see any reason to bet on Palantir. A company where it is difficult to estimate the growth potential and where the huge stock-based compensations and resulting stock dilutions are offsetting to any investor. And the potential high growth potential Palantir could have is not enough at this point to bet on Palantir.</p><p><i>This article is written by Daniel Schönberger for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir: I Am Still Not Willing To Gamble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir: I Am Still Not Willing To Gamble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-24 20:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560037-palantir-pltr-still-overvalued><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryPalantir is still not profitable but reported solid third quarter results and is still growing with a healthy pace.The company could continue to grow with a high pace in the years to come.Stock...</p>\n\n<a href=\"https://seekingalpha.com/article/4560037-palantir-pltr-still-overvalued\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4560037-palantir-pltr-still-overvalued","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1193359618","content_text":"SummaryPalantir is still not profitable but reported solid third quarter results and is still growing with a healthy pace.The company could continue to grow with a high pace in the years to come.Stock-based compensations and the resulting dilution of outstanding shares are still discouraging for shareholders.Although Palantir's stock has declined already 80% from its previous all-time high, the stock is still overvalued in my opinion and not a great investment.Scott OlsonMy first and only article about Palantir Technologies Inc. (NYSE:PLTR) was published in February 2022. At that point, the stock was trading for $14 and although the stock had already declined 67% at that point from its previous all-time highs, I stated thatPalantir was a risky bet. In the meantime, the stock has been cut almost in half again and is now trading about 80% below its previous all-time high. Nevertheless, Palantir is still not a good investment, and I will explain why I am still cautious about the stock.Data by YChartsQuarterly ResultsWe can start by looking at the third quarter results, which Palantir reported at the beginning of November. And for starters, we must point out that Palantir is still increasing with a solid growth rate while other technology companies are already struggling and are not able to report double-digit revenue growth anymore.Revenue in the third quarter increased from $392.1 million in the same quarter last year to $477.9 million in this quarter – resulting in 21.9% year-over-year growth. Loss from operations declined from $91.9 million in Q3/21 to $62.2 million in Q3/22 and although Palantir could improve, the business is still not profitable. But diluted net loss per share increased from $0.05 to a loss of $0.06 in this quarter.Additionally, the total customers for Palantir increased from 203 in the same quarter last year to 337 right now – resulting in 66% year-over-year growth. And compared to the previous quarter, Palantir added 33 net new customers.Palantir Q3/22 PresentationDuring the third quarter of fiscal 2022, Palantir closed 78 deals of at least $1 million with 32 of these deals being at least $5 million and 19 deals were at least $10 million.Palantir Q3/22 PresentationAnd when looking at the guidance for fiscal 2022, Palantir is now expecting $1.9 billion to $1.902 billion in revenue. Palantir raised its guidance and is now expecting an adjusted income from operations to be between $384 million to $386 million.Palantir Q3/22 PresentationGrowth Opportunities In Challenging TimesBut despite the raised guidance, when listening to Alexander Karp during the earnings calls or in interviews, he is seeing difficult times ahead. During the last earnings call, Alexander Karp made the following statement:By the way, that's why we prepared and then that's the technical thing. Why do we have 8 quarters of free cash flow? Do you think it's a coincidence, we were preparing for this. We have -- why do we have $2.4 billion in the bank and no debt? We weren't living in the metasphere. We were living in this world in the way we thought it would be -- and we've been essentially -- you could even look at this as a prep. We're a prepper company. We've been preparing it's like -- preppers have their rucksack and a rifle. We have PG, GAIA, Foundry and $2.4 billion in the bank and no debt. That's our company.And when looking at the balance sheet, Palantir is positioned quite well. On September 30, 2022, the company had $2,411 million in cash and cash equivalents as well as $57 million in short-term marketable securities. And aside from having no debt on the balance sheet, the company also has no goodwill on its balance sheet. In case of Palantir, 74% of its $3,319 million in total assets are highly liquid assets (cash, cash equivalents and marketable securities), which is good in case of crisis.But not only is Palantir prepared for challenging times due to a solid balance sheet, Alexander Karp is also expecting the company to profit from the uncertain times ahead. During an interview with CNBC at the end of September, he made the following statement:Bad times are incredibly good for Palantir... bad times really uncover the durable companies, and tech is going through bad times... interest rates are the reason.Karp also states that Palantir’s software is at war – in Europe and around the world. And he sees the software as a way for nations to impose and defend their values. And Karp sees great growth potential in the years ahead – not only because Palantir might profit from bad times:We recognize that our path to growth is not always linear, but with the opportunity that lies ahead, we continue to recruit and retain the top talent at a time when other companies in the technology sector are slashing their plans and cutting workforces.We have spent the last 2 decades building our products for the world in which we actually live. The disruption and uncertainty that we're seeing around us from Ukraine, the pandemic and inflation, it's driving customers towards us and to our software.In the second quarter earnings call, Alexander Karp said his ambition was to drive the company to $4.5 billion in revenue in 2025. In the same earnings call, Karp also expected that Palantir will finally be profitable in 2025. And of course, it is not unreasonable for Palantir to expect high growth rates. In its Form S-1. Palantir wrote its total addressable market [TAM] should be approximately $119 billion with the commercial sector being around $56 billion and the government sector being around $63 billion. This TAM is excluding institutions and countries where Palantir has chosen not to sell its software.This seems to be in line with the expectations of other studies. And not only has Palantir a market share of only around 2% right now – giving the company enough room to grow by gaining market shares. Different studies are also expecting growth rates in the double digits for the market. When looking at the advanced analytics market, some expect even a CAGR above 20% in the years to come.And during the last earnings call, Alexander Karp also pointed out where he is seeing the huge competitive advantage of Palantir – especially compared to peers like Microsoft (MSFT) or Snowflake (SNOW):The answer is really the ontology. It's why our platforms remain far ahead of the competition. And that's because the ontology, it's the missing link in terms of what you need to realize value from all of these investments. It's the component and the architecture that's required to get data apps to actually deliver value on top of cloud data warehouses or to get AI to scale throughout the enterprise or to turn your digital twin into something that's actionable and operational within the enterprise. And we've spent 15 years investing in a road map that's deep and built upon the ontology, and it continues to be the focus of all the core investments that we're making around product.Reservation Against PalantirBut despite the competitive advantage Karp sees for Palantir in the years to come, the business is also facing risks in its path toward growth. In his last letter to shareholders, Alexander Karp wrote:It has been our experience, however, that some countries, particularly in continental Europe, including Germany, have fallen behind the United States in their willingness and ability to implement enterprise software systems that challenge existing habits and modes of operation.There have been repeated attempts to build replicas of Silicon Valley in continental Europe, in Germany and elsewhere, but the results have been decidedly mixed.We have found that large institutions in the United States have been far more willing to investigate the most significant sources of systemic dysfunction within their organizations, which in the current moment often relate to the ability or rather inability of an institution to metabolize its own data.And this is an aspect that should certainly not be underestimated for Palantir’s ambitions to grow in the years to come. And from a German perspective I think Karp is correct in his assessment of people living here (as well as institutions) having strong reservations against Palantir.Stock-Based Compensation Leading To DilutionNot only is the business facing several risks, but shareholders are also facing risks by owning the stock right now. And one huge risk shareholders are facing is the stock-based compensation which is leading to a constant dilution of shares and in the last few quarters, the number of outstanding shares increased with a high pace. Right now, we have 2,073 million outstanding shares compared to 1,964 million one year earlier and 1,763 million after the IPO of Palantir. This is resulting in an increase of almost 18% in less than two years and in my opinion, this is not a good sign for investors. And finally, this dilution has a huge negative impact on the intrinsic value of Palantir.Data by YChartsOf course, stock-based compensations can also have a positive side as it is a good way to get great talent for the business and employees, that are behind the company and the company’s goals (as they are also profiting from a thriving business resulting in a higher share price). And this can certainly have a positive effect on the business in the long run. However, diluted in the high single digits annually is extreme – even for a company growing with a high pace.Intrinsic Value CalculationA final risk for shareholders is simply overpaying for a stock that is not worth what it is currently trading for.We can start by looking at simple valuation metrics – especially the price-free-cash-flow ratio as well as the price-sales ratio. Looking at the price-earnings ratio doesn’t make much sense as the metric is negative. Of course, the price-sales ratio declined over the last year, but Palantir is still trading for 9 times sales which is certainly not cheap. When looking at the S&P 500 (SPY), there are only about 45 companies trading with a higher price-sales ratio. And the median P/S ratio of the S&P 500 is 2.72 at the time of writing. And even when looking at technology stocks (according to Finviz; market cap above $2 billion), the median P/S ratio is 4.41. But as long as we are talking about price-sales ratios we also have to point out that Snowflake is trading for 28 times sales right now and compared to these valuation multiples, Palantir’s valuation seems to be quite reasonable.Data by YChartsWhen looking at the price-free-cash-flow ratio, Palantir is trading for a multiple of 84. Although this is below the 2021 P/FCF peak of 750 and below the average of 227, Palantir is still trading for extremely high valuation multiples (and usually even high growth rates can’t justify valuation multiples close to 100). And once again, we can point out that Snowflake is trading for a P/FCF ratio of 155 – twice as high as Palantir.When using a discount cash flow calculation, we can take the free cash flow of the last four quarters as basis. But let’s be more optimistic and use the highest free cash flow Palantir could report so far ($320 million in free cash flow). When taking this amount as basis and assume 6% growth till perpetuity (like we always do with high quality businesses) the company must grow its free cash flow about 17% annually for the next ten years to be fairly valued (assuming 2,073 million outstanding shares and a 10% discount rate).I would not say such growth rates are impossible for a company – we can find several examples of businesses growing with such a CAGR over 10 years or even longer. But 17% growth for 10 years would probably be one of the highest growth rates I ever used in an intrinsic value calculation just to reach fair value for a stock. And these calculations are assuming no further dilution of shares, which seems rather unlikely at this point. In the last two years, the company has been diluting in the high single digits and to set dilution off, Palantir rather must grow its free cash flow about 25% annually to be fairly valued for the next few years. And 25% growth is also not impossible but no growth rate I would use in any way (in my opinion, this would be investing based on hope).ConclusionAlthough the stock price is now more than 40% lower than when my last article was published, I am afraid the conclusion must be the same. The stock is still not fairly valued and not a great investment. With thousands of other stocks being available and us being able to identify at least 100 high-quality businesses with a wide economic moat, I don’t see any reason to bet on Palantir. A company where it is difficult to estimate the growth potential and where the huge stock-based compensations and resulting stock dilutions are offsetting to any investor. And the potential high growth potential Palantir could have is not enough at this point to bet on Palantir.This article is written by Daniel Schönberger for reference only. Please note the risks.","news_type":1},"isVote":1,"tweetType":1,"viewCount":314,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9968324182,"gmtCreate":1669139261746,"gmtModify":1676538157198,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Thanksss","listText":"Thanksss","text":"Thanksss","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9968324182","repostId":"2285386886","repostType":4,"repost":{"id":"2285386886","pubTimestamp":1669104486,"share":"https://www.laohu8.com/m/news/2285386886?lang=&edition=full","pubTime":"2022-11-22 16:08","market":"us","language":"en","title":"Apple And Taiwan Semiconductor: Let's Ask Buffett","url":"https://stock-news.laohu8.com/highlight/detail?id=2285386886","media":"Seeking Alpha","summary":"SummaryAs a long-time Buffett cultist, I understand (not to say I am able to anticipate) most of his","content":"<html><head></head><body><h2>Summary</h2><ul><li>As a long-time Buffett cultist, I understand (not to say I am able to anticipate) most of his stock choices.</li><li>But from time to time, some of his choices still come as a surprise and his recent position in Taiwan Semiconductor is a notable example.</li><li>The choice is even more puzzling when viewed under the context of his largest holding, Apple.</li><li>There are certainly positives with Taiwan Semiconductor, that is, even when compared to Apple.</li><li>However, I see these positives easily overshadowed by the developing tension between them, which produces mutual but asymmetric damage.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/511f126f81b7dac4ef1687fe1d622bbe\" tg-width=\"1080\" tg-height=\"719\" referrerpolicy=\"no-referrer\"/><span>Jamie McCarthy</span></p><h2>The investment thesis</h2><p>As a long-time Buffett cultist, I feel comfortable saying that I understand most of his investment choices. But occasionally, the grandmaster still manages to make a move that surprises me such as his recent position in TaiwanSemiconductor (NYSE:TSM). To wit, the recent 13F disclosure showed that Buffett opened a sizable position in TSM for the Berkshire Hathaway (BRK.A) (BRK.B) equity portfolio. As you can see from the following chart, his BRK portfolio now holds more than 60.06M shares of TSM with a total worth of over $4.11B. The TSM position is currently the 10thlargest position in the BRK portfolio.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/79878ff126c58641fbbd5a5aa3c0b334\" tg-width=\"640\" tg-height=\"363\" referrerpolicy=\"no-referrer\"/><span>Source: Dataroma.com</span></p><p>The surprise comes in several ways. And the more obvious ways (like Buffett’s allergy to tech businesses) have already been discussed by several other SA authors and I won’t further add to it anymore. Here, I want to explore an angle that is less discussed so far. I want to explain why it feels more puzzling to me, that is besides the fact that Buffett added another tech name to his BRK portfolio, when the TSM position is viewed under the context of his largest holding, Apple (NASDAQ:AAPL). There are certainly positives with TSM, that is, even when compared to AAPL. As we will detail in the next section, it is a high-quality stock in its own right. It boasts a large technological lead in its space and an R&amp;D yield that is even better than AAPL.</p><p>However, I see these positives easily overshadowed by the developing tension between them and also the ongoing deglobalization mega-trend. According to a recentnews report, TSM’s scheduled price raises in 2023 were rejected by AAPL, by far its largest customer. AAPL currently outsources almost all of its processor manufacturing to factories in Taiwan. However, with the U.S. strategic initiatives to push to develop domestic semiconductor foundry capabilities, AAPL (and other U.S. chip players such Advanced Micro Devices (AMD) and NVIDIA (NVDA) too) would be very likely to diversify its chip manufacturing away from TSM. And the damage will be mutual but asymmetric. It is easier for AAPL to find other foundry services to manufacture its chips, and a lot harder for TSM to find such large clients as AAPL.</p><p>The full impact of such tension and diversification will take time to fully manifest. And TSM’s role as the dominating high-end chipmaker in the world won’t change in the near term. But I see these recent events (such as AAPL’s rejection of the price raises and the recent passing of the CHIPS act) as the turning point. Taking a broader view, I see these events as a logical step, or even an inevitable step, in the deglobalization process – a mega force that has been unfolding for over 10 years as shown in the chart below. The chart illustrates how globalization, measured as the percentage of total exports out of global GDP, has been in decline since its peak in 2008. The percentage has declined from 61% in 2008 to the to 51.6% in 2020. And since 2020, the China-U.S. trade tension, the COVID, and the Russian/Ukraine war have further quickened its pace.</p><p>In the remainder of this article, I will further analyze the details of these above considerations in more detail.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/df9d37af226f63d9047697f699ffa010\" tg-width=\"640\" tg-height=\"527\" referrerpolicy=\"no-referrer\"/><span>Source: The World Bank</span></p><h2>TSM’s valuation advantage</h2><p>First, as mentioned above, there are definitely many positives with TSM even when compared to AAPL. And valuation is an obvious place to start with. As a global leader in the foundry space, it is for sale at a fraction of the overall market and AAPL’s valuation as seen in the chart below.</p><p>To cite a few examples, TSM’s FY1 PE of 12.8x is almost only 1/2 of AAPL’s 24.2x. Its TTM PE of 13.08x is also about only 1/2 of AAPL’s 24.2x. Considering that these stocks have different leverages and enterprise values (“EV”), let&#39;s compare their multiples with leverages adjusted too. As you can see, TSM’s discount is even more dramatic in terms of EV/EBITDA multiples. TSM’s FW EV/EBITDA ratio sits at 7.64x only, less than ½ of AAPL’s 18.18x.</p><p>Yes, as you will see in the next section, TSM is a high-quality stock in its own right. It boasts a large technological lead in its space, further bolstered by its consistent R&amp;D investments and also superb R&amp;D yield that even surpasses AAPL.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cd9101b641f06753dca5fee60c5e18ff\" tg-width=\"640\" tg-height=\"496\" referrerpolicy=\"no-referrer\"/><span>Source: Seeking Alpha data</span></p><h2>TSM’s more consistent and aggressive R&amp;D</h2><p>As detailed in our earlier articles:</p><blockquote><i>We do not invest in a given tech stock because we have high confidence in a certain product that they are developing in the pipeline. Instead, we feel more comfortable betting on A) the recurring resources available to fund new R&amp;D efforts sustainably, and B) the overall efficiency of the R&amp;D PROCESS. So correspondingly, in the long run, I feel comfortable as long as a tech business can A) sustainably support new R&amp;D expenditures, and B) has demonstrated a consistent R&amp;D yield. I do not feel the need to particularly bet on any one of the new products to be a hit (or a complete failure).</i></blockquote><p>And both TSM and AAPL can sustainably fund their new R&amp;D efforts with no problem in the long term, as illustrated in the next chart. It shows their R&amp;D expenses over the past 10 years as a percentage of their total sales. A few key observations:</p><ul><li>TSM has been investing very consistently in R&amp;D efforts, on average about 8.0% of its total sales.</li><li>AAPL&#39;s R&amp;D expenses have been climbing since Tim Cook took over the company from Jobs. Jobs believed that innovation is not about money and it &#34;has nothing to do with how much R&amp;D money” a business put in. Then Cook gradually increased the R&amp;D investments to the current level of around 6.1% since 2018.</li><li>So even at AAPL’s current R&amp;D level, TSM is still outspending AAPL by about 200 basis points. And also note TSM’s consistency: the R&amp;D expenses only fluctuated in a very narrow range over the past 10 years.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/68ba62925d409c0646d95b62223ef4b9\" tg-width=\"640\" tg-height=\"355\" referrerpolicy=\"no-referrer\"/><span>Source: Author</span></p><p>More impressively, TSM’s yield on the R&amp;D investment is also superior to AAPL, which is already at a remarkable level by itself as shown in the next chart. The chart used Buffett’s $1 test on R&amp;D expenses. More specifically, the chart quantifies the R&amp;D yield by taking the ratio between profit and R&amp;D expenditures. Thus, the results show how many dollars of profit are generated per $1 of R&amp;D expenses. In particular, in this chart, my analysis used the operating cash flow (“OPC”) as the profit and also took a 3-year moving average on the OPC to approximate a 3-year R&amp;D cycle. And the key observations are:</p><ul><li>The R&amp;D yield is also consistent for TSM, with an average of $6.75 since 2014.</li><li>AAPL’s picture is a bit more colorful. Its R&amp;D yield has been astronomical ($10+ in 2013 and $8+ in 2014 and 2015) thanks to its almost monopoly status in key market segments in those days. Its R&amp;D yield has gradually declined to around ~$4.0 in recent years. And its long-term average was about $5.3.</li><li>To provide a broader view, the FAAMG group features an average R&amp;D yield of ~$2.5 in recent years.</li><li>Thus, both AAPL and TSM boast superb R&amp;D yields even when compared to the overachievers in the FAAMG pack, and TSM’s yield is even higher than AAPL by a large gap.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/72e8c1b1427c0babf39d38ec60269d28\" tg-width=\"640\" tg-height=\"340\" referrerpolicy=\"no-referrer\"/><span>Source: Author based on Seeking Alpha data</span></p><h2>Both enjoy high ROCE too, but AAPL is in its own category</h2><p>To me, ROCE (return on capital employed) is the most fundamental profitability metric as detailed in my blog article (with differences compared to ROE and Q&amp;A on the most frequently received questions from our readers). One key reason for its fundamental importance is that the long-term growth rate is governed by ROCE and reinvestment rate (“RR”) in the following simple way:</p><p>Long-Term Growth Rate = ROCE * RR</p><p>The ROCE of TSM and AAPL are shown below for the past 10 years. As you can see, TSM has been maintaining a high ROCE with remarkable consistency here. Its average ROCE has been about 42%. And I cannot overemphasize the consistency – which is a strong indicator of its stable moat. However, AAPL certainly has the upper hand here. Its ROCE is simply a category of its own. It has been hovering around an average of 125% since 2018 after its “declines” from an astronomical (and also unsustainable level in my view) of 200%+ earlier in the decade.</p><p>In terms of RR, both companies have sustainable capital allocation flexibility thanks to their strong cash generation. All told, my analysis shows that TSM has been maintaining an RR in the range between 7.5% to 10% in recent years, and AAPL about 5% to 7.5%.</p><p>So even without the trade tensions and deglobalization process aforementioned, I would project AAPL to have a much better perpetual growth curve ahead than TSM. I projected AAPL’s LT growth rate to be up to 10% (7.5% RR * 125% ROCE ~ 10% annual growth rate). And TSM’s growth rate, on the hand, would be limited to be in the mid-single digit range (say 4% = 10% RR * 42% ROCE).</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/98b3ddd710705df7ba8e09cb93f9b81a\" tg-width=\"640\" tg-height=\"334\" referrerpolicy=\"no-referrer\"/><span>Source: Author based on Seeking Alpha data</span></p><h2>Risks and final thought</h2><p>But to reiterate, I do see the developing tension between TSM and AAPL and the deglobalization process as the overarching forces here. And I only see the differences in terms of valuation, R&amp;D yields, and profitability to be secondary forces in the years to come. The deglobalization mega-trend has been unfolding since 2008. And I see a series of recent events (such as AAPL’s rejection of TSM’s price raises, the CHIPS act, the ongoing U.S.-China trade frictions, and also the Russian/Ukraine war) to further exacerbate and accelerate the trend. Under such a mega-trend, I see it as inevitable that key chip clients (such as AAPL, AMD, and NVDA) diversify their manufacturing needs away from TSM.</p><p>And the bottom line is that damage will be mutual but asymmetric the way I see things. It is easier for AAPL to find replacement foundry services but a lot harder for TSM to find replacement clients at the scale of AAPL.</p><p><i>This article is written by Envision Research for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple And Taiwan Semiconductor: Let's Ask Buffett</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple And Taiwan Semiconductor: Let's Ask Buffett\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-22 16:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4559717-apple-and-taiwan-semiconductor-ask-buffett><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAs a long-time Buffett cultist, I understand (not to say I am able to anticipate) most of his stock choices.But from time to time, some of his choices still come as a surprise and his recent ...</p>\n\n<a href=\"https://seekingalpha.com/article/4559717-apple-and-taiwan-semiconductor-ask-buffett\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSM":"台积电","AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4559717-apple-and-taiwan-semiconductor-ask-buffett","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2285386886","content_text":"SummaryAs a long-time Buffett cultist, I understand (not to say I am able to anticipate) most of his stock choices.But from time to time, some of his choices still come as a surprise and his recent position in Taiwan Semiconductor is a notable example.The choice is even more puzzling when viewed under the context of his largest holding, Apple.There are certainly positives with Taiwan Semiconductor, that is, even when compared to Apple.However, I see these positives easily overshadowed by the developing tension between them, which produces mutual but asymmetric damage.Jamie McCarthyThe investment thesisAs a long-time Buffett cultist, I feel comfortable saying that I understand most of his investment choices. But occasionally, the grandmaster still manages to make a move that surprises me such as his recent position in TaiwanSemiconductor (NYSE:TSM). To wit, the recent 13F disclosure showed that Buffett opened a sizable position in TSM for the Berkshire Hathaway (BRK.A) (BRK.B) equity portfolio. As you can see from the following chart, his BRK portfolio now holds more than 60.06M shares of TSM with a total worth of over $4.11B. The TSM position is currently the 10thlargest position in the BRK portfolio.Source: Dataroma.comThe surprise comes in several ways. And the more obvious ways (like Buffett’s allergy to tech businesses) have already been discussed by several other SA authors and I won’t further add to it anymore. Here, I want to explore an angle that is less discussed so far. I want to explain why it feels more puzzling to me, that is besides the fact that Buffett added another tech name to his BRK portfolio, when the TSM position is viewed under the context of his largest holding, Apple (NASDAQ:AAPL). There are certainly positives with TSM, that is, even when compared to AAPL. As we will detail in the next section, it is a high-quality stock in its own right. It boasts a large technological lead in its space and an R&D yield that is even better than AAPL.However, I see these positives easily overshadowed by the developing tension between them and also the ongoing deglobalization mega-trend. According to a recentnews report, TSM’s scheduled price raises in 2023 were rejected by AAPL, by far its largest customer. AAPL currently outsources almost all of its processor manufacturing to factories in Taiwan. However, with the U.S. strategic initiatives to push to develop domestic semiconductor foundry capabilities, AAPL (and other U.S. chip players such Advanced Micro Devices (AMD) and NVIDIA (NVDA) too) would be very likely to diversify its chip manufacturing away from TSM. And the damage will be mutual but asymmetric. It is easier for AAPL to find other foundry services to manufacture its chips, and a lot harder for TSM to find such large clients as AAPL.The full impact of such tension and diversification will take time to fully manifest. And TSM’s role as the dominating high-end chipmaker in the world won’t change in the near term. But I see these recent events (such as AAPL’s rejection of the price raises and the recent passing of the CHIPS act) as the turning point. Taking a broader view, I see these events as a logical step, or even an inevitable step, in the deglobalization process – a mega force that has been unfolding for over 10 years as shown in the chart below. The chart illustrates how globalization, measured as the percentage of total exports out of global GDP, has been in decline since its peak in 2008. The percentage has declined from 61% in 2008 to the to 51.6% in 2020. And since 2020, the China-U.S. trade tension, the COVID, and the Russian/Ukraine war have further quickened its pace.In the remainder of this article, I will further analyze the details of these above considerations in more detail.Source: The World BankTSM’s valuation advantageFirst, as mentioned above, there are definitely many positives with TSM even when compared to AAPL. And valuation is an obvious place to start with. As a global leader in the foundry space, it is for sale at a fraction of the overall market and AAPL’s valuation as seen in the chart below.To cite a few examples, TSM’s FY1 PE of 12.8x is almost only 1/2 of AAPL’s 24.2x. Its TTM PE of 13.08x is also about only 1/2 of AAPL’s 24.2x. Considering that these stocks have different leverages and enterprise values (“EV”), let's compare their multiples with leverages adjusted too. As you can see, TSM’s discount is even more dramatic in terms of EV/EBITDA multiples. TSM’s FW EV/EBITDA ratio sits at 7.64x only, less than ½ of AAPL’s 18.18x.Yes, as you will see in the next section, TSM is a high-quality stock in its own right. It boasts a large technological lead in its space, further bolstered by its consistent R&D investments and also superb R&D yield that even surpasses AAPL.Source: Seeking Alpha dataTSM’s more consistent and aggressive R&DAs detailed in our earlier articles:We do not invest in a given tech stock because we have high confidence in a certain product that they are developing in the pipeline. Instead, we feel more comfortable betting on A) the recurring resources available to fund new R&D efforts sustainably, and B) the overall efficiency of the R&D PROCESS. So correspondingly, in the long run, I feel comfortable as long as a tech business can A) sustainably support new R&D expenditures, and B) has demonstrated a consistent R&D yield. I do not feel the need to particularly bet on any one of the new products to be a hit (or a complete failure).And both TSM and AAPL can sustainably fund their new R&D efforts with no problem in the long term, as illustrated in the next chart. It shows their R&D expenses over the past 10 years as a percentage of their total sales. A few key observations:TSM has been investing very consistently in R&D efforts, on average about 8.0% of its total sales.AAPL's R&D expenses have been climbing since Tim Cook took over the company from Jobs. Jobs believed that innovation is not about money and it \"has nothing to do with how much R&D money” a business put in. Then Cook gradually increased the R&D investments to the current level of around 6.1% since 2018.So even at AAPL’s current R&D level, TSM is still outspending AAPL by about 200 basis points. And also note TSM’s consistency: the R&D expenses only fluctuated in a very narrow range over the past 10 years.Source: AuthorMore impressively, TSM’s yield on the R&D investment is also superior to AAPL, which is already at a remarkable level by itself as shown in the next chart. The chart used Buffett’s $1 test on R&D expenses. More specifically, the chart quantifies the R&D yield by taking the ratio between profit and R&D expenditures. Thus, the results show how many dollars of profit are generated per $1 of R&D expenses. In particular, in this chart, my analysis used the operating cash flow (“OPC”) as the profit and also took a 3-year moving average on the OPC to approximate a 3-year R&D cycle. And the key observations are:The R&D yield is also consistent for TSM, with an average of $6.75 since 2014.AAPL’s picture is a bit more colorful. Its R&D yield has been astronomical ($10+ in 2013 and $8+ in 2014 and 2015) thanks to its almost monopoly status in key market segments in those days. Its R&D yield has gradually declined to around ~$4.0 in recent years. And its long-term average was about $5.3.To provide a broader view, the FAAMG group features an average R&D yield of ~$2.5 in recent years.Thus, both AAPL and TSM boast superb R&D yields even when compared to the overachievers in the FAAMG pack, and TSM’s yield is even higher than AAPL by a large gap.Source: Author based on Seeking Alpha dataBoth enjoy high ROCE too, but AAPL is in its own categoryTo me, ROCE (return on capital employed) is the most fundamental profitability metric as detailed in my blog article (with differences compared to ROE and Q&A on the most frequently received questions from our readers). One key reason for its fundamental importance is that the long-term growth rate is governed by ROCE and reinvestment rate (“RR”) in the following simple way:Long-Term Growth Rate = ROCE * RRThe ROCE of TSM and AAPL are shown below for the past 10 years. As you can see, TSM has been maintaining a high ROCE with remarkable consistency here. Its average ROCE has been about 42%. And I cannot overemphasize the consistency – which is a strong indicator of its stable moat. However, AAPL certainly has the upper hand here. Its ROCE is simply a category of its own. It has been hovering around an average of 125% since 2018 after its “declines” from an astronomical (and also unsustainable level in my view) of 200%+ earlier in the decade.In terms of RR, both companies have sustainable capital allocation flexibility thanks to their strong cash generation. All told, my analysis shows that TSM has been maintaining an RR in the range between 7.5% to 10% in recent years, and AAPL about 5% to 7.5%.So even without the trade tensions and deglobalization process aforementioned, I would project AAPL to have a much better perpetual growth curve ahead than TSM. I projected AAPL’s LT growth rate to be up to 10% (7.5% RR * 125% ROCE ~ 10% annual growth rate). And TSM’s growth rate, on the hand, would be limited to be in the mid-single digit range (say 4% = 10% RR * 42% ROCE).Source: Author based on Seeking Alpha dataRisks and final thoughtBut to reiterate, I do see the developing tension between TSM and AAPL and the deglobalization process as the overarching forces here. And I only see the differences in terms of valuation, R&D yields, and profitability to be secondary forces in the years to come. The deglobalization mega-trend has been unfolding since 2008. And I see a series of recent events (such as AAPL’s rejection of TSM’s price raises, the CHIPS act, the ongoing U.S.-China trade frictions, and also the Russian/Ukraine war) to further exacerbate and accelerate the trend. Under such a mega-trend, I see it as inevitable that key chip clients (such as AAPL, AMD, and NVDA) diversify their manufacturing needs away from TSM.And the bottom line is that damage will be mutual but asymmetric the way I see things. It is easier for AAPL to find replacement foundry services but a lot harder for TSM to find replacement clients at the scale of AAPL.This article is written by Envision Research for reference only. Please note the risks.","news_type":1},"isVote":1,"tweetType":1,"viewCount":140,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9982142293,"gmtCreate":1667131109013,"gmtModify":1676537865094,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Okiee","listText":"Okiee","text":"Okiee","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9982142293","repostId":"2278278971","repostType":2,"isVote":1,"tweetType":1,"viewCount":185,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9980180831,"gmtCreate":1665673620123,"gmtModify":1676537647306,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Okie","listText":"Okie","text":"Okie","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9980180831","repostId":"1102835980","repostType":4,"repost":{"id":"1102835980","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1665673011,"share":"https://www.laohu8.com/m/news/1102835980?lang=&edition=full","pubTime":"2022-10-13 22:56","market":"us","language":"en","title":"Taiwan Semiconductor Manufacturing Jumped Over 5% After Showing Its Financial Result","url":"https://stock-news.laohu8.com/highlight/detail?id=1102835980","media":"Tiger Newspress","summary":"Taiwan Semiconductor Manufacturing jumped over 5% after showing its financial result.It posted an 80","content":"<html><head></head><body><p><a href=\"https://laohu8.com/S/TSM\">Taiwan Semiconductor Manufacturing</a> jumped over 5% after showing its financial result.<img src=\"https://static.tigerbbs.com/56f0969e4d003a0ca7735edfaf5b0473\" tg-width=\"668\" tg-height=\"514\" width=\"100%\" height=\"auto\"/></p><p>It posted an 80% surge in third-quarter net profit on Thursday, buoyed by strong sales of its advanced chips despite a slowdown in the global chip industry because of economic headwinds. </p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Taiwan Semiconductor Manufacturing Jumped Over 5% After Showing Its Financial Result</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTaiwan Semiconductor Manufacturing Jumped Over 5% After Showing Its Financial Result\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2022-10-13 22:56</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p><a href=\"https://laohu8.com/S/TSM\">Taiwan Semiconductor Manufacturing</a> jumped over 5% after showing its financial result.<img src=\"https://static.tigerbbs.com/56f0969e4d003a0ca7735edfaf5b0473\" tg-width=\"668\" tg-height=\"514\" width=\"100%\" height=\"auto\"/></p><p>It posted an 80% surge in third-quarter net profit on Thursday, buoyed by strong sales of its advanced chips despite a slowdown in the global chip industry because of economic headwinds. </p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSM":"台积电"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1102835980","content_text":"Taiwan Semiconductor Manufacturing jumped over 5% after showing its financial result.It posted an 80% surge in third-quarter net profit on Thursday, buoyed by strong sales of its advanced chips despite a slowdown in the global chip industry because of economic headwinds.","news_type":1},"isVote":1,"tweetType":1,"viewCount":454,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9980117563,"gmtCreate":1665673483552,"gmtModify":1676537647280,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Cool","listText":"Cool","text":"Cool","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9980117563","repostId":"1188624927","repostType":2,"repost":{"id":"1188624927","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1665569429,"share":"https://www.laohu8.com/m/news/1188624927?lang=&edition=full","pubTime":"2022-10-12 18:10","market":"us","language":"en","title":"PepsiCo Tops Q3 Earnings, Raises FY2022 Earnings Outlook","url":"https://stock-news.laohu8.com/highlight/detail?id=1188624927","media":"Tiger Newspress","summary":"PepsiCo Inc. stock rose sharply in early premarket trading after the company posted better-than-expe","content":"<html><head></head><body><p><a href=\"https://laohu8.com/S/PEP\">PepsiCo Inc.</a> stock rose sharply in early premarket trading after the company posted better-than-expected Q3 earnings and raised full-year guidance.</p><p>For the third quarter, the company notched $21.97B in revenue alongside $1.97 in core earnings per share. Analysts had expected $1.85 and $20.81B, respectively. A 20% jump in revenue derived from the Fito-Lay North America and a rapidly accelerating business in Latin America were cited as key drivers of the strong performance.</p><p>“Given our year-to-date performance, we now expect our full-year organic revenue to increase 12% (previously 10%) and core constant currency earnings per share to increase 10 percent (previously 8%),” CEO Ramon Laguarta said. “We are encouraged by the progress we are making on our strategic agenda, and remain committed to investing in our people, brands, supply chain, and go-to-market systems and winning in the marketplace.”</p><p>A core EPS forecast of approximately $6.73 was raised $0.10 from the previous guidance despite raising the negative impact expectation for foreign exchange. A core annual effective tax rate of 20% and slated shareholder returns of $7.7B via dividends and buybacks were maintained within the guidance.</p><p>Elsewhere, a $1.6B pre-tax impairment charge related to the company’s withdrawal from Russia was noted as impacting year-to-date profits. An $868M jump in SG&amp;A expense in the third quarter of 2022 as compared to the prior year quarter reflected &#34;higher selling and distribution costs,&#34; according to the company.</p><p>Shares of the Purchase, New York-based beverage and snack giant rose 2.55% shortly after the earnings were posted.</p><p>Shares of Pepsico jumps 2.69% on better-than-expected earnings report.<img src=\"https://static.tigerbbs.com/e33a6319292c51838b9c98d1e2e68dac\" tg-width=\"792\" tg-height=\"723\" referrerpolicy=\"no-referrer\"/></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PepsiCo Tops Q3 Earnings, Raises FY2022 Earnings Outlook</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPepsiCo Tops Q3 Earnings, Raises FY2022 Earnings Outlook\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2022-10-12 18:10</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p><a href=\"https://laohu8.com/S/PEP\">PepsiCo Inc.</a> stock rose sharply in early premarket trading after the company posted better-than-expected Q3 earnings and raised full-year guidance.</p><p>For the third quarter, the company notched $21.97B in revenue alongside $1.97 in core earnings per share. Analysts had expected $1.85 and $20.81B, respectively. A 20% jump in revenue derived from the Fito-Lay North America and a rapidly accelerating business in Latin America were cited as key drivers of the strong performance.</p><p>“Given our year-to-date performance, we now expect our full-year organic revenue to increase 12% (previously 10%) and core constant currency earnings per share to increase 10 percent (previously 8%),” CEO Ramon Laguarta said. “We are encouraged by the progress we are making on our strategic agenda, and remain committed to investing in our people, brands, supply chain, and go-to-market systems and winning in the marketplace.”</p><p>A core EPS forecast of approximately $6.73 was raised $0.10 from the previous guidance despite raising the negative impact expectation for foreign exchange. A core annual effective tax rate of 20% and slated shareholder returns of $7.7B via dividends and buybacks were maintained within the guidance.</p><p>Elsewhere, a $1.6B pre-tax impairment charge related to the company’s withdrawal from Russia was noted as impacting year-to-date profits. An $868M jump in SG&amp;A expense in the third quarter of 2022 as compared to the prior year quarter reflected &#34;higher selling and distribution costs,&#34; according to the company.</p><p>Shares of the Purchase, New York-based beverage and snack giant rose 2.55% shortly after the earnings were posted.</p><p>Shares of Pepsico jumps 2.69% on better-than-expected earnings report.<img src=\"https://static.tigerbbs.com/e33a6319292c51838b9c98d1e2e68dac\" tg-width=\"792\" tg-height=\"723\" referrerpolicy=\"no-referrer\"/></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PEP":"百事可乐"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1188624927","content_text":"PepsiCo Inc. stock rose sharply in early premarket trading after the company posted better-than-expected Q3 earnings and raised full-year guidance.For the third quarter, the company notched $21.97B in revenue alongside $1.97 in core earnings per share. Analysts had expected $1.85 and $20.81B, respectively. A 20% jump in revenue derived from the Fito-Lay North America and a rapidly accelerating business in Latin America were cited as key drivers of the strong performance.“Given our year-to-date performance, we now expect our full-year organic revenue to increase 12% (previously 10%) and core constant currency earnings per share to increase 10 percent (previously 8%),” CEO Ramon Laguarta said. “We are encouraged by the progress we are making on our strategic agenda, and remain committed to investing in our people, brands, supply chain, and go-to-market systems and winning in the marketplace.”A core EPS forecast of approximately $6.73 was raised $0.10 from the previous guidance despite raising the negative impact expectation for foreign exchange. A core annual effective tax rate of 20% and slated shareholder returns of $7.7B via dividends and buybacks were maintained within the guidance.Elsewhere, a $1.6B pre-tax impairment charge related to the company’s withdrawal from Russia was noted as impacting year-to-date profits. An $868M jump in SG&A expense in the third quarter of 2022 as compared to the prior year quarter reflected \"higher selling and distribution costs,\" according to the company.Shares of the Purchase, New York-based beverage and snack giant rose 2.55% shortly after the earnings were posted.Shares of Pepsico jumps 2.69% on better-than-expected earnings report.","news_type":1},"isVote":1,"tweetType":1,"viewCount":260,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9917925266,"gmtCreate":1665415347755,"gmtModify":1676537602749,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"This...&nbsp;","listText":"This...&nbsp;","text":"This...","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9917925266","repostId":"9917900337","repostType":1,"repost":{"id":9917900337,"gmtCreate":1665404055929,"gmtModify":1676537600094,"author":{"id":"3527667620927015","authorId":"3527667620927015","name":"Tiger_Earnings","avatar":"https://static.tigerbbs.com/1849fb1fb43d93db3974fd09c5f65ff1","crmLevel":1,"crmLevelSwitch":0},"themes":[],"title":"【Stock Prediction】Guess which bank is a big winner this week ?","htmlText":"Click to vote. Guess which bank is a big winner this week ? If you get correct answers,&nbsp;you can get 20 Tiger Coins. In addition, you have the chance of winning 100 Tiger Coins.Third-quarter earnings season kicks off this&nbsp;week with the major US investment banks set to report and provide their outlooks on the economy heading into the end of the year.<a target=\"_blank\" href=\"https://laohu8.com/S/C\"></a><a href=\"https://ttm.financial/S/C\">$Citigroup(C)$</a>, <a target=\"_blank\" href=\"https://laohu8.com/S/WFC\"></a><a href=\"https://ttm.financial/S/WFC\">$Wells Fargo(WFC)$</a>, <a target=\"_blank\" href=\"https://laohu8.com/S/MS\"></a><a href=\"https://ttm.financial/S/MS\">$Morgan Stanley(MS)$</a> and&nbsp;<a target=\"_blank\" href=\"https://laohu8.com/S/JPM\"></a>","listText":"Click to vote. Guess which bank is a big winner this week ? If you get correct answers,&nbsp;you can get 20 Tiger Coins. In addition, you have the chance of winning 100 Tiger Coins.Third-quarter earnings season kicks off this&nbsp;week with the major US investment banks set to report and provide their outlooks on the economy heading into the end of the year.<a target=\"_blank\" href=\"https://laohu8.com/S/C\"></a><a href=\"https://ttm.financial/S/C\">$Citigroup(C)$</a>, <a target=\"_blank\" href=\"https://laohu8.com/S/WFC\"></a><a href=\"https://ttm.financial/S/WFC\">$Wells Fargo(WFC)$</a>, <a target=\"_blank\" href=\"https://laohu8.com/S/MS\"></a><a href=\"https://ttm.financial/S/MS\">$Morgan Stanley(MS)$</a> and&nbsp;<a target=\"_blank\" href=\"https://laohu8.com/S/JPM\"></a>","text":"Click to vote. Guess which bank is a big winner this week ? If you get correct answers, you can get 20 Tiger Coins. In addition, you have the chance of winning 100 Tiger Coins.Third-quarter earnings season kicks off this week with the major US investment banks set to report and provide their outlooks on the economy heading into the end of the year.$Citigroup(C)$, $Wells Fargo(WFC)$, $Morgan Stanley(MS)$ and","images":[{"img":"https://community-static.tradeup.com/news/bc59aa92611d4440341ad9e00aa37152","width":"2044","height":"1448"},{"img":"https://community-static.tradeup.com/news/6e1f470a3c961938ff501ab0b0b6b5dd","width":"1920","height":"1080"},{"img":"https://community-static.tradeup.com/news/01c621f47c43027adb9295d65341b794","width":"-1","height":"-1"}],"top":1,"highlighted":1,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9917900337","isVote":2,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"subType":2,"vote":{"id":2178,"gmtBegin":1665404873936,"gmtEnd":1665752400935,"type":1,"upper":1,"title":"Can you predict which bank will be the big winner this week?","choices":[{"id":8516,"sort":1,"name":"Citigroup","userSize":51,"voted":false},{"id":8517,"sort":2,"name":"Wells Fargo","userSize":19,"voted":false},{"id":8518,"sort":3,"name":"Morgan Stanley","userSize":16,"voted":false},{"id":8519,"sort":4,"name":"JPMorgan Chase","userSize":61,"voted":false}]},"comments":[],"imageCount":3,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":235,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9916890990,"gmtCreate":1664549549410,"gmtModify":1676537475908,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/RHHBY\">$Roche Holding Ltd(RHHBY)$</a>bullish??","listText":"<a href=\"https://ttm.financial/S/RHHBY\">$Roche Holding Ltd(RHHBY)$</a>bullish??","text":"$Roche Holding Ltd(RHHBY)$bullish??","images":[{"img":"https://community-static.tradeup.com/news/b97f96a1acb7300736970fb0c1f49606","width":"1080","height":"1850"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/9916890990","isVote":1,"tweetType":1,"viewCount":351,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":9933354328,"gmtCreate":1662246151964,"gmtModify":1676537021430,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Thanks for sharing","listText":"Thanks for sharing","text":"Thanks for sharing","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/9933354328","repostId":"1189856152","repostType":2,"isVote":1,"tweetType":1,"viewCount":223,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9930291877,"gmtCreate":1661959896601,"gmtModify":1676536612703,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$</a>&nbsp;good buy?&nbsp;","listText":"<a href=\"https://ttm.financial/S/NVDA\">$NVIDIA Corp(NVDA)$</a>&nbsp;good buy?&nbsp;","text":"$NVIDIA Corp(NVDA)$ good buy?","images":[{"img":"https://community-static.tradeup.com/news/48ce8e303777ea4434252228bc1a1e6c","width":"1080","height":"1850"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9930291877","isVote":1,"tweetType":1,"viewCount":102,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":9997647083,"gmtCreate":1661812922044,"gmtModify":1676536581156,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Noted","listText":"Noted","text":"Noted","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9997647083","repostId":"2263693100","repostType":2,"isVote":1,"tweetType":1,"viewCount":253,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9997659016,"gmtCreate":1661811593937,"gmtModify":1676536580687,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Good insight!","listText":"Good insight!","text":"Good insight!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9997659016","repostId":"2263091174","repostType":2,"isVote":1,"tweetType":1,"viewCount":240,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9992504436,"gmtCreate":1661332492028,"gmtModify":1676536498418,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Noted","listText":"Noted","text":"Noted","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9992504436","repostId":"2261819523","repostType":4,"repost":{"id":"2261819523","pubTimestamp":1661263959,"share":"https://www.laohu8.com/m/news/2261819523?lang=&edition=full","pubTime":"2022-08-23 22:12","market":"us","language":"en","title":"3 Things You Should Know About the Tesla Stock Split","url":"https://stock-news.laohu8.com/highlight/detail?id=2261819523","media":"Motley Fool","summary":"Tesla's stock split will take place after close of trading on Aug. 24. How will that impact your portfolio and taxes?","content":"<html><head></head><body><p><b>Tesla</b>&#39;s 3-for-1 stock split proposal won shareholder approval at the 2022 annual shareholders&#39; meeting this month. Now, the electric vehicle maker is gearing up for its second stock split after close of trading on Aug. 24. Shareholders of record on Aug. 17 will receive a stock dividend of two extra shares for every one share they currently own.</p><p>If you&#39;ve been wondering how stock splits work and what will happen to your Tesla shares, here are three quick items to jot down.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/442bd00ec553e9dc5ae35b44257799f8\" tg-width=\"700\" tg-height=\"467\" referrerpolicy=\"no-referrer\"/><span>Image source: Getty Images.</span></p><h2>1. You&#39;ll have more Tesla shares after the stock split</h2><p>A stock split increases the number of shares outstanding, giving investors more shares in their account for every one share they previously owned.</p><p>After a stock split, the value of each share will be reduced to a lower price. This makes it easy for more retail investors to get their hands on a whole share of stock, because the stock price appears more affordable. If you&#39;re already an investor, your shares will be split into bite-sized pieces, but the total value of your shares will not increase.</p><p>Let&#39;s say you have one share of Tesla&#39;s stock. On the day of the 3-for-1 stock split, the company will grant you two additional shares. Each share in your portfolio would be valued at one-third the price of the original share. If one Tesla share is trading at $900 before the stock split, you&#39;ll have three Tesla shares valued at $300 each after the stock split. As you can see, the total value of your shares is still $900.</p><p>Here&#39;s how many shares you will have after the stock split based on the number of shares you have on record as of Aug. 17. All you have to do is look at the number of shares you have now, and multiply the total by three. That&#39;s how many shares you&#39;ll have after a stock split.</p><ul><li>1 share of Tesla stock = 3 shares</li><li>2 shares of Tesla stock = 6 shares</li><li>3 shares of Tesla stock = 9 shares</li><li>4 shares of Tesla stock = 12 shares</li><li>5 shares of Tesla stock = 15 shares</li></ul><h2>2. You won&#39;t have to report the stock split itself on your tax return</h2><p>A stock split doesn&#39;t increase a company&#39;s market capitalization or increase the value of your shares. You may have more shares in your account, but the original value of your shares remains the same. Therefore, a stock split in itself is not considered a taxable event. There are no IRS reporting requirements you need to adhere to during tax time.</p><h2>3. You may have to pay taxes if you sell your extra Tesla shares</h2><p>Although a stock split in itself is not taxable, selling stock for a profit after a stock split can lead to taxes. This is the case if you sell stock in a taxable brokerage account. Earning money in the stock market leads to capital gains taxes. You will be taxed at the short-term or long-term capital gains tax rate, depending on how long you had your Tesla stock before selling it. Your brokerage firm will send you the details of your transaction, so you can properly report the sale to the IRS during tax time.</p><p>Stock splits can be exciting and pain-free in the eyes of the investor. You wake up to more shares in your account after a stock split, and you don&#39;t have to worry about any tax obligations. But as soon as you decide to sell, you&#39;ll need to report your moves to the IRS. Before you make a move after a stock split, pay attention to the impact it will have on your portfolio and taxes, so you won&#39;t be surprised later.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Things You Should Know About the Tesla Stock Split</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Things You Should Know About the Tesla Stock Split\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-08-23 22:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/08/22/3-things-you-should-know-about-the-tesla-stock-spl/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla's 3-for-1 stock split proposal won shareholder approval at the 2022 annual shareholders' meeting this month. Now, the electric vehicle maker is gearing up for its second stock split after close ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/08/22/3-things-you-should-know-about-the-tesla-stock-spl/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.fool.com/investing/2022/08/22/3-things-you-should-know-about-the-tesla-stock-spl/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2261819523","content_text":"Tesla's 3-for-1 stock split proposal won shareholder approval at the 2022 annual shareholders' meeting this month. Now, the electric vehicle maker is gearing up for its second stock split after close of trading on Aug. 24. Shareholders of record on Aug. 17 will receive a stock dividend of two extra shares for every one share they currently own.If you've been wondering how stock splits work and what will happen to your Tesla shares, here are three quick items to jot down.Image source: Getty Images.1. You'll have more Tesla shares after the stock splitA stock split increases the number of shares outstanding, giving investors more shares in their account for every one share they previously owned.After a stock split, the value of each share will be reduced to a lower price. This makes it easy for more retail investors to get their hands on a whole share of stock, because the stock price appears more affordable. If you're already an investor, your shares will be split into bite-sized pieces, but the total value of your shares will not increase.Let's say you have one share of Tesla's stock. On the day of the 3-for-1 stock split, the company will grant you two additional shares. Each share in your portfolio would be valued at one-third the price of the original share. If one Tesla share is trading at $900 before the stock split, you'll have three Tesla shares valued at $300 each after the stock split. As you can see, the total value of your shares is still $900.Here's how many shares you will have after the stock split based on the number of shares you have on record as of Aug. 17. All you have to do is look at the number of shares you have now, and multiply the total by three. That's how many shares you'll have after a stock split.1 share of Tesla stock = 3 shares2 shares of Tesla stock = 6 shares3 shares of Tesla stock = 9 shares4 shares of Tesla stock = 12 shares5 shares of Tesla stock = 15 shares2. You won't have to report the stock split itself on your tax returnA stock split doesn't increase a company's market capitalization or increase the value of your shares. You may have more shares in your account, but the original value of your shares remains the same. Therefore, a stock split in itself is not considered a taxable event. There are no IRS reporting requirements you need to adhere to during tax time.3. You may have to pay taxes if you sell your extra Tesla sharesAlthough a stock split in itself is not taxable, selling stock for a profit after a stock split can lead to taxes. This is the case if you sell stock in a taxable brokerage account. Earning money in the stock market leads to capital gains taxes. You will be taxed at the short-term or long-term capital gains tax rate, depending on how long you had your Tesla stock before selling it. Your brokerage firm will send you the details of your transaction, so you can properly report the sale to the IRS during tax time.Stock splits can be exciting and pain-free in the eyes of the investor. You wake up to more shares in your account after a stock split, and you don't have to worry about any tax obligations. But as soon as you decide to sell, you'll need to report your moves to the IRS. Before you make a move after a stock split, pay attention to the impact it will have on your portfolio and taxes, so you won't be surprised later.","news_type":1},"isVote":1,"tweetType":1,"viewCount":204,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9992143108,"gmtCreate":1661295291506,"gmtModify":1676536489031,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/AMD\">$AMD(AMD)$</a>","listText":"<a href=\"https://ttm.financial/S/AMD\">$AMD(AMD)$</a>","text":"$AMD(AMD)$","images":[{"img":"https://community-static.tradeup.com/news/c75a2a41c99adbb6d2aac7066d0f3efb","width":"1080","height":"1963"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9992143108","isVote":1,"tweetType":1,"viewCount":161,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":9992149957,"gmtCreate":1661295173281,"gmtModify":1676536489001,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":":( :(","listText":":( :(","text":":( :(","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9992149957","repostId":"2261652138","repostType":2,"isVote":1,"tweetType":1,"viewCount":189,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9990469621,"gmtCreate":1660396414965,"gmtModify":1676533464224,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Alright","listText":"Alright","text":"Alright","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9990469621","repostId":"2259233797","repostType":4,"repost":{"id":"2259233797","pubTimestamp":1660348965,"share":"https://www.laohu8.com/m/news/2259233797?lang=&edition=full","pubTime":"2022-08-13 08:02","market":"us","language":"en","title":"Best Stocks To Buy Right Now? 3 Meme Stocks To Know","url":"https://stock-news.laohu8.com/highlight/detail?id=2259233797","media":"StreetInsider","summary":"Should Investors Be Watching These Top Meme Stocks In The Stock Market?Meme stocks have taken the st","content":"<html><head></head><body><p><b>Should Investors Be Watching These Top Meme Stocks In The Stock Market?</b></p><p>Meme stocks have taken the stock market investing world by storm in recent years. What began as a meme on Reddit has turned into a serious investment strategy for many individuals. For the uninitiated, meme stocks are stocks that are popular amongst social media communities. These stocks often see significant price swings due to the high level of speculation and hype surrounding them.</p><p>Some of the most popular meme stocks include <b>GameStop</b> (NYSE: GME), <b><a href=\"https://laohu8.com/S/HOOD\">Robinhood</a> Markets </b>(NASDAQ: HOOD), and <b>BlackBerry</b> (NYSE: BB). While meme stocks can be highly volatile, they can also offer investors the opportunity to make significant profits. For these reasons, meme stocks have become increasingly popular amongst individual investors. If you&#39;re keen on investing in meme stocks, here are three to watch in the stock market today.</p><p><b>Meme Stocks To Watch Today</b></p><ul><li><b>Bed Bath &amp; Beyond</b> (NASDAQ: BBBY)</li><li><b>Tesla Inc.</b> (NASDAQ: TSLA)</li><li><b>AMC Entertainment Holdings Inc.</b> (NYSE: AMC)</li></ul><p><b>Bed Bath &amp; Beyond (BBBY Stock)</b></p><p>First on the list is <b>Bed Bath &amp; Beyond</b> (BBBY). For starters, Bed Bath &amp; Beyond is a home furnishings retailer, which operates 955 stores in all 50 U.S. states, Puerto Rico, Canada, and Mexico. According to TrueTradingGroup.com&#39;s social sentiment scanner, on Friday BBBY stock is the most mentioned stock ticker in the r/WallStreetBets Reddit community. As a result, shares of BBBY stock are up another 19% during Friday afternoon&#39;s trading session at $12.69 per share.</p><p><img src=\"https://static.tigerbbs.com/a79a1d72212c578e536d6c811fa63daa\" tg-width=\"1024\" tg-height=\"415\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"/>Source: TrueTradingGroup.com</p><p>Furthermore, in June Bed Bath &amp; Beyond reported its Q1 earning results. In it, the company reported a loss of $2.83 per share on revenue of $1.5 billion. Analysts&#39; consensus estimate was a loss of $1.33 per share on revenue of $1.5 billion. Meaning, that BBBY missed its earnings expectations for the quarter.</p><p>Sue Gove Interim Chief Executive Officer stated, &#34;<i>I step into this role keenly aware of the macro-economic environment. In the quarter there was an acute shift in customer sentiment and, since then, pressures have materially escalated. This includes steep inflation and fluctuations in purchasing patterns, leading to significant dislocation in our sales and inventory that we will be working to actively resolve. The simple reality though is that our first quarter&#39;s results are not up to our expectations, nor are they reflective of the Company&#39;s true potential. The initiatives we are instituting today are just the first steps in putting our business on firm footing to drive our future success.</i>&#34; All in all, I wouldn&#39;t be surprised if investors are going to continue to keep a close eye on BBBY stock.</p><p><img src=\"https://static.tigerbbs.com/472a873ee5c1f4cf25994c6367240e13\" tg-width=\"759\" tg-height=\"468\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"/>Source: TD Ameritrade TOS</p><p><b>Tesla Inc. (TSLA Stock)</b></p><p>Following that, let&#39;s look at EV maker Tesla (TSLA). in brief the company designs, develops, manufactures, sells, and leases fully electric automobiles, as well as energy generation and storage systems, and provides related services. Next, Tesla&#39;s automotive segment includes the sales of automotive regulatory credits. The automotive segment also makes up services and others, which include non-warranty after-sales vehicle services, used car sales, retail items, sales to third-party consumers via acquired companies, and vehicle insurance.</p><p>In July, <b>Tesla</b> posted stronger-than-estimated second quarter fiscal earnings. In detail, the company called it a &#34;tough quarter&#34;. This is referencing the closing of its plants in Shanghai and global supply shortages. Additionally, they recorded an increase of 57% in adjusted earnings to $2.27 per share. Meanwhile, revenue increased 42% year-over-year to $16.934 billion. For context, this beat wall street estimates of $1.81 a share, with sales of $16.54 billion.</p><p>In the company&#39;s presentation to shareholders, they stated, &#34;<i>We continued to make significant progress across the business during the second quarter of 2022. Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621M, and ended the quarter with the highest vehicle production month in our history.</i>&#34; On Friday, shares of TSLA stock are green 3.78% and is currently trading at $892.26. Considering all of this, would you add TSLA stock to your radar right now?</p><p><img src=\"https://static.tigerbbs.com/cffeca4f26580722535dbf2f8ac52bfb\" tg-width=\"759\" tg-height=\"468\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"/>Source: TD Ameritrade TOS</p><p><b>AMC Entertainment (AMC Stock)</b></p><p>To sum up, the list, let&#39;s check out AMC Entertainment (AMC). AMC Entertainment has been of the most popular meme stocks among retail investors. Though, the company itself is one of the biggest movie exhibition companies in the U.S. and Europe. For a sense of scale, it has nearly 950 theaters and 10,500 screens worldwide. The company&#39;s brands include AMC, AMC Classic, and AMC Dine-in.</p><p>Just this month, AMC reported a miss for its second quarter 2022 earnings results. Diving in, AMC reported a loss of $0.17 per share on revenue of $1.2 billion for Q2. The consensus estimate was a loss of $0.20 per share on revenue of $1.2 billion. However, the company was able to increase revenue by 162.3% on a year-over-year basis.</p><p>Adam Aron AMC Entertainment Chairman &amp; CEO commented, &#34;<i>AMC just completed a spectacularly encouraging second quarter that boosts our mood and brightens our prospects as we look ahead. Total Revenue in the second quarter of 2022 was more than two and a half times the revenue of the second quarter a year ago, and Adjusted EBITDA of a positive $106.7 million compares ever so favorably to a loss a year back in Adjusted EBITDA of a $150.8 million. That is a $257.5 million improvement in only twelve months.</i>&#34; In the last month of trading action AMC stock is up over 57% and is currently trading at $24.60 on Friday afternoon. Do you think AMC is a meme stock worth watching right now?</p><p><img src=\"https://static.tigerbbs.com/dbde89c7eeb08bbf0ff295ef23607fda\" tg-width=\"759\" tg-height=\"468\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"/>Source: TD Ameritrade TOS</p></body></html>","source":"highlight_streetinsider","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Best Stocks To Buy Right Now? 3 Meme Stocks To Know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBest Stocks To Buy Right Now? 3 Meme Stocks To Know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-08-13 08:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.streetinsider.com/dr/news.php?id=20458478><strong>StreetInsider</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Should Investors Be Watching These Top Meme Stocks In The Stock Market?Meme stocks have taken the stock market investing world by storm in recent years. What began as a meme on Reddit has turned into ...</p>\n\n<a href=\"https://www.streetinsider.com/dr/news.php?id=20458478\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4108":"电影和娱乐","BK4534":"瑞士信贷持仓","BK4555":"新能源车","BK4533":"AQR资本管理(全球第二大对冲基金)","HOOD":"Robinhood","BB":"黑莓","TSLA":"特斯拉","BBBY":"3B家居","BK4527":"明星科技股","BK4577":"网络游戏","BK4550":"红杉资本持仓","BK4076":"电脑与电子产品零售","BK4551":"寇图资本持仓","BK4574":"无人驾驶","BK4097":"系统软件","BK4547":"WSB热门概念","BK4581":"高盛持仓","BK4099":"汽车制造商","AMC":"AMC院线","BK4511":"特斯拉概念","BK4548":"巴美列捷福持仓","BK4127":"投资银行业与经纪业","BK4539":"次新股","GME":"游戏驿站","BK4178":"家庭装饰零售"},"source_url":"https://www.streetinsider.com/dr/news.php?id=20458478","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2259233797","content_text":"Should Investors Be Watching These Top Meme Stocks In The Stock Market?Meme stocks have taken the stock market investing world by storm in recent years. What began as a meme on Reddit has turned into a serious investment strategy for many individuals. For the uninitiated, meme stocks are stocks that are popular amongst social media communities. These stocks often see significant price swings due to the high level of speculation and hype surrounding them.Some of the most popular meme stocks include GameStop (NYSE: GME), Robinhood Markets (NASDAQ: HOOD), and BlackBerry (NYSE: BB). While meme stocks can be highly volatile, they can also offer investors the opportunity to make significant profits. For these reasons, meme stocks have become increasingly popular amongst individual investors. If you're keen on investing in meme stocks, here are three to watch in the stock market today.Meme Stocks To Watch TodayBed Bath & Beyond (NASDAQ: BBBY)Tesla Inc. (NASDAQ: TSLA)AMC Entertainment Holdings Inc. (NYSE: AMC)Bed Bath & Beyond (BBBY Stock)First on the list is Bed Bath & Beyond (BBBY). For starters, Bed Bath & Beyond is a home furnishings retailer, which operates 955 stores in all 50 U.S. states, Puerto Rico, Canada, and Mexico. According to TrueTradingGroup.com's social sentiment scanner, on Friday BBBY stock is the most mentioned stock ticker in the r/WallStreetBets Reddit community. As a result, shares of BBBY stock are up another 19% during Friday afternoon's trading session at $12.69 per share.Source: TrueTradingGroup.comFurthermore, in June Bed Bath & Beyond reported its Q1 earning results. In it, the company reported a loss of $2.83 per share on revenue of $1.5 billion. Analysts' consensus estimate was a loss of $1.33 per share on revenue of $1.5 billion. Meaning, that BBBY missed its earnings expectations for the quarter.Sue Gove Interim Chief Executive Officer stated, \"I step into this role keenly aware of the macro-economic environment. In the quarter there was an acute shift in customer sentiment and, since then, pressures have materially escalated. This includes steep inflation and fluctuations in purchasing patterns, leading to significant dislocation in our sales and inventory that we will be working to actively resolve. The simple reality though is that our first quarter's results are not up to our expectations, nor are they reflective of the Company's true potential. The initiatives we are instituting today are just the first steps in putting our business on firm footing to drive our future success.\" All in all, I wouldn't be surprised if investors are going to continue to keep a close eye on BBBY stock.Source: TD Ameritrade TOSTesla Inc. (TSLA Stock)Following that, let's look at EV maker Tesla (TSLA). in brief the company designs, develops, manufactures, sells, and leases fully electric automobiles, as well as energy generation and storage systems, and provides related services. Next, Tesla's automotive segment includes the sales of automotive regulatory credits. The automotive segment also makes up services and others, which include non-warranty after-sales vehicle services, used car sales, retail items, sales to third-party consumers via acquired companies, and vehicle insurance.In July, Tesla posted stronger-than-estimated second quarter fiscal earnings. In detail, the company called it a \"tough quarter\". This is referencing the closing of its plants in Shanghai and global supply shortages. Additionally, they recorded an increase of 57% in adjusted earnings to $2.27 per share. Meanwhile, revenue increased 42% year-over-year to $16.934 billion. For context, this beat wall street estimates of $1.81 a share, with sales of $16.54 billion.In the company's presentation to shareholders, they stated, \"We continued to make significant progress across the business during the second quarter of 2022. Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621M, and ended the quarter with the highest vehicle production month in our history.\" On Friday, shares of TSLA stock are green 3.78% and is currently trading at $892.26. Considering all of this, would you add TSLA stock to your radar right now?Source: TD Ameritrade TOSAMC Entertainment (AMC Stock)To sum up, the list, let's check out AMC Entertainment (AMC). AMC Entertainment has been of the most popular meme stocks among retail investors. Though, the company itself is one of the biggest movie exhibition companies in the U.S. and Europe. For a sense of scale, it has nearly 950 theaters and 10,500 screens worldwide. The company's brands include AMC, AMC Classic, and AMC Dine-in.Just this month, AMC reported a miss for its second quarter 2022 earnings results. Diving in, AMC reported a loss of $0.17 per share on revenue of $1.2 billion for Q2. The consensus estimate was a loss of $0.20 per share on revenue of $1.2 billion. However, the company was able to increase revenue by 162.3% on a year-over-year basis.Adam Aron AMC Entertainment Chairman & CEO commented, \"AMC just completed a spectacularly encouraging second quarter that boosts our mood and brightens our prospects as we look ahead. Total Revenue in the second quarter of 2022 was more than two and a half times the revenue of the second quarter a year ago, and Adjusted EBITDA of a positive $106.7 million compares ever so favorably to a loss a year back in Adjusted EBITDA of a $150.8 million. That is a $257.5 million improvement in only twelve months.\" In the last month of trading action AMC stock is up over 57% and is currently trading at $24.60 on Friday afternoon. Do you think AMC is a meme stock worth watching right now?Source: TD Ameritrade TOS","news_type":1},"isVote":1,"tweetType":1,"viewCount":69,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":9031833484,"gmtCreate":1646497525057,"gmtModify":1676534134995,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"A","listText":"A","text":"A","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":9,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9031833484","repostId":"2217746440","repostType":4,"repost":{"id":"2217746440","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1646435363,"share":"https://www.laohu8.com/m/news/2217746440?lang=&edition=full","pubTime":"2022-03-05 07:09","market":"us","language":"en","title":"US STOCKS-Wall Street Ends down as Ukraine Fears Eclipse Solid Jobs Data","url":"https://stock-news.laohu8.com/highlight/detail?id=2217746440","media":"Reuters","summary":"Wall Street ended lower on Friday as the war in Ukraine overshadowed an acceleration in U.S. jobs growth last month that pointed to strength in the economy.Most of the 11 major S&P sector indexes decl","content":"<html><head></head><body><p>Wall Street ended lower on Friday as the war in Ukraine overshadowed an acceleration in U.S. jobs growth last month that pointed to strength in the economy.</p><p>Most of the 11 major S&amp;P sector indexes declined, with financials leading the way with a 2% drop as investors worried about how the West&#39;s sanctions against Moscow may affect the international financial system.</p><p>The S&amp;P 500 banks index fell 3.35%, bringing its loss for the week to nearly 9%, its worst weekly decline since June 2020.</p><p>Equities globally were weaker, with safe-haven assets in demand after Russian forces seized Europe&#39;s biggest nuclear power plant in what Washington called a reckless assault that risked catastrophe.</p><p>The Labor Department&#39;s closely watched employment report showed jobs grew by a more than expected 678,000 last month and that the unemployment rate fell to 3.8%, the lowest since February 2020.</p><p>&#34;Three or four weeks ago, we would have thought that this is an incredibly important number. But given the backdrop and the overall events that are happening in Europe, it&#39;s just not,&#34; said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte.</p><p>&#34;The potential for escalation in the hot war, the potential for a growth impact in Europe and more broadly, and knock-on effects on the commodity channel and inflation are taking up all of investors&#39; time and energy,&#34; Hill said.</p><p>Amazon.com Inc , Apple Inc, Google owner-Alphabet Inc and Microsoft Corp all lost more than 1%.</p><p>The crisis in Ukraine boosted energy stocks as crude prices and other commodities rallied on the back of sanctions against Russia, a major oil producer. The S&amp;P 500 energy sector jumped 2.85% and gained about 9% for the week.</p><p>Richly valued growth stocks have faced the brunt of the recent selloff, with the S&amp;P 500 growth index    down 1.3% on Friday. The value index    declined 0.3%.</p><p>The Dow Jones Industrial Average fell 0.53% to end at 33,614.8 points, while the S&amp;P 500    lost 0.79% to 4,328.87.</p><p>The Nasdaq Composite dropped 1.66% to 13,313.44.</p><p>For the week, the S&amp;P 500 and Dow both fell 1.3%, while the Nasdaq gave up 2.8%.</p><p>Federal Reserve Chair Jerome Powell said this week he would support a 25-basis-point interest rate increase at the central bank&#39;s March 15-16 policy meeting and would be &#34;prepared to move more aggressively&#34; later if inflation does not abate as fast as expected.</p><p>Soaring commodity prices have raised fears of even greater inflation, which could prompt the Fed to hike interest rates more aggressively.</p><p>Shares of WW International, formerly Weight Watchers, dropped over 8% after the Federal Trade Commission said the company &#34;illegally&#34; collected personal information from children without parental permission.</p><p>Declining issues outnumbered advancing ones on the NYSE by a 2.12-to-1 ratio; on Nasdaq, a 2.70-to-1 ratio favored decliners.</p><p>The S&amp;P 500 posted 38 new 52-week highs and 27 new lows; the Nasdaq Composite recorded 44 new highs and 406 new lows.</p><p>Volume on U.S. exchanges was 13.9 billion shares, compared to a 20-day average of 12.6 billion, according to Refinitiv data.</p><p></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>US STOCKS-Wall Street Ends down as Ukraine Fears Eclipse Solid Jobs Data</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUS STOCKS-Wall Street Ends down as Ukraine Fears Eclipse Solid Jobs Data\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2022-03-05 07:09</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Wall Street ended lower on Friday as the war in Ukraine overshadowed an acceleration in U.S. jobs growth last month that pointed to strength in the economy.</p><p>Most of the 11 major S&amp;P sector indexes declined, with financials leading the way with a 2% drop as investors worried about how the West&#39;s sanctions against Moscow may affect the international financial system.</p><p>The S&amp;P 500 banks index fell 3.35%, bringing its loss for the week to nearly 9%, its worst weekly decline since June 2020.</p><p>Equities globally were weaker, with safe-haven assets in demand after Russian forces seized Europe&#39;s biggest nuclear power plant in what Washington called a reckless assault that risked catastrophe.</p><p>The Labor Department&#39;s closely watched employment report showed jobs grew by a more than expected 678,000 last month and that the unemployment rate fell to 3.8%, the lowest since February 2020.</p><p>&#34;Three or four weeks ago, we would have thought that this is an incredibly important number. But given the backdrop and the overall events that are happening in Europe, it&#39;s just not,&#34; said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte.</p><p>&#34;The potential for escalation in the hot war, the potential for a growth impact in Europe and more broadly, and knock-on effects on the commodity channel and inflation are taking up all of investors&#39; time and energy,&#34; Hill said.</p><p>Amazon.com Inc , Apple Inc, Google owner-Alphabet Inc and Microsoft Corp all lost more than 1%.</p><p>The crisis in Ukraine boosted energy stocks as crude prices and other commodities rallied on the back of sanctions against Russia, a major oil producer. The S&amp;P 500 energy sector jumped 2.85% and gained about 9% for the week.</p><p>Richly valued growth stocks have faced the brunt of the recent selloff, with the S&amp;P 500 growth index    down 1.3% on Friday. The value index    declined 0.3%.</p><p>The Dow Jones Industrial Average fell 0.53% to end at 33,614.8 points, while the S&amp;P 500    lost 0.79% to 4,328.87.</p><p>The Nasdaq Composite dropped 1.66% to 13,313.44.</p><p>For the week, the S&amp;P 500 and Dow both fell 1.3%, while the Nasdaq gave up 2.8%.</p><p>Federal Reserve Chair Jerome Powell said this week he would support a 25-basis-point interest rate increase at the central bank&#39;s March 15-16 policy meeting and would be &#34;prepared to move more aggressively&#34; later if inflation does not abate as fast as expected.</p><p>Soaring commodity prices have raised fears of even greater inflation, which could prompt the Fed to hike interest rates more aggressively.</p><p>Shares of WW International, formerly Weight Watchers, dropped over 8% after the Federal Trade Commission said the company &#34;illegally&#34; collected personal information from children without parental permission.</p><p>Declining issues outnumbered advancing ones on the NYSE by a 2.12-to-1 ratio; on Nasdaq, a 2.70-to-1 ratio favored decliners.</p><p>The S&amp;P 500 posted 38 new 52-week highs and 27 new lows; the Nasdaq Composite recorded 44 new highs and 406 new lows.</p><p>Volume on U.S. exchanges was 13.9 billion shares, compared to a 20-day average of 12.6 billion, according to Refinitiv data.</p><p></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"161125":"标普500","513500":"标普500ETF",".SPX":"S&P 500 Index","OEX":"标普100","LABP":"Landos Biopharma, Inc.","BK4532":"文艺复兴科技持仓","QQQ":"纳指100ETF","BK4554":"元宇宙及AR概念","BK4553":"喜马拉雅资本持仓","DDM":"道指两倍做多ETF","BK4534":"瑞士信贷持仓","BK4139":"生物科技","BK4576":"AR","DOG":"道指反向ETF","BK4007":"制药","TQQQ":"纳指三倍做多ETF","CGEM":"Cullinan Therapeutics","BK4566":"资本集团","BK4525":"远程办公概念","BK4196":"保健护理服务","SDOW":"道指三倍做空ETF-ProShares","DJX":"1/100道琼斯","OEF":"标普100指数ETF-iShares","BK4082":"医疗保健设备","DXD":"道指两倍做空ETF","BK4077":"互动媒体与服务","SSO":"两倍做多标普500ETF","BK4527":"明星科技股","BK4538":"云计算","BK4559":"巴菲特持仓","BK4579":"人工智能","SH":"标普500反向ETF","SQQQ":"纳指三倍做空ETF","BK4503":"景林资产持仓","GOOGL":"谷歌A","BK4574":"无人驾驶","BK4561":"索罗斯持仓","SANA":"Sana Biotechnology, Inc.","BK4573":"虚拟现实","QID":"纳指两倍做空ETF","BK4581":"高盛持仓","BK4504":"桥水持仓","SPXU":"三倍做空标普500ETF","UPRO":"三倍做多标普500ETF","IVV":"标普500指数ETF","BK4514":"搜索引擎","SPY":"标普500ETF",".IXIC":"NASDAQ Composite","QLD":"纳指两倍做多ETF"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2217746440","content_text":"Wall Street ended lower on Friday as the war in Ukraine overshadowed an acceleration in U.S. jobs growth last month that pointed to strength in the economy.Most of the 11 major S&P sector indexes declined, with financials leading the way with a 2% drop as investors worried about how the West's sanctions against Moscow may affect the international financial system.The S&P 500 banks index fell 3.35%, bringing its loss for the week to nearly 9%, its worst weekly decline since June 2020.Equities globally were weaker, with safe-haven assets in demand after Russian forces seized Europe's biggest nuclear power plant in what Washington called a reckless assault that risked catastrophe.The Labor Department's closely watched employment report showed jobs grew by a more than expected 678,000 last month and that the unemployment rate fell to 3.8%, the lowest since February 2020.\"Three or four weeks ago, we would have thought that this is an incredibly important number. But given the backdrop and the overall events that are happening in Europe, it's just not,\" said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte.\"The potential for escalation in the hot war, the potential for a growth impact in Europe and more broadly, and knock-on effects on the commodity channel and inflation are taking up all of investors' time and energy,\" Hill said.Amazon.com Inc , Apple Inc, Google owner-Alphabet Inc and Microsoft Corp all lost more than 1%.The crisis in Ukraine boosted energy stocks as crude prices and other commodities rallied on the back of sanctions against Russia, a major oil producer. The S&P 500 energy sector jumped 2.85% and gained about 9% for the week.Richly valued growth stocks have faced the brunt of the recent selloff, with the S&P 500 growth index    down 1.3% on Friday. The value index    declined 0.3%.The Dow Jones Industrial Average fell 0.53% to end at 33,614.8 points, while the S&P 500    lost 0.79% to 4,328.87.The Nasdaq Composite dropped 1.66% to 13,313.44.For the week, the S&P 500 and Dow both fell 1.3%, while the Nasdaq gave up 2.8%.Federal Reserve Chair Jerome Powell said this week he would support a 25-basis-point interest rate increase at the central bank's March 15-16 policy meeting and would be \"prepared to move more aggressively\" later if inflation does not abate as fast as expected.Soaring commodity prices have raised fears of even greater inflation, which could prompt the Fed to hike interest rates more aggressively.Shares of WW International, formerly Weight Watchers, dropped over 8% after the Federal Trade Commission said the company \"illegally\" collected personal information from children without parental permission.Declining issues outnumbered advancing ones on the NYSE by a 2.12-to-1 ratio; on Nasdaq, a 2.70-to-1 ratio favored decliners.The S&P 500 posted 38 new 52-week highs and 27 new lows; the Nasdaq Composite recorded 44 new highs and 406 new lows.Volume on U.S. exchanges was 13.9 billion shares, compared to a 20-day average of 12.6 billion, according to Refinitiv data.","news_type":1},"isVote":1,"tweetType":1,"viewCount":16,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9933354328,"gmtCreate":1662246151964,"gmtModify":1676537021430,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Thanks for sharing","listText":"Thanks for sharing","text":"Thanks for sharing","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/9933354328","repostId":"1189856152","repostType":2,"repost":{"id":"1189856152","pubTimestamp":1662172832,"share":"https://www.laohu8.com/m/news/1189856152?lang=&edition=full","pubTime":"2022-09-03 10:40","market":"us","language":"en","title":"3 Penny Stocks That Could 10X by 2023","url":"https://stock-news.laohu8.com/highlight/detail?id=1189856152","media":"InvestorPlace","summary":"If you have the cash to spare and are willing to take on some risk, then the following three penny s","content":"<html><head></head><body><ul><li>If you have the cash to spare and are willing to take on some risk, then the following three penny stocks will interest you.</li><li><b>Exela Technologies</b>(<b><u>XELA</u></b>): Exela Technologies deserves a look because the business automation company has reduced debt significantly in the last few quarters.</li><li><b>Palatin Technologies</b>(<b><u>PTN</u></b>): Palatin could be a multi-bagger since it has several products that are in various clinical stages of development.</li><li><b>FlexShopper</b>(<b><u>FPAY</u></b>): FlexShopper is a new fintech startup that is becoming a great challenger in the current market.</li></ul><p>How do you find the best penny stocks? The answer may seem simple, but it’s not. Many things can affect your decision and make finding a good buy tough for even the most experienced investors.</p><p>One thing to look out for when trying to invest in penny stocks is whether or not their prices will stay low long enough before they inflate again. Second, great financials are a must. Look out for those with strong balance sheets and healthy profits. Finally, look for companies with good future prospects. This could mean they have new products or services in the pipeline or are expanding into new markets. By taking the time to research penny stocks, you can increase your chances of finding ones that will be successful investments.</p><p>Penny stocks can be very exciting. But they also come with risks and require research before investing any real capital into them. If you are ready to take the plunge, here are three penny stocks that could 10X by 2023.</p><p><b>Exela Technologies (XELA)</b></p><p><b>Exela Technologies</b>(NASDAQ:<b><u>XELA</u></b>) is a global business process automation and information management solutions provider. Headquartered in Texas, Exela serves more than4,000 customers in over 50 countries. Its platform enables customers to automate manual processes, improve data quality and compliance, and reduce costs. One company that constantly comes up when discussing penny stocks is Exela Technologies.</p><p>Why? Exela Technologies is in a good position right now. It has secured some big contract victories recently. Exela’s Exchange for Bills and Payments segment contracted an order with a total value of $136 million in June. The same division secured a three-year, $18.3 million deal, which started accruing in the third quarter of 2022.</p><p>The company has high debt levels, which poses a problem for investors. However, Exela Technologies has done well in the last few quarters, paring debt substantially. Investors should pay attention to whether the debt-EBITDA ratio will continue to lessen.</p><p>One of the brightest spots for Exela is DrySign, a proprietary e-signature platform. DrySign enables organizations to sign documents with high security and compliance electronically. Exela is well-positioned to continue its growth in this market, which is expected to grow to $42 billion by 2030.</p><p>Exela’s growth has been slowing in recent years. Blame it on intensifying competition, slower-than-expected adoption of its products, and uncertain macroeconomic conditions. However, the company has made some progress in adapting its business model to the new realities of the global business process automation software market. It is now well-positioned to capitalize on the secular tailwinds driving demand for its solutions.</p><p><b>Palatin Technologies (PTN)</b></p><p><b>Palatin Technologies</b>(NYSEMKT:<b><u>PTN</u></b>) is an up-and-coming biotech company that is based in New Jersey. Its chief product, Vyleesi, was approved by the U.S. Food and Drug Administration in June 2019 for treating HSDD (hypoactive sexual desire disorder) in premenopausal women.</p><p>PL9643, another drug in its pipeline, helps treat dry eye disease. In addition, Palatin is developing a drug that can effectively treat ulcerative colitis. Its PL8177 has passed its first-stage trials and will be going into Phase 2 testing soon, with expected results by the end of 2022.</p><p>In conclusion, Palatin holds an excellent portfolio of drugs in earlier stages of development. With several potential blockbuster drugs in its pipeline, this is a company with huge upside potential. So don’t miss out on this hidden gem. You will want to keep an eye on Palatin Technologies.</p><p><b>FlexShopper (FPAY)</b></p><p><b>FlexShopper</b>(NASDAQ:<b><u>FPAY</u></b>) is an upcoming fintech company proving to be a great challenger in the current market. Its principal business is lease-to-own furniture, which is gaining ground as consumers become affected by inflation. Its lease-to-own offerings are an appealing and practical solution because they provide a way to get the furniture without breaking the bank.</p><p>The percentage of consumers using financing or leasing programs has increased dramatically in the past year. A recent survey of 2,688 consumers in the U.S. found that nearly 58% used a financing or leasing program when buying durable goods within the past year. With inflation remaining at its highest rate in decades, the trend will not change anytime soon.</p><p>The latest results from FlexShopper illustrate the company is doing very well due to these trends. Analysts expected a loss of 5 cents per share for the second quarter, and the company blew past those numbers with a 51-cent profit. Revenues of $36.55 million also outpaced analyst estimates of $32.08 million.</p><p>Its recent performance is driven by several tailwinds. These include rising demand for its lease-to-own services, a favorable product mix and inflation. Given the company’s strong fundamentals and favorable industry trends, FlexShopper is in a great position to grow in the quarters ahead.</p></body></html>","source":"investorplace","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Penny Stocks That Could 10X by 2023</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Penny Stocks That Could 10X by 2023\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-09-03 10:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2022/09/3-penny-stocks-that-could-10x-by-2023-xela-ptn-fpay/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you have the cash to spare and are willing to take on some risk, then the following three penny stocks will interest you.Exela Technologies(XELA): Exela Technologies deserves a look because the ...</p>\n\n<a href=\"https://investorplace.com/2022/09/3-penny-stocks-that-could-10x-by-2023-xela-ptn-fpay/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"XELA":"Exela Technologies, Inc.","PTN":"Palatin Technologies Inc","FPAY":"FlexShopper Inc"},"source_url":"https://investorplace.com/2022/09/3-penny-stocks-that-could-10x-by-2023-xela-ptn-fpay/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1189856152","content_text":"If you have the cash to spare and are willing to take on some risk, then the following three penny stocks will interest you.Exela Technologies(XELA): Exela Technologies deserves a look because the business automation company has reduced debt significantly in the last few quarters.Palatin Technologies(PTN): Palatin could be a multi-bagger since it has several products that are in various clinical stages of development.FlexShopper(FPAY): FlexShopper is a new fintech startup that is becoming a great challenger in the current market.How do you find the best penny stocks? The answer may seem simple, but it’s not. Many things can affect your decision and make finding a good buy tough for even the most experienced investors.One thing to look out for when trying to invest in penny stocks is whether or not their prices will stay low long enough before they inflate again. Second, great financials are a must. Look out for those with strong balance sheets and healthy profits. Finally, look for companies with good future prospects. This could mean they have new products or services in the pipeline or are expanding into new markets. By taking the time to research penny stocks, you can increase your chances of finding ones that will be successful investments.Penny stocks can be very exciting. But they also come with risks and require research before investing any real capital into them. If you are ready to take the plunge, here are three penny stocks that could 10X by 2023.Exela Technologies (XELA)Exela Technologies(NASDAQ:XELA) is a global business process automation and information management solutions provider. Headquartered in Texas, Exela serves more than4,000 customers in over 50 countries. Its platform enables customers to automate manual processes, improve data quality and compliance, and reduce costs. One company that constantly comes up when discussing penny stocks is Exela Technologies.Why? Exela Technologies is in a good position right now. It has secured some big contract victories recently. Exela’s Exchange for Bills and Payments segment contracted an order with a total value of $136 million in June. The same division secured a three-year, $18.3 million deal, which started accruing in the third quarter of 2022.The company has high debt levels, which poses a problem for investors. However, Exela Technologies has done well in the last few quarters, paring debt substantially. Investors should pay attention to whether the debt-EBITDA ratio will continue to lessen.One of the brightest spots for Exela is DrySign, a proprietary e-signature platform. DrySign enables organizations to sign documents with high security and compliance electronically. Exela is well-positioned to continue its growth in this market, which is expected to grow to $42 billion by 2030.Exela’s growth has been slowing in recent years. Blame it on intensifying competition, slower-than-expected adoption of its products, and uncertain macroeconomic conditions. However, the company has made some progress in adapting its business model to the new realities of the global business process automation software market. It is now well-positioned to capitalize on the secular tailwinds driving demand for its solutions.Palatin Technologies (PTN)Palatin Technologies(NYSEMKT:PTN) is an up-and-coming biotech company that is based in New Jersey. Its chief product, Vyleesi, was approved by the U.S. Food and Drug Administration in June 2019 for treating HSDD (hypoactive sexual desire disorder) in premenopausal women.PL9643, another drug in its pipeline, helps treat dry eye disease. In addition, Palatin is developing a drug that can effectively treat ulcerative colitis. Its PL8177 has passed its first-stage trials and will be going into Phase 2 testing soon, with expected results by the end of 2022.In conclusion, Palatin holds an excellent portfolio of drugs in earlier stages of development. With several potential blockbuster drugs in its pipeline, this is a company with huge upside potential. So don’t miss out on this hidden gem. You will want to keep an eye on Palatin Technologies.FlexShopper (FPAY)FlexShopper(NASDAQ:FPAY) is an upcoming fintech company proving to be a great challenger in the current market. Its principal business is lease-to-own furniture, which is gaining ground as consumers become affected by inflation. Its lease-to-own offerings are an appealing and practical solution because they provide a way to get the furniture without breaking the bank.The percentage of consumers using financing or leasing programs has increased dramatically in the past year. A recent survey of 2,688 consumers in the U.S. found that nearly 58% used a financing or leasing program when buying durable goods within the past year. With inflation remaining at its highest rate in decades, the trend will not change anytime soon.The latest results from FlexShopper illustrate the company is doing very well due to these trends. Analysts expected a loss of 5 cents per share for the second quarter, and the company blew past those numbers with a 51-cent profit. Revenues of $36.55 million also outpaced analyst estimates of $32.08 million.Its recent performance is driven by several tailwinds. These include rising demand for its lease-to-own services, a favorable product mix and inflation. Given the company’s strong fundamentals and favorable industry trends, FlexShopper is in a great position to grow in the quarters ahead.","news_type":1},"isVote":1,"tweetType":1,"viewCount":223,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9031831111,"gmtCreate":1646497895188,"gmtModify":1676534135010,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"A","listText":"A","text":"A","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9031831111","repostId":"1178979994","repostType":4,"repost":{"id":"1178979994","pubTimestamp":1646440407,"share":"https://www.laohu8.com/m/news/1178979994?lang=&edition=full","pubTime":"2022-03-05 08:33","market":"us","language":"en","title":"3 Top MLPs to Buy For High Yields","url":"https://stock-news.laohu8.com/highlight/detail?id=1178979994","media":"InvestorPlace","summary":"We believe that investors searching for income consider owning master limited partnerships, or MLPs.","content":"<html><head></head><body><p>We believe that investors searching for income consider owning master limited partnerships, or MLPs. These stocks typically provide very high yields, often in the high single- to low double-digit range.</p><p>Of course, high yields often come with high risk, so investors need to identify high-quality MLPs that are likely to continue to at least maintain, if not raise, their distribution.</p><p>Three of our top high-yield MLPs that we believe will continue to pay high yields to shareholders include:</p><ul><li><b>Enterprise Products Partners</b>(NYSE:<b><u>EPD</u></b>)</li><li><b>KNOT Offshore Partners</b>(NYSE:<b><u>KNOP</u></b>)</li><li><b>Magellan Midstream Partners</b>(NYSE:<b><u>MMP</u></b>)</li></ul><p>Enterprise Products Partners (EPD)</p><p>Our first name for consideration is Enterprise Products Partners, one of the largest MLPs in the industry. The $54.5 billion partnership generates annual revenue of close to $41 billion.</p><p>Enterprise Products Partners stores and transports oil and gas through its massive pipeline system. In total, the partnership has nearly 50,000 miles of pipeline that transport natural gas, natural gas liquids, crude oil, and refined products. Enterprise Products Partners has storage facilities that can hold more than 250 million barrels.</p><p>The partnership’s extensive network of pipeline grants it a diversity of asset and geographic reach. Enterprise Products Partners is also able to pivot its pipeline system to move whatever energy product it wishes. This gives Enterprise Products Partners an asset base that few other in the industry can match. It would be cost prohibitive and maybe even politically impossible for another partnership to try to replicate what the partnership has created.</p><p>Enterprise Products Partners’ collects fees on the materials that it transports and stores, making the partnership a toll road for those wishing to move energy products. This helps to insulate the business from the ups and downs of the energy price cycle.</p><p>Enterprise Products Partners is also well positioned to take advantage of the growing demand for liquefied natural gas and liquefied petroleum gas. The partnership has a number of terminals that will aid the business as the U.S. exports grow in size over the next few years.</p><p>A credit rating of BBB+ and Baa1 from Standard &amp; Poor’s and Moody’s, respectively, means that the partnership has a better balance sheet than the vast majority of MLPs.</p><p>The business is been very successful over the years, which has allowed Enterprise Products Partners to raise its dividend for 23 consecutive years. This includes a 3.3% increase for the February 11th, 2022 payment. Enterprise Products Partners differs from most other companies in that it often raises its dividend every quarter, except for 2021, where the dividend was held constant all four payments. Using the new annualized dividend, distributions have a CAGR of more than 4% over the last decade.</p><p>Shares yield 7.4%, more than five times the average yield of the S&amp;P 500 Index. The dividend also looks to be in very sound ground, as Enterprise Products Partners has an average distributable cash flow per unit payout ratio of 57% over the last decade. Combining this reasonable payout ratio with a distribution coverage ratio of more than 1.6x, Enterprise Products Partners is poised to continue to raise its already generous dividend.</p><p>KNOT Offshore Partners (KNOP)</p><p>Our next pick of MLPs is KNOT Offshore Partners, which owns and operates shuttle tankers in the North Sea and Brazil. The partnership has a market capitalization of $525 million and revenue of $279 million last year.</p><p>Knutsen NYK Offshore tankers AS, which is the sponsor for the partnership, has the responsibility of finding, purchasing, and dropping down of ships to KNOT Offshore Partners. As a result, the business is extremely efficient and has just one employee, its CEO.</p><p>The partnership provides loading, transportation, and storage of crude oil under time charters and bareboat charters. Currently, there are seventeen shuttle tankers in service, most of which has long-term and fixed contracts that must be paid regardless of the price of energy. KNOT Offshore Partners’ shuttle tankers have an average age of just under 8 years, which means that the partnership could see several decades of use from its present fleet.</p><p>Due to its business model, KNOT Offshore Partners hasn’t seen the fluctuations in distributable cash flow per unit that many of its peers have experienced. This is due to its contractual agreements and its ability to see higher rental rates when the price of energy is higher. This pattern is likely to continue as the sponsor could drop down as many as three new shuttle tankers through the end of the year.</p><p>At the time of its most recent quarterly report, KNOT Offshore Partners had a utilization rate of 91.9%. This was below the prior year’s result, but this was due mostly to the timing of a charter contract and mechanical issues with another shuttle.</p><p>KNOT Offshore Partners has maintained the same quarterly distribution of $0.52 per share since the November 13th, 2015 payment. The expected coverage ratio for last year is just 1.2, lower than it has been in recent years. The expected distributable cash flow payout ratio is also higher than normal at 84% for 2021. Historically, the payout ratio has been near 70%. Therefore, we do not anticipate that the partnership will raise its dividend in the near future. The tradeoff to this lack of growth is that shareholders are receiving a 13.4% yield today.</p><p>Even with a high payout ratio and lack of dividend growth, we remain confident that KNOT Offshore Partners will be able to continue making its payments to shareholders. The business model has proven successful at navigating other difficult operating environments and will energy prices surging, KNOT Offshore Partners is expected continuing to see high demand for shuttle tankers.</p><p>Magellan Midstream Partners (MMP)</p><p>Our final pick among MLPs is Magellan Midstream Partners, which operates a vast pipeline network. The partnership is valued at $10.4 billion and has annual revenue of $2.8 billion.</p><p>Like Enterprise Products Partners, Magellan Midstream Partners operates one of the longest pipeline systems of refined products in the country. The partnership operates 9,800 miles of pipeline and 54 terminals used in the transportation of refined products. Two storage facilities can hold 18 million barrels of product as well. The partnership also has 2,200 miles of crude oil pipeline and can store 37 million barrels. Magellan Midstream Partners connects to nearly half of the refining capacity in the U.S., giving it a size and scale that few, if any, are able to compete with.</p><p>Given the breadth of Magellan Midstream Partners’ pipeline and storage network, the partnership is able to offer customers connection between refineries and gas stations and railroads throughout much of the country. As a result, Magellan Midstream Partners’ contracts often include inflation adjusted increases in fees, which is almost certainly benefiting the partnership given the rise in inflation.</p><p>Magellan Midstream Partners has a fee-based model. Less than 10% of operating income is sensitive to energy prices, helping to insulate the partnership against downturns in the market. This could limit some upside potential, but this business model offers some stability in an industry where stability is rare.</p><p>Magellan Midstream Partners had raised its dividend 70 consecutive quarters prior to freezing it due to the Covid-19 pandemic. The partnership last raised its dividend 1% for the November 12th, 2021 payment date. The payout ratio is expected to be 80% for 2021, in-line with the average of the last five years. Leadership also has a coverage ratio target of at least 1.2. Our expected coverage ratio for 2022 of 1.25 is ahead of this target.  Shares of the partnership yield 8.5%.</p><p>Final Thoughts</p><p>Investors searching for sources of high yields that are secure don’t often have too many options to choose from. Enterprise Products Partners, KNOT Offshore Partners, and Magellan Midstream Partners are three names we believe can continue to offer investors generous yields that appear safe from a dividend cut.</p><p>Each of these MLPs has competitive advantages that help separate it from the rest of the industry, leading to the generous yields that each offers. Each partnership also has sufficient coverage that a dividend cut does not appear to be imminent.</p><p>This suggests that investors looking for safe and high yields consider adding Enterprise Products Partners, KNOT Offshore Partners, or Magellan Midstream Partners to their portfolio.</p></body></html>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Top MLPs to Buy For High Yields</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Top MLPs to Buy For High Yields\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-05 08:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2022/03/3-top-mlps-to-buy-for-high-yields/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>We believe that investors searching for income consider owning master limited partnerships, or MLPs. These stocks typically provide very high yields, often in the high single- to low double-digit ...</p>\n\n<a href=\"https://investorplace.com/2022/03/3-top-mlps-to-buy-for-high-yields/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KNOP":"KNOT Offshore Partners LP Common","EPD":"Enterprise Products Partners L.P"},"source_url":"https://investorplace.com/2022/03/3-top-mlps-to-buy-for-high-yields/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178979994","content_text":"We believe that investors searching for income consider owning master limited partnerships, or MLPs. These stocks typically provide very high yields, often in the high single- to low double-digit range.Of course, high yields often come with high risk, so investors need to identify high-quality MLPs that are likely to continue to at least maintain, if not raise, their distribution.Three of our top high-yield MLPs that we believe will continue to pay high yields to shareholders include:Enterprise Products Partners(NYSE:EPD)KNOT Offshore Partners(NYSE:KNOP)Magellan Midstream Partners(NYSE:MMP)Enterprise Products Partners (EPD)Our first name for consideration is Enterprise Products Partners, one of the largest MLPs in the industry. The $54.5 billion partnership generates annual revenue of close to $41 billion.Enterprise Products Partners stores and transports oil and gas through its massive pipeline system. In total, the partnership has nearly 50,000 miles of pipeline that transport natural gas, natural gas liquids, crude oil, and refined products. Enterprise Products Partners has storage facilities that can hold more than 250 million barrels.The partnership’s extensive network of pipeline grants it a diversity of asset and geographic reach. Enterprise Products Partners is also able to pivot its pipeline system to move whatever energy product it wishes. This gives Enterprise Products Partners an asset base that few other in the industry can match. It would be cost prohibitive and maybe even politically impossible for another partnership to try to replicate what the partnership has created.Enterprise Products Partners’ collects fees on the materials that it transports and stores, making the partnership a toll road for those wishing to move energy products. This helps to insulate the business from the ups and downs of the energy price cycle.Enterprise Products Partners is also well positioned to take advantage of the growing demand for liquefied natural gas and liquefied petroleum gas. The partnership has a number of terminals that will aid the business as the U.S. exports grow in size over the next few years.A credit rating of BBB+ and Baa1 from Standard & Poor’s and Moody’s, respectively, means that the partnership has a better balance sheet than the vast majority of MLPs.The business is been very successful over the years, which has allowed Enterprise Products Partners to raise its dividend for 23 consecutive years. This includes a 3.3% increase for the February 11th, 2022 payment. Enterprise Products Partners differs from most other companies in that it often raises its dividend every quarter, except for 2021, where the dividend was held constant all four payments. Using the new annualized dividend, distributions have a CAGR of more than 4% over the last decade.Shares yield 7.4%, more than five times the average yield of the S&P 500 Index. The dividend also looks to be in very sound ground, as Enterprise Products Partners has an average distributable cash flow per unit payout ratio of 57% over the last decade. Combining this reasonable payout ratio with a distribution coverage ratio of more than 1.6x, Enterprise Products Partners is poised to continue to raise its already generous dividend.KNOT Offshore Partners (KNOP)Our next pick of MLPs is KNOT Offshore Partners, which owns and operates shuttle tankers in the North Sea and Brazil. The partnership has a market capitalization of $525 million and revenue of $279 million last year.Knutsen NYK Offshore tankers AS, which is the sponsor for the partnership, has the responsibility of finding, purchasing, and dropping down of ships to KNOT Offshore Partners. As a result, the business is extremely efficient and has just one employee, its CEO.The partnership provides loading, transportation, and storage of crude oil under time charters and bareboat charters. Currently, there are seventeen shuttle tankers in service, most of which has long-term and fixed contracts that must be paid regardless of the price of energy. KNOT Offshore Partners’ shuttle tankers have an average age of just under 8 years, which means that the partnership could see several decades of use from its present fleet.Due to its business model, KNOT Offshore Partners hasn’t seen the fluctuations in distributable cash flow per unit that many of its peers have experienced. This is due to its contractual agreements and its ability to see higher rental rates when the price of energy is higher. This pattern is likely to continue as the sponsor could drop down as many as three new shuttle tankers through the end of the year.At the time of its most recent quarterly report, KNOT Offshore Partners had a utilization rate of 91.9%. This was below the prior year’s result, but this was due mostly to the timing of a charter contract and mechanical issues with another shuttle.KNOT Offshore Partners has maintained the same quarterly distribution of $0.52 per share since the November 13th, 2015 payment. The expected coverage ratio for last year is just 1.2, lower than it has been in recent years. The expected distributable cash flow payout ratio is also higher than normal at 84% for 2021. Historically, the payout ratio has been near 70%. Therefore, we do not anticipate that the partnership will raise its dividend in the near future. The tradeoff to this lack of growth is that shareholders are receiving a 13.4% yield today.Even with a high payout ratio and lack of dividend growth, we remain confident that KNOT Offshore Partners will be able to continue making its payments to shareholders. The business model has proven successful at navigating other difficult operating environments and will energy prices surging, KNOT Offshore Partners is expected continuing to see high demand for shuttle tankers.Magellan Midstream Partners (MMP)Our final pick among MLPs is Magellan Midstream Partners, which operates a vast pipeline network. The partnership is valued at $10.4 billion and has annual revenue of $2.8 billion.Like Enterprise Products Partners, Magellan Midstream Partners operates one of the longest pipeline systems of refined products in the country. The partnership operates 9,800 miles of pipeline and 54 terminals used in the transportation of refined products. Two storage facilities can hold 18 million barrels of product as well. The partnership also has 2,200 miles of crude oil pipeline and can store 37 million barrels. Magellan Midstream Partners connects to nearly half of the refining capacity in the U.S., giving it a size and scale that few, if any, are able to compete with.Given the breadth of Magellan Midstream Partners’ pipeline and storage network, the partnership is able to offer customers connection between refineries and gas stations and railroads throughout much of the country. As a result, Magellan Midstream Partners’ contracts often include inflation adjusted increases in fees, which is almost certainly benefiting the partnership given the rise in inflation.Magellan Midstream Partners has a fee-based model. Less than 10% of operating income is sensitive to energy prices, helping to insulate the partnership against downturns in the market. This could limit some upside potential, but this business model offers some stability in an industry where stability is rare.Magellan Midstream Partners had raised its dividend 70 consecutive quarters prior to freezing it due to the Covid-19 pandemic. The partnership last raised its dividend 1% for the November 12th, 2021 payment date. The payout ratio is expected to be 80% for 2021, in-line with the average of the last five years. Leadership also has a coverage ratio target of at least 1.2. Our expected coverage ratio for 2022 of 1.25 is ahead of this target.  Shares of the partnership yield 8.5%.Final ThoughtsInvestors searching for sources of high yields that are secure don’t often have too many options to choose from. Enterprise Products Partners, KNOT Offshore Partners, and Magellan Midstream Partners are three names we believe can continue to offer investors generous yields that appear safe from a dividend cut.Each of these MLPs has competitive advantages that help separate it from the rest of the industry, leading to the generous yields that each offers. Each partnership also has sufficient coverage that a dividend cut does not appear to be imminent.This suggests that investors looking for safe and high yields consider adding Enterprise Products Partners, KNOT Offshore Partners, or Magellan Midstream Partners to their portfolio.","news_type":1},"isVote":1,"tweetType":1,"viewCount":68,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9097198107,"gmtCreate":1645368161924,"gmtModify":1676534021833,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Thx","listText":"Thx","text":"Thx","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9097198107","repostId":"1129746013","repostType":4,"repost":{"id":"1129746013","pubTimestamp":1645335911,"share":"https://www.laohu8.com/m/news/1129746013?lang=&edition=full","pubTime":"2022-02-20 13:45","market":"us","language":"en","title":"CrowdStrike: Keep This Cybersecurity Leader On Your Watchlist","url":"https://stock-news.laohu8.com/highlight/detail?id=1129746013","media":"Seeking Alpha","summary":"SummaryCrowdStrike is a leader in cybersecurity and has experienced explosive revenue growth since g","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>CrowdStrike is a leader in cybersecurity and has experienced explosive revenue growth since going public.</li><li>The company is not profitable currently but has the potential to be an asset-light cash cow at scale.</li><li>The valuation premium is steep as the company trades at 27.1x sales.</li><li>CrowdStrike is on my watchlist, but I will be waiting until a drop into the low-100s range before buying shares.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4df7df59630390814d0365a1a75d9a22\" tg-width=\"1536\" tg-height=\"874\" width=\"100%\" height=\"auto\"/><span>solarseven/iStock via Getty Images</span></p><p><b>Investment Thesis</b></p><p>CrowdStrike (CRWD) belongs on the watchlist of growth investors, but I wouldn&#39;t be buying at current prices. The company is growing revenues at a rapid pace, but with interest rate hikes expected in 2022, I would wait to buy shares as the selloff could continue. The company has impressive revenue growth which hasn&#39;t made its way to the bottom line yet but should as the company grows towards maturity. Investors should keep an eye on ballooning operating and stock-based expenses. Bullish investors should be patient and wait for a price where the risk/reward is skewed to the upside.</p><p><b>The Business</b></p><p>CrowdStrike is a cloud cybersecurity company that is known as one of the current leaders in the industry. The company has plenty of cash on the balance sheet, and the people that I have talked to that are familiar with CrowdStrike&#39;s offerings have had good things to say about it. The company is investing aggressively back into the business but is not profitable despite explosive revenue growth. They are rapidly growing the customer base, especially among large Fortune 500 companies, and have consistently had a net retention rate over 120%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5166ed71c45c5a87bd339d156d585d20\" tg-width=\"640\" tg-height=\"398\" width=\"100%\" height=\"auto\"/><span>ARR (CrowdStrike)</span></p><p>In my opinion, investors interested in the secular growth story should focus on two things primarily: revenue growth and gross margins. For the most recent quarter (the quarter ending 10/31/22), CrowdStrike grew subscription revenue from $213.5M in the prior year to $357M, a 67% increase. The company generates well over 90% of their revenues from subscription and a smaller amount from services. Their overall gross margin (GAAP) for the most recent quarter was just over 73%, which points to impressive margins at scale.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6bda0afa723c4ff47c4a2f3975d30071\" tg-width=\"640\" tg-height=\"566\" width=\"100%\" height=\"auto\"/><span>Gross Margins (CrowdStrike)</span></p><p>The problem is that CrowdStrike has also seen explosive growth in the operating expenses. This includes sales and marketing, R&amp;D, and general and administrative expenses. Operating expenses grew from 195.1M to 318.7M, a 63% increase. One other thing investors should be aware of is that like many other young tech companies, CrowdStrike has a significant stock based compensation expense. The company spent $86.7M for the last quarter and $217.3M for the first nine months of the fiscal year. I like the business, despite the huge operating and stock-based compensation expenses, but the premium valuation is what is keeping me on the sidelines for now.</p><p><b>Valuation</b></p><p>CrowdStrike isn&#39;t cheap, but the premium valuation makes sense when you consider the revenue growth. The valuation has started to come back to reality a little bit, but I&#39;m still waiting on the sidelines just given the current market environment. I think it is highly likely that bullish investors will be able to pick up shares at a more attractive valuation in the coming months. I started a position in CrowdStrike in 2020, and I sold a couple months ago in December when it was just over $205, but I&#39;m looking for a dip to the low $100 range before I start to get interested again.</p><p>I have a hard time using sales as a valuation metric, but it&#39;s the most logical option for a business like CrowdStrike. The valuation since going public has always been at nosebleed levels, with an average price to sales of 36.5x. The price to sales is a little below that mark and is currently trading at 27.1x (as of 2/17 close). It hurts the value investor in me to say this, but if we see CrowdStrike go to 15-20x sales at some point in the next couple months, I might pick up a couple shares.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/18eafc4794ae619aa5531c3eb17df854\" tg-width=\"640\" tg-height=\"364\" width=\"100%\" height=\"auto\"/><span>Price/Sales (FAST Graphs)</span></p><p>A lot has changed with my strategy (and my positions) over the last couple years, but I was lucky enough to buy relatively early and come out ahead. I have been much more selective lately with the growth stocks I have been buying, but CrowdStrike is on my watchlist as a founder led business focused on cybersecurity. Some investors might look at the company on an adjusted basis by excluding stock-based compensation. I understand the logic behind it, but I have a hard time buying businesses that aren&#39;t profitable today.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f6e46e1114b6c99f5adb6e62efb01589\" tg-width=\"640\" tg-height=\"455\" width=\"100%\" height=\"auto\"/><span>Margins Target (CrowdStrike)</span></p><p>CrowdStrike certainly has the potential to be an asset light cash machine at scale, but investors should be ready for volatile swings in share price without any news. I think CrowdStrike is likely to report another solid quarter of revenue growth, but the problem is trying to decipher how much of that future growth is already priced into the shares.</p><p><b>Conclusion</b></p><p>CrowdStrike is a business that deserves a premium, and everyone from Wall Street to the retail investor knows it. Each investor has to decide how much of a valuation premium they are willing to pay, especially as interest rates are likely to increase in the coming months. The company has experienced explosive revenue growth and has all the metrics (like net retention rate for example) that software stock investors like to see. CrowdStrike is certainly on my watchlist, but that is where it will stay at the current valuation. If shares sell off into the low-100 range, I will turn bullish as CrowdStrike is likely to be a significant player in the cybersecurity space moving forward.</p><p>I would be fascinated to hear your thoughts. Feel free to leave a comment below.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>CrowdStrike: Keep This Cybersecurity Leader On Your Watchlist</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCrowdStrike: Keep This Cybersecurity Leader On Your Watchlist\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-02-20 13:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4488295-crowdstrike-cybersecurity-leader-watchlist><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryCrowdStrike is a leader in cybersecurity and has experienced explosive revenue growth since going public.The company is not profitable currently but has the potential to be an asset-light cash ...</p>\n\n<a href=\"https://seekingalpha.com/article/4488295-crowdstrike-cybersecurity-leader-watchlist\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CRWD":"CrowdStrike Holdings, Inc."},"source_url":"https://seekingalpha.com/article/4488295-crowdstrike-cybersecurity-leader-watchlist","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1129746013","content_text":"SummaryCrowdStrike is a leader in cybersecurity and has experienced explosive revenue growth since going public.The company is not profitable currently but has the potential to be an asset-light cash cow at scale.The valuation premium is steep as the company trades at 27.1x sales.CrowdStrike is on my watchlist, but I will be waiting until a drop into the low-100s range before buying shares.solarseven/iStock via Getty ImagesInvestment ThesisCrowdStrike (CRWD) belongs on the watchlist of growth investors, but I wouldn't be buying at current prices. The company is growing revenues at a rapid pace, but with interest rate hikes expected in 2022, I would wait to buy shares as the selloff could continue. The company has impressive revenue growth which hasn't made its way to the bottom line yet but should as the company grows towards maturity. Investors should keep an eye on ballooning operating and stock-based expenses. Bullish investors should be patient and wait for a price where the risk/reward is skewed to the upside.The BusinessCrowdStrike is a cloud cybersecurity company that is known as one of the current leaders in the industry. The company has plenty of cash on the balance sheet, and the people that I have talked to that are familiar with CrowdStrike's offerings have had good things to say about it. The company is investing aggressively back into the business but is not profitable despite explosive revenue growth. They are rapidly growing the customer base, especially among large Fortune 500 companies, and have consistently had a net retention rate over 120%.ARR (CrowdStrike)In my opinion, investors interested in the secular growth story should focus on two things primarily: revenue growth and gross margins. For the most recent quarter (the quarter ending 10/31/22), CrowdStrike grew subscription revenue from $213.5M in the prior year to $357M, a 67% increase. The company generates well over 90% of their revenues from subscription and a smaller amount from services. Their overall gross margin (GAAP) for the most recent quarter was just over 73%, which points to impressive margins at scale.Gross Margins (CrowdStrike)The problem is that CrowdStrike has also seen explosive growth in the operating expenses. This includes sales and marketing, R&D, and general and administrative expenses. Operating expenses grew from 195.1M to 318.7M, a 63% increase. One other thing investors should be aware of is that like many other young tech companies, CrowdStrike has a significant stock based compensation expense. The company spent $86.7M for the last quarter and $217.3M for the first nine months of the fiscal year. I like the business, despite the huge operating and stock-based compensation expenses, but the premium valuation is what is keeping me on the sidelines for now.ValuationCrowdStrike isn't cheap, but the premium valuation makes sense when you consider the revenue growth. The valuation has started to come back to reality a little bit, but I'm still waiting on the sidelines just given the current market environment. I think it is highly likely that bullish investors will be able to pick up shares at a more attractive valuation in the coming months. I started a position in CrowdStrike in 2020, and I sold a couple months ago in December when it was just over $205, but I'm looking for a dip to the low $100 range before I start to get interested again.I have a hard time using sales as a valuation metric, but it's the most logical option for a business like CrowdStrike. The valuation since going public has always been at nosebleed levels, with an average price to sales of 36.5x. The price to sales is a little below that mark and is currently trading at 27.1x (as of 2/17 close). It hurts the value investor in me to say this, but if we see CrowdStrike go to 15-20x sales at some point in the next couple months, I might pick up a couple shares.Price/Sales (FAST Graphs)A lot has changed with my strategy (and my positions) over the last couple years, but I was lucky enough to buy relatively early and come out ahead. I have been much more selective lately with the growth stocks I have been buying, but CrowdStrike is on my watchlist as a founder led business focused on cybersecurity. Some investors might look at the company on an adjusted basis by excluding stock-based compensation. I understand the logic behind it, but I have a hard time buying businesses that aren't profitable today.Margins Target (CrowdStrike)CrowdStrike certainly has the potential to be an asset light cash machine at scale, but investors should be ready for volatile swings in share price without any news. I think CrowdStrike is likely to report another solid quarter of revenue growth, but the problem is trying to decipher how much of that future growth is already priced into the shares.ConclusionCrowdStrike is a business that deserves a premium, and everyone from Wall Street to the retail investor knows it. Each investor has to decide how much of a valuation premium they are willing to pay, especially as interest rates are likely to increase in the coming months. The company has experienced explosive revenue growth and has all the metrics (like net retention rate for example) that software stock investors like to see. CrowdStrike is certainly on my watchlist, but that is where it will stay at the current valuation. If shares sell off into the low-100 range, I will turn bullish as CrowdStrike is likely to be a significant player in the cybersecurity space moving forward.I would be fascinated to hear your thoughts. Feel free to leave a comment below.","news_type":1},"isVote":1,"tweetType":1,"viewCount":126,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9044273696,"gmtCreate":1656776642615,"gmtModify":1676535892552,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great info","listText":"Great info","text":"Great info","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9044273696","repostId":"2248681169","repostType":2,"repost":{"id":"2248681169","pubTimestamp":1656727452,"share":"https://www.laohu8.com/m/news/2248681169?lang=&edition=full","pubTime":"2022-07-02 10:04","market":"us","language":"en","title":"Better Augmented Reality Stock: Apple vs. Nvidia","url":"https://stock-news.laohu8.com/highlight/detail?id=2248681169","media":"Motley Fool","summary":"Both companies could be major players in the AR space, but one is more of a sure thing.","content":"<html><head></head><body><p><b>KEY POINTS</b></p><ul><li>Apple&#39;s long-rumored AR device may be just around the corner.</li><li>Nvidia is already powering AR across a variety of settings.</li></ul><p>In the technology sector, there are always new trends and fads, each with the promise of becoming &#34;the next big thing.&#34; One of the more prominent emerging technologies over the past several years has been augmented reality (AR). Put simply, AR is the ability to combine the real world with a digital one. Two prominent examples of this technology are the popular mobile game Pokémon Go and the app <b>Snapchat</b>.</p><p>Because there are already use cases for AR, it&#39;s easy to see this as more of an ongoing trend than a passing fad. Therefore, it&#39;s natural for future-minded investors to seek ways to invest in the space. There are two companies that I think are particularly well positioned to be at the center of AR for years to come: <b>Apple</b> and <b>Nvidia</b>. Let&#39;s see which is the better stock to own.</p><h2><b>1. Apple</b></h2><p>Already one of the largest companies in the world, Apple has made an indelible mark on our society with its line of consumer electronics like phones, tablets, smartwatches, and computers. Part of what has made Apple so successful is its ability to consistently innovate and enter new product lines. At any given time, there are numerous rumors swirling around about what might be Apple&#39;s next big product.</p><p>Apple has long been expected to release some kind of AR product, likely in the form of glasses or goggles. Recently, Apple CEO Tim Cook made comments that seem to indicate something may be on the horizon, teasing, &#34;I couldn&#39;t be more excited about the opportunities we&#39;ve seen in this space. And sort of stay tuned and you&#39;ll see what we have to offer.&#34;</p><p>To be clear, rumors and vague interview comments are not an investing thesis, but Apple does have a track record of launching new products that go on to see great success. Additionally, Apple has been a player in this space for years, introducing AR capabilities on its iPhone and iPad starting in 2017.</p><p>Even without a confirmed AR product, Apple continues to be a good investment. In the second quarter of 2022, Apple posted a record $93.7 billion in quarterly revenue, a 9% year-over-year increase. That comes on top of 54% revenue growth in the year-ago quarter, and was driven by year-over-year growth in every product category other than the iPad. Additionally, Apple is trading for a price to earnings (P/E) multiple of 23, which is slightly below the <b>S&amp;P 500</b>&#39;s average of 24.</p><h2><b>2. Nvidia</b></h2><p>From its start building PC graphics cards, Nvidia has grown to be a leading provider of chips for a variety of use cases, including gaming, data centers, and the automotive industry. As it pertains to AR, Nvidia&#39;s technology is already being used in a variety of ways by large enterprise customers. Nvidia&#39;s chips are powering virtual car showrooms, surgical training, and architectural walkthroughs, showing the everyday use cases for this technology.</p><p>One of the most commonly cited consumer uses for AR is in gaming, which comprises approximately 43% of Nvidia&#39;s sales. In Q1 of 2023, gaming revenue was a record $3.6 billion, good for a 31% year-over-year increase. One of the Nvidia products that led to this growth was its Nvidia RTX technology, which can help deliver AR experiences over 5G networks. As AR expands in the gaming space, Nvidia stands to benefit from the secular tailwinds.</p><p>Even after the tech sell-off we&#39;ve seen this year, Nvidia trades at a premium, with its current P/E at 41. However, that is the lowest that multiple has been since late 2019. Nvidia grew its revenue more than 46%, is profitable, and generated more than $1 billion in free cash flow in Q1, so this premium price is to be expected.</p><h2><b>Which is the better buy?</b></h2><p>From a valuation standpoint, it could be argued that Apple is a bargain at its current valuation. That said, until we see an actual AR product, its role in this emerging technology is uncertain. For that reason, I think Nvidia is the better AR stock. It&#39;s already producing the chips that are powering AR technologies in a variety of industries and doesn&#39;t rely on one consumer product for its AR exposure. For investors who feel the premium valuation is worth it, Nvidia is my pick for the better augmented reality stock.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Better Augmented Reality Stock: Apple vs. Nvidia</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBetter Augmented Reality Stock: Apple vs. Nvidia\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-07-02 10:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/07/01/better-augmented-reality-stock-apple-vs-nvidia/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSApple's long-rumored AR device may be just around the corner.Nvidia is already powering AR across a variety of settings.In the technology sector, there are always new trends and fads, each ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/07/01/better-augmented-reality-stock-apple-vs-nvidia/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NVDA":"英伟达","AAPL":"苹果"},"source_url":"https://www.fool.com/investing/2022/07/01/better-augmented-reality-stock-apple-vs-nvidia/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2248681169","content_text":"KEY POINTSApple's long-rumored AR device may be just around the corner.Nvidia is already powering AR across a variety of settings.In the technology sector, there are always new trends and fads, each with the promise of becoming \"the next big thing.\" One of the more prominent emerging technologies over the past several years has been augmented reality (AR). Put simply, AR is the ability to combine the real world with a digital one. Two prominent examples of this technology are the popular mobile game Pokémon Go and the app Snapchat.Because there are already use cases for AR, it's easy to see this as more of an ongoing trend than a passing fad. Therefore, it's natural for future-minded investors to seek ways to invest in the space. There are two companies that I think are particularly well positioned to be at the center of AR for years to come: Apple and Nvidia. Let's see which is the better stock to own.1. AppleAlready one of the largest companies in the world, Apple has made an indelible mark on our society with its line of consumer electronics like phones, tablets, smartwatches, and computers. Part of what has made Apple so successful is its ability to consistently innovate and enter new product lines. At any given time, there are numerous rumors swirling around about what might be Apple's next big product.Apple has long been expected to release some kind of AR product, likely in the form of glasses or goggles. Recently, Apple CEO Tim Cook made comments that seem to indicate something may be on the horizon, teasing, \"I couldn't be more excited about the opportunities we've seen in this space. And sort of stay tuned and you'll see what we have to offer.\"To be clear, rumors and vague interview comments are not an investing thesis, but Apple does have a track record of launching new products that go on to see great success. Additionally, Apple has been a player in this space for years, introducing AR capabilities on its iPhone and iPad starting in 2017.Even without a confirmed AR product, Apple continues to be a good investment. In the second quarter of 2022, Apple posted a record $93.7 billion in quarterly revenue, a 9% year-over-year increase. That comes on top of 54% revenue growth in the year-ago quarter, and was driven by year-over-year growth in every product category other than the iPad. Additionally, Apple is trading for a price to earnings (P/E) multiple of 23, which is slightly below the S&P 500's average of 24.2. NvidiaFrom its start building PC graphics cards, Nvidia has grown to be a leading provider of chips for a variety of use cases, including gaming, data centers, and the automotive industry. As it pertains to AR, Nvidia's technology is already being used in a variety of ways by large enterprise customers. Nvidia's chips are powering virtual car showrooms, surgical training, and architectural walkthroughs, showing the everyday use cases for this technology.One of the most commonly cited consumer uses for AR is in gaming, which comprises approximately 43% of Nvidia's sales. In Q1 of 2023, gaming revenue was a record $3.6 billion, good for a 31% year-over-year increase. One of the Nvidia products that led to this growth was its Nvidia RTX technology, which can help deliver AR experiences over 5G networks. As AR expands in the gaming space, Nvidia stands to benefit from the secular tailwinds.Even after the tech sell-off we've seen this year, Nvidia trades at a premium, with its current P/E at 41. However, that is the lowest that multiple has been since late 2019. Nvidia grew its revenue more than 46%, is profitable, and generated more than $1 billion in free cash flow in Q1, so this premium price is to be expected.Which is the better buy?From a valuation standpoint, it could be argued that Apple is a bargain at its current valuation. That said, until we see an actual AR product, its role in this emerging technology is uncertain. For that reason, I think Nvidia is the better AR stock. It's already producing the chips that are powering AR technologies in a variety of industries and doesn't rely on one consumer product for its AR exposure. For investors who feel the premium valuation is worth it, Nvidia is my pick for the better augmented reality stock.","news_type":1},"isVote":1,"tweetType":1,"viewCount":8,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9035119162,"gmtCreate":1647532309096,"gmtModify":1676534241588,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9035119162","repostId":"1145367741","repostType":4,"repost":{"id":"1145367741","pubTimestamp":1647522542,"share":"https://www.laohu8.com/m/news/1145367741?lang=&edition=full","pubTime":"2022-03-17 21:09","market":"us","language":"en","title":"Apple Stock: Look Up Above, Is $3 Trillion Next?","url":"https://stock-news.laohu8.com/highlight/detail?id=1145367741","media":"TheStreet","summary":"The Apple Maven explores these two topics below.What sent AAPL soaringThe year has been tough for AAPL and the market at large. Apple stock nearly entered bear market earlier this week, after having dipped 17%-plus from the all-time high of January.But there have been signs lately that investors might be ready to start buying this dip.It is hard to tell exactly why this vicious  recovery began to take shape. On March 15, Apple’s nearly $5-per-share spike looked a lot like a volatility-driven reb","content":"<html><head></head><body><p>Apple stock has been having a tough 2022, but shares bounced strongly in the past couple of days. Here is what happened, and what investors could expect to see next.</p><p>What a recovery it has been. From the 2022 lows of around $150 reached on March 14, Apple stock skyrocketed by over 6% in only two days to close the March 16 session priced at almost $160 a piece.</p><p>Why did shares of the Cupertino company spike so suddenly? And could this be a sign that the $3 trillion market cap could be reached again soon?</p><p>The Apple Maven explores these two topics below.</p><p><b>What sent AAPL soaring</b></p><p>The year has been tough for AAPL and the market at large. Apple stock nearly entered bear market earlier this week, after having dipped 17%-plus from the all-time high of January.</p><p>But there have been signs lately that investors might be ready to start buying this dip.</p><p>It is hard to tell exactly why this vicious (but still very incipient) recovery began to take shape. On March 15, Apple’s nearly $5-per-share spike looked a lot like a volatility-driven rebound from the previous few days’ sharp declines.</p><p>But on Wednesday, another similar jump could be better explained by one key event: the Federal Reserve’sfirst move to raise short-term interest rates in years. The 25-basis point increase has been widely anticipated, and is nearly guaranteed to be only the first of many.</p><p>While this was clearly the catalyst that sent AAPL to nearly $160, at the same time it is tough to explain why the monetary policy announcement created $75 billion in market cap for Apple investors in a day. Shouldn’t higher interest rates be a negative for tech and growth stocks?</p><p>I believe that economic and business fundamentals have nothing to do with this. Instead, the Tuesday and Wednesday price movements seem to be a classic case of “relief rally”.</p><p>Investors had been dreading monetary policy tightening for months. Now that it is finally here, it may be time for everyone to just move on.</p><p><b>Is $3 trillion next?</b></p><p>I believe it is still way too early to project Apple $3 trillion once again — that is, a 12.5% gain that leads the share price to roughly $180. For now, AAPL’s recent $10 recovery could be a dead cat bounce in disguise, as mini-rallies are a feature of soft market conditions.</p><p>From the point of view of a long-term investor, however, I would still be interested in accumulating AAPL shares at less than $160.As I explained recently, Apple stock returns have historically been better after shares sink at least 10% to 15% from the peak.</p><p>I have little doubt that, eventually (timing here is a big question mark), AAPL will reclaim $180 per share and $3 trillion in market cap. I would rather ride the upside from current levels than wait until shares have climbed much higher to, only then, join the party.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple Stock: Look Up Above, Is $3 Trillion Next?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple Stock: Look Up Above, Is $3 Trillion Next?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-17 21:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.thestreet.com/apple/stock/apple-stock-premarket-look-up-above-is-3-trillion-next><strong>TheStreet</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Apple stock has been having a tough 2022, but shares bounced strongly in the past couple of days. Here is what happened, and what investors could expect to see next.What a recovery it has been. From ...</p>\n\n<a href=\"https://www.thestreet.com/apple/stock/apple-stock-premarket-look-up-above-is-3-trillion-next\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://www.thestreet.com/apple/stock/apple-stock-premarket-look-up-above-is-3-trillion-next","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1145367741","content_text":"Apple stock has been having a tough 2022, but shares bounced strongly in the past couple of days. Here is what happened, and what investors could expect to see next.What a recovery it has been. From the 2022 lows of around $150 reached on March 14, Apple stock skyrocketed by over 6% in only two days to close the March 16 session priced at almost $160 a piece.Why did shares of the Cupertino company spike so suddenly? And could this be a sign that the $3 trillion market cap could be reached again soon?The Apple Maven explores these two topics below.What sent AAPL soaringThe year has been tough for AAPL and the market at large. Apple stock nearly entered bear market earlier this week, after having dipped 17%-plus from the all-time high of January.But there have been signs lately that investors might be ready to start buying this dip.It is hard to tell exactly why this vicious (but still very incipient) recovery began to take shape. On March 15, Apple’s nearly $5-per-share spike looked a lot like a volatility-driven rebound from the previous few days’ sharp declines.But on Wednesday, another similar jump could be better explained by one key event: the Federal Reserve’sfirst move to raise short-term interest rates in years. The 25-basis point increase has been widely anticipated, and is nearly guaranteed to be only the first of many.While this was clearly the catalyst that sent AAPL to nearly $160, at the same time it is tough to explain why the monetary policy announcement created $75 billion in market cap for Apple investors in a day. Shouldn’t higher interest rates be a negative for tech and growth stocks?I believe that economic and business fundamentals have nothing to do with this. Instead, the Tuesday and Wednesday price movements seem to be a classic case of “relief rally”.Investors had been dreading monetary policy tightening for months. Now that it is finally here, it may be time for everyone to just move on.Is $3 trillion next?I believe it is still way too early to project Apple $3 trillion once again — that is, a 12.5% gain that leads the share price to roughly $180. For now, AAPL’s recent $10 recovery could be a dead cat bounce in disguise, as mini-rallies are a feature of soft market conditions.From the point of view of a long-term investor, however, I would still be interested in accumulating AAPL shares at less than $160.As I explained recently, Apple stock returns have historically been better after shares sink at least 10% to 15% from the peak.I have little doubt that, eventually (timing here is a big question mark), AAPL will reclaim $180 per share and $3 trillion in market cap. I would rather ride the upside from current levels than wait until shares have climbed much higher to, only then, join the party.","news_type":1},"isVote":1,"tweetType":1,"viewCount":117,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9039152790,"gmtCreate":1645972227216,"gmtModify":1676534078561,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Wow!!","listText":"Wow!!","text":"Wow!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9039152790","repostId":"1125580913","repostType":4,"repost":{"id":"1125580913","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1645926503,"share":"https://www.laohu8.com/m/news/1125580913?lang=&edition=full","pubTime":"2022-02-27 09:48","market":"us","language":"en","title":"Buffett Full Annual Letter：Apple is One of ‘Four Giants’ Driving the Conglomerate’s Value","url":"https://stock-news.laohu8.com/highlight/detail?id=1125580913","media":"Tiger Newspress","summary":"Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday. The 91-yea","content":"<html><head></head><body><p>Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday. The 91-year-old investing legend has been publishing the letter for over six decades and it has become required reading for investors around the world.</p><p>Warren Buffett said he now considers tech giant Apple as one of the four pillars driving Berkshire Hathaway, the conglomerate of mostly old-economy businesses he’s assembled over the last five decades.</p><p>In his annual letter to shareholders released on Saturday, the 91-year-old investing legend listed Apple under the heading “Our Four Giants” and even called the company the second-most important after Berkshire’s cluster of insurers, thanks to its chief executive.</p><p>“Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well,” the letter stated.</p><p>Buffett made clear he is a fan of Cook’s stock repurchase strategy, and how it gives the conglomerate increased ownership of each dollar of the iPhone maker’s earnings without the investor having to lift a finger.</p><p>“Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier,” Buffett said in the letter. “That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.”</p><p>Berkshire began buying Apple stock in 2016 under the influence of Buffett’s investing deputies Todd Combs and Ted Weschler. By mid-2018, the conglomerate accumulated 5% ownership of the iPhone maker, a stake that cost $36 billion. Today, the Apple investment is now worth more than $160 billion, taking up 40% of Berkshire’s equity portfolio.</p><p>“It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our ‘share’ of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud,” Buffett said.</p><p>Berkshire is Apple’s largest shareholder, outside of index and exchange-traded fund providers.</p><p>Buffett also credited his railroad business BNSF and energy segment BHE as two other giants of the conglomerate, which both registered record earnings in 2021.</p><p>“BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire,” Buffett said. “BHE has become a utility powerhouse and a leading force in wind, solar and transmission throughout much of the United States.”</p><p><b>Read the full letter here：</b></p><p>To the Shareholders of Berkshire Hathaway Inc.:</p><p>Charlie Munger, my long-time partner, and I have the job of managing a portion of your savings. We are honored by your trust.</p><p>Our position carries with it the responsibility to report to you what we would like to know if we were the absentee owner and you were the manager. We enjoy communicating directly with you through this annual letter, and through the annual meeting as well.</p><p>Our policy is to treat all shareholders equally. Therefore, we do not hold discussions with analysts nor large institutions. Whenever possible, also, we release important communications on Saturday mornings in order to maximize the time for shareholders and the media to absorb the news before markets open on Monday.</p><p>A wealth of Berkshire facts and figures are set forth in the annual 10-K that the company regularly files with the S.E.C. and that we reproduce on pages K-1 – K-119. Some shareholders will find this detail engrossing; others will simply prefer to learn what Charlie and I believe is new or interesting at Berkshire.</p><p>Alas, there was little action of that sort in 2021. We did, though, make reasonable progress in increasing the intrinsic value of your shares. That task has been my primary duty for 57 years. And it will continue to be.</p><p><b>What You Own</b></p><p>Berkshire owns a wide variety of businesses, some in their entirety, some only in part. The second group largely consists of marketable common stocks of major American companies. Additionally, we own a few non-U.S. equities and participate in several joint ventures or other collaborative activities.</p><p>Whatever our form of ownership, our goal is to have meaningful investments in businesses with both durable economic advantages and a first-class CEO. Please note particularly that we own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves. That point is crucial: Charlie and I are not stock-pickers; we are business-pickers.</p><p>I make many mistakes. Consequently, our extensive collection of businesses includes some enterprises that have truly extraordinary economics, many others that enjoy good economic characteristics, and a few that are marginal. One advantage of our common-stock segment is that – on occasion – it becomes easy to buy pieces of wonderful businesses at wonderful prices. That shooting-fish-in-a-barrel experience is very rare in negotiated transactions and never occurs en masse. It is also far easier to exit from a mistake when it has been made in the marketable arena.</p><h2><b>Surprise, Surprise</b></h2><p>Here are a few items about your company that often surprise even seasoned investors:</p><p>• Many people perceive Berkshire as a large and somewhat strange collection of financial assets. In truth, Berkshire owns and operates more U.S.-based “infrastructure” assets – classified on our balance sheet as property, plant and equipment – than are owned and operated by any other American corporation. That supremacy has never been our goal. It has, however, become a fact.</p><p>At yearend, those domestic infrastructure assets were carried on Berkshire’s balance sheet at $158 billion. That number increased last year and will continue to increase. Berkshire always will be building.</p><p>• Every year, your company makes substantial federal income tax payments. In 2021, for example, we paid</p><p>$3.3 billion while the U.S. Treasury reported total corporate income-tax receipts of $402 billion. Additionally, Berkshire pays substantial state and foreign taxes. “I gave at the office” is an unassailable assertion when made by Berkshire shareholders.</p><p>Berkshire’s history vividly illustrates the invisible and often unrecognized financial partnership between  government and American businesses. Our tale begins early in 1955, when Berkshire Fine Spinning and Hathaway Manufacturing agreed to merge their businesses. In their requests for shareholder approval, these venerable New England textile companies expressed high hopes for the combination.</p><p></p><p>The Hathaway solicitation, for example, assured its shareholders that “The combination of the resources and managements will result in one of the strongest and most efficient organizations in the textile industry.” That upbeat view was endorsed by the company’s advisor, Lehman Brothers (yes, that Lehman Brothers).</p><p>I’m sure it was a joyous day in both Fall River (Berkshire) and New Bedford (Hathaway) when the union was consummated. After the bands stopped playing and the bankers went home, however, the shareholders reaped a disaster.</p><p>In the nine years following the merger, Berkshire’s owners watched the company’s net worth crater from</p><p>$51.4 million to $22.1 million. In part, this decline was caused by stock repurchases, ill-advised dividends and plant shutdowns. But nine years of effort by many thousands of employees delivered an operating loss as well. Berkshire’s struggles were not unusual: The New England textile industry had silently entered an extended and non-reversible death march.</p><p>During the nine post-merger years, the U.S. Treasury suffered as well from Berkshire’s troubles. All told, the company paid the government only $337,359 in income tax during that period – a pathetic $100 per day.</p><p>Early in 1965, things changed. Berkshire installed new management that redeployed available cash and steered essentially all earnings into a variety of good businesses, most of which remained good through the years. Coupling reinvestment of earnings with the power of compounding worked its magic, and shareholders prospered.</p><p>Berkshire’s owners, it should be noted, were not the only beneficiary of that course correction. Their “silent partner,” the U.S. Treasury, proceeded to collect many tens of billions of dollars from the company in income tax payments. Remember the $100 daily? Now, Berkshire pays roughly $9 million daily to the Treasury.</p><p>In fairness to our governmental partner, our shareholders should acknowledge – indeed trumpet – the fact that Berkshire’s prosperity has been fostered mightily because the company has operated in America. Our country would have done splendidly in the years since 1965 without Berkshire. Absent our American home, however, Berkshire would never have come close to becoming what it is today. When you see the flag, say thanks.</p><p>• From an $8.6 million purchase of National Indemnity in 1967, Berkshire has become the world leader in insurance “float” – money we hold and can invest but that does not belong to us. Including a relatively small sum derived from life insurance, Berkshire’s total float has grown from $19 million when we entered the insurance business to $147 billion.</p><p>So far, this float has cost us less than nothing. Though we have experienced a number of years when insurance losses combined with operating expenses exceeded premiums, overall we have earned a modest 55-year profit from the underwriting activities that generated our float.</p><p>Of equal importance, float is very sticky. Funds attributable to our insurance operations come and go daily, but their aggregate total is immune from precipitous decline. When it comes to investing float, we can therefore think long-term.</p><p>If you are not already familiar with the concept of float, I refer you to a long explanation on page A-5. To my surprise, our float increased $9 billion last year, a buildup of value that is important to Berkshire owners though is not reflected in our GAAP (“generally-accepted accounting principles”) presentation of earnings and net worth.</p><p>Much of our huge value creation in insurance is attributable to Berkshire’s good luck in my 1986 hiring of Ajit Jain. We first met on a Saturday morning, and I quickly asked Ajit what his insurance experience had been. He replied, “None.”</p><p>I said, “Nobody’s perfect,” and hired him. That was my lucky day: Ajit actually was as perfect a choice as could have been made. Better yet, he continues to be – 35 years later.</p><p>One final thought about insurance: I believe that it is likely – but far from assured – that Berkshire’s float can be maintained without our incurring a long-term underwriting loss. I am certain, however, that there will be some years when we experience such losses, perhaps involving very large sums.</p><p>Berkshire is constructed to handle catastrophic events as no other insurer – and that priority will remain long after Charlie and I are gone.</p><h2>Our Four Giants</h2><p>Through Berkshire, our shareholders own many dozens of businesses. Some of these, in turn, have a collection of subsidiaries of their own. For example, Marmon has more than 100 individual business operations, ranging from the leasing of railroad cars to the manufacture of medical devices.</p><p>• Nevertheless, operations of our “Big Four” companies account for a very large chunk of Berkshire’s value. Leading this list is our cluster of insurers. Berkshire effectively owns 100% of this group, whose massive float value we earlier described. The invested assets of these insurers are further enlarged by the extraordinary amount of capital we invest to back up their promises.</p><p>The insurance business is made to order for Berkshire. The product will never be obsolete, and sales volume will generally increase along with both economic growth and inflation. Also, integrity and capital will forever be important. Our company can and will behave well.</p><p>There are, of course, other insurers with excellent business models and prospects. Replication of Berkshire’s operation, however, would be almost impossible.</p><p>• Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.</p><p>It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.</p><p>• BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire. If the many essential products BNSF carries were instead hauled by truck, America’s carbon emissions would soar.</p><p>Your railroad had record earnings of $6 billion in 2021. Here, it should be noted, we are talking about the old-fashioned sort of earnings that we favor: a figure calculated after interest, taxes, depreciation, amortization and all forms of compensation. (Our definition suggests a warning: Deceptive “adjustments” to earnings – to use a polite description – have become both more frequent and more fanciful as stocks have risen. Speaking less politely, I would say that bull markets breed bloviated bull )</p><p>BNSF trains traveled 143 million miles last year and carried 535 million tons of cargo. Both accomplishments far exceed those of any other American carrier. You can be proud of your railroad.</p><p>• BHE, our final Giant, earned a record $4 billion in 2021. That’s up more than 30-fold from the $122 million earned in 2000, the year that Berkshire first purchased a BHE stake. Now, Berkshire owns 91.1% of the company.</p><p>BHE’s record of societal accomplishment is as remarkable as its financial performance. The company had no wind or solar generation in 2000. It was then regarded simply as a relatively new and minor participant in the huge electric utility industry. Subsequently, under David Sokol’s and Greg Abel’s leadership, BHE has become a utility powerhouse (no groaning, please) and a leading force in wind, solar and transmission throughout much of the United States.</p><p>Greg’s report on these accomplishments appears on pages A-3 and A-4. The profile you will find there is not in any way one of those currently-fashionable “green-washing” stories. BHE has been faithfully detailing its plans and performance in renewables and transmissions every year since 2007.</p><p>To further review this information, visit BHE’s website at brkenergy.com. There, you will see that the company has long been making climate-conscious moves that soak up all of its earnings. More opportunities lie ahead. BHE has the management, the experience, the capital and the appetite for the huge power projects that our country needs.</p><h2>Investments</h2><p>Now let’s talk about companies we don’t control, a list that again references Apple. Below we list our fifteen largest equity holdings, several of which are selections of Berkshire’s two long-time investment managers, Todd Combs and Ted Weschler. At yearend, this valued pair had total authority in respect to $34 billion of investments, many of which do not meet the threshold value we use in the table. Also, a significant portion of the dollars that Todd and Ted manage are lodged in various pension plans of Berkshire-owned businesses, with the assets of these plans not included in this table.</p><p><img src=\"https://static.tigerbbs.com/d43587e9f59c0ff76e6c04c6bf9af324\" tg-width=\"1047\" tg-height=\"530\" referrerpolicy=\"no-referrer\"/>* This is our actual purchase price and also our tax basis.</p><p>** Held by BHE; consequently, Berkshire shareholders have only a 91.1% interest in this position.</p><p>*** Includes a $10 billion investment in Occidental Petroleum, consisting of preferred stock and warrants to buy common stock, a combination now being valued at $10.7 billion.</p><p>In addition to the footnoted Occidental holding and our various common-stock positions, Berkshire also owns a 26.6% interest in Kraft Heinz (accounted for on the “equity” method, not market value, and carried at $13.1 billion) and 38.6% of Pilot Corp., a leader in travel centers that had revenues last year of $45 billion.</p><p>Since we purchased our Pilot stake in 2017, this holding has warranted “equity” accounting treatment. Early in 2023, Berkshire will purchase an additional interest in Pilot that will raise our ownership to 80% and lead to our fully consolidating Pilot’s earnings, assets and liabilities in our financial statements.</p><h2>U.S. Treasury Bills</h2><p>Berkshire’s balance sheet includes $144 billion of cash and cash equivalents (excluding the holdings of BNSF and BHE). Of this sum, $120 billion is held in U.S. Treasury bills, all maturing in less than a year. That stake leaves Berkshire financing about 12 of 1% of the publicly-held national debt.</p><p>Charlie and I have pledged that Berkshire (along with our subsidiaries other than BNSF and BHE) will always hold more than $30 billion of cash and equivalents. We want your company to be financially impregnable and never dependent on the kindness of strangers (or even that of friends). Both of us like to sleep soundly, and we want our creditors, insurance claimants and you to do so as well.</p><h2>But $144 billion?</h2><p>That imposing sum, I assure you, is not some deranged expression of patriotism. Nor have Charlie and I lost our overwhelming preference for business ownership. Indeed, I first manifested my enthusiasm for that 80 years ago, on March 11, 1942, when I purchased three shares of Cities Services preferred stock. Their cost was $114.75 and required all of my savings. (The Dow Jones Industrial Average that day closed at 99, a fact that should scream to you: Never bet against America.)</p><p>After my initial plunge, I always kept at least 80% of my net worth in equities. My favored status throughout that period was 100% – and still is. Berkshire’s current 80%-or-so position in businesses is a consequence of my failure to find entire companies or small portions thereof (that is, marketable stocks) which meet our criteria for long- term holding.</p><p>Charlie and I have endured similar cash-heavy positions from time to time in the past. These periods are never pleasant; they are also never permanent. And, fortunately, we have had a mildly attractive alternative during 2020 and 2021 for deploying capital. Read on.</p><h2>Share Repurchases</h2><p>There are three ways that we can increase the value of your investment. The first is always front and center in our minds: Increase the long-term earning power of Berkshire’s controlled businesses through internal growth or by making acquisitions. Today, internal opportunities deliver far better returns than acquisitions. The size of those opportunities, however, is small compared to Berkshire’s resources.</p><p>Our second choice is to buy non-controlling part-interests in the many good or great businesses that are publicly traded. From time to time, such possibilities are both numerous and blatantly attractive. Today, though, we find little that excites us.</p><p>That’s largely because of a truism: Long-term interest rates that are low push the prices of all productive investments upward, whether these are stocks, apartments, farms, oil wells, whatever. Other factors influence valuations as well, but interest rates will always be important.</p><p>Our final path to value creation is to repurchase Berkshire shares. Through that simple act, we increase your share of the many controlled and non-controlled businesses Berkshire owns. When the price/value equation is right, this path is the easiest and most certain way for us to increase your wealth. (Alongside the accretion of value to continuing shareholders, a couple of other parties gain: Repurchases are modestly beneficial to the seller of the repurchased shares and to society as well.)</p><p>Periodically, as alternative paths become unattractive, repurchases make good sense for Berkshire’s owners. During the past two years, we therefore repurchased 9% of the shares that were outstanding at yearend 2019 for a total cost of $51.7 billion. That expenditure left our continuing shareholders owning about 10% more of all Berkshire businesses, whether these are wholly-owned (such as BNSF and GEICO) or partly-owned (such as Coca-Cola and Moody’s).</p><p>I want to underscore that for Berkshire repurchases to make sense, our shares must offer appropriate value. We don’t want to overpay for the shares of other companies, and it would be value-destroying if we were to overpay when we are buying Berkshire. As of February 23, 2022, since yearend we repurchased additional shares at a cost of $1.2 billion. Our appetite remains large but will always remain price-dependent.</p><p>It should be noted that Berkshire’s buyback opportunities are limited because of its high-class investor base. If our shares were heavily held by short-term speculators, both price volatility and transaction volumes would materially increase. That kind of reshaping would offer us far greater opportunities for creating value by making repurchases. Nevertheless, Charlie and I far prefer the owners we have, even though their admirable buy-and-keep attitudes limit the extent to which long-term shareholders can profit from opportunistic repurchases.</p><p>Finally, one easily-overlooked value calculation specific to Berkshire: As we’ve discussed, insurance “float” of the right sort is of great value to us. As it happens, repurchases automatically increase the amount of “float” per share. That figure has increased during the past two years by 25% – going from $79,387 per “A” share to $99,497, a meaningful gain that, as noted, owes some thanks to repurchases.</p><h2>A Wonderful Man and a Wonderful Business</h2><p>Last year, Paul Andrews died. Paul was the founder and CEO of TTI, a Fort Worth-based subsidiary of Berkshire. Throughout his life – in both his business and his personal pursuits – Paul quietly displayed all the qualities that Charlie and I admire. His story should be told.</p><p>In 1971, Paul was working as a purchasing agent for General Dynamics when the roof fell in. After losing a huge defense contract, the company fired thousands of employees, including Paul.</p><p>With his first child due soon, Paul decided to bet on himself, using $500 of his savings to found Tex-Tronics (later renamed TTI). The company set itself up to distribute small electronic components, and first-year sales totaled $112,000. Today, TTI markets more than one million different items with annual volume of $7.7 billion.</p><p>But back to 2006: Paul, at 63, then found himself happy with his family, his job, and his associates. But he had one nagging worry, heightened because he had recently witnessed a friend’s early death and the disastrous results that followed for that man’s family and business. What, Paul asked himself in 2006, would happen to the many people depending on him if he should unexpectedly die?</p><p>For a year, Paul wrestled with his options. Sell to a competitor? From a strictly economic viewpoint, that course made the most sense. After all, competitors could envision lucrative “synergies” – savings that would be achieved as the acquiror slashed duplicated functions at TTI.</p><p>But . . . Such a purchaser would most certainly also retain its CFO, its legal counsel, its HR unit. Their TTI counterparts would therefore be sent packing. And ugh! If a new distribution center were to be needed, the acquirer’s home city would certainly be favored over Fort Worth.</p><p>Whatever the financial benefits, Paul quickly concluded that selling to a competitor was not for him. He next considered seeking a financial buyer, a species once labeled – aptly so – a leveraged buyout firm. Paul knew, however, that such a purchaser would be focused on an “exit strategy.” And who could know what that would be? Brooding over it all, Paul found himself having no interest in handing his 35-year-old creation over to a reseller.</p><p>When Paul met me, he explained why he had eliminated these two alternatives as buyers. He then summed up his dilemma by saying – in far more tactful phrasing than this – “After a year of pondering the alternatives, I want to sell to Berkshire because you are the only guy left.” So, I made an offer and Paul said “Yes.” One meeting; one lunch; one deal.</p><p>To say we both lived happily ever after is an understatement. When Berkshire purchased TTI, the company employed 2,387. Now the number is 8,043. A large percentage of that growth took place in Fort Worth and environs. Earnings have increased 673%.</p><p>Annually, I would call Paul and tell him his salary should be substantially increased. Annually, he would tell me, “We can talk about that next year, Warren; I’m too busy now.”</p><p>When Greg Abel and I attended Paul’s memorial service, we met children, grandchildren, long-time associates (including TTI’s first employee) and John Roach, the former CEO of a Fort Worth company Berkshire had purchased in 2000. John had steered his friend Paul to Omaha, instinctively knowing we would be a match.</p><p>At the service, Greg and I heard about the multitudes of people and organizations that Paul had silently supported. The breadth of his generosity was extraordinary – geared always to improving the lives of others, particularly those in Fort Worth.</p><p>In all ways, Paul was a class act.</p><p>* * * * * * * * * * * *</p><p>Good luck – occasionally extraordinary luck – has played its part at Berkshire. If Paul and I had not enjoyed a mutual friend – John Roach – TTI would not have found its home with us. But that ample serving of luck was only the beginning. TTI was soon to lead Berkshire to its most important acquisition.</p><p>Every fall, Berkshire directors gather for a presentation by a few of our executives. We sometimes choose the site based upon the location of a recent acquisition, by that means allowing directors to meet the new subsidiary’s CEO and learn more about the acquiree’s activities.</p><p>In the fall of 2009, we consequently selected Fort Worth so that we could visit TTI. At that time, BNSF, which also had Fort Worth as its hometown, was the third-largest holding among our marketable equities. Despite that large stake, I had never visited the railroad’s headquarters.</p><p>Deb Bosanek, my assistant, scheduled our board’s opening dinner for October 22. Meanwhile, I arranged to arrive earlier that day to meet with Matt Rose, CEO of BNSF, whose accomplishments I had long admired. When I made the date, I had no idea that our get-together would coincide with BNSF’s third-quarter earnings report, which was released late on the 22nd.</p><p>The market reacted badly to the railroad’s results. The Great Recession was in full force in the third quarter, and BNSF’s earnings reflected that slump. The economic outlook was also bleak, and Wall Street wasn’t feeling friendly to railroads – or much else.</p><p>On the following day, I again got together with Matt and suggested that Berkshire would offer the railroad a better long-term home than it could expect as a public company. I also told him the maximum price that Berkshire would pay.</p><p>Matt relayed the offer to his directors and advisors. Eleven busy days later, Berkshire and BNSF announced a firm deal. And here I’ll venture a rare prediction: BNSF will be a key asset for Berkshire and our country a century from now.</p><p>The BNSF acquisition would never have happened if Paul Andrews hadn’t sized up Berkshire as the right home for TTI.</p><h2>Thanks</h2><p>I taught my first investing class 70 years ago. Since then, I have enjoyed working almost every year with students of all ages, finally “retiring” from that pursuit in 2018.</p><p>Along the way, my toughest audience was my grandson’s fifth-grade class. The 11-year-olds were squirming in their seats and giving me blank stares until I mentioned Coca-Cola and its famous secret formula. Instantly, every hand went up, and I learned that “secrets” are catnip to kids.</p><p>Teaching, like writing, has helped me develop and clarify my own thoughts. Charlie calls this phenomenon the orangutan effect: If you sit down with an orangutan and carefully explain to it one of your cherished ideas, you may leave behind a puzzled primate, but will yourself exit thinking more clearly.</p><p>Talking to university students is far superior. I have urged that they seek employment in (1) the field and (2) with the kind of people they would select, if they had no need for money. Economic realities, I acknowledge, may interfere with that kind of search. Even so, I urge the students never to give up the quest, for when they find that sort of job, they will no longer be “working.”</p><p>Charlie and I, ourselves, followed that liberating course after a few early stumbles. We both started as part- timers at my grandfather’s grocery store, Charlie in 1940 and I in 1942. We were each assigned boring tasks and paid little, definitely not what we had in mind. Charlie later took up law, and I tried selling securities. Job satisfaction continued to elude us.</p><p>Finally, at Berkshire, we found what we love to do. With very few exceptions, we have now “worked” for many decades with people whom we like and trust. It’s a joy in life to join with managers such as Paul Andrews or the Berkshire families I told you about last year. In our home office, we employ decent and talented people – no jerks. Turnover averages, perhaps, one person per year.</p><p>I would like, however, to emphasize a further item that turns our jobs into fun and satisfaction working</p><p>for you. There is nothing more rewarding to Charlie and me than enjoying the trust of individual long-term shareholders who, for many decades, have joined us with the expectation that we would be a reliable custodian of their funds.</p><p>Obviously, we can’t select our owners, as we could do if our form of operation were a partnership. Anyone can buy shares of Berkshire today with the intention of soon reselling them. For sure, we get a few of that type of shareholder, just as we get index funds that own huge amounts of Berkshire simply because they are required to do so.</p><p>To a truly unusual degree, however, Berkshire has as owners a very large corps of individuals and families that have elected to join us with an intent approaching “til death do us part.” Often, they have trusted us with a large – some might say excessive – portion of their savings.</p><p>Berkshire, these shareholders would sometimes acknowledge, might be far from the best selection they could have made. But they would add that Berkshire would rank high among those with which they would be most comfortable. And people who are comfortable with their investments will, on average, achieve better results than those who are motivated by ever-changing headlines, chatter and promises.</p><p>Long-term individual owners are both the “partners” Charlie and I have always sought and the ones we constantly have in mind as we make decisions at Berkshire. To them we say, “It feels good to ‘work’ for you, and you have our thanks for your trust.”</p><h2>The Annual Meeting</h2><p>Clear your calendar! Berkshire will have its annual gathering of capitalists in Omaha on Friday, April 29th through Sunday, May 1st. The details regarding the weekend are laid out on pages A-1 and A-2. Omaha eagerly awaits you, as do I.</p><p>I will end this letter with a sales pitch. “Cousin” Jimmy Buffett has designed a pontoon “party” boat that is now being manufactured by Forest River, a Berkshire subsidiary. The boat will be introduced on April 29 at our Berkshire Bazaar of Bargains. And, for two days only, shareholders will be able to purchase Jimmy’s masterpiece at a 10% discount. Your bargain-hunting chairman will be buying a boat for his family’s use. Join me.</p><p>February 26, 2022</p><p>Warren E. Buffett Chairman of the Board</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Buffett Full Annual Letter：Apple is One of ‘Four Giants’ Driving the Conglomerate’s Value</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBuffett Full Annual Letter：Apple is One of ‘Four Giants’ Driving the Conglomerate’s Value\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2022-02-27 09:48</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday. The 91-year-old investing legend has been publishing the letter for over six decades and it has become required reading for investors around the world.</p><p>Warren Buffett said he now considers tech giant Apple as one of the four pillars driving Berkshire Hathaway, the conglomerate of mostly old-economy businesses he’s assembled over the last five decades.</p><p>In his annual letter to shareholders released on Saturday, the 91-year-old investing legend listed Apple under the heading “Our Four Giants” and even called the company the second-most important after Berkshire’s cluster of insurers, thanks to its chief executive.</p><p>“Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well,” the letter stated.</p><p>Buffett made clear he is a fan of Cook’s stock repurchase strategy, and how it gives the conglomerate increased ownership of each dollar of the iPhone maker’s earnings without the investor having to lift a finger.</p><p>“Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier,” Buffett said in the letter. “That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.”</p><p>Berkshire began buying Apple stock in 2016 under the influence of Buffett’s investing deputies Todd Combs and Ted Weschler. By mid-2018, the conglomerate accumulated 5% ownership of the iPhone maker, a stake that cost $36 billion. Today, the Apple investment is now worth more than $160 billion, taking up 40% of Berkshire’s equity portfolio.</p><p>“It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our ‘share’ of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud,” Buffett said.</p><p>Berkshire is Apple’s largest shareholder, outside of index and exchange-traded fund providers.</p><p>Buffett also credited his railroad business BNSF and energy segment BHE as two other giants of the conglomerate, which both registered record earnings in 2021.</p><p>“BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire,” Buffett said. “BHE has become a utility powerhouse and a leading force in wind, solar and transmission throughout much of the United States.”</p><p><b>Read the full letter here：</b></p><p>To the Shareholders of Berkshire Hathaway Inc.:</p><p>Charlie Munger, my long-time partner, and I have the job of managing a portion of your savings. We are honored by your trust.</p><p>Our position carries with it the responsibility to report to you what we would like to know if we were the absentee owner and you were the manager. We enjoy communicating directly with you through this annual letter, and through the annual meeting as well.</p><p>Our policy is to treat all shareholders equally. Therefore, we do not hold discussions with analysts nor large institutions. Whenever possible, also, we release important communications on Saturday mornings in order to maximize the time for shareholders and the media to absorb the news before markets open on Monday.</p><p>A wealth of Berkshire facts and figures are set forth in the annual 10-K that the company regularly files with the S.E.C. and that we reproduce on pages K-1 – K-119. Some shareholders will find this detail engrossing; others will simply prefer to learn what Charlie and I believe is new or interesting at Berkshire.</p><p>Alas, there was little action of that sort in 2021. We did, though, make reasonable progress in increasing the intrinsic value of your shares. That task has been my primary duty for 57 years. And it will continue to be.</p><p><b>What You Own</b></p><p>Berkshire owns a wide variety of businesses, some in their entirety, some only in part. The second group largely consists of marketable common stocks of major American companies. Additionally, we own a few non-U.S. equities and participate in several joint ventures or other collaborative activities.</p><p>Whatever our form of ownership, our goal is to have meaningful investments in businesses with both durable economic advantages and a first-class CEO. Please note particularly that we own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves. That point is crucial: Charlie and I are not stock-pickers; we are business-pickers.</p><p>I make many mistakes. Consequently, our extensive collection of businesses includes some enterprises that have truly extraordinary economics, many others that enjoy good economic characteristics, and a few that are marginal. One advantage of our common-stock segment is that – on occasion – it becomes easy to buy pieces of wonderful businesses at wonderful prices. That shooting-fish-in-a-barrel experience is very rare in negotiated transactions and never occurs en masse. It is also far easier to exit from a mistake when it has been made in the marketable arena.</p><h2><b>Surprise, Surprise</b></h2><p>Here are a few items about your company that often surprise even seasoned investors:</p><p>• Many people perceive Berkshire as a large and somewhat strange collection of financial assets. In truth, Berkshire owns and operates more U.S.-based “infrastructure” assets – classified on our balance sheet as property, plant and equipment – than are owned and operated by any other American corporation. That supremacy has never been our goal. It has, however, become a fact.</p><p>At yearend, those domestic infrastructure assets were carried on Berkshire’s balance sheet at $158 billion. That number increased last year and will continue to increase. Berkshire always will be building.</p><p>• Every year, your company makes substantial federal income tax payments. In 2021, for example, we paid</p><p>$3.3 billion while the U.S. Treasury reported total corporate income-tax receipts of $402 billion. Additionally, Berkshire pays substantial state and foreign taxes. “I gave at the office” is an unassailable assertion when made by Berkshire shareholders.</p><p>Berkshire’s history vividly illustrates the invisible and often unrecognized financial partnership between  government and American businesses. Our tale begins early in 1955, when Berkshire Fine Spinning and Hathaway Manufacturing agreed to merge their businesses. In their requests for shareholder approval, these venerable New England textile companies expressed high hopes for the combination.</p><p></p><p>The Hathaway solicitation, for example, assured its shareholders that “The combination of the resources and managements will result in one of the strongest and most efficient organizations in the textile industry.” That upbeat view was endorsed by the company’s advisor, Lehman Brothers (yes, that Lehman Brothers).</p><p>I’m sure it was a joyous day in both Fall River (Berkshire) and New Bedford (Hathaway) when the union was consummated. After the bands stopped playing and the bankers went home, however, the shareholders reaped a disaster.</p><p>In the nine years following the merger, Berkshire’s owners watched the company’s net worth crater from</p><p>$51.4 million to $22.1 million. In part, this decline was caused by stock repurchases, ill-advised dividends and plant shutdowns. But nine years of effort by many thousands of employees delivered an operating loss as well. Berkshire’s struggles were not unusual: The New England textile industry had silently entered an extended and non-reversible death march.</p><p>During the nine post-merger years, the U.S. Treasury suffered as well from Berkshire’s troubles. All told, the company paid the government only $337,359 in income tax during that period – a pathetic $100 per day.</p><p>Early in 1965, things changed. Berkshire installed new management that redeployed available cash and steered essentially all earnings into a variety of good businesses, most of which remained good through the years. Coupling reinvestment of earnings with the power of compounding worked its magic, and shareholders prospered.</p><p>Berkshire’s owners, it should be noted, were not the only beneficiary of that course correction. Their “silent partner,” the U.S. Treasury, proceeded to collect many tens of billions of dollars from the company in income tax payments. Remember the $100 daily? Now, Berkshire pays roughly $9 million daily to the Treasury.</p><p>In fairness to our governmental partner, our shareholders should acknowledge – indeed trumpet – the fact that Berkshire’s prosperity has been fostered mightily because the company has operated in America. Our country would have done splendidly in the years since 1965 without Berkshire. Absent our American home, however, Berkshire would never have come close to becoming what it is today. When you see the flag, say thanks.</p><p>• From an $8.6 million purchase of National Indemnity in 1967, Berkshire has become the world leader in insurance “float” – money we hold and can invest but that does not belong to us. Including a relatively small sum derived from life insurance, Berkshire’s total float has grown from $19 million when we entered the insurance business to $147 billion.</p><p>So far, this float has cost us less than nothing. Though we have experienced a number of years when insurance losses combined with operating expenses exceeded premiums, overall we have earned a modest 55-year profit from the underwriting activities that generated our float.</p><p>Of equal importance, float is very sticky. Funds attributable to our insurance operations come and go daily, but their aggregate total is immune from precipitous decline. When it comes to investing float, we can therefore think long-term.</p><p>If you are not already familiar with the concept of float, I refer you to a long explanation on page A-5. To my surprise, our float increased $9 billion last year, a buildup of value that is important to Berkshire owners though is not reflected in our GAAP (“generally-accepted accounting principles”) presentation of earnings and net worth.</p><p>Much of our huge value creation in insurance is attributable to Berkshire’s good luck in my 1986 hiring of Ajit Jain. We first met on a Saturday morning, and I quickly asked Ajit what his insurance experience had been. He replied, “None.”</p><p>I said, “Nobody’s perfect,” and hired him. That was my lucky day: Ajit actually was as perfect a choice as could have been made. Better yet, he continues to be – 35 years later.</p><p>One final thought about insurance: I believe that it is likely – but far from assured – that Berkshire’s float can be maintained without our incurring a long-term underwriting loss. I am certain, however, that there will be some years when we experience such losses, perhaps involving very large sums.</p><p>Berkshire is constructed to handle catastrophic events as no other insurer – and that priority will remain long after Charlie and I are gone.</p><h2>Our Four Giants</h2><p>Through Berkshire, our shareholders own many dozens of businesses. Some of these, in turn, have a collection of subsidiaries of their own. For example, Marmon has more than 100 individual business operations, ranging from the leasing of railroad cars to the manufacture of medical devices.</p><p>• Nevertheless, operations of our “Big Four” companies account for a very large chunk of Berkshire’s value. Leading this list is our cluster of insurers. Berkshire effectively owns 100% of this group, whose massive float value we earlier described. The invested assets of these insurers are further enlarged by the extraordinary amount of capital we invest to back up their promises.</p><p>The insurance business is made to order for Berkshire. The product will never be obsolete, and sales volume will generally increase along with both economic growth and inflation. Also, integrity and capital will forever be important. Our company can and will behave well.</p><p>There are, of course, other insurers with excellent business models and prospects. Replication of Berkshire’s operation, however, would be almost impossible.</p><p>• Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.</p><p>It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.</p><p>• BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire. If the many essential products BNSF carries were instead hauled by truck, America’s carbon emissions would soar.</p><p>Your railroad had record earnings of $6 billion in 2021. Here, it should be noted, we are talking about the old-fashioned sort of earnings that we favor: a figure calculated after interest, taxes, depreciation, amortization and all forms of compensation. (Our definition suggests a warning: Deceptive “adjustments” to earnings – to use a polite description – have become both more frequent and more fanciful as stocks have risen. Speaking less politely, I would say that bull markets breed bloviated bull )</p><p>BNSF trains traveled 143 million miles last year and carried 535 million tons of cargo. Both accomplishments far exceed those of any other American carrier. You can be proud of your railroad.</p><p>• BHE, our final Giant, earned a record $4 billion in 2021. That’s up more than 30-fold from the $122 million earned in 2000, the year that Berkshire first purchased a BHE stake. Now, Berkshire owns 91.1% of the company.</p><p>BHE’s record of societal accomplishment is as remarkable as its financial performance. The company had no wind or solar generation in 2000. It was then regarded simply as a relatively new and minor participant in the huge electric utility industry. Subsequently, under David Sokol’s and Greg Abel’s leadership, BHE has become a utility powerhouse (no groaning, please) and a leading force in wind, solar and transmission throughout much of the United States.</p><p>Greg’s report on these accomplishments appears on pages A-3 and A-4. The profile you will find there is not in any way one of those currently-fashionable “green-washing” stories. BHE has been faithfully detailing its plans and performance in renewables and transmissions every year since 2007.</p><p>To further review this information, visit BHE’s website at brkenergy.com. There, you will see that the company has long been making climate-conscious moves that soak up all of its earnings. More opportunities lie ahead. BHE has the management, the experience, the capital and the appetite for the huge power projects that our country needs.</p><h2>Investments</h2><p>Now let’s talk about companies we don’t control, a list that again references Apple. Below we list our fifteen largest equity holdings, several of which are selections of Berkshire’s two long-time investment managers, Todd Combs and Ted Weschler. At yearend, this valued pair had total authority in respect to $34 billion of investments, many of which do not meet the threshold value we use in the table. Also, a significant portion of the dollars that Todd and Ted manage are lodged in various pension plans of Berkshire-owned businesses, with the assets of these plans not included in this table.</p><p><img src=\"https://static.tigerbbs.com/d43587e9f59c0ff76e6c04c6bf9af324\" tg-width=\"1047\" tg-height=\"530\" referrerpolicy=\"no-referrer\"/>* This is our actual purchase price and also our tax basis.</p><p>** Held by BHE; consequently, Berkshire shareholders have only a 91.1% interest in this position.</p><p>*** Includes a $10 billion investment in Occidental Petroleum, consisting of preferred stock and warrants to buy common stock, a combination now being valued at $10.7 billion.</p><p>In addition to the footnoted Occidental holding and our various common-stock positions, Berkshire also owns a 26.6% interest in Kraft Heinz (accounted for on the “equity” method, not market value, and carried at $13.1 billion) and 38.6% of Pilot Corp., a leader in travel centers that had revenues last year of $45 billion.</p><p>Since we purchased our Pilot stake in 2017, this holding has warranted “equity” accounting treatment. Early in 2023, Berkshire will purchase an additional interest in Pilot that will raise our ownership to 80% and lead to our fully consolidating Pilot’s earnings, assets and liabilities in our financial statements.</p><h2>U.S. Treasury Bills</h2><p>Berkshire’s balance sheet includes $144 billion of cash and cash equivalents (excluding the holdings of BNSF and BHE). Of this sum, $120 billion is held in U.S. Treasury bills, all maturing in less than a year. That stake leaves Berkshire financing about 12 of 1% of the publicly-held national debt.</p><p>Charlie and I have pledged that Berkshire (along with our subsidiaries other than BNSF and BHE) will always hold more than $30 billion of cash and equivalents. We want your company to be financially impregnable and never dependent on the kindness of strangers (or even that of friends). Both of us like to sleep soundly, and we want our creditors, insurance claimants and you to do so as well.</p><h2>But $144 billion?</h2><p>That imposing sum, I assure you, is not some deranged expression of patriotism. Nor have Charlie and I lost our overwhelming preference for business ownership. Indeed, I first manifested my enthusiasm for that 80 years ago, on March 11, 1942, when I purchased three shares of Cities Services preferred stock. Their cost was $114.75 and required all of my savings. (The Dow Jones Industrial Average that day closed at 99, a fact that should scream to you: Never bet against America.)</p><p>After my initial plunge, I always kept at least 80% of my net worth in equities. My favored status throughout that period was 100% – and still is. Berkshire’s current 80%-or-so position in businesses is a consequence of my failure to find entire companies or small portions thereof (that is, marketable stocks) which meet our criteria for long- term holding.</p><p>Charlie and I have endured similar cash-heavy positions from time to time in the past. These periods are never pleasant; they are also never permanent. And, fortunately, we have had a mildly attractive alternative during 2020 and 2021 for deploying capital. Read on.</p><h2>Share Repurchases</h2><p>There are three ways that we can increase the value of your investment. The first is always front and center in our minds: Increase the long-term earning power of Berkshire’s controlled businesses through internal growth or by making acquisitions. Today, internal opportunities deliver far better returns than acquisitions. The size of those opportunities, however, is small compared to Berkshire’s resources.</p><p>Our second choice is to buy non-controlling part-interests in the many good or great businesses that are publicly traded. From time to time, such possibilities are both numerous and blatantly attractive. Today, though, we find little that excites us.</p><p>That’s largely because of a truism: Long-term interest rates that are low push the prices of all productive investments upward, whether these are stocks, apartments, farms, oil wells, whatever. Other factors influence valuations as well, but interest rates will always be important.</p><p>Our final path to value creation is to repurchase Berkshire shares. Through that simple act, we increase your share of the many controlled and non-controlled businesses Berkshire owns. When the price/value equation is right, this path is the easiest and most certain way for us to increase your wealth. (Alongside the accretion of value to continuing shareholders, a couple of other parties gain: Repurchases are modestly beneficial to the seller of the repurchased shares and to society as well.)</p><p>Periodically, as alternative paths become unattractive, repurchases make good sense for Berkshire’s owners. During the past two years, we therefore repurchased 9% of the shares that were outstanding at yearend 2019 for a total cost of $51.7 billion. That expenditure left our continuing shareholders owning about 10% more of all Berkshire businesses, whether these are wholly-owned (such as BNSF and GEICO) or partly-owned (such as Coca-Cola and Moody’s).</p><p>I want to underscore that for Berkshire repurchases to make sense, our shares must offer appropriate value. We don’t want to overpay for the shares of other companies, and it would be value-destroying if we were to overpay when we are buying Berkshire. As of February 23, 2022, since yearend we repurchased additional shares at a cost of $1.2 billion. Our appetite remains large but will always remain price-dependent.</p><p>It should be noted that Berkshire’s buyback opportunities are limited because of its high-class investor base. If our shares were heavily held by short-term speculators, both price volatility and transaction volumes would materially increase. That kind of reshaping would offer us far greater opportunities for creating value by making repurchases. Nevertheless, Charlie and I far prefer the owners we have, even though their admirable buy-and-keep attitudes limit the extent to which long-term shareholders can profit from opportunistic repurchases.</p><p>Finally, one easily-overlooked value calculation specific to Berkshire: As we’ve discussed, insurance “float” of the right sort is of great value to us. As it happens, repurchases automatically increase the amount of “float” per share. That figure has increased during the past two years by 25% – going from $79,387 per “A” share to $99,497, a meaningful gain that, as noted, owes some thanks to repurchases.</p><h2>A Wonderful Man and a Wonderful Business</h2><p>Last year, Paul Andrews died. Paul was the founder and CEO of TTI, a Fort Worth-based subsidiary of Berkshire. Throughout his life – in both his business and his personal pursuits – Paul quietly displayed all the qualities that Charlie and I admire. His story should be told.</p><p>In 1971, Paul was working as a purchasing agent for General Dynamics when the roof fell in. After losing a huge defense contract, the company fired thousands of employees, including Paul.</p><p>With his first child due soon, Paul decided to bet on himself, using $500 of his savings to found Tex-Tronics (later renamed TTI). The company set itself up to distribute small electronic components, and first-year sales totaled $112,000. Today, TTI markets more than one million different items with annual volume of $7.7 billion.</p><p>But back to 2006: Paul, at 63, then found himself happy with his family, his job, and his associates. But he had one nagging worry, heightened because he had recently witnessed a friend’s early death and the disastrous results that followed for that man’s family and business. What, Paul asked himself in 2006, would happen to the many people depending on him if he should unexpectedly die?</p><p>For a year, Paul wrestled with his options. Sell to a competitor? From a strictly economic viewpoint, that course made the most sense. After all, competitors could envision lucrative “synergies” – savings that would be achieved as the acquiror slashed duplicated functions at TTI.</p><p>But . . . Such a purchaser would most certainly also retain its CFO, its legal counsel, its HR unit. Their TTI counterparts would therefore be sent packing. And ugh! If a new distribution center were to be needed, the acquirer’s home city would certainly be favored over Fort Worth.</p><p>Whatever the financial benefits, Paul quickly concluded that selling to a competitor was not for him. He next considered seeking a financial buyer, a species once labeled – aptly so – a leveraged buyout firm. Paul knew, however, that such a purchaser would be focused on an “exit strategy.” And who could know what that would be? Brooding over it all, Paul found himself having no interest in handing his 35-year-old creation over to a reseller.</p><p>When Paul met me, he explained why he had eliminated these two alternatives as buyers. He then summed up his dilemma by saying – in far more tactful phrasing than this – “After a year of pondering the alternatives, I want to sell to Berkshire because you are the only guy left.” So, I made an offer and Paul said “Yes.” One meeting; one lunch; one deal.</p><p>To say we both lived happily ever after is an understatement. When Berkshire purchased TTI, the company employed 2,387. Now the number is 8,043. A large percentage of that growth took place in Fort Worth and environs. Earnings have increased 673%.</p><p>Annually, I would call Paul and tell him his salary should be substantially increased. Annually, he would tell me, “We can talk about that next year, Warren; I’m too busy now.”</p><p>When Greg Abel and I attended Paul’s memorial service, we met children, grandchildren, long-time associates (including TTI’s first employee) and John Roach, the former CEO of a Fort Worth company Berkshire had purchased in 2000. John had steered his friend Paul to Omaha, instinctively knowing we would be a match.</p><p>At the service, Greg and I heard about the multitudes of people and organizations that Paul had silently supported. The breadth of his generosity was extraordinary – geared always to improving the lives of others, particularly those in Fort Worth.</p><p>In all ways, Paul was a class act.</p><p>* * * * * * * * * * * *</p><p>Good luck – occasionally extraordinary luck – has played its part at Berkshire. If Paul and I had not enjoyed a mutual friend – John Roach – TTI would not have found its home with us. But that ample serving of luck was only the beginning. TTI was soon to lead Berkshire to its most important acquisition.</p><p>Every fall, Berkshire directors gather for a presentation by a few of our executives. We sometimes choose the site based upon the location of a recent acquisition, by that means allowing directors to meet the new subsidiary’s CEO and learn more about the acquiree’s activities.</p><p>In the fall of 2009, we consequently selected Fort Worth so that we could visit TTI. At that time, BNSF, which also had Fort Worth as its hometown, was the third-largest holding among our marketable equities. Despite that large stake, I had never visited the railroad’s headquarters.</p><p>Deb Bosanek, my assistant, scheduled our board’s opening dinner for October 22. Meanwhile, I arranged to arrive earlier that day to meet with Matt Rose, CEO of BNSF, whose accomplishments I had long admired. When I made the date, I had no idea that our get-together would coincide with BNSF’s third-quarter earnings report, which was released late on the 22nd.</p><p>The market reacted badly to the railroad’s results. The Great Recession was in full force in the third quarter, and BNSF’s earnings reflected that slump. The economic outlook was also bleak, and Wall Street wasn’t feeling friendly to railroads – or much else.</p><p>On the following day, I again got together with Matt and suggested that Berkshire would offer the railroad a better long-term home than it could expect as a public company. I also told him the maximum price that Berkshire would pay.</p><p>Matt relayed the offer to his directors and advisors. Eleven busy days later, Berkshire and BNSF announced a firm deal. And here I’ll venture a rare prediction: BNSF will be a key asset for Berkshire and our country a century from now.</p><p>The BNSF acquisition would never have happened if Paul Andrews hadn’t sized up Berkshire as the right home for TTI.</p><h2>Thanks</h2><p>I taught my first investing class 70 years ago. Since then, I have enjoyed working almost every year with students of all ages, finally “retiring” from that pursuit in 2018.</p><p>Along the way, my toughest audience was my grandson’s fifth-grade class. The 11-year-olds were squirming in their seats and giving me blank stares until I mentioned Coca-Cola and its famous secret formula. Instantly, every hand went up, and I learned that “secrets” are catnip to kids.</p><p>Teaching, like writing, has helped me develop and clarify my own thoughts. Charlie calls this phenomenon the orangutan effect: If you sit down with an orangutan and carefully explain to it one of your cherished ideas, you may leave behind a puzzled primate, but will yourself exit thinking more clearly.</p><p>Talking to university students is far superior. I have urged that they seek employment in (1) the field and (2) with the kind of people they would select, if they had no need for money. Economic realities, I acknowledge, may interfere with that kind of search. Even so, I urge the students never to give up the quest, for when they find that sort of job, they will no longer be “working.”</p><p>Charlie and I, ourselves, followed that liberating course after a few early stumbles. We both started as part- timers at my grandfather’s grocery store, Charlie in 1940 and I in 1942. We were each assigned boring tasks and paid little, definitely not what we had in mind. Charlie later took up law, and I tried selling securities. Job satisfaction continued to elude us.</p><p>Finally, at Berkshire, we found what we love to do. With very few exceptions, we have now “worked” for many decades with people whom we like and trust. It’s a joy in life to join with managers such as Paul Andrews or the Berkshire families I told you about last year. In our home office, we employ decent and talented people – no jerks. Turnover averages, perhaps, one person per year.</p><p>I would like, however, to emphasize a further item that turns our jobs into fun and satisfaction working</p><p>for you. There is nothing more rewarding to Charlie and me than enjoying the trust of individual long-term shareholders who, for many decades, have joined us with the expectation that we would be a reliable custodian of their funds.</p><p>Obviously, we can’t select our owners, as we could do if our form of operation were a partnership. Anyone can buy shares of Berkshire today with the intention of soon reselling them. For sure, we get a few of that type of shareholder, just as we get index funds that own huge amounts of Berkshire simply because they are required to do so.</p><p>To a truly unusual degree, however, Berkshire has as owners a very large corps of individuals and families that have elected to join us with an intent approaching “til death do us part.” Often, they have trusted us with a large – some might say excessive – portion of their savings.</p><p>Berkshire, these shareholders would sometimes acknowledge, might be far from the best selection they could have made. But they would add that Berkshire would rank high among those with which they would be most comfortable. And people who are comfortable with their investments will, on average, achieve better results than those who are motivated by ever-changing headlines, chatter and promises.</p><p>Long-term individual owners are both the “partners” Charlie and I have always sought and the ones we constantly have in mind as we make decisions at Berkshire. To them we say, “It feels good to ‘work’ for you, and you have our thanks for your trust.”</p><h2>The Annual Meeting</h2><p>Clear your calendar! Berkshire will have its annual gathering of capitalists in Omaha on Friday, April 29th through Sunday, May 1st. The details regarding the weekend are laid out on pages A-1 and A-2. Omaha eagerly awaits you, as do I.</p><p>I will end this letter with a sales pitch. “Cousin” Jimmy Buffett has designed a pontoon “party” boat that is now being manufactured by Forest River, a Berkshire subsidiary. The boat will be introduced on April 29 at our Berkshire Bazaar of Bargains. And, for two days only, shareholders will be able to purchase Jimmy’s masterpiece at a 10% discount. Your bargain-hunting chairman will be buying a boat for his family’s use. Join me.</p><p>February 26, 2022</p><p>Warren E. Buffett Chairman of the Board</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BRK.B":"伯克希尔B","BRK.A":"伯克希尔"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1125580913","content_text":"Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday. The 91-year-old investing legend has been publishing the letter for over six decades and it has become required reading for investors around the world.Warren Buffett said he now considers tech giant Apple as one of the four pillars driving Berkshire Hathaway, the conglomerate of mostly old-economy businesses he’s assembled over the last five decades.In his annual letter to shareholders released on Saturday, the 91-year-old investing legend listed Apple under the heading “Our Four Giants” and even called the company the second-most important after Berkshire’s cluster of insurers, thanks to its chief executive.“Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well,” the letter stated.Buffett made clear he is a fan of Cook’s stock repurchase strategy, and how it gives the conglomerate increased ownership of each dollar of the iPhone maker’s earnings without the investor having to lift a finger.“Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier,” Buffett said in the letter. “That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.”Berkshire began buying Apple stock in 2016 under the influence of Buffett’s investing deputies Todd Combs and Ted Weschler. By mid-2018, the conglomerate accumulated 5% ownership of the iPhone maker, a stake that cost $36 billion. Today, the Apple investment is now worth more than $160 billion, taking up 40% of Berkshire’s equity portfolio.“It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our ‘share’ of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud,” Buffett said.Berkshire is Apple’s largest shareholder, outside of index and exchange-traded fund providers.Buffett also credited his railroad business BNSF and energy segment BHE as two other giants of the conglomerate, which both registered record earnings in 2021.“BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire,” Buffett said. “BHE has become a utility powerhouse and a leading force in wind, solar and transmission throughout much of the United States.”Read the full letter here：To the Shareholders of Berkshire Hathaway Inc.:Charlie Munger, my long-time partner, and I have the job of managing a portion of your savings. We are honored by your trust.Our position carries with it the responsibility to report to you what we would like to know if we were the absentee owner and you were the manager. We enjoy communicating directly with you through this annual letter, and through the annual meeting as well.Our policy is to treat all shareholders equally. Therefore, we do not hold discussions with analysts nor large institutions. Whenever possible, also, we release important communications on Saturday mornings in order to maximize the time for shareholders and the media to absorb the news before markets open on Monday.A wealth of Berkshire facts and figures are set forth in the annual 10-K that the company regularly files with the S.E.C. and that we reproduce on pages K-1 – K-119. Some shareholders will find this detail engrossing; others will simply prefer to learn what Charlie and I believe is new or interesting at Berkshire.Alas, there was little action of that sort in 2021. We did, though, make reasonable progress in increasing the intrinsic value of your shares. That task has been my primary duty for 57 years. And it will continue to be.What You OwnBerkshire owns a wide variety of businesses, some in their entirety, some only in part. The second group largely consists of marketable common stocks of major American companies. Additionally, we own a few non-U.S. equities and participate in several joint ventures or other collaborative activities.Whatever our form of ownership, our goal is to have meaningful investments in businesses with both durable economic advantages and a first-class CEO. Please note particularly that we own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves. That point is crucial: Charlie and I are not stock-pickers; we are business-pickers.I make many mistakes. Consequently, our extensive collection of businesses includes some enterprises that have truly extraordinary economics, many others that enjoy good economic characteristics, and a few that are marginal. One advantage of our common-stock segment is that – on occasion – it becomes easy to buy pieces of wonderful businesses at wonderful prices. That shooting-fish-in-a-barrel experience is very rare in negotiated transactions and never occurs en masse. It is also far easier to exit from a mistake when it has been made in the marketable arena.Surprise, SurpriseHere are a few items about your company that often surprise even seasoned investors:• Many people perceive Berkshire as a large and somewhat strange collection of financial assets. In truth, Berkshire owns and operates more U.S.-based “infrastructure” assets – classified on our balance sheet as property, plant and equipment – than are owned and operated by any other American corporation. That supremacy has never been our goal. It has, however, become a fact.At yearend, those domestic infrastructure assets were carried on Berkshire’s balance sheet at $158 billion. That number increased last year and will continue to increase. Berkshire always will be building.• Every year, your company makes substantial federal income tax payments. In 2021, for example, we paid$3.3 billion while the U.S. Treasury reported total corporate income-tax receipts of $402 billion. Additionally, Berkshire pays substantial state and foreign taxes. “I gave at the office” is an unassailable assertion when made by Berkshire shareholders.Berkshire’s history vividly illustrates the invisible and often unrecognized financial partnership between  government and American businesses. Our tale begins early in 1955, when Berkshire Fine Spinning and Hathaway Manufacturing agreed to merge their businesses. In their requests for shareholder approval, these venerable New England textile companies expressed high hopes for the combination.The Hathaway solicitation, for example, assured its shareholders that “The combination of the resources and managements will result in one of the strongest and most efficient organizations in the textile industry.” That upbeat view was endorsed by the company’s advisor, Lehman Brothers (yes, that Lehman Brothers).I’m sure it was a joyous day in both Fall River (Berkshire) and New Bedford (Hathaway) when the union was consummated. After the bands stopped playing and the bankers went home, however, the shareholders reaped a disaster.In the nine years following the merger, Berkshire’s owners watched the company’s net worth crater from$51.4 million to $22.1 million. In part, this decline was caused by stock repurchases, ill-advised dividends and plant shutdowns. But nine years of effort by many thousands of employees delivered an operating loss as well. Berkshire’s struggles were not unusual: The New England textile industry had silently entered an extended and non-reversible death march.During the nine post-merger years, the U.S. Treasury suffered as well from Berkshire’s troubles. All told, the company paid the government only $337,359 in income tax during that period – a pathetic $100 per day.Early in 1965, things changed. Berkshire installed new management that redeployed available cash and steered essentially all earnings into a variety of good businesses, most of which remained good through the years. Coupling reinvestment of earnings with the power of compounding worked its magic, and shareholders prospered.Berkshire’s owners, it should be noted, were not the only beneficiary of that course correction. Their “silent partner,” the U.S. Treasury, proceeded to collect many tens of billions of dollars from the company in income tax payments. Remember the $100 daily? Now, Berkshire pays roughly $9 million daily to the Treasury.In fairness to our governmental partner, our shareholders should acknowledge – indeed trumpet – the fact that Berkshire’s prosperity has been fostered mightily because the company has operated in America. Our country would have done splendidly in the years since 1965 without Berkshire. Absent our American home, however, Berkshire would never have come close to becoming what it is today. When you see the flag, say thanks.• From an $8.6 million purchase of National Indemnity in 1967, Berkshire has become the world leader in insurance “float” – money we hold and can invest but that does not belong to us. Including a relatively small sum derived from life insurance, Berkshire’s total float has grown from $19 million when we entered the insurance business to $147 billion.So far, this float has cost us less than nothing. Though we have experienced a number of years when insurance losses combined with operating expenses exceeded premiums, overall we have earned a modest 55-year profit from the underwriting activities that generated our float.Of equal importance, float is very sticky. Funds attributable to our insurance operations come and go daily, but their aggregate total is immune from precipitous decline. When it comes to investing float, we can therefore think long-term.If you are not already familiar with the concept of float, I refer you to a long explanation on page A-5. To my surprise, our float increased $9 billion last year, a buildup of value that is important to Berkshire owners though is not reflected in our GAAP (“generally-accepted accounting principles”) presentation of earnings and net worth.Much of our huge value creation in insurance is attributable to Berkshire’s good luck in my 1986 hiring of Ajit Jain. We first met on a Saturday morning, and I quickly asked Ajit what his insurance experience had been. He replied, “None.”I said, “Nobody’s perfect,” and hired him. That was my lucky day: Ajit actually was as perfect a choice as could have been made. Better yet, he continues to be – 35 years later.One final thought about insurance: I believe that it is likely – but far from assured – that Berkshire’s float can be maintained without our incurring a long-term underwriting loss. I am certain, however, that there will be some years when we experience such losses, perhaps involving very large sums.Berkshire is constructed to handle catastrophic events as no other insurer – and that priority will remain long after Charlie and I are gone.Our Four GiantsThrough Berkshire, our shareholders own many dozens of businesses. Some of these, in turn, have a collection of subsidiaries of their own. For example, Marmon has more than 100 individual business operations, ranging from the leasing of railroad cars to the manufacture of medical devices.• Nevertheless, operations of our “Big Four” companies account for a very large chunk of Berkshire’s value. Leading this list is our cluster of insurers. Berkshire effectively owns 100% of this group, whose massive float value we earlier described. The invested assets of these insurers are further enlarged by the extraordinary amount of capital we invest to back up their promises.The insurance business is made to order for Berkshire. The product will never be obsolete, and sales volume will generally increase along with both economic growth and inflation. Also, integrity and capital will forever be important. Our company can and will behave well.There are, of course, other insurers with excellent business models and prospects. Replication of Berkshire’s operation, however, would be almost impossible.• Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.• BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire. If the many essential products BNSF carries were instead hauled by truck, America’s carbon emissions would soar.Your railroad had record earnings of $6 billion in 2021. Here, it should be noted, we are talking about the old-fashioned sort of earnings that we favor: a figure calculated after interest, taxes, depreciation, amortization and all forms of compensation. (Our definition suggests a warning: Deceptive “adjustments” to earnings – to use a polite description – have become both more frequent and more fanciful as stocks have risen. Speaking less politely, I would say that bull markets breed bloviated bull )BNSF trains traveled 143 million miles last year and carried 535 million tons of cargo. Both accomplishments far exceed those of any other American carrier. You can be proud of your railroad.• BHE, our final Giant, earned a record $4 billion in 2021. That’s up more than 30-fold from the $122 million earned in 2000, the year that Berkshire first purchased a BHE stake. Now, Berkshire owns 91.1% of the company.BHE’s record of societal accomplishment is as remarkable as its financial performance. The company had no wind or solar generation in 2000. It was then regarded simply as a relatively new and minor participant in the huge electric utility industry. Subsequently, under David Sokol’s and Greg Abel’s leadership, BHE has become a utility powerhouse (no groaning, please) and a leading force in wind, solar and transmission throughout much of the United States.Greg’s report on these accomplishments appears on pages A-3 and A-4. The profile you will find there is not in any way one of those currently-fashionable “green-washing” stories. BHE has been faithfully detailing its plans and performance in renewables and transmissions every year since 2007.To further review this information, visit BHE’s website at brkenergy.com. There, you will see that the company has long been making climate-conscious moves that soak up all of its earnings. More opportunities lie ahead. BHE has the management, the experience, the capital and the appetite for the huge power projects that our country needs.InvestmentsNow let’s talk about companies we don’t control, a list that again references Apple. Below we list our fifteen largest equity holdings, several of which are selections of Berkshire’s two long-time investment managers, Todd Combs and Ted Weschler. At yearend, this valued pair had total authority in respect to $34 billion of investments, many of which do not meet the threshold value we use in the table. Also, a significant portion of the dollars that Todd and Ted manage are lodged in various pension plans of Berkshire-owned businesses, with the assets of these plans not included in this table.* This is our actual purchase price and also our tax basis.** Held by BHE; consequently, Berkshire shareholders have only a 91.1% interest in this position.*** Includes a $10 billion investment in Occidental Petroleum, consisting of preferred stock and warrants to buy common stock, a combination now being valued at $10.7 billion.In addition to the footnoted Occidental holding and our various common-stock positions, Berkshire also owns a 26.6% interest in Kraft Heinz (accounted for on the “equity” method, not market value, and carried at $13.1 billion) and 38.6% of Pilot Corp., a leader in travel centers that had revenues last year of $45 billion.Since we purchased our Pilot stake in 2017, this holding has warranted “equity” accounting treatment. Early in 2023, Berkshire will purchase an additional interest in Pilot that will raise our ownership to 80% and lead to our fully consolidating Pilot’s earnings, assets and liabilities in our financial statements.U.S. Treasury BillsBerkshire’s balance sheet includes $144 billion of cash and cash equivalents (excluding the holdings of BNSF and BHE). Of this sum, $120 billion is held in U.S. Treasury bills, all maturing in less than a year. That stake leaves Berkshire financing about 12 of 1% of the publicly-held national debt.Charlie and I have pledged that Berkshire (along with our subsidiaries other than BNSF and BHE) will always hold more than $30 billion of cash and equivalents. We want your company to be financially impregnable and never dependent on the kindness of strangers (or even that of friends). Both of us like to sleep soundly, and we want our creditors, insurance claimants and you to do so as well.But $144 billion?That imposing sum, I assure you, is not some deranged expression of patriotism. Nor have Charlie and I lost our overwhelming preference for business ownership. Indeed, I first manifested my enthusiasm for that 80 years ago, on March 11, 1942, when I purchased three shares of Cities Services preferred stock. Their cost was $114.75 and required all of my savings. (The Dow Jones Industrial Average that day closed at 99, a fact that should scream to you: Never bet against America.)After my initial plunge, I always kept at least 80% of my net worth in equities. My favored status throughout that period was 100% – and still is. Berkshire’s current 80%-or-so position in businesses is a consequence of my failure to find entire companies or small portions thereof (that is, marketable stocks) which meet our criteria for long- term holding.Charlie and I have endured similar cash-heavy positions from time to time in the past. These periods are never pleasant; they are also never permanent. And, fortunately, we have had a mildly attractive alternative during 2020 and 2021 for deploying capital. Read on.Share RepurchasesThere are three ways that we can increase the value of your investment. The first is always front and center in our minds: Increase the long-term earning power of Berkshire’s controlled businesses through internal growth or by making acquisitions. Today, internal opportunities deliver far better returns than acquisitions. The size of those opportunities, however, is small compared to Berkshire’s resources.Our second choice is to buy non-controlling part-interests in the many good or great businesses that are publicly traded. From time to time, such possibilities are both numerous and blatantly attractive. Today, though, we find little that excites us.That’s largely because of a truism: Long-term interest rates that are low push the prices of all productive investments upward, whether these are stocks, apartments, farms, oil wells, whatever. Other factors influence valuations as well, but interest rates will always be important.Our final path to value creation is to repurchase Berkshire shares. Through that simple act, we increase your share of the many controlled and non-controlled businesses Berkshire owns. When the price/value equation is right, this path is the easiest and most certain way for us to increase your wealth. (Alongside the accretion of value to continuing shareholders, a couple of other parties gain: Repurchases are modestly beneficial to the seller of the repurchased shares and to society as well.)Periodically, as alternative paths become unattractive, repurchases make good sense for Berkshire’s owners. During the past two years, we therefore repurchased 9% of the shares that were outstanding at yearend 2019 for a total cost of $51.7 billion. That expenditure left our continuing shareholders owning about 10% more of all Berkshire businesses, whether these are wholly-owned (such as BNSF and GEICO) or partly-owned (such as Coca-Cola and Moody’s).I want to underscore that for Berkshire repurchases to make sense, our shares must offer appropriate value. We don’t want to overpay for the shares of other companies, and it would be value-destroying if we were to overpay when we are buying Berkshire. As of February 23, 2022, since yearend we repurchased additional shares at a cost of $1.2 billion. Our appetite remains large but will always remain price-dependent.It should be noted that Berkshire’s buyback opportunities are limited because of its high-class investor base. If our shares were heavily held by short-term speculators, both price volatility and transaction volumes would materially increase. That kind of reshaping would offer us far greater opportunities for creating value by making repurchases. Nevertheless, Charlie and I far prefer the owners we have, even though their admirable buy-and-keep attitudes limit the extent to which long-term shareholders can profit from opportunistic repurchases.Finally, one easily-overlooked value calculation specific to Berkshire: As we’ve discussed, insurance “float” of the right sort is of great value to us. As it happens, repurchases automatically increase the amount of “float” per share. That figure has increased during the past two years by 25% – going from $79,387 per “A” share to $99,497, a meaningful gain that, as noted, owes some thanks to repurchases.A Wonderful Man and a Wonderful BusinessLast year, Paul Andrews died. Paul was the founder and CEO of TTI, a Fort Worth-based subsidiary of Berkshire. Throughout his life – in both his business and his personal pursuits – Paul quietly displayed all the qualities that Charlie and I admire. His story should be told.In 1971, Paul was working as a purchasing agent for General Dynamics when the roof fell in. After losing a huge defense contract, the company fired thousands of employees, including Paul.With his first child due soon, Paul decided to bet on himself, using $500 of his savings to found Tex-Tronics (later renamed TTI). The company set itself up to distribute small electronic components, and first-year sales totaled $112,000. Today, TTI markets more than one million different items with annual volume of $7.7 billion.But back to 2006: Paul, at 63, then found himself happy with his family, his job, and his associates. But he had one nagging worry, heightened because he had recently witnessed a friend’s early death and the disastrous results that followed for that man’s family and business. What, Paul asked himself in 2006, would happen to the many people depending on him if he should unexpectedly die?For a year, Paul wrestled with his options. Sell to a competitor? From a strictly economic viewpoint, that course made the most sense. After all, competitors could envision lucrative “synergies” – savings that would be achieved as the acquiror slashed duplicated functions at TTI.But . . . Such a purchaser would most certainly also retain its CFO, its legal counsel, its HR unit. Their TTI counterparts would therefore be sent packing. And ugh! If a new distribution center were to be needed, the acquirer’s home city would certainly be favored over Fort Worth.Whatever the financial benefits, Paul quickly concluded that selling to a competitor was not for him. He next considered seeking a financial buyer, a species once labeled – aptly so – a leveraged buyout firm. Paul knew, however, that such a purchaser would be focused on an “exit strategy.” And who could know what that would be? Brooding over it all, Paul found himself having no interest in handing his 35-year-old creation over to a reseller.When Paul met me, he explained why he had eliminated these two alternatives as buyers. He then summed up his dilemma by saying – in far more tactful phrasing than this – “After a year of pondering the alternatives, I want to sell to Berkshire because you are the only guy left.” So, I made an offer and Paul said “Yes.” One meeting; one lunch; one deal.To say we both lived happily ever after is an understatement. When Berkshire purchased TTI, the company employed 2,387. Now the number is 8,043. A large percentage of that growth took place in Fort Worth and environs. Earnings have increased 673%.Annually, I would call Paul and tell him his salary should be substantially increased. Annually, he would tell me, “We can talk about that next year, Warren; I’m too busy now.”When Greg Abel and I attended Paul’s memorial service, we met children, grandchildren, long-time associates (including TTI’s first employee) and John Roach, the former CEO of a Fort Worth company Berkshire had purchased in 2000. John had steered his friend Paul to Omaha, instinctively knowing we would be a match.At the service, Greg and I heard about the multitudes of people and organizations that Paul had silently supported. The breadth of his generosity was extraordinary – geared always to improving the lives of others, particularly those in Fort Worth.In all ways, Paul was a class act.* * * * * * * * * * * *Good luck – occasionally extraordinary luck – has played its part at Berkshire. If Paul and I had not enjoyed a mutual friend – John Roach – TTI would not have found its home with us. But that ample serving of luck was only the beginning. TTI was soon to lead Berkshire to its most important acquisition.Every fall, Berkshire directors gather for a presentation by a few of our executives. We sometimes choose the site based upon the location of a recent acquisition, by that means allowing directors to meet the new subsidiary’s CEO and learn more about the acquiree’s activities.In the fall of 2009, we consequently selected Fort Worth so that we could visit TTI. At that time, BNSF, which also had Fort Worth as its hometown, was the third-largest holding among our marketable equities. Despite that large stake, I had never visited the railroad’s headquarters.Deb Bosanek, my assistant, scheduled our board’s opening dinner for October 22. Meanwhile, I arranged to arrive earlier that day to meet with Matt Rose, CEO of BNSF, whose accomplishments I had long admired. When I made the date, I had no idea that our get-together would coincide with BNSF’s third-quarter earnings report, which was released late on the 22nd.The market reacted badly to the railroad’s results. The Great Recession was in full force in the third quarter, and BNSF’s earnings reflected that slump. The economic outlook was also bleak, and Wall Street wasn’t feeling friendly to railroads – or much else.On the following day, I again got together with Matt and suggested that Berkshire would offer the railroad a better long-term home than it could expect as a public company. I also told him the maximum price that Berkshire would pay.Matt relayed the offer to his directors and advisors. Eleven busy days later, Berkshire and BNSF announced a firm deal. And here I’ll venture a rare prediction: BNSF will be a key asset for Berkshire and our country a century from now.The BNSF acquisition would never have happened if Paul Andrews hadn’t sized up Berkshire as the right home for TTI.ThanksI taught my first investing class 70 years ago. Since then, I have enjoyed working almost every year with students of all ages, finally “retiring” from that pursuit in 2018.Along the way, my toughest audience was my grandson’s fifth-grade class. The 11-year-olds were squirming in their seats and giving me blank stares until I mentioned Coca-Cola and its famous secret formula. Instantly, every hand went up, and I learned that “secrets” are catnip to kids.Teaching, like writing, has helped me develop and clarify my own thoughts. Charlie calls this phenomenon the orangutan effect: If you sit down with an orangutan and carefully explain to it one of your cherished ideas, you may leave behind a puzzled primate, but will yourself exit thinking more clearly.Talking to university students is far superior. I have urged that they seek employment in (1) the field and (2) with the kind of people they would select, if they had no need for money. Economic realities, I acknowledge, may interfere with that kind of search. Even so, I urge the students never to give up the quest, for when they find that sort of job, they will no longer be “working.”Charlie and I, ourselves, followed that liberating course after a few early stumbles. We both started as part- timers at my grandfather’s grocery store, Charlie in 1940 and I in 1942. We were each assigned boring tasks and paid little, definitely not what we had in mind. Charlie later took up law, and I tried selling securities. Job satisfaction continued to elude us.Finally, at Berkshire, we found what we love to do. With very few exceptions, we have now “worked” for many decades with people whom we like and trust. It’s a joy in life to join with managers such as Paul Andrews or the Berkshire families I told you about last year. In our home office, we employ decent and talented people – no jerks. Turnover averages, perhaps, one person per year.I would like, however, to emphasize a further item that turns our jobs into fun and satisfaction workingfor you. There is nothing more rewarding to Charlie and me than enjoying the trust of individual long-term shareholders who, for many decades, have joined us with the expectation that we would be a reliable custodian of their funds.Obviously, we can’t select our owners, as we could do if our form of operation were a partnership. Anyone can buy shares of Berkshire today with the intention of soon reselling them. For sure, we get a few of that type of shareholder, just as we get index funds that own huge amounts of Berkshire simply because they are required to do so.To a truly unusual degree, however, Berkshire has as owners a very large corps of individuals and families that have elected to join us with an intent approaching “til death do us part.” Often, they have trusted us with a large – some might say excessive – portion of their savings.Berkshire, these shareholders would sometimes acknowledge, might be far from the best selection they could have made. But they would add that Berkshire would rank high among those with which they would be most comfortable. And people who are comfortable with their investments will, on average, achieve better results than those who are motivated by ever-changing headlines, chatter and promises.Long-term individual owners are both the “partners” Charlie and I have always sought and the ones we constantly have in mind as we make decisions at Berkshire. To them we say, “It feels good to ‘work’ for you, and you have our thanks for your trust.”The Annual MeetingClear your calendar! Berkshire will have its annual gathering of capitalists in Omaha on Friday, April 29th through Sunday, May 1st. The details regarding the weekend are laid out on pages A-1 and A-2. Omaha eagerly awaits you, as do I.I will end this letter with a sales pitch. “Cousin” Jimmy Buffett has designed a pontoon “party” boat that is now being manufactured by Forest River, a Berkshire subsidiary. The boat will be introduced on April 29 at our Berkshire Bazaar of Bargains. And, for two days only, shareholders will be able to purchase Jimmy’s masterpiece at a 10% discount. Your bargain-hunting chairman will be buying a boat for his family’s use. Join me.February 26, 2022Warren E. Buffett Chairman of the Board","news_type":1},"isVote":1,"tweetType":1,"viewCount":94,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9039962609,"gmtCreate":1645887635155,"gmtModify":1676534072629,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9039962609","repostId":"1125580913","repostType":4,"repost":{"id":"1125580913","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1645926503,"share":"https://www.laohu8.com/m/news/1125580913?lang=&edition=full","pubTime":"2022-02-27 09:48","market":"us","language":"en","title":"Buffett Full Annual Letter：Apple is One of ‘Four Giants’ Driving the Conglomerate’s Value","url":"https://stock-news.laohu8.com/highlight/detail?id=1125580913","media":"Tiger Newspress","summary":"Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday. The 91-yea","content":"<html><head></head><body><p>Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday. The 91-year-old investing legend has been publishing the letter for over six decades and it has become required reading for investors around the world.</p><p>Warren Buffett said he now considers tech giant Apple as one of the four pillars driving Berkshire Hathaway, the conglomerate of mostly old-economy businesses he’s assembled over the last five decades.</p><p>In his annual letter to shareholders released on Saturday, the 91-year-old investing legend listed Apple under the heading “Our Four Giants” and even called the company the second-most important after Berkshire’s cluster of insurers, thanks to its chief executive.</p><p>“Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well,” the letter stated.</p><p>Buffett made clear he is a fan of Cook’s stock repurchase strategy, and how it gives the conglomerate increased ownership of each dollar of the iPhone maker’s earnings without the investor having to lift a finger.</p><p>“Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier,” Buffett said in the letter. “That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.”</p><p>Berkshire began buying Apple stock in 2016 under the influence of Buffett’s investing deputies Todd Combs and Ted Weschler. By mid-2018, the conglomerate accumulated 5% ownership of the iPhone maker, a stake that cost $36 billion. Today, the Apple investment is now worth more than $160 billion, taking up 40% of Berkshire’s equity portfolio.</p><p>“It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our ‘share’ of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud,” Buffett said.</p><p>Berkshire is Apple’s largest shareholder, outside of index and exchange-traded fund providers.</p><p>Buffett also credited his railroad business BNSF and energy segment BHE as two other giants of the conglomerate, which both registered record earnings in 2021.</p><p>“BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire,” Buffett said. “BHE has become a utility powerhouse and a leading force in wind, solar and transmission throughout much of the United States.”</p><p><b>Read the full letter here：</b></p><p>To the Shareholders of Berkshire Hathaway Inc.:</p><p>Charlie Munger, my long-time partner, and I have the job of managing a portion of your savings. We are honored by your trust.</p><p>Our position carries with it the responsibility to report to you what we would like to know if we were the absentee owner and you were the manager. We enjoy communicating directly with you through this annual letter, and through the annual meeting as well.</p><p>Our policy is to treat all shareholders equally. Therefore, we do not hold discussions with analysts nor large institutions. Whenever possible, also, we release important communications on Saturday mornings in order to maximize the time for shareholders and the media to absorb the news before markets open on Monday.</p><p>A wealth of Berkshire facts and figures are set forth in the annual 10-K that the company regularly files with the S.E.C. and that we reproduce on pages K-1 – K-119. Some shareholders will find this detail engrossing; others will simply prefer to learn what Charlie and I believe is new or interesting at Berkshire.</p><p>Alas, there was little action of that sort in 2021. We did, though, make reasonable progress in increasing the intrinsic value of your shares. That task has been my primary duty for 57 years. And it will continue to be.</p><p><b>What You Own</b></p><p>Berkshire owns a wide variety of businesses, some in their entirety, some only in part. The second group largely consists of marketable common stocks of major American companies. Additionally, we own a few non-U.S. equities and participate in several joint ventures or other collaborative activities.</p><p>Whatever our form of ownership, our goal is to have meaningful investments in businesses with both durable economic advantages and a first-class CEO. Please note particularly that we own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves. That point is crucial: Charlie and I are not stock-pickers; we are business-pickers.</p><p>I make many mistakes. Consequently, our extensive collection of businesses includes some enterprises that have truly extraordinary economics, many others that enjoy good economic characteristics, and a few that are marginal. One advantage of our common-stock segment is that – on occasion – it becomes easy to buy pieces of wonderful businesses at wonderful prices. That shooting-fish-in-a-barrel experience is very rare in negotiated transactions and never occurs en masse. It is also far easier to exit from a mistake when it has been made in the marketable arena.</p><h2><b>Surprise, Surprise</b></h2><p>Here are a few items about your company that often surprise even seasoned investors:</p><p>• Many people perceive Berkshire as a large and somewhat strange collection of financial assets. In truth, Berkshire owns and operates more U.S.-based “infrastructure” assets – classified on our balance sheet as property, plant and equipment – than are owned and operated by any other American corporation. That supremacy has never been our goal. It has, however, become a fact.</p><p>At yearend, those domestic infrastructure assets were carried on Berkshire’s balance sheet at $158 billion. That number increased last year and will continue to increase. Berkshire always will be building.</p><p>• Every year, your company makes substantial federal income tax payments. In 2021, for example, we paid</p><p>$3.3 billion while the U.S. Treasury reported total corporate income-tax receipts of $402 billion. Additionally, Berkshire pays substantial state and foreign taxes. “I gave at the office” is an unassailable assertion when made by Berkshire shareholders.</p><p>Berkshire’s history vividly illustrates the invisible and often unrecognized financial partnership between  government and American businesses. Our tale begins early in 1955, when Berkshire Fine Spinning and Hathaway Manufacturing agreed to merge their businesses. In their requests for shareholder approval, these venerable New England textile companies expressed high hopes for the combination.</p><p></p><p>The Hathaway solicitation, for example, assured its shareholders that “The combination of the resources and managements will result in one of the strongest and most efficient organizations in the textile industry.” That upbeat view was endorsed by the company’s advisor, Lehman Brothers (yes, that Lehman Brothers).</p><p>I’m sure it was a joyous day in both Fall River (Berkshire) and New Bedford (Hathaway) when the union was consummated. After the bands stopped playing and the bankers went home, however, the shareholders reaped a disaster.</p><p>In the nine years following the merger, Berkshire’s owners watched the company’s net worth crater from</p><p>$51.4 million to $22.1 million. In part, this decline was caused by stock repurchases, ill-advised dividends and plant shutdowns. But nine years of effort by many thousands of employees delivered an operating loss as well. Berkshire’s struggles were not unusual: The New England textile industry had silently entered an extended and non-reversible death march.</p><p>During the nine post-merger years, the U.S. Treasury suffered as well from Berkshire’s troubles. All told, the company paid the government only $337,359 in income tax during that period – a pathetic $100 per day.</p><p>Early in 1965, things changed. Berkshire installed new management that redeployed available cash and steered essentially all earnings into a variety of good businesses, most of which remained good through the years. Coupling reinvestment of earnings with the power of compounding worked its magic, and shareholders prospered.</p><p>Berkshire’s owners, it should be noted, were not the only beneficiary of that course correction. Their “silent partner,” the U.S. Treasury, proceeded to collect many tens of billions of dollars from the company in income tax payments. Remember the $100 daily? Now, Berkshire pays roughly $9 million daily to the Treasury.</p><p>In fairness to our governmental partner, our shareholders should acknowledge – indeed trumpet – the fact that Berkshire’s prosperity has been fostered mightily because the company has operated in America. Our country would have done splendidly in the years since 1965 without Berkshire. Absent our American home, however, Berkshire would never have come close to becoming what it is today. When you see the flag, say thanks.</p><p>• From an $8.6 million purchase of National Indemnity in 1967, Berkshire has become the world leader in insurance “float” – money we hold and can invest but that does not belong to us. Including a relatively small sum derived from life insurance, Berkshire’s total float has grown from $19 million when we entered the insurance business to $147 billion.</p><p>So far, this float has cost us less than nothing. Though we have experienced a number of years when insurance losses combined with operating expenses exceeded premiums, overall we have earned a modest 55-year profit from the underwriting activities that generated our float.</p><p>Of equal importance, float is very sticky. Funds attributable to our insurance operations come and go daily, but their aggregate total is immune from precipitous decline. When it comes to investing float, we can therefore think long-term.</p><p>If you are not already familiar with the concept of float, I refer you to a long explanation on page A-5. To my surprise, our float increased $9 billion last year, a buildup of value that is important to Berkshire owners though is not reflected in our GAAP (“generally-accepted accounting principles”) presentation of earnings and net worth.</p><p>Much of our huge value creation in insurance is attributable to Berkshire’s good luck in my 1986 hiring of Ajit Jain. We first met on a Saturday morning, and I quickly asked Ajit what his insurance experience had been. He replied, “None.”</p><p>I said, “Nobody’s perfect,” and hired him. That was my lucky day: Ajit actually was as perfect a choice as could have been made. Better yet, he continues to be – 35 years later.</p><p>One final thought about insurance: I believe that it is likely – but far from assured – that Berkshire’s float can be maintained without our incurring a long-term underwriting loss. I am certain, however, that there will be some years when we experience such losses, perhaps involving very large sums.</p><p>Berkshire is constructed to handle catastrophic events as no other insurer – and that priority will remain long after Charlie and I are gone.</p><h2>Our Four Giants</h2><p>Through Berkshire, our shareholders own many dozens of businesses. Some of these, in turn, have a collection of subsidiaries of their own. For example, Marmon has more than 100 individual business operations, ranging from the leasing of railroad cars to the manufacture of medical devices.</p><p>• Nevertheless, operations of our “Big Four” companies account for a very large chunk of Berkshire’s value. Leading this list is our cluster of insurers. Berkshire effectively owns 100% of this group, whose massive float value we earlier described. The invested assets of these insurers are further enlarged by the extraordinary amount of capital we invest to back up their promises.</p><p>The insurance business is made to order for Berkshire. The product will never be obsolete, and sales volume will generally increase along with both economic growth and inflation. Also, integrity and capital will forever be important. Our company can and will behave well.</p><p>There are, of course, other insurers with excellent business models and prospects. Replication of Berkshire’s operation, however, would be almost impossible.</p><p>• Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.</p><p>It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.</p><p>• BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire. If the many essential products BNSF carries were instead hauled by truck, America’s carbon emissions would soar.</p><p>Your railroad had record earnings of $6 billion in 2021. Here, it should be noted, we are talking about the old-fashioned sort of earnings that we favor: a figure calculated after interest, taxes, depreciation, amortization and all forms of compensation. (Our definition suggests a warning: Deceptive “adjustments” to earnings – to use a polite description – have become both more frequent and more fanciful as stocks have risen. Speaking less politely, I would say that bull markets breed bloviated bull )</p><p>BNSF trains traveled 143 million miles last year and carried 535 million tons of cargo. Both accomplishments far exceed those of any other American carrier. You can be proud of your railroad.</p><p>• BHE, our final Giant, earned a record $4 billion in 2021. That’s up more than 30-fold from the $122 million earned in 2000, the year that Berkshire first purchased a BHE stake. Now, Berkshire owns 91.1% of the company.</p><p>BHE’s record of societal accomplishment is as remarkable as its financial performance. The company had no wind or solar generation in 2000. It was then regarded simply as a relatively new and minor participant in the huge electric utility industry. Subsequently, under David Sokol’s and Greg Abel’s leadership, BHE has become a utility powerhouse (no groaning, please) and a leading force in wind, solar and transmission throughout much of the United States.</p><p>Greg’s report on these accomplishments appears on pages A-3 and A-4. The profile you will find there is not in any way one of those currently-fashionable “green-washing” stories. BHE has been faithfully detailing its plans and performance in renewables and transmissions every year since 2007.</p><p>To further review this information, visit BHE’s website at brkenergy.com. There, you will see that the company has long been making climate-conscious moves that soak up all of its earnings. More opportunities lie ahead. BHE has the management, the experience, the capital and the appetite for the huge power projects that our country needs.</p><h2>Investments</h2><p>Now let’s talk about companies we don’t control, a list that again references Apple. Below we list our fifteen largest equity holdings, several of which are selections of Berkshire’s two long-time investment managers, Todd Combs and Ted Weschler. At yearend, this valued pair had total authority in respect to $34 billion of investments, many of which do not meet the threshold value we use in the table. Also, a significant portion of the dollars that Todd and Ted manage are lodged in various pension plans of Berkshire-owned businesses, with the assets of these plans not included in this table.</p><p><img src=\"https://static.tigerbbs.com/d43587e9f59c0ff76e6c04c6bf9af324\" tg-width=\"1047\" tg-height=\"530\" referrerpolicy=\"no-referrer\"/>* This is our actual purchase price and also our tax basis.</p><p>** Held by BHE; consequently, Berkshire shareholders have only a 91.1% interest in this position.</p><p>*** Includes a $10 billion investment in Occidental Petroleum, consisting of preferred stock and warrants to buy common stock, a combination now being valued at $10.7 billion.</p><p>In addition to the footnoted Occidental holding and our various common-stock positions, Berkshire also owns a 26.6% interest in Kraft Heinz (accounted for on the “equity” method, not market value, and carried at $13.1 billion) and 38.6% of Pilot Corp., a leader in travel centers that had revenues last year of $45 billion.</p><p>Since we purchased our Pilot stake in 2017, this holding has warranted “equity” accounting treatment. Early in 2023, Berkshire will purchase an additional interest in Pilot that will raise our ownership to 80% and lead to our fully consolidating Pilot’s earnings, assets and liabilities in our financial statements.</p><h2>U.S. Treasury Bills</h2><p>Berkshire’s balance sheet includes $144 billion of cash and cash equivalents (excluding the holdings of BNSF and BHE). Of this sum, $120 billion is held in U.S. Treasury bills, all maturing in less than a year. That stake leaves Berkshire financing about 12 of 1% of the publicly-held national debt.</p><p>Charlie and I have pledged that Berkshire (along with our subsidiaries other than BNSF and BHE) will always hold more than $30 billion of cash and equivalents. We want your company to be financially impregnable and never dependent on the kindness of strangers (or even that of friends). Both of us like to sleep soundly, and we want our creditors, insurance claimants and you to do so as well.</p><h2>But $144 billion?</h2><p>That imposing sum, I assure you, is not some deranged expression of patriotism. Nor have Charlie and I lost our overwhelming preference for business ownership. Indeed, I first manifested my enthusiasm for that 80 years ago, on March 11, 1942, when I purchased three shares of Cities Services preferred stock. Their cost was $114.75 and required all of my savings. (The Dow Jones Industrial Average that day closed at 99, a fact that should scream to you: Never bet against America.)</p><p>After my initial plunge, I always kept at least 80% of my net worth in equities. My favored status throughout that period was 100% – and still is. Berkshire’s current 80%-or-so position in businesses is a consequence of my failure to find entire companies or small portions thereof (that is, marketable stocks) which meet our criteria for long- term holding.</p><p>Charlie and I have endured similar cash-heavy positions from time to time in the past. These periods are never pleasant; they are also never permanent. And, fortunately, we have had a mildly attractive alternative during 2020 and 2021 for deploying capital. Read on.</p><h2>Share Repurchases</h2><p>There are three ways that we can increase the value of your investment. The first is always front and center in our minds: Increase the long-term earning power of Berkshire’s controlled businesses through internal growth or by making acquisitions. Today, internal opportunities deliver far better returns than acquisitions. The size of those opportunities, however, is small compared to Berkshire’s resources.</p><p>Our second choice is to buy non-controlling part-interests in the many good or great businesses that are publicly traded. From time to time, such possibilities are both numerous and blatantly attractive. Today, though, we find little that excites us.</p><p>That’s largely because of a truism: Long-term interest rates that are low push the prices of all productive investments upward, whether these are stocks, apartments, farms, oil wells, whatever. Other factors influence valuations as well, but interest rates will always be important.</p><p>Our final path to value creation is to repurchase Berkshire shares. Through that simple act, we increase your share of the many controlled and non-controlled businesses Berkshire owns. When the price/value equation is right, this path is the easiest and most certain way for us to increase your wealth. (Alongside the accretion of value to continuing shareholders, a couple of other parties gain: Repurchases are modestly beneficial to the seller of the repurchased shares and to society as well.)</p><p>Periodically, as alternative paths become unattractive, repurchases make good sense for Berkshire’s owners. During the past two years, we therefore repurchased 9% of the shares that were outstanding at yearend 2019 for a total cost of $51.7 billion. That expenditure left our continuing shareholders owning about 10% more of all Berkshire businesses, whether these are wholly-owned (such as BNSF and GEICO) or partly-owned (such as Coca-Cola and Moody’s).</p><p>I want to underscore that for Berkshire repurchases to make sense, our shares must offer appropriate value. We don’t want to overpay for the shares of other companies, and it would be value-destroying if we were to overpay when we are buying Berkshire. As of February 23, 2022, since yearend we repurchased additional shares at a cost of $1.2 billion. Our appetite remains large but will always remain price-dependent.</p><p>It should be noted that Berkshire’s buyback opportunities are limited because of its high-class investor base. If our shares were heavily held by short-term speculators, both price volatility and transaction volumes would materially increase. That kind of reshaping would offer us far greater opportunities for creating value by making repurchases. Nevertheless, Charlie and I far prefer the owners we have, even though their admirable buy-and-keep attitudes limit the extent to which long-term shareholders can profit from opportunistic repurchases.</p><p>Finally, one easily-overlooked value calculation specific to Berkshire: As we’ve discussed, insurance “float” of the right sort is of great value to us. As it happens, repurchases automatically increase the amount of “float” per share. That figure has increased during the past two years by 25% – going from $79,387 per “A” share to $99,497, a meaningful gain that, as noted, owes some thanks to repurchases.</p><h2>A Wonderful Man and a Wonderful Business</h2><p>Last year, Paul Andrews died. Paul was the founder and CEO of TTI, a Fort Worth-based subsidiary of Berkshire. Throughout his life – in both his business and his personal pursuits – Paul quietly displayed all the qualities that Charlie and I admire. His story should be told.</p><p>In 1971, Paul was working as a purchasing agent for General Dynamics when the roof fell in. After losing a huge defense contract, the company fired thousands of employees, including Paul.</p><p>With his first child due soon, Paul decided to bet on himself, using $500 of his savings to found Tex-Tronics (later renamed TTI). The company set itself up to distribute small electronic components, and first-year sales totaled $112,000. Today, TTI markets more than one million different items with annual volume of $7.7 billion.</p><p>But back to 2006: Paul, at 63, then found himself happy with his family, his job, and his associates. But he had one nagging worry, heightened because he had recently witnessed a friend’s early death and the disastrous results that followed for that man’s family and business. What, Paul asked himself in 2006, would happen to the many people depending on him if he should unexpectedly die?</p><p>For a year, Paul wrestled with his options. Sell to a competitor? From a strictly economic viewpoint, that course made the most sense. After all, competitors could envision lucrative “synergies” – savings that would be achieved as the acquiror slashed duplicated functions at TTI.</p><p>But . . . Such a purchaser would most certainly also retain its CFO, its legal counsel, its HR unit. Their TTI counterparts would therefore be sent packing. And ugh! If a new distribution center were to be needed, the acquirer’s home city would certainly be favored over Fort Worth.</p><p>Whatever the financial benefits, Paul quickly concluded that selling to a competitor was not for him. He next considered seeking a financial buyer, a species once labeled – aptly so – a leveraged buyout firm. Paul knew, however, that such a purchaser would be focused on an “exit strategy.” And who could know what that would be? Brooding over it all, Paul found himself having no interest in handing his 35-year-old creation over to a reseller.</p><p>When Paul met me, he explained why he had eliminated these two alternatives as buyers. He then summed up his dilemma by saying – in far more tactful phrasing than this – “After a year of pondering the alternatives, I want to sell to Berkshire because you are the only guy left.” So, I made an offer and Paul said “Yes.” One meeting; one lunch; one deal.</p><p>To say we both lived happily ever after is an understatement. When Berkshire purchased TTI, the company employed 2,387. Now the number is 8,043. A large percentage of that growth took place in Fort Worth and environs. Earnings have increased 673%.</p><p>Annually, I would call Paul and tell him his salary should be substantially increased. Annually, he would tell me, “We can talk about that next year, Warren; I’m too busy now.”</p><p>When Greg Abel and I attended Paul’s memorial service, we met children, grandchildren, long-time associates (including TTI’s first employee) and John Roach, the former CEO of a Fort Worth company Berkshire had purchased in 2000. John had steered his friend Paul to Omaha, instinctively knowing we would be a match.</p><p>At the service, Greg and I heard about the multitudes of people and organizations that Paul had silently supported. The breadth of his generosity was extraordinary – geared always to improving the lives of others, particularly those in Fort Worth.</p><p>In all ways, Paul was a class act.</p><p>* * * * * * * * * * * *</p><p>Good luck – occasionally extraordinary luck – has played its part at Berkshire. If Paul and I had not enjoyed a mutual friend – John Roach – TTI would not have found its home with us. But that ample serving of luck was only the beginning. TTI was soon to lead Berkshire to its most important acquisition.</p><p>Every fall, Berkshire directors gather for a presentation by a few of our executives. We sometimes choose the site based upon the location of a recent acquisition, by that means allowing directors to meet the new subsidiary’s CEO and learn more about the acquiree’s activities.</p><p>In the fall of 2009, we consequently selected Fort Worth so that we could visit TTI. At that time, BNSF, which also had Fort Worth as its hometown, was the third-largest holding among our marketable equities. Despite that large stake, I had never visited the railroad’s headquarters.</p><p>Deb Bosanek, my assistant, scheduled our board’s opening dinner for October 22. Meanwhile, I arranged to arrive earlier that day to meet with Matt Rose, CEO of BNSF, whose accomplishments I had long admired. When I made the date, I had no idea that our get-together would coincide with BNSF’s third-quarter earnings report, which was released late on the 22nd.</p><p>The market reacted badly to the railroad’s results. The Great Recession was in full force in the third quarter, and BNSF’s earnings reflected that slump. The economic outlook was also bleak, and Wall Street wasn’t feeling friendly to railroads – or much else.</p><p>On the following day, I again got together with Matt and suggested that Berkshire would offer the railroad a better long-term home than it could expect as a public company. I also told him the maximum price that Berkshire would pay.</p><p>Matt relayed the offer to his directors and advisors. Eleven busy days later, Berkshire and BNSF announced a firm deal. And here I’ll venture a rare prediction: BNSF will be a key asset for Berkshire and our country a century from now.</p><p>The BNSF acquisition would never have happened if Paul Andrews hadn’t sized up Berkshire as the right home for TTI.</p><h2>Thanks</h2><p>I taught my first investing class 70 years ago. Since then, I have enjoyed working almost every year with students of all ages, finally “retiring” from that pursuit in 2018.</p><p>Along the way, my toughest audience was my grandson’s fifth-grade class. The 11-year-olds were squirming in their seats and giving me blank stares until I mentioned Coca-Cola and its famous secret formula. Instantly, every hand went up, and I learned that “secrets” are catnip to kids.</p><p>Teaching, like writing, has helped me develop and clarify my own thoughts. Charlie calls this phenomenon the orangutan effect: If you sit down with an orangutan and carefully explain to it one of your cherished ideas, you may leave behind a puzzled primate, but will yourself exit thinking more clearly.</p><p>Talking to university students is far superior. I have urged that they seek employment in (1) the field and (2) with the kind of people they would select, if they had no need for money. Economic realities, I acknowledge, may interfere with that kind of search. Even so, I urge the students never to give up the quest, for when they find that sort of job, they will no longer be “working.”</p><p>Charlie and I, ourselves, followed that liberating course after a few early stumbles. We both started as part- timers at my grandfather’s grocery store, Charlie in 1940 and I in 1942. We were each assigned boring tasks and paid little, definitely not what we had in mind. Charlie later took up law, and I tried selling securities. Job satisfaction continued to elude us.</p><p>Finally, at Berkshire, we found what we love to do. With very few exceptions, we have now “worked” for many decades with people whom we like and trust. It’s a joy in life to join with managers such as Paul Andrews or the Berkshire families I told you about last year. In our home office, we employ decent and talented people – no jerks. Turnover averages, perhaps, one person per year.</p><p>I would like, however, to emphasize a further item that turns our jobs into fun and satisfaction working</p><p>for you. There is nothing more rewarding to Charlie and me than enjoying the trust of individual long-term shareholders who, for many decades, have joined us with the expectation that we would be a reliable custodian of their funds.</p><p>Obviously, we can’t select our owners, as we could do if our form of operation were a partnership. Anyone can buy shares of Berkshire today with the intention of soon reselling them. For sure, we get a few of that type of shareholder, just as we get index funds that own huge amounts of Berkshire simply because they are required to do so.</p><p>To a truly unusual degree, however, Berkshire has as owners a very large corps of individuals and families that have elected to join us with an intent approaching “til death do us part.” Often, they have trusted us with a large – some might say excessive – portion of their savings.</p><p>Berkshire, these shareholders would sometimes acknowledge, might be far from the best selection they could have made. But they would add that Berkshire would rank high among those with which they would be most comfortable. And people who are comfortable with their investments will, on average, achieve better results than those who are motivated by ever-changing headlines, chatter and promises.</p><p>Long-term individual owners are both the “partners” Charlie and I have always sought and the ones we constantly have in mind as we make decisions at Berkshire. To them we say, “It feels good to ‘work’ for you, and you have our thanks for your trust.”</p><h2>The Annual Meeting</h2><p>Clear your calendar! Berkshire will have its annual gathering of capitalists in Omaha on Friday, April 29th through Sunday, May 1st. The details regarding the weekend are laid out on pages A-1 and A-2. Omaha eagerly awaits you, as do I.</p><p>I will end this letter with a sales pitch. “Cousin” Jimmy Buffett has designed a pontoon “party” boat that is now being manufactured by Forest River, a Berkshire subsidiary. The boat will be introduced on April 29 at our Berkshire Bazaar of Bargains. And, for two days only, shareholders will be able to purchase Jimmy’s masterpiece at a 10% discount. Your bargain-hunting chairman will be buying a boat for his family’s use. Join me.</p><p>February 26, 2022</p><p>Warren E. Buffett Chairman of the Board</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Buffett Full Annual Letter：Apple is One of ‘Four Giants’ Driving the Conglomerate’s Value</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBuffett Full Annual Letter：Apple is One of ‘Four Giants’ Driving the Conglomerate’s Value\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2022-02-27 09:48</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday. The 91-year-old investing legend has been publishing the letter for over six decades and it has become required reading for investors around the world.</p><p>Warren Buffett said he now considers tech giant Apple as one of the four pillars driving Berkshire Hathaway, the conglomerate of mostly old-economy businesses he’s assembled over the last five decades.</p><p>In his annual letter to shareholders released on Saturday, the 91-year-old investing legend listed Apple under the heading “Our Four Giants” and even called the company the second-most important after Berkshire’s cluster of insurers, thanks to its chief executive.</p><p>“Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well,” the letter stated.</p><p>Buffett made clear he is a fan of Cook’s stock repurchase strategy, and how it gives the conglomerate increased ownership of each dollar of the iPhone maker’s earnings without the investor having to lift a finger.</p><p>“Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier,” Buffett said in the letter. “That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.”</p><p>Berkshire began buying Apple stock in 2016 under the influence of Buffett’s investing deputies Todd Combs and Ted Weschler. By mid-2018, the conglomerate accumulated 5% ownership of the iPhone maker, a stake that cost $36 billion. Today, the Apple investment is now worth more than $160 billion, taking up 40% of Berkshire’s equity portfolio.</p><p>“It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our ‘share’ of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud,” Buffett said.</p><p>Berkshire is Apple’s largest shareholder, outside of index and exchange-traded fund providers.</p><p>Buffett also credited his railroad business BNSF and energy segment BHE as two other giants of the conglomerate, which both registered record earnings in 2021.</p><p>“BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire,” Buffett said. “BHE has become a utility powerhouse and a leading force in wind, solar and transmission throughout much of the United States.”</p><p><b>Read the full letter here：</b></p><p>To the Shareholders of Berkshire Hathaway Inc.:</p><p>Charlie Munger, my long-time partner, and I have the job of managing a portion of your savings. We are honored by your trust.</p><p>Our position carries with it the responsibility to report to you what we would like to know if we were the absentee owner and you were the manager. We enjoy communicating directly with you through this annual letter, and through the annual meeting as well.</p><p>Our policy is to treat all shareholders equally. Therefore, we do not hold discussions with analysts nor large institutions. Whenever possible, also, we release important communications on Saturday mornings in order to maximize the time for shareholders and the media to absorb the news before markets open on Monday.</p><p>A wealth of Berkshire facts and figures are set forth in the annual 10-K that the company regularly files with the S.E.C. and that we reproduce on pages K-1 – K-119. Some shareholders will find this detail engrossing; others will simply prefer to learn what Charlie and I believe is new or interesting at Berkshire.</p><p>Alas, there was little action of that sort in 2021. We did, though, make reasonable progress in increasing the intrinsic value of your shares. That task has been my primary duty for 57 years. And it will continue to be.</p><p><b>What You Own</b></p><p>Berkshire owns a wide variety of businesses, some in their entirety, some only in part. The second group largely consists of marketable common stocks of major American companies. Additionally, we own a few non-U.S. equities and participate in several joint ventures or other collaborative activities.</p><p>Whatever our form of ownership, our goal is to have meaningful investments in businesses with both durable economic advantages and a first-class CEO. Please note particularly that we own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves. That point is crucial: Charlie and I are not stock-pickers; we are business-pickers.</p><p>I make many mistakes. Consequently, our extensive collection of businesses includes some enterprises that have truly extraordinary economics, many others that enjoy good economic characteristics, and a few that are marginal. One advantage of our common-stock segment is that – on occasion – it becomes easy to buy pieces of wonderful businesses at wonderful prices. That shooting-fish-in-a-barrel experience is very rare in negotiated transactions and never occurs en masse. It is also far easier to exit from a mistake when it has been made in the marketable arena.</p><h2><b>Surprise, Surprise</b></h2><p>Here are a few items about your company that often surprise even seasoned investors:</p><p>• Many people perceive Berkshire as a large and somewhat strange collection of financial assets. In truth, Berkshire owns and operates more U.S.-based “infrastructure” assets – classified on our balance sheet as property, plant and equipment – than are owned and operated by any other American corporation. That supremacy has never been our goal. It has, however, become a fact.</p><p>At yearend, those domestic infrastructure assets were carried on Berkshire’s balance sheet at $158 billion. That number increased last year and will continue to increase. Berkshire always will be building.</p><p>• Every year, your company makes substantial federal income tax payments. In 2021, for example, we paid</p><p>$3.3 billion while the U.S. Treasury reported total corporate income-tax receipts of $402 billion. Additionally, Berkshire pays substantial state and foreign taxes. “I gave at the office” is an unassailable assertion when made by Berkshire shareholders.</p><p>Berkshire’s history vividly illustrates the invisible and often unrecognized financial partnership between  government and American businesses. Our tale begins early in 1955, when Berkshire Fine Spinning and Hathaway Manufacturing agreed to merge their businesses. In their requests for shareholder approval, these venerable New England textile companies expressed high hopes for the combination.</p><p></p><p>The Hathaway solicitation, for example, assured its shareholders that “The combination of the resources and managements will result in one of the strongest and most efficient organizations in the textile industry.” That upbeat view was endorsed by the company’s advisor, Lehman Brothers (yes, that Lehman Brothers).</p><p>I’m sure it was a joyous day in both Fall River (Berkshire) and New Bedford (Hathaway) when the union was consummated. After the bands stopped playing and the bankers went home, however, the shareholders reaped a disaster.</p><p>In the nine years following the merger, Berkshire’s owners watched the company’s net worth crater from</p><p>$51.4 million to $22.1 million. In part, this decline was caused by stock repurchases, ill-advised dividends and plant shutdowns. But nine years of effort by many thousands of employees delivered an operating loss as well. Berkshire’s struggles were not unusual: The New England textile industry had silently entered an extended and non-reversible death march.</p><p>During the nine post-merger years, the U.S. Treasury suffered as well from Berkshire’s troubles. All told, the company paid the government only $337,359 in income tax during that period – a pathetic $100 per day.</p><p>Early in 1965, things changed. Berkshire installed new management that redeployed available cash and steered essentially all earnings into a variety of good businesses, most of which remained good through the years. Coupling reinvestment of earnings with the power of compounding worked its magic, and shareholders prospered.</p><p>Berkshire’s owners, it should be noted, were not the only beneficiary of that course correction. Their “silent partner,” the U.S. Treasury, proceeded to collect many tens of billions of dollars from the company in income tax payments. Remember the $100 daily? Now, Berkshire pays roughly $9 million daily to the Treasury.</p><p>In fairness to our governmental partner, our shareholders should acknowledge – indeed trumpet – the fact that Berkshire’s prosperity has been fostered mightily because the company has operated in America. Our country would have done splendidly in the years since 1965 without Berkshire. Absent our American home, however, Berkshire would never have come close to becoming what it is today. When you see the flag, say thanks.</p><p>• From an $8.6 million purchase of National Indemnity in 1967, Berkshire has become the world leader in insurance “float” – money we hold and can invest but that does not belong to us. Including a relatively small sum derived from life insurance, Berkshire’s total float has grown from $19 million when we entered the insurance business to $147 billion.</p><p>So far, this float has cost us less than nothing. Though we have experienced a number of years when insurance losses combined with operating expenses exceeded premiums, overall we have earned a modest 55-year profit from the underwriting activities that generated our float.</p><p>Of equal importance, float is very sticky. Funds attributable to our insurance operations come and go daily, but their aggregate total is immune from precipitous decline. When it comes to investing float, we can therefore think long-term.</p><p>If you are not already familiar with the concept of float, I refer you to a long explanation on page A-5. To my surprise, our float increased $9 billion last year, a buildup of value that is important to Berkshire owners though is not reflected in our GAAP (“generally-accepted accounting principles”) presentation of earnings and net worth.</p><p>Much of our huge value creation in insurance is attributable to Berkshire’s good luck in my 1986 hiring of Ajit Jain. We first met on a Saturday morning, and I quickly asked Ajit what his insurance experience had been. He replied, “None.”</p><p>I said, “Nobody’s perfect,” and hired him. That was my lucky day: Ajit actually was as perfect a choice as could have been made. Better yet, he continues to be – 35 years later.</p><p>One final thought about insurance: I believe that it is likely – but far from assured – that Berkshire’s float can be maintained without our incurring a long-term underwriting loss. I am certain, however, that there will be some years when we experience such losses, perhaps involving very large sums.</p><p>Berkshire is constructed to handle catastrophic events as no other insurer – and that priority will remain long after Charlie and I are gone.</p><h2>Our Four Giants</h2><p>Through Berkshire, our shareholders own many dozens of businesses. Some of these, in turn, have a collection of subsidiaries of their own. For example, Marmon has more than 100 individual business operations, ranging from the leasing of railroad cars to the manufacture of medical devices.</p><p>• Nevertheless, operations of our “Big Four” companies account for a very large chunk of Berkshire’s value. Leading this list is our cluster of insurers. Berkshire effectively owns 100% of this group, whose massive float value we earlier described. The invested assets of these insurers are further enlarged by the extraordinary amount of capital we invest to back up their promises.</p><p>The insurance business is made to order for Berkshire. The product will never be obsolete, and sales volume will generally increase along with both economic growth and inflation. Also, integrity and capital will forever be important. Our company can and will behave well.</p><p>There are, of course, other insurers with excellent business models and prospects. Replication of Berkshire’s operation, however, would be almost impossible.</p><p>• Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.</p><p>It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.</p><p>• BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire. If the many essential products BNSF carries were instead hauled by truck, America’s carbon emissions would soar.</p><p>Your railroad had record earnings of $6 billion in 2021. Here, it should be noted, we are talking about the old-fashioned sort of earnings that we favor: a figure calculated after interest, taxes, depreciation, amortization and all forms of compensation. (Our definition suggests a warning: Deceptive “adjustments” to earnings – to use a polite description – have become both more frequent and more fanciful as stocks have risen. Speaking less politely, I would say that bull markets breed bloviated bull )</p><p>BNSF trains traveled 143 million miles last year and carried 535 million tons of cargo. Both accomplishments far exceed those of any other American carrier. You can be proud of your railroad.</p><p>• BHE, our final Giant, earned a record $4 billion in 2021. That’s up more than 30-fold from the $122 million earned in 2000, the year that Berkshire first purchased a BHE stake. Now, Berkshire owns 91.1% of the company.</p><p>BHE’s record of societal accomplishment is as remarkable as its financial performance. The company had no wind or solar generation in 2000. It was then regarded simply as a relatively new and minor participant in the huge electric utility industry. Subsequently, under David Sokol’s and Greg Abel’s leadership, BHE has become a utility powerhouse (no groaning, please) and a leading force in wind, solar and transmission throughout much of the United States.</p><p>Greg’s report on these accomplishments appears on pages A-3 and A-4. The profile you will find there is not in any way one of those currently-fashionable “green-washing” stories. BHE has been faithfully detailing its plans and performance in renewables and transmissions every year since 2007.</p><p>To further review this information, visit BHE’s website at brkenergy.com. There, you will see that the company has long been making climate-conscious moves that soak up all of its earnings. More opportunities lie ahead. BHE has the management, the experience, the capital and the appetite for the huge power projects that our country needs.</p><h2>Investments</h2><p>Now let’s talk about companies we don’t control, a list that again references Apple. Below we list our fifteen largest equity holdings, several of which are selections of Berkshire’s two long-time investment managers, Todd Combs and Ted Weschler. At yearend, this valued pair had total authority in respect to $34 billion of investments, many of which do not meet the threshold value we use in the table. Also, a significant portion of the dollars that Todd and Ted manage are lodged in various pension plans of Berkshire-owned businesses, with the assets of these plans not included in this table.</p><p><img src=\"https://static.tigerbbs.com/d43587e9f59c0ff76e6c04c6bf9af324\" tg-width=\"1047\" tg-height=\"530\" referrerpolicy=\"no-referrer\"/>* This is our actual purchase price and also our tax basis.</p><p>** Held by BHE; consequently, Berkshire shareholders have only a 91.1% interest in this position.</p><p>*** Includes a $10 billion investment in Occidental Petroleum, consisting of preferred stock and warrants to buy common stock, a combination now being valued at $10.7 billion.</p><p>In addition to the footnoted Occidental holding and our various common-stock positions, Berkshire also owns a 26.6% interest in Kraft Heinz (accounted for on the “equity” method, not market value, and carried at $13.1 billion) and 38.6% of Pilot Corp., a leader in travel centers that had revenues last year of $45 billion.</p><p>Since we purchased our Pilot stake in 2017, this holding has warranted “equity” accounting treatment. Early in 2023, Berkshire will purchase an additional interest in Pilot that will raise our ownership to 80% and lead to our fully consolidating Pilot’s earnings, assets and liabilities in our financial statements.</p><h2>U.S. Treasury Bills</h2><p>Berkshire’s balance sheet includes $144 billion of cash and cash equivalents (excluding the holdings of BNSF and BHE). Of this sum, $120 billion is held in U.S. Treasury bills, all maturing in less than a year. That stake leaves Berkshire financing about 12 of 1% of the publicly-held national debt.</p><p>Charlie and I have pledged that Berkshire (along with our subsidiaries other than BNSF and BHE) will always hold more than $30 billion of cash and equivalents. We want your company to be financially impregnable and never dependent on the kindness of strangers (or even that of friends). Both of us like to sleep soundly, and we want our creditors, insurance claimants and you to do so as well.</p><h2>But $144 billion?</h2><p>That imposing sum, I assure you, is not some deranged expression of patriotism. Nor have Charlie and I lost our overwhelming preference for business ownership. Indeed, I first manifested my enthusiasm for that 80 years ago, on March 11, 1942, when I purchased three shares of Cities Services preferred stock. Their cost was $114.75 and required all of my savings. (The Dow Jones Industrial Average that day closed at 99, a fact that should scream to you: Never bet against America.)</p><p>After my initial plunge, I always kept at least 80% of my net worth in equities. My favored status throughout that period was 100% – and still is. Berkshire’s current 80%-or-so position in businesses is a consequence of my failure to find entire companies or small portions thereof (that is, marketable stocks) which meet our criteria for long- term holding.</p><p>Charlie and I have endured similar cash-heavy positions from time to time in the past. These periods are never pleasant; they are also never permanent. And, fortunately, we have had a mildly attractive alternative during 2020 and 2021 for deploying capital. Read on.</p><h2>Share Repurchases</h2><p>There are three ways that we can increase the value of your investment. The first is always front and center in our minds: Increase the long-term earning power of Berkshire’s controlled businesses through internal growth or by making acquisitions. Today, internal opportunities deliver far better returns than acquisitions. The size of those opportunities, however, is small compared to Berkshire’s resources.</p><p>Our second choice is to buy non-controlling part-interests in the many good or great businesses that are publicly traded. From time to time, such possibilities are both numerous and blatantly attractive. Today, though, we find little that excites us.</p><p>That’s largely because of a truism: Long-term interest rates that are low push the prices of all productive investments upward, whether these are stocks, apartments, farms, oil wells, whatever. Other factors influence valuations as well, but interest rates will always be important.</p><p>Our final path to value creation is to repurchase Berkshire shares. Through that simple act, we increase your share of the many controlled and non-controlled businesses Berkshire owns. When the price/value equation is right, this path is the easiest and most certain way for us to increase your wealth. (Alongside the accretion of value to continuing shareholders, a couple of other parties gain: Repurchases are modestly beneficial to the seller of the repurchased shares and to society as well.)</p><p>Periodically, as alternative paths become unattractive, repurchases make good sense for Berkshire’s owners. During the past two years, we therefore repurchased 9% of the shares that were outstanding at yearend 2019 for a total cost of $51.7 billion. That expenditure left our continuing shareholders owning about 10% more of all Berkshire businesses, whether these are wholly-owned (such as BNSF and GEICO) or partly-owned (such as Coca-Cola and Moody’s).</p><p>I want to underscore that for Berkshire repurchases to make sense, our shares must offer appropriate value. We don’t want to overpay for the shares of other companies, and it would be value-destroying if we were to overpay when we are buying Berkshire. As of February 23, 2022, since yearend we repurchased additional shares at a cost of $1.2 billion. Our appetite remains large but will always remain price-dependent.</p><p>It should be noted that Berkshire’s buyback opportunities are limited because of its high-class investor base. If our shares were heavily held by short-term speculators, both price volatility and transaction volumes would materially increase. That kind of reshaping would offer us far greater opportunities for creating value by making repurchases. Nevertheless, Charlie and I far prefer the owners we have, even though their admirable buy-and-keep attitudes limit the extent to which long-term shareholders can profit from opportunistic repurchases.</p><p>Finally, one easily-overlooked value calculation specific to Berkshire: As we’ve discussed, insurance “float” of the right sort is of great value to us. As it happens, repurchases automatically increase the amount of “float” per share. That figure has increased during the past two years by 25% – going from $79,387 per “A” share to $99,497, a meaningful gain that, as noted, owes some thanks to repurchases.</p><h2>A Wonderful Man and a Wonderful Business</h2><p>Last year, Paul Andrews died. Paul was the founder and CEO of TTI, a Fort Worth-based subsidiary of Berkshire. Throughout his life – in both his business and his personal pursuits – Paul quietly displayed all the qualities that Charlie and I admire. His story should be told.</p><p>In 1971, Paul was working as a purchasing agent for General Dynamics when the roof fell in. After losing a huge defense contract, the company fired thousands of employees, including Paul.</p><p>With his first child due soon, Paul decided to bet on himself, using $500 of his savings to found Tex-Tronics (later renamed TTI). The company set itself up to distribute small electronic components, and first-year sales totaled $112,000. Today, TTI markets more than one million different items with annual volume of $7.7 billion.</p><p>But back to 2006: Paul, at 63, then found himself happy with his family, his job, and his associates. But he had one nagging worry, heightened because he had recently witnessed a friend’s early death and the disastrous results that followed for that man’s family and business. What, Paul asked himself in 2006, would happen to the many people depending on him if he should unexpectedly die?</p><p>For a year, Paul wrestled with his options. Sell to a competitor? From a strictly economic viewpoint, that course made the most sense. After all, competitors could envision lucrative “synergies” – savings that would be achieved as the acquiror slashed duplicated functions at TTI.</p><p>But . . . Such a purchaser would most certainly also retain its CFO, its legal counsel, its HR unit. Their TTI counterparts would therefore be sent packing. And ugh! If a new distribution center were to be needed, the acquirer’s home city would certainly be favored over Fort Worth.</p><p>Whatever the financial benefits, Paul quickly concluded that selling to a competitor was not for him. He next considered seeking a financial buyer, a species once labeled – aptly so – a leveraged buyout firm. Paul knew, however, that such a purchaser would be focused on an “exit strategy.” And who could know what that would be? Brooding over it all, Paul found himself having no interest in handing his 35-year-old creation over to a reseller.</p><p>When Paul met me, he explained why he had eliminated these two alternatives as buyers. He then summed up his dilemma by saying – in far more tactful phrasing than this – “After a year of pondering the alternatives, I want to sell to Berkshire because you are the only guy left.” So, I made an offer and Paul said “Yes.” One meeting; one lunch; one deal.</p><p>To say we both lived happily ever after is an understatement. When Berkshire purchased TTI, the company employed 2,387. Now the number is 8,043. A large percentage of that growth took place in Fort Worth and environs. Earnings have increased 673%.</p><p>Annually, I would call Paul and tell him his salary should be substantially increased. Annually, he would tell me, “We can talk about that next year, Warren; I’m too busy now.”</p><p>When Greg Abel and I attended Paul’s memorial service, we met children, grandchildren, long-time associates (including TTI’s first employee) and John Roach, the former CEO of a Fort Worth company Berkshire had purchased in 2000. John had steered his friend Paul to Omaha, instinctively knowing we would be a match.</p><p>At the service, Greg and I heard about the multitudes of people and organizations that Paul had silently supported. The breadth of his generosity was extraordinary – geared always to improving the lives of others, particularly those in Fort Worth.</p><p>In all ways, Paul was a class act.</p><p>* * * * * * * * * * * *</p><p>Good luck – occasionally extraordinary luck – has played its part at Berkshire. If Paul and I had not enjoyed a mutual friend – John Roach – TTI would not have found its home with us. But that ample serving of luck was only the beginning. TTI was soon to lead Berkshire to its most important acquisition.</p><p>Every fall, Berkshire directors gather for a presentation by a few of our executives. We sometimes choose the site based upon the location of a recent acquisition, by that means allowing directors to meet the new subsidiary’s CEO and learn more about the acquiree’s activities.</p><p>In the fall of 2009, we consequently selected Fort Worth so that we could visit TTI. At that time, BNSF, which also had Fort Worth as its hometown, was the third-largest holding among our marketable equities. Despite that large stake, I had never visited the railroad’s headquarters.</p><p>Deb Bosanek, my assistant, scheduled our board’s opening dinner for October 22. Meanwhile, I arranged to arrive earlier that day to meet with Matt Rose, CEO of BNSF, whose accomplishments I had long admired. When I made the date, I had no idea that our get-together would coincide with BNSF’s third-quarter earnings report, which was released late on the 22nd.</p><p>The market reacted badly to the railroad’s results. The Great Recession was in full force in the third quarter, and BNSF’s earnings reflected that slump. The economic outlook was also bleak, and Wall Street wasn’t feeling friendly to railroads – or much else.</p><p>On the following day, I again got together with Matt and suggested that Berkshire would offer the railroad a better long-term home than it could expect as a public company. I also told him the maximum price that Berkshire would pay.</p><p>Matt relayed the offer to his directors and advisors. Eleven busy days later, Berkshire and BNSF announced a firm deal. And here I’ll venture a rare prediction: BNSF will be a key asset for Berkshire and our country a century from now.</p><p>The BNSF acquisition would never have happened if Paul Andrews hadn’t sized up Berkshire as the right home for TTI.</p><h2>Thanks</h2><p>I taught my first investing class 70 years ago. Since then, I have enjoyed working almost every year with students of all ages, finally “retiring” from that pursuit in 2018.</p><p>Along the way, my toughest audience was my grandson’s fifth-grade class. The 11-year-olds were squirming in their seats and giving me blank stares until I mentioned Coca-Cola and its famous secret formula. Instantly, every hand went up, and I learned that “secrets” are catnip to kids.</p><p>Teaching, like writing, has helped me develop and clarify my own thoughts. Charlie calls this phenomenon the orangutan effect: If you sit down with an orangutan and carefully explain to it one of your cherished ideas, you may leave behind a puzzled primate, but will yourself exit thinking more clearly.</p><p>Talking to university students is far superior. I have urged that they seek employment in (1) the field and (2) with the kind of people they would select, if they had no need for money. Economic realities, I acknowledge, may interfere with that kind of search. Even so, I urge the students never to give up the quest, for when they find that sort of job, they will no longer be “working.”</p><p>Charlie and I, ourselves, followed that liberating course after a few early stumbles. We both started as part- timers at my grandfather’s grocery store, Charlie in 1940 and I in 1942. We were each assigned boring tasks and paid little, definitely not what we had in mind. Charlie later took up law, and I tried selling securities. Job satisfaction continued to elude us.</p><p>Finally, at Berkshire, we found what we love to do. With very few exceptions, we have now “worked” for many decades with people whom we like and trust. It’s a joy in life to join with managers such as Paul Andrews or the Berkshire families I told you about last year. In our home office, we employ decent and talented people – no jerks. Turnover averages, perhaps, one person per year.</p><p>I would like, however, to emphasize a further item that turns our jobs into fun and satisfaction working</p><p>for you. There is nothing more rewarding to Charlie and me than enjoying the trust of individual long-term shareholders who, for many decades, have joined us with the expectation that we would be a reliable custodian of their funds.</p><p>Obviously, we can’t select our owners, as we could do if our form of operation were a partnership. Anyone can buy shares of Berkshire today with the intention of soon reselling them. For sure, we get a few of that type of shareholder, just as we get index funds that own huge amounts of Berkshire simply because they are required to do so.</p><p>To a truly unusual degree, however, Berkshire has as owners a very large corps of individuals and families that have elected to join us with an intent approaching “til death do us part.” Often, they have trusted us with a large – some might say excessive – portion of their savings.</p><p>Berkshire, these shareholders would sometimes acknowledge, might be far from the best selection they could have made. But they would add that Berkshire would rank high among those with which they would be most comfortable. And people who are comfortable with their investments will, on average, achieve better results than those who are motivated by ever-changing headlines, chatter and promises.</p><p>Long-term individual owners are both the “partners” Charlie and I have always sought and the ones we constantly have in mind as we make decisions at Berkshire. To them we say, “It feels good to ‘work’ for you, and you have our thanks for your trust.”</p><h2>The Annual Meeting</h2><p>Clear your calendar! Berkshire will have its annual gathering of capitalists in Omaha on Friday, April 29th through Sunday, May 1st. The details regarding the weekend are laid out on pages A-1 and A-2. Omaha eagerly awaits you, as do I.</p><p>I will end this letter with a sales pitch. “Cousin” Jimmy Buffett has designed a pontoon “party” boat that is now being manufactured by Forest River, a Berkshire subsidiary. The boat will be introduced on April 29 at our Berkshire Bazaar of Bargains. And, for two days only, shareholders will be able to purchase Jimmy’s masterpiece at a 10% discount. Your bargain-hunting chairman will be buying a boat for his family’s use. Join me.</p><p>February 26, 2022</p><p>Warren E. Buffett Chairman of the Board</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BRK.B":"伯克希尔B","BRK.A":"伯克希尔"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1125580913","content_text":"Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday. The 91-year-old investing legend has been publishing the letter for over six decades and it has become required reading for investors around the world.Warren Buffett said he now considers tech giant Apple as one of the four pillars driving Berkshire Hathaway, the conglomerate of mostly old-economy businesses he’s assembled over the last five decades.In his annual letter to shareholders released on Saturday, the 91-year-old investing legend listed Apple under the heading “Our Four Giants” and even called the company the second-most important after Berkshire’s cluster of insurers, thanks to its chief executive.“Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well,” the letter stated.Buffett made clear he is a fan of Cook’s stock repurchase strategy, and how it gives the conglomerate increased ownership of each dollar of the iPhone maker’s earnings without the investor having to lift a finger.“Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier,” Buffett said in the letter. “That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.”Berkshire began buying Apple stock in 2016 under the influence of Buffett’s investing deputies Todd Combs and Ted Weschler. By mid-2018, the conglomerate accumulated 5% ownership of the iPhone maker, a stake that cost $36 billion. Today, the Apple investment is now worth more than $160 billion, taking up 40% of Berkshire’s equity portfolio.“It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our ‘share’ of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud,” Buffett said.Berkshire is Apple’s largest shareholder, outside of index and exchange-traded fund providers.Buffett also credited his railroad business BNSF and energy segment BHE as two other giants of the conglomerate, which both registered record earnings in 2021.“BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire,” Buffett said. “BHE has become a utility powerhouse and a leading force in wind, solar and transmission throughout much of the United States.”Read the full letter here：To the Shareholders of Berkshire Hathaway Inc.:Charlie Munger, my long-time partner, and I have the job of managing a portion of your savings. We are honored by your trust.Our position carries with it the responsibility to report to you what we would like to know if we were the absentee owner and you were the manager. We enjoy communicating directly with you through this annual letter, and through the annual meeting as well.Our policy is to treat all shareholders equally. Therefore, we do not hold discussions with analysts nor large institutions. Whenever possible, also, we release important communications on Saturday mornings in order to maximize the time for shareholders and the media to absorb the news before markets open on Monday.A wealth of Berkshire facts and figures are set forth in the annual 10-K that the company regularly files with the S.E.C. and that we reproduce on pages K-1 – K-119. Some shareholders will find this detail engrossing; others will simply prefer to learn what Charlie and I believe is new or interesting at Berkshire.Alas, there was little action of that sort in 2021. We did, though, make reasonable progress in increasing the intrinsic value of your shares. That task has been my primary duty for 57 years. And it will continue to be.What You OwnBerkshire owns a wide variety of businesses, some in their entirety, some only in part. The second group largely consists of marketable common stocks of major American companies. Additionally, we own a few non-U.S. equities and participate in several joint ventures or other collaborative activities.Whatever our form of ownership, our goal is to have meaningful investments in businesses with both durable economic advantages and a first-class CEO. Please note particularly that we own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves. That point is crucial: Charlie and I are not stock-pickers; we are business-pickers.I make many mistakes. Consequently, our extensive collection of businesses includes some enterprises that have truly extraordinary economics, many others that enjoy good economic characteristics, and a few that are marginal. One advantage of our common-stock segment is that – on occasion – it becomes easy to buy pieces of wonderful businesses at wonderful prices. That shooting-fish-in-a-barrel experience is very rare in negotiated transactions and never occurs en masse. It is also far easier to exit from a mistake when it has been made in the marketable arena.Surprise, SurpriseHere are a few items about your company that often surprise even seasoned investors:• Many people perceive Berkshire as a large and somewhat strange collection of financial assets. In truth, Berkshire owns and operates more U.S.-based “infrastructure” assets – classified on our balance sheet as property, plant and equipment – than are owned and operated by any other American corporation. That supremacy has never been our goal. It has, however, become a fact.At yearend, those domestic infrastructure assets were carried on Berkshire’s balance sheet at $158 billion. That number increased last year and will continue to increase. Berkshire always will be building.• Every year, your company makes substantial federal income tax payments. In 2021, for example, we paid$3.3 billion while the U.S. Treasury reported total corporate income-tax receipts of $402 billion. Additionally, Berkshire pays substantial state and foreign taxes. “I gave at the office” is an unassailable assertion when made by Berkshire shareholders.Berkshire’s history vividly illustrates the invisible and often unrecognized financial partnership between  government and American businesses. Our tale begins early in 1955, when Berkshire Fine Spinning and Hathaway Manufacturing agreed to merge their businesses. In their requests for shareholder approval, these venerable New England textile companies expressed high hopes for the combination.The Hathaway solicitation, for example, assured its shareholders that “The combination of the resources and managements will result in one of the strongest and most efficient organizations in the textile industry.” That upbeat view was endorsed by the company’s advisor, Lehman Brothers (yes, that Lehman Brothers).I’m sure it was a joyous day in both Fall River (Berkshire) and New Bedford (Hathaway) when the union was consummated. After the bands stopped playing and the bankers went home, however, the shareholders reaped a disaster.In the nine years following the merger, Berkshire’s owners watched the company’s net worth crater from$51.4 million to $22.1 million. In part, this decline was caused by stock repurchases, ill-advised dividends and plant shutdowns. But nine years of effort by many thousands of employees delivered an operating loss as well. Berkshire’s struggles were not unusual: The New England textile industry had silently entered an extended and non-reversible death march.During the nine post-merger years, the U.S. Treasury suffered as well from Berkshire’s troubles. All told, the company paid the government only $337,359 in income tax during that period – a pathetic $100 per day.Early in 1965, things changed. Berkshire installed new management that redeployed available cash and steered essentially all earnings into a variety of good businesses, most of which remained good through the years. Coupling reinvestment of earnings with the power of compounding worked its magic, and shareholders prospered.Berkshire’s owners, it should be noted, were not the only beneficiary of that course correction. Their “silent partner,” the U.S. Treasury, proceeded to collect many tens of billions of dollars from the company in income tax payments. Remember the $100 daily? Now, Berkshire pays roughly $9 million daily to the Treasury.In fairness to our governmental partner, our shareholders should acknowledge – indeed trumpet – the fact that Berkshire’s prosperity has been fostered mightily because the company has operated in America. Our country would have done splendidly in the years since 1965 without Berkshire. Absent our American home, however, Berkshire would never have come close to becoming what it is today. When you see the flag, say thanks.• From an $8.6 million purchase of National Indemnity in 1967, Berkshire has become the world leader in insurance “float” – money we hold and can invest but that does not belong to us. Including a relatively small sum derived from life insurance, Berkshire’s total float has grown from $19 million when we entered the insurance business to $147 billion.So far, this float has cost us less than nothing. Though we have experienced a number of years when insurance losses combined with operating expenses exceeded premiums, overall we have earned a modest 55-year profit from the underwriting activities that generated our float.Of equal importance, float is very sticky. Funds attributable to our insurance operations come and go daily, but their aggregate total is immune from precipitous decline. When it comes to investing float, we can therefore think long-term.If you are not already familiar with the concept of float, I refer you to a long explanation on page A-5. To my surprise, our float increased $9 billion last year, a buildup of value that is important to Berkshire owners though is not reflected in our GAAP (“generally-accepted accounting principles”) presentation of earnings and net worth.Much of our huge value creation in insurance is attributable to Berkshire’s good luck in my 1986 hiring of Ajit Jain. We first met on a Saturday morning, and I quickly asked Ajit what his insurance experience had been. He replied, “None.”I said, “Nobody’s perfect,” and hired him. That was my lucky day: Ajit actually was as perfect a choice as could have been made. Better yet, he continues to be – 35 years later.One final thought about insurance: I believe that it is likely – but far from assured – that Berkshire’s float can be maintained without our incurring a long-term underwriting loss. I am certain, however, that there will be some years when we experience such losses, perhaps involving very large sums.Berkshire is constructed to handle catastrophic events as no other insurer – and that priority will remain long after Charlie and I are gone.Our Four GiantsThrough Berkshire, our shareholders own many dozens of businesses. Some of these, in turn, have a collection of subsidiaries of their own. For example, Marmon has more than 100 individual business operations, ranging from the leasing of railroad cars to the manufacture of medical devices.• Nevertheless, operations of our “Big Four” companies account for a very large chunk of Berkshire’s value. Leading this list is our cluster of insurers. Berkshire effectively owns 100% of this group, whose massive float value we earlier described. The invested assets of these insurers are further enlarged by the extraordinary amount of capital we invest to back up their promises.The insurance business is made to order for Berkshire. The product will never be obsolete, and sales volume will generally increase along with both economic growth and inflation. Also, integrity and capital will forever be important. Our company can and will behave well.There are, of course, other insurers with excellent business models and prospects. Replication of Berkshire’s operation, however, would be almost impossible.• Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job.It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.• BNSF, our third Giant, continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire. If the many essential products BNSF carries were instead hauled by truck, America’s carbon emissions would soar.Your railroad had record earnings of $6 billion in 2021. Here, it should be noted, we are talking about the old-fashioned sort of earnings that we favor: a figure calculated after interest, taxes, depreciation, amortization and all forms of compensation. (Our definition suggests a warning: Deceptive “adjustments” to earnings – to use a polite description – have become both more frequent and more fanciful as stocks have risen. Speaking less politely, I would say that bull markets breed bloviated bull )BNSF trains traveled 143 million miles last year and carried 535 million tons of cargo. Both accomplishments far exceed those of any other American carrier. You can be proud of your railroad.• BHE, our final Giant, earned a record $4 billion in 2021. That’s up more than 30-fold from the $122 million earned in 2000, the year that Berkshire first purchased a BHE stake. Now, Berkshire owns 91.1% of the company.BHE’s record of societal accomplishment is as remarkable as its financial performance. The company had no wind or solar generation in 2000. It was then regarded simply as a relatively new and minor participant in the huge electric utility industry. Subsequently, under David Sokol’s and Greg Abel’s leadership, BHE has become a utility powerhouse (no groaning, please) and a leading force in wind, solar and transmission throughout much of the United States.Greg’s report on these accomplishments appears on pages A-3 and A-4. The profile you will find there is not in any way one of those currently-fashionable “green-washing” stories. BHE has been faithfully detailing its plans and performance in renewables and transmissions every year since 2007.To further review this information, visit BHE’s website at brkenergy.com. There, you will see that the company has long been making climate-conscious moves that soak up all of its earnings. More opportunities lie ahead. BHE has the management, the experience, the capital and the appetite for the huge power projects that our country needs.InvestmentsNow let’s talk about companies we don’t control, a list that again references Apple. Below we list our fifteen largest equity holdings, several of which are selections of Berkshire’s two long-time investment managers, Todd Combs and Ted Weschler. At yearend, this valued pair had total authority in respect to $34 billion of investments, many of which do not meet the threshold value we use in the table. Also, a significant portion of the dollars that Todd and Ted manage are lodged in various pension plans of Berkshire-owned businesses, with the assets of these plans not included in this table.* This is our actual purchase price and also our tax basis.** Held by BHE; consequently, Berkshire shareholders have only a 91.1% interest in this position.*** Includes a $10 billion investment in Occidental Petroleum, consisting of preferred stock and warrants to buy common stock, a combination now being valued at $10.7 billion.In addition to the footnoted Occidental holding and our various common-stock positions, Berkshire also owns a 26.6% interest in Kraft Heinz (accounted for on the “equity” method, not market value, and carried at $13.1 billion) and 38.6% of Pilot Corp., a leader in travel centers that had revenues last year of $45 billion.Since we purchased our Pilot stake in 2017, this holding has warranted “equity” accounting treatment. Early in 2023, Berkshire will purchase an additional interest in Pilot that will raise our ownership to 80% and lead to our fully consolidating Pilot’s earnings, assets and liabilities in our financial statements.U.S. Treasury BillsBerkshire’s balance sheet includes $144 billion of cash and cash equivalents (excluding the holdings of BNSF and BHE). Of this sum, $120 billion is held in U.S. Treasury bills, all maturing in less than a year. That stake leaves Berkshire financing about 12 of 1% of the publicly-held national debt.Charlie and I have pledged that Berkshire (along with our subsidiaries other than BNSF and BHE) will always hold more than $30 billion of cash and equivalents. We want your company to be financially impregnable and never dependent on the kindness of strangers (or even that of friends). Both of us like to sleep soundly, and we want our creditors, insurance claimants and you to do so as well.But $144 billion?That imposing sum, I assure you, is not some deranged expression of patriotism. Nor have Charlie and I lost our overwhelming preference for business ownership. Indeed, I first manifested my enthusiasm for that 80 years ago, on March 11, 1942, when I purchased three shares of Cities Services preferred stock. Their cost was $114.75 and required all of my savings. (The Dow Jones Industrial Average that day closed at 99, a fact that should scream to you: Never bet against America.)After my initial plunge, I always kept at least 80% of my net worth in equities. My favored status throughout that period was 100% – and still is. Berkshire’s current 80%-or-so position in businesses is a consequence of my failure to find entire companies or small portions thereof (that is, marketable stocks) which meet our criteria for long- term holding.Charlie and I have endured similar cash-heavy positions from time to time in the past. These periods are never pleasant; they are also never permanent. And, fortunately, we have had a mildly attractive alternative during 2020 and 2021 for deploying capital. Read on.Share RepurchasesThere are three ways that we can increase the value of your investment. The first is always front and center in our minds: Increase the long-term earning power of Berkshire’s controlled businesses through internal growth or by making acquisitions. Today, internal opportunities deliver far better returns than acquisitions. The size of those opportunities, however, is small compared to Berkshire’s resources.Our second choice is to buy non-controlling part-interests in the many good or great businesses that are publicly traded. From time to time, such possibilities are both numerous and blatantly attractive. Today, though, we find little that excites us.That’s largely because of a truism: Long-term interest rates that are low push the prices of all productive investments upward, whether these are stocks, apartments, farms, oil wells, whatever. Other factors influence valuations as well, but interest rates will always be important.Our final path to value creation is to repurchase Berkshire shares. Through that simple act, we increase your share of the many controlled and non-controlled businesses Berkshire owns. When the price/value equation is right, this path is the easiest and most certain way for us to increase your wealth. (Alongside the accretion of value to continuing shareholders, a couple of other parties gain: Repurchases are modestly beneficial to the seller of the repurchased shares and to society as well.)Periodically, as alternative paths become unattractive, repurchases make good sense for Berkshire’s owners. During the past two years, we therefore repurchased 9% of the shares that were outstanding at yearend 2019 for a total cost of $51.7 billion. That expenditure left our continuing shareholders owning about 10% more of all Berkshire businesses, whether these are wholly-owned (such as BNSF and GEICO) or partly-owned (such as Coca-Cola and Moody’s).I want to underscore that for Berkshire repurchases to make sense, our shares must offer appropriate value. We don’t want to overpay for the shares of other companies, and it would be value-destroying if we were to overpay when we are buying Berkshire. As of February 23, 2022, since yearend we repurchased additional shares at a cost of $1.2 billion. Our appetite remains large but will always remain price-dependent.It should be noted that Berkshire’s buyback opportunities are limited because of its high-class investor base. If our shares were heavily held by short-term speculators, both price volatility and transaction volumes would materially increase. That kind of reshaping would offer us far greater opportunities for creating value by making repurchases. Nevertheless, Charlie and I far prefer the owners we have, even though their admirable buy-and-keep attitudes limit the extent to which long-term shareholders can profit from opportunistic repurchases.Finally, one easily-overlooked value calculation specific to Berkshire: As we’ve discussed, insurance “float” of the right sort is of great value to us. As it happens, repurchases automatically increase the amount of “float” per share. That figure has increased during the past two years by 25% – going from $79,387 per “A” share to $99,497, a meaningful gain that, as noted, owes some thanks to repurchases.A Wonderful Man and a Wonderful BusinessLast year, Paul Andrews died. Paul was the founder and CEO of TTI, a Fort Worth-based subsidiary of Berkshire. Throughout his life – in both his business and his personal pursuits – Paul quietly displayed all the qualities that Charlie and I admire. His story should be told.In 1971, Paul was working as a purchasing agent for General Dynamics when the roof fell in. After losing a huge defense contract, the company fired thousands of employees, including Paul.With his first child due soon, Paul decided to bet on himself, using $500 of his savings to found Tex-Tronics (later renamed TTI). The company set itself up to distribute small electronic components, and first-year sales totaled $112,000. Today, TTI markets more than one million different items with annual volume of $7.7 billion.But back to 2006: Paul, at 63, then found himself happy with his family, his job, and his associates. But he had one nagging worry, heightened because he had recently witnessed a friend’s early death and the disastrous results that followed for that man’s family and business. What, Paul asked himself in 2006, would happen to the many people depending on him if he should unexpectedly die?For a year, Paul wrestled with his options. Sell to a competitor? From a strictly economic viewpoint, that course made the most sense. After all, competitors could envision lucrative “synergies” – savings that would be achieved as the acquiror slashed duplicated functions at TTI.But . . . Such a purchaser would most certainly also retain its CFO, its legal counsel, its HR unit. Their TTI counterparts would therefore be sent packing. And ugh! If a new distribution center were to be needed, the acquirer’s home city would certainly be favored over Fort Worth.Whatever the financial benefits, Paul quickly concluded that selling to a competitor was not for him. He next considered seeking a financial buyer, a species once labeled – aptly so – a leveraged buyout firm. Paul knew, however, that such a purchaser would be focused on an “exit strategy.” And who could know what that would be? Brooding over it all, Paul found himself having no interest in handing his 35-year-old creation over to a reseller.When Paul met me, he explained why he had eliminated these two alternatives as buyers. He then summed up his dilemma by saying – in far more tactful phrasing than this – “After a year of pondering the alternatives, I want to sell to Berkshire because you are the only guy left.” So, I made an offer and Paul said “Yes.” One meeting; one lunch; one deal.To say we both lived happily ever after is an understatement. When Berkshire purchased TTI, the company employed 2,387. Now the number is 8,043. A large percentage of that growth took place in Fort Worth and environs. Earnings have increased 673%.Annually, I would call Paul and tell him his salary should be substantially increased. Annually, he would tell me, “We can talk about that next year, Warren; I’m too busy now.”When Greg Abel and I attended Paul’s memorial service, we met children, grandchildren, long-time associates (including TTI’s first employee) and John Roach, the former CEO of a Fort Worth company Berkshire had purchased in 2000. John had steered his friend Paul to Omaha, instinctively knowing we would be a match.At the service, Greg and I heard about the multitudes of people and organizations that Paul had silently supported. The breadth of his generosity was extraordinary – geared always to improving the lives of others, particularly those in Fort Worth.In all ways, Paul was a class act.* * * * * * * * * * * *Good luck – occasionally extraordinary luck – has played its part at Berkshire. If Paul and I had not enjoyed a mutual friend – John Roach – TTI would not have found its home with us. But that ample serving of luck was only the beginning. TTI was soon to lead Berkshire to its most important acquisition.Every fall, Berkshire directors gather for a presentation by a few of our executives. We sometimes choose the site based upon the location of a recent acquisition, by that means allowing directors to meet the new subsidiary’s CEO and learn more about the acquiree’s activities.In the fall of 2009, we consequently selected Fort Worth so that we could visit TTI. At that time, BNSF, which also had Fort Worth as its hometown, was the third-largest holding among our marketable equities. Despite that large stake, I had never visited the railroad’s headquarters.Deb Bosanek, my assistant, scheduled our board’s opening dinner for October 22. Meanwhile, I arranged to arrive earlier that day to meet with Matt Rose, CEO of BNSF, whose accomplishments I had long admired. When I made the date, I had no idea that our get-together would coincide with BNSF’s third-quarter earnings report, which was released late on the 22nd.The market reacted badly to the railroad’s results. The Great Recession was in full force in the third quarter, and BNSF’s earnings reflected that slump. The economic outlook was also bleak, and Wall Street wasn’t feeling friendly to railroads – or much else.On the following day, I again got together with Matt and suggested that Berkshire would offer the railroad a better long-term home than it could expect as a public company. I also told him the maximum price that Berkshire would pay.Matt relayed the offer to his directors and advisors. Eleven busy days later, Berkshire and BNSF announced a firm deal. And here I’ll venture a rare prediction: BNSF will be a key asset for Berkshire and our country a century from now.The BNSF acquisition would never have happened if Paul Andrews hadn’t sized up Berkshire as the right home for TTI.ThanksI taught my first investing class 70 years ago. Since then, I have enjoyed working almost every year with students of all ages, finally “retiring” from that pursuit in 2018.Along the way, my toughest audience was my grandson’s fifth-grade class. The 11-year-olds were squirming in their seats and giving me blank stares until I mentioned Coca-Cola and its famous secret formula. Instantly, every hand went up, and I learned that “secrets” are catnip to kids.Teaching, like writing, has helped me develop and clarify my own thoughts. Charlie calls this phenomenon the orangutan effect: If you sit down with an orangutan and carefully explain to it one of your cherished ideas, you may leave behind a puzzled primate, but will yourself exit thinking more clearly.Talking to university students is far superior. I have urged that they seek employment in (1) the field and (2) with the kind of people they would select, if they had no need for money. Economic realities, I acknowledge, may interfere with that kind of search. Even so, I urge the students never to give up the quest, for when they find that sort of job, they will no longer be “working.”Charlie and I, ourselves, followed that liberating course after a few early stumbles. We both started as part- timers at my grandfather’s grocery store, Charlie in 1940 and I in 1942. We were each assigned boring tasks and paid little, definitely not what we had in mind. Charlie later took up law, and I tried selling securities. Job satisfaction continued to elude us.Finally, at Berkshire, we found what we love to do. With very few exceptions, we have now “worked” for many decades with people whom we like and trust. It’s a joy in life to join with managers such as Paul Andrews or the Berkshire families I told you about last year. In our home office, we employ decent and talented people – no jerks. Turnover averages, perhaps, one person per year.I would like, however, to emphasize a further item that turns our jobs into fun and satisfaction workingfor you. There is nothing more rewarding to Charlie and me than enjoying the trust of individual long-term shareholders who, for many decades, have joined us with the expectation that we would be a reliable custodian of their funds.Obviously, we can’t select our owners, as we could do if our form of operation were a partnership. Anyone can buy shares of Berkshire today with the intention of soon reselling them. For sure, we get a few of that type of shareholder, just as we get index funds that own huge amounts of Berkshire simply because they are required to do so.To a truly unusual degree, however, Berkshire has as owners a very large corps of individuals and families that have elected to join us with an intent approaching “til death do us part.” Often, they have trusted us with a large – some might say excessive – portion of their savings.Berkshire, these shareholders would sometimes acknowledge, might be far from the best selection they could have made. But they would add that Berkshire would rank high among those with which they would be most comfortable. And people who are comfortable with their investments will, on average, achieve better results than those who are motivated by ever-changing headlines, chatter and promises.Long-term individual owners are both the “partners” Charlie and I have always sought and the ones we constantly have in mind as we make decisions at Berkshire. To them we say, “It feels good to ‘work’ for you, and you have our thanks for your trust.”The Annual MeetingClear your calendar! Berkshire will have its annual gathering of capitalists in Omaha on Friday, April 29th through Sunday, May 1st. The details regarding the weekend are laid out on pages A-1 and A-2. Omaha eagerly awaits you, as do I.I will end this letter with a sales pitch. “Cousin” Jimmy Buffett has designed a pontoon “party” boat that is now being manufactured by Forest River, a Berkshire subsidiary. The boat will be introduced on April 29 at our Berkshire Bazaar of Bargains. And, for two days only, shareholders will be able to purchase Jimmy’s masterpiece at a 10% discount. Your bargain-hunting chairman will be buying a boat for his family’s use. Join me.February 26, 2022Warren E. Buffett Chairman of the Board","news_type":1},"isVote":1,"tweetType":1,"viewCount":174,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9916890990,"gmtCreate":1664549549410,"gmtModify":1676537475908,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/RHHBY\">$Roche Holding Ltd(RHHBY)$</a>bullish??","listText":"<a href=\"https://ttm.financial/S/RHHBY\">$Roche Holding Ltd(RHHBY)$</a>bullish??","text":"$Roche Holding Ltd(RHHBY)$bullish??","images":[{"img":"https://community-static.tradeup.com/news/b97f96a1acb7300736970fb0c1f49606","width":"1080","height":"1850"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/9916890990","isVote":1,"tweetType":1,"viewCount":351,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":9039221628,"gmtCreate":1646056963552,"gmtModify":1676534086166,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Tq","listText":"Tq","text":"Tq","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9039221628","repostId":"1120888812","repostType":4,"repost":{"id":"1120888812","pubTimestamp":1646054993,"share":"https://www.laohu8.com/m/news/1120888812?lang=&edition=full","pubTime":"2022-02-28 21:29","market":"us","language":"en","title":"Zoom’s Earnings Are Today. What to Expect.","url":"https://stock-news.laohu8.com/highlight/detail?id=1120888812","media":"Barrons","summary":"Zoom Video Communications stock, which soared as the Covid-19 pandemic arrived in early 2020, have c","content":"<html><head></head><body><p>Zoom Video Communications stock, which soared as the Covid-19 pandemic arrived in early 2020, have cratered in recent months as investors switched their sights from stay-at-home plays to reopening bets. Shares are down 33% for the year to date—and nearly 80% below their October 2020 peak.</p><p>Zoom (ticker: ZM) at one point posted a string of three straight quarters with top-line growth north of 355%, as adoption of the company’s videoconferencing platform soared. But over the last few quarters Zoom’s business has been returning to Earth: From 367% growth in the January 2021 quarter, to 191% in the April quarter, 54% in the July quarter, and 35% in the October quarter. And the slowdown is going to continue from here.</p><p>Monday after the close, Zoom will report results for the January 2022 quarter. Zoom’s guidance calls for revenue of $1.051 billion to $1.053 billion. At the midpoint of the range, that would be 19% growth from a year ago. Zoom sees non-GAAP profits of $1.06 to $1.07 a share. Wall Street analysts surveyed by FactSet project revenue of $1.054 billion and profits of $1.07 a share—and the company always exceeds its own guidance.</p><p>For the April quarter, Street consensus calls for revenue of $1.095 billion, up 14.5% from a year ago, with profits of $1.03 a share, down from $1.32 a share a year earlier. For all of fiscal 2023, the Street projects revenue of $4.71 billion, up 15.5%, with profits of $4.36 a share, down from an estimated $4.85 for fiscal 2022.</p><p>Citi analyst Tyler Radke, who has a Neutral rating on Zoom stock, writes in a research note previewing the quarter that he remains cautious on the stock despite the 45% slide in the stock since the company’s last earnings report.</p><p>“We believe that competitive inroads are increasingly exacerbating headwinds persisting from pull-forward activity and tough comps,” he writes. In particular, Radke sees signs of rising competitive pressures from the Microsoft (MSFT) Teams communications suite, which he says is perceived to offer better security features than Zoom.</p><p>“In our conversations with partners, we heard about increasing Teams deployment, including from customers that were previously with Zoom,” Radke writes. “This trend has been accelerating with return to office and comfort level by IT departments, which is rationalizing collaboration systems and showing preference for Microsoft’s security features.”</p><p>Radke thinks Street estimates for the January 2023 fiscal year are simply too high—he’s projecting revenue of $4.6 billion, up 14%, with profits of $4.18 a share, well below consensus.</p></body></html>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Zoom’s Earnings Are Today. What to Expect.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nZoom’s Earnings Are Today. What to Expect.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-02-28 21:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barrons.com/articles/zoom-stock-price-earnings-51645828750?mod=hp_LATEST><strong>Barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Zoom Video Communications stock, which soared as the Covid-19 pandemic arrived in early 2020, have cratered in recent months as investors switched their sights from stay-at-home plays to reopening ...</p>\n\n<a href=\"https://www.barrons.com/articles/zoom-stock-price-earnings-51645828750?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"ZM":"Zoom"},"source_url":"https://www.barrons.com/articles/zoom-stock-price-earnings-51645828750?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1120888812","content_text":"Zoom Video Communications stock, which soared as the Covid-19 pandemic arrived in early 2020, have cratered in recent months as investors switched their sights from stay-at-home plays to reopening bets. Shares are down 33% for the year to date—and nearly 80% below their October 2020 peak.Zoom (ticker: ZM) at one point posted a string of three straight quarters with top-line growth north of 355%, as adoption of the company’s videoconferencing platform soared. But over the last few quarters Zoom’s business has been returning to Earth: From 367% growth in the January 2021 quarter, to 191% in the April quarter, 54% in the July quarter, and 35% in the October quarter. And the slowdown is going to continue from here.Monday after the close, Zoom will report results for the January 2022 quarter. Zoom’s guidance calls for revenue of $1.051 billion to $1.053 billion. At the midpoint of the range, that would be 19% growth from a year ago. Zoom sees non-GAAP profits of $1.06 to $1.07 a share. Wall Street analysts surveyed by FactSet project revenue of $1.054 billion and profits of $1.07 a share—and the company always exceeds its own guidance.For the April quarter, Street consensus calls for revenue of $1.095 billion, up 14.5% from a year ago, with profits of $1.03 a share, down from $1.32 a share a year earlier. For all of fiscal 2023, the Street projects revenue of $4.71 billion, up 15.5%, with profits of $4.36 a share, down from an estimated $4.85 for fiscal 2022.Citi analyst Tyler Radke, who has a Neutral rating on Zoom stock, writes in a research note previewing the quarter that he remains cautious on the stock despite the 45% slide in the stock since the company’s last earnings report.“We believe that competitive inroads are increasingly exacerbating headwinds persisting from pull-forward activity and tough comps,” he writes. In particular, Radke sees signs of rising competitive pressures from the Microsoft (MSFT) Teams communications suite, which he says is perceived to offer better security features than Zoom.“In our conversations with partners, we heard about increasing Teams deployment, including from customers that were previously with Zoom,” Radke writes. “This trend has been accelerating with return to office and comfort level by IT departments, which is rationalizing collaboration systems and showing preference for Microsoft’s security features.”Radke thinks Street estimates for the January 2023 fiscal year are simply too high—he’s projecting revenue of $4.6 billion, up 14%, with profits of $4.18 a share, well below consensus.","news_type":1},"isVote":1,"tweetType":1,"viewCount":1,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9968324182,"gmtCreate":1669139261746,"gmtModify":1676538157198,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Thanksss","listText":"Thanksss","text":"Thanksss","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9968324182","repostId":"2285386886","repostType":4,"repost":{"id":"2285386886","pubTimestamp":1669104486,"share":"https://www.laohu8.com/m/news/2285386886?lang=&edition=full","pubTime":"2022-11-22 16:08","market":"us","language":"en","title":"Apple And Taiwan Semiconductor: Let's Ask Buffett","url":"https://stock-news.laohu8.com/highlight/detail?id=2285386886","media":"Seeking Alpha","summary":"SummaryAs a long-time Buffett cultist, I understand (not to say I am able to anticipate) most of his","content":"<html><head></head><body><h2>Summary</h2><ul><li>As a long-time Buffett cultist, I understand (not to say I am able to anticipate) most of his stock choices.</li><li>But from time to time, some of his choices still come as a surprise and his recent position in Taiwan Semiconductor is a notable example.</li><li>The choice is even more puzzling when viewed under the context of his largest holding, Apple.</li><li>There are certainly positives with Taiwan Semiconductor, that is, even when compared to Apple.</li><li>However, I see these positives easily overshadowed by the developing tension between them, which produces mutual but asymmetric damage.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/511f126f81b7dac4ef1687fe1d622bbe\" tg-width=\"1080\" tg-height=\"719\" referrerpolicy=\"no-referrer\"/><span>Jamie McCarthy</span></p><h2>The investment thesis</h2><p>As a long-time Buffett cultist, I feel comfortable saying that I understand most of his investment choices. But occasionally, the grandmaster still manages to make a move that surprises me such as his recent position in TaiwanSemiconductor (NYSE:TSM). To wit, the recent 13F disclosure showed that Buffett opened a sizable position in TSM for the Berkshire Hathaway (BRK.A) (BRK.B) equity portfolio. As you can see from the following chart, his BRK portfolio now holds more than 60.06M shares of TSM with a total worth of over $4.11B. The TSM position is currently the 10thlargest position in the BRK portfolio.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/79878ff126c58641fbbd5a5aa3c0b334\" tg-width=\"640\" tg-height=\"363\" referrerpolicy=\"no-referrer\"/><span>Source: Dataroma.com</span></p><p>The surprise comes in several ways. And the more obvious ways (like Buffett’s allergy to tech businesses) have already been discussed by several other SA authors and I won’t further add to it anymore. Here, I want to explore an angle that is less discussed so far. I want to explain why it feels more puzzling to me, that is besides the fact that Buffett added another tech name to his BRK portfolio, when the TSM position is viewed under the context of his largest holding, Apple (NASDAQ:AAPL). There are certainly positives with TSM, that is, even when compared to AAPL. As we will detail in the next section, it is a high-quality stock in its own right. It boasts a large technological lead in its space and an R&amp;D yield that is even better than AAPL.</p><p>However, I see these positives easily overshadowed by the developing tension between them and also the ongoing deglobalization mega-trend. According to a recentnews report, TSM’s scheduled price raises in 2023 were rejected by AAPL, by far its largest customer. AAPL currently outsources almost all of its processor manufacturing to factories in Taiwan. However, with the U.S. strategic initiatives to push to develop domestic semiconductor foundry capabilities, AAPL (and other U.S. chip players such Advanced Micro Devices (AMD) and NVIDIA (NVDA) too) would be very likely to diversify its chip manufacturing away from TSM. And the damage will be mutual but asymmetric. It is easier for AAPL to find other foundry services to manufacture its chips, and a lot harder for TSM to find such large clients as AAPL.</p><p>The full impact of such tension and diversification will take time to fully manifest. And TSM’s role as the dominating high-end chipmaker in the world won’t change in the near term. But I see these recent events (such as AAPL’s rejection of the price raises and the recent passing of the CHIPS act) as the turning point. Taking a broader view, I see these events as a logical step, or even an inevitable step, in the deglobalization process – a mega force that has been unfolding for over 10 years as shown in the chart below. The chart illustrates how globalization, measured as the percentage of total exports out of global GDP, has been in decline since its peak in 2008. The percentage has declined from 61% in 2008 to the to 51.6% in 2020. And since 2020, the China-U.S. trade tension, the COVID, and the Russian/Ukraine war have further quickened its pace.</p><p>In the remainder of this article, I will further analyze the details of these above considerations in more detail.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/df9d37af226f63d9047697f699ffa010\" tg-width=\"640\" tg-height=\"527\" referrerpolicy=\"no-referrer\"/><span>Source: The World Bank</span></p><h2>TSM’s valuation advantage</h2><p>First, as mentioned above, there are definitely many positives with TSM even when compared to AAPL. And valuation is an obvious place to start with. As a global leader in the foundry space, it is for sale at a fraction of the overall market and AAPL’s valuation as seen in the chart below.</p><p>To cite a few examples, TSM’s FY1 PE of 12.8x is almost only 1/2 of AAPL’s 24.2x. Its TTM PE of 13.08x is also about only 1/2 of AAPL’s 24.2x. Considering that these stocks have different leverages and enterprise values (“EV”), let&#39;s compare their multiples with leverages adjusted too. As you can see, TSM’s discount is even more dramatic in terms of EV/EBITDA multiples. TSM’s FW EV/EBITDA ratio sits at 7.64x only, less than ½ of AAPL’s 18.18x.</p><p>Yes, as you will see in the next section, TSM is a high-quality stock in its own right. It boasts a large technological lead in its space, further bolstered by its consistent R&amp;D investments and also superb R&amp;D yield that even surpasses AAPL.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cd9101b641f06753dca5fee60c5e18ff\" tg-width=\"640\" tg-height=\"496\" referrerpolicy=\"no-referrer\"/><span>Source: Seeking Alpha data</span></p><h2>TSM’s more consistent and aggressive R&amp;D</h2><p>As detailed in our earlier articles:</p><blockquote><i>We do not invest in a given tech stock because we have high confidence in a certain product that they are developing in the pipeline. Instead, we feel more comfortable betting on A) the recurring resources available to fund new R&amp;D efforts sustainably, and B) the overall efficiency of the R&amp;D PROCESS. So correspondingly, in the long run, I feel comfortable as long as a tech business can A) sustainably support new R&amp;D expenditures, and B) has demonstrated a consistent R&amp;D yield. I do not feel the need to particularly bet on any one of the new products to be a hit (or a complete failure).</i></blockquote><p>And both TSM and AAPL can sustainably fund their new R&amp;D efforts with no problem in the long term, as illustrated in the next chart. It shows their R&amp;D expenses over the past 10 years as a percentage of their total sales. A few key observations:</p><ul><li>TSM has been investing very consistently in R&amp;D efforts, on average about 8.0% of its total sales.</li><li>AAPL&#39;s R&amp;D expenses have been climbing since Tim Cook took over the company from Jobs. Jobs believed that innovation is not about money and it &#34;has nothing to do with how much R&amp;D money” a business put in. Then Cook gradually increased the R&amp;D investments to the current level of around 6.1% since 2018.</li><li>So even at AAPL’s current R&amp;D level, TSM is still outspending AAPL by about 200 basis points. And also note TSM’s consistency: the R&amp;D expenses only fluctuated in a very narrow range over the past 10 years.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/68ba62925d409c0646d95b62223ef4b9\" tg-width=\"640\" tg-height=\"355\" referrerpolicy=\"no-referrer\"/><span>Source: Author</span></p><p>More impressively, TSM’s yield on the R&amp;D investment is also superior to AAPL, which is already at a remarkable level by itself as shown in the next chart. The chart used Buffett’s $1 test on R&amp;D expenses. More specifically, the chart quantifies the R&amp;D yield by taking the ratio between profit and R&amp;D expenditures. Thus, the results show how many dollars of profit are generated per $1 of R&amp;D expenses. In particular, in this chart, my analysis used the operating cash flow (“OPC”) as the profit and also took a 3-year moving average on the OPC to approximate a 3-year R&amp;D cycle. And the key observations are:</p><ul><li>The R&amp;D yield is also consistent for TSM, with an average of $6.75 since 2014.</li><li>AAPL’s picture is a bit more colorful. Its R&amp;D yield has been astronomical ($10+ in 2013 and $8+ in 2014 and 2015) thanks to its almost monopoly status in key market segments in those days. Its R&amp;D yield has gradually declined to around ~$4.0 in recent years. And its long-term average was about $5.3.</li><li>To provide a broader view, the FAAMG group features an average R&amp;D yield of ~$2.5 in recent years.</li><li>Thus, both AAPL and TSM boast superb R&amp;D yields even when compared to the overachievers in the FAAMG pack, and TSM’s yield is even higher than AAPL by a large gap.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/72e8c1b1427c0babf39d38ec60269d28\" tg-width=\"640\" tg-height=\"340\" referrerpolicy=\"no-referrer\"/><span>Source: Author based on Seeking Alpha data</span></p><h2>Both enjoy high ROCE too, but AAPL is in its own category</h2><p>To me, ROCE (return on capital employed) is the most fundamental profitability metric as detailed in my blog article (with differences compared to ROE and Q&amp;A on the most frequently received questions from our readers). One key reason for its fundamental importance is that the long-term growth rate is governed by ROCE and reinvestment rate (“RR”) in the following simple way:</p><p>Long-Term Growth Rate = ROCE * RR</p><p>The ROCE of TSM and AAPL are shown below for the past 10 years. As you can see, TSM has been maintaining a high ROCE with remarkable consistency here. Its average ROCE has been about 42%. And I cannot overemphasize the consistency – which is a strong indicator of its stable moat. However, AAPL certainly has the upper hand here. Its ROCE is simply a category of its own. It has been hovering around an average of 125% since 2018 after its “declines” from an astronomical (and also unsustainable level in my view) of 200%+ earlier in the decade.</p><p>In terms of RR, both companies have sustainable capital allocation flexibility thanks to their strong cash generation. All told, my analysis shows that TSM has been maintaining an RR in the range between 7.5% to 10% in recent years, and AAPL about 5% to 7.5%.</p><p>So even without the trade tensions and deglobalization process aforementioned, I would project AAPL to have a much better perpetual growth curve ahead than TSM. I projected AAPL’s LT growth rate to be up to 10% (7.5% RR * 125% ROCE ~ 10% annual growth rate). And TSM’s growth rate, on the hand, would be limited to be in the mid-single digit range (say 4% = 10% RR * 42% ROCE).</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/98b3ddd710705df7ba8e09cb93f9b81a\" tg-width=\"640\" tg-height=\"334\" referrerpolicy=\"no-referrer\"/><span>Source: Author based on Seeking Alpha data</span></p><h2>Risks and final thought</h2><p>But to reiterate, I do see the developing tension between TSM and AAPL and the deglobalization process as the overarching forces here. And I only see the differences in terms of valuation, R&amp;D yields, and profitability to be secondary forces in the years to come. The deglobalization mega-trend has been unfolding since 2008. And I see a series of recent events (such as AAPL’s rejection of TSM’s price raises, the CHIPS act, the ongoing U.S.-China trade frictions, and also the Russian/Ukraine war) to further exacerbate and accelerate the trend. Under such a mega-trend, I see it as inevitable that key chip clients (such as AAPL, AMD, and NVDA) diversify their manufacturing needs away from TSM.</p><p>And the bottom line is that damage will be mutual but asymmetric the way I see things. It is easier for AAPL to find replacement foundry services but a lot harder for TSM to find replacement clients at the scale of AAPL.</p><p><i>This article is written by Envision Research for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple And Taiwan Semiconductor: Let's Ask Buffett</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple And Taiwan Semiconductor: Let's Ask Buffett\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-22 16:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4559717-apple-and-taiwan-semiconductor-ask-buffett><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAs a long-time Buffett cultist, I understand (not to say I am able to anticipate) most of his stock choices.But from time to time, some of his choices still come as a surprise and his recent ...</p>\n\n<a href=\"https://seekingalpha.com/article/4559717-apple-and-taiwan-semiconductor-ask-buffett\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSM":"台积电","AAPL":"苹果"},"source_url":"https://seekingalpha.com/article/4559717-apple-and-taiwan-semiconductor-ask-buffett","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2285386886","content_text":"SummaryAs a long-time Buffett cultist, I understand (not to say I am able to anticipate) most of his stock choices.But from time to time, some of his choices still come as a surprise and his recent position in Taiwan Semiconductor is a notable example.The choice is even more puzzling when viewed under the context of his largest holding, Apple.There are certainly positives with Taiwan Semiconductor, that is, even when compared to Apple.However, I see these positives easily overshadowed by the developing tension between them, which produces mutual but asymmetric damage.Jamie McCarthyThe investment thesisAs a long-time Buffett cultist, I feel comfortable saying that I understand most of his investment choices. But occasionally, the grandmaster still manages to make a move that surprises me such as his recent position in TaiwanSemiconductor (NYSE:TSM). To wit, the recent 13F disclosure showed that Buffett opened a sizable position in TSM for the Berkshire Hathaway (BRK.A) (BRK.B) equity portfolio. As you can see from the following chart, his BRK portfolio now holds more than 60.06M shares of TSM with a total worth of over $4.11B. The TSM position is currently the 10thlargest position in the BRK portfolio.Source: Dataroma.comThe surprise comes in several ways. And the more obvious ways (like Buffett’s allergy to tech businesses) have already been discussed by several other SA authors and I won’t further add to it anymore. Here, I want to explore an angle that is less discussed so far. I want to explain why it feels more puzzling to me, that is besides the fact that Buffett added another tech name to his BRK portfolio, when the TSM position is viewed under the context of his largest holding, Apple (NASDAQ:AAPL). There are certainly positives with TSM, that is, even when compared to AAPL. As we will detail in the next section, it is a high-quality stock in its own right. It boasts a large technological lead in its space and an R&D yield that is even better than AAPL.However, I see these positives easily overshadowed by the developing tension between them and also the ongoing deglobalization mega-trend. According to a recentnews report, TSM’s scheduled price raises in 2023 were rejected by AAPL, by far its largest customer. AAPL currently outsources almost all of its processor manufacturing to factories in Taiwan. However, with the U.S. strategic initiatives to push to develop domestic semiconductor foundry capabilities, AAPL (and other U.S. chip players such Advanced Micro Devices (AMD) and NVIDIA (NVDA) too) would be very likely to diversify its chip manufacturing away from TSM. And the damage will be mutual but asymmetric. It is easier for AAPL to find other foundry services to manufacture its chips, and a lot harder for TSM to find such large clients as AAPL.The full impact of such tension and diversification will take time to fully manifest. And TSM’s role as the dominating high-end chipmaker in the world won’t change in the near term. But I see these recent events (such as AAPL’s rejection of the price raises and the recent passing of the CHIPS act) as the turning point. Taking a broader view, I see these events as a logical step, or even an inevitable step, in the deglobalization process – a mega force that has been unfolding for over 10 years as shown in the chart below. The chart illustrates how globalization, measured as the percentage of total exports out of global GDP, has been in decline since its peak in 2008. The percentage has declined from 61% in 2008 to the to 51.6% in 2020. And since 2020, the China-U.S. trade tension, the COVID, and the Russian/Ukraine war have further quickened its pace.In the remainder of this article, I will further analyze the details of these above considerations in more detail.Source: The World BankTSM’s valuation advantageFirst, as mentioned above, there are definitely many positives with TSM even when compared to AAPL. And valuation is an obvious place to start with. As a global leader in the foundry space, it is for sale at a fraction of the overall market and AAPL’s valuation as seen in the chart below.To cite a few examples, TSM’s FY1 PE of 12.8x is almost only 1/2 of AAPL’s 24.2x. Its TTM PE of 13.08x is also about only 1/2 of AAPL’s 24.2x. Considering that these stocks have different leverages and enterprise values (“EV”), let's compare their multiples with leverages adjusted too. As you can see, TSM’s discount is even more dramatic in terms of EV/EBITDA multiples. TSM’s FW EV/EBITDA ratio sits at 7.64x only, less than ½ of AAPL’s 18.18x.Yes, as you will see in the next section, TSM is a high-quality stock in its own right. It boasts a large technological lead in its space, further bolstered by its consistent R&D investments and also superb R&D yield that even surpasses AAPL.Source: Seeking Alpha dataTSM’s more consistent and aggressive R&DAs detailed in our earlier articles:We do not invest in a given tech stock because we have high confidence in a certain product that they are developing in the pipeline. Instead, we feel more comfortable betting on A) the recurring resources available to fund new R&D efforts sustainably, and B) the overall efficiency of the R&D PROCESS. So correspondingly, in the long run, I feel comfortable as long as a tech business can A) sustainably support new R&D expenditures, and B) has demonstrated a consistent R&D yield. I do not feel the need to particularly bet on any one of the new products to be a hit (or a complete failure).And both TSM and AAPL can sustainably fund their new R&D efforts with no problem in the long term, as illustrated in the next chart. It shows their R&D expenses over the past 10 years as a percentage of their total sales. A few key observations:TSM has been investing very consistently in R&D efforts, on average about 8.0% of its total sales.AAPL's R&D expenses have been climbing since Tim Cook took over the company from Jobs. Jobs believed that innovation is not about money and it \"has nothing to do with how much R&D money” a business put in. Then Cook gradually increased the R&D investments to the current level of around 6.1% since 2018.So even at AAPL’s current R&D level, TSM is still outspending AAPL by about 200 basis points. And also note TSM’s consistency: the R&D expenses only fluctuated in a very narrow range over the past 10 years.Source: AuthorMore impressively, TSM’s yield on the R&D investment is also superior to AAPL, which is already at a remarkable level by itself as shown in the next chart. The chart used Buffett’s $1 test on R&D expenses. More specifically, the chart quantifies the R&D yield by taking the ratio between profit and R&D expenditures. Thus, the results show how many dollars of profit are generated per $1 of R&D expenses. In particular, in this chart, my analysis used the operating cash flow (“OPC”) as the profit and also took a 3-year moving average on the OPC to approximate a 3-year R&D cycle. And the key observations are:The R&D yield is also consistent for TSM, with an average of $6.75 since 2014.AAPL’s picture is a bit more colorful. Its R&D yield has been astronomical ($10+ in 2013 and $8+ in 2014 and 2015) thanks to its almost monopoly status in key market segments in those days. Its R&D yield has gradually declined to around ~$4.0 in recent years. And its long-term average was about $5.3.To provide a broader view, the FAAMG group features an average R&D yield of ~$2.5 in recent years.Thus, both AAPL and TSM boast superb R&D yields even when compared to the overachievers in the FAAMG pack, and TSM’s yield is even higher than AAPL by a large gap.Source: Author based on Seeking Alpha dataBoth enjoy high ROCE too, but AAPL is in its own categoryTo me, ROCE (return on capital employed) is the most fundamental profitability metric as detailed in my blog article (with differences compared to ROE and Q&A on the most frequently received questions from our readers). One key reason for its fundamental importance is that the long-term growth rate is governed by ROCE and reinvestment rate (“RR”) in the following simple way:Long-Term Growth Rate = ROCE * RRThe ROCE of TSM and AAPL are shown below for the past 10 years. As you can see, TSM has been maintaining a high ROCE with remarkable consistency here. Its average ROCE has been about 42%. And I cannot overemphasize the consistency – which is a strong indicator of its stable moat. However, AAPL certainly has the upper hand here. Its ROCE is simply a category of its own. It has been hovering around an average of 125% since 2018 after its “declines” from an astronomical (and also unsustainable level in my view) of 200%+ earlier in the decade.In terms of RR, both companies have sustainable capital allocation flexibility thanks to their strong cash generation. All told, my analysis shows that TSM has been maintaining an RR in the range between 7.5% to 10% in recent years, and AAPL about 5% to 7.5%.So even without the trade tensions and deglobalization process aforementioned, I would project AAPL to have a much better perpetual growth curve ahead than TSM. I projected AAPL’s LT growth rate to be up to 10% (7.5% RR * 125% ROCE ~ 10% annual growth rate). And TSM’s growth rate, on the hand, would be limited to be in the mid-single digit range (say 4% = 10% RR * 42% ROCE).Source: Author based on Seeking Alpha dataRisks and final thoughtBut to reiterate, I do see the developing tension between TSM and AAPL and the deglobalization process as the overarching forces here. And I only see the differences in terms of valuation, R&D yields, and profitability to be secondary forces in the years to come. The deglobalization mega-trend has been unfolding since 2008. And I see a series of recent events (such as AAPL’s rejection of TSM’s price raises, the CHIPS act, the ongoing U.S.-China trade frictions, and also the Russian/Ukraine war) to further exacerbate and accelerate the trend. Under such a mega-trend, I see it as inevitable that key chip clients (such as AAPL, AMD, and NVDA) diversify their manufacturing needs away from TSM.And the bottom line is that damage will be mutual but asymmetric the way I see things. It is easier for AAPL to find replacement foundry services but a lot harder for TSM to find replacement clients at the scale of AAPL.This article is written by Envision Research for reference only. Please note the risks.","news_type":1},"isVote":1,"tweetType":1,"viewCount":140,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9035119524,"gmtCreate":1647532386178,"gmtModify":1676534241604,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"A","listText":"A","text":"A","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9035119524","repostId":"1160440619","repostType":4,"repost":{"id":"1160440619","pubTimestamp":1647529518,"share":"https://www.laohu8.com/m/news/1160440619?lang=&edition=full","pubTime":"2022-03-17 23:05","market":"us","language":"en","title":"What Does Tesla's Delay of Bond Issue Mean for its Stock?","url":"https://stock-news.laohu8.com/highlight/detail?id=1160440619","media":"TheStreet","summary":"Tesla has delayed issuance of $1 billion of bonds backed by its vehicle leases amid market volatility.When you think about the impact of raging inflation on electric-vehicle maker Tesla(TSLA), it’s na","content":"<html><head></head><body><p>Tesla has delayed issuance of $1 billion of bonds backed by its vehicle leases amid market volatility.</p><p>When you think about the impact of raging inflation on electric-vehicle maker Tesla (<b>TSLA</b>), it’s natural to think about the prices of its autos. The 7.9% surge in consumer inflation for the 12 months ended in February pushed Tesla to raise its car prices recently.</p><p>But another effect of rising inflation -- and the turmoil created by the Russia-Ukraine war -- has emerged tor Tesla. It has delayed a $1 billion-plus sale of bonds backed by  its vehicle leases, thanks to volatility in the bond market, knowledgeable sources told Bloomberg.</p><p>Bond yields have surged recently, with the 10-year Treasury yield rising 35 basis points in the last 10 days, to 2.16%.</p><p>While $1 billion of bonds sounds like a lot, it’s really not that big a deal for Tesla,Barron’s notes. As of Dec. 31, Tesla had $18 billion of cash. And it’s seen producing more than $15 billion of cash flow this year, excluding capital spending. That would top last year’s total of $12 billion.</p><p>This may explain why the bond news seems to be having little impact on Tesla’s stock, perhaps your biggest concern. The company’s shares dipped 0.63% in recent trading, not far from the 0.60% decline for the Nasdaq Composite index.</p><p>Tesla has executed seven asset-backed bond packages in the last four years, Bloomberg reports. Despite the company’s “limited experience” in this area, the bonds have done well, according to Fitch Ratings analysts.</p><p>In other Tesla news,a recent lawsuit claims that the company’s driver assist system, Autopilot, constantly monitors drivers, violating their privacy rights.</p><p>Autopilot uses eight cameras around the vehicle to gather a full 360-degree view, facilitating the technology that allows the car to navigate through traffic hands-free.</p><p>However, in May 2021 Tesla released a driver monitoring system software update that turned on a cabin-facing camera already built into its vehicles that would detect the attention of a driver while autopilot was in use.</p><p>This monitoring is a violation of the Illinois Biometric Privacy Act, according to a class action lawsuit filed March 10.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What Does Tesla's Delay of Bond Issue Mean for its Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat Does Tesla's Delay of Bond Issue Mean for its Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-17 23:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.thestreet.com/lifestyle/cars/teslay-delay-bond-issue-stock><strong>TheStreet</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla has delayed issuance of $1 billion of bonds backed by its vehicle leases amid market volatility.When you think about the impact of raging inflation on electric-vehicle maker Tesla (TSLA), it’s ...</p>\n\n<a href=\"https://www.thestreet.com/lifestyle/cars/teslay-delay-bond-issue-stock\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.thestreet.com/lifestyle/cars/teslay-delay-bond-issue-stock","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1160440619","content_text":"Tesla has delayed issuance of $1 billion of bonds backed by its vehicle leases amid market volatility.When you think about the impact of raging inflation on electric-vehicle maker Tesla (TSLA), it’s natural to think about the prices of its autos. The 7.9% surge in consumer inflation for the 12 months ended in February pushed Tesla to raise its car prices recently.But another effect of rising inflation -- and the turmoil created by the Russia-Ukraine war -- has emerged tor Tesla. It has delayed a $1 billion-plus sale of bonds backed by  its vehicle leases, thanks to volatility in the bond market, knowledgeable sources told Bloomberg.Bond yields have surged recently, with the 10-year Treasury yield rising 35 basis points in the last 10 days, to 2.16%.While $1 billion of bonds sounds like a lot, it’s really not that big a deal for Tesla,Barron’s notes. As of Dec. 31, Tesla had $18 billion of cash. And it’s seen producing more than $15 billion of cash flow this year, excluding capital spending. That would top last year’s total of $12 billion.This may explain why the bond news seems to be having little impact on Tesla’s stock, perhaps your biggest concern. The company’s shares dipped 0.63% in recent trading, not far from the 0.60% decline for the Nasdaq Composite index.Tesla has executed seven asset-backed bond packages in the last four years, Bloomberg reports. Despite the company’s “limited experience” in this area, the bonds have done well, according to Fitch Ratings analysts.In other Tesla news,a recent lawsuit claims that the company’s driver assist system, Autopilot, constantly monitors drivers, violating their privacy rights.Autopilot uses eight cameras around the vehicle to gather a full 360-degree view, facilitating the technology that allows the car to navigate through traffic hands-free.However, in May 2021 Tesla released a driver monitoring system software update that turned on a cabin-facing camera already built into its vehicles that would detect the attention of a driver while autopilot was in use.This monitoring is a violation of the Illinois Biometric Privacy Act, according to a class action lawsuit filed March 10.","news_type":1},"isVote":1,"tweetType":1,"viewCount":231,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9097196306,"gmtCreate":1645368455541,"gmtModify":1676534021849,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Thank you&nbsp;","listText":"Thank you&nbsp;","text":"Thank you","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9097196306","repostId":"2212567482","repostType":4,"repost":{"id":"2212567482","pubTimestamp":1645326947,"share":"https://www.laohu8.com/m/news/2212567482?lang=&edition=full","pubTime":"2022-02-20 11:15","market":"us","language":"en","title":"Better Video Game Stock: Roblox vs. Nintendo","url":"https://stock-news.laohu8.com/highlight/detail?id=2212567482","media":"Motley Fool","summary":"Which gaming stock will fare better in a post-lockdown market?","content":"<html><head></head><body><p><b>Roblox</b> (NYSE:RBLX) and <b>Nintendo</b> (OTC:NTDOY) both generated robust growth throughout 2020 as the pandemic caused people to stay at home and play more video games.</p><p>Roblox&#39;s social gaming platform -- which enables players to create, share, and monetize block-based experiences without any coding knowledge -- attracted millions of younger gamers throughout the crisis. Nintendo sold more Switch consoles, and millions of cooped up gamers flocked to the casual online world of <i>Animal Crossing: New Horizons</i> to socialize with other people.</p><p>However, both companies experienced decelerating growth last year as the lockdown measures were relaxed. Should investors consider buying either gaming stock right now as they face challenging post-lockdown comparisons?</p><p class=\"t-img-caption\"><img src=\"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F666376%2Fgettyimages-951047436.jpg&amp;w=700&amp;op=resize\" tg-width=\"700\" tg-height=\"467\" width=\"100%\" height=\"auto\"/><span>Image source: Getty Images.</span></p><h2>The differences between Roblox and Nintendo</h2><p>Roblox generates most of its revenue by selling a virtual currency called Robux. Its players can use Robux to buy additional in-game experiences, items, and cosmetic upgrades for their avatars. It also offers subscription plans, which grant players a monthly stipend of discounted Robux.</p><p>Nintendo makes most of its money by selling Switch consoles and games. It generates a sliver of its revenue from older consoles, mobile games, playing cards, and licensing fees for its franchises.</p><p>Roblox gauges its growth in terms of daily active users (DAUs), engagement hours, and average bookings per DAU (ABPDAU). Nintendo mainly reports its growth in terms of console and game shipments. Roblox is also deeply unprofitable, while Nintendo&#39;s bottom line is firmly in the black.</p><h2>Roblox faces a tough post-lockdown slowdown</h2><p>Roblox&#39;s revenue surged 82% to $924 million in 2020, then jumped another 108% to $1.92 billion in 2021. Those growth rates seem impressive, but its bookings -- which include its deferred revenue and other adjustments -- actually give investors a clearer picture of its underlying growth.</p><p>Roblox&#39;s bookings surged 171% to $1.88 billion in 2020 as more people played its games throughout the pandemic, but grew just 45% to $2.73 billion in 2021 as more students returned to school.</p><p>Roblox ended 2021 with 45.5 million DAUs, representing 40% growth from a year earlier. Its total engagement hours grew 35% to 41.4 billion, but its ABPDAU increase just 4% to $59.85. Moreover, its ABPDAU actually declined year-over-year in both the third and fourth quarters of the year.</p><p>Roblox also recently revealed that its bookings rose just 2%-3% year-over-year in January, and that its ABPDAU likely declined 22%-23% during the month. Roblox blames that slowdown on its overseas expansion and a focus on gaining older users, but its high-growth days are clearly over. Analysts expect its reported revenue to increase just 23% in 2022.</p><p>On the bottom line, Roblox&#39;s net loss widened from $71 million in 2019 to $253 million in 2020, then widened again to $492 million in 2021. Analysts expect it to remain deeply unprofitable for the foreseeable future.</p><h2>Nintendo could generate stronger growth in 2022</h2><p>Nintendo&#39;s revenue soared 34% to 1.76 trillion yen ($15.2 billion) in fiscal 2020, which ended last March. Its shipments of Switch consoles and software units both grew 37% as more people stayed at home.</p><p>But in the first nine months of 2021, Nintendo&#39;s revenue declined 6% year-over-year to 1.32 trillion yen ($11.4 billion). Its Switch shipments tumbled 21% due to a tough comparison to the previous year and ongoing supply chain challenges, but its software shipments still rose 2%. Nintendo expects its revenue to decline 6% for the full year.</p><p>Nintendo&#39;s net profit surged 86% to 480 billion yen ($4.15 billion) in 2020, but dipped 3% to 367 billion yen ($3.18 billion) in the first nine months of 2021. It expects its net profit to decline 16% for the full year.</p><p>For 2022, analysts expect Nintendo&#39;s revenue to stay nearly flat with just 6% earnings growth. Those growth rates seem anemic, but several catalysts could help it exceed analysts&#39; expectations: a resolution of its supply chain issues, robust sales of the Switch OLED, big upcoming games (including <i>Metroid Prime 4</i> and a new <i>Legend of Zelda</i> game), and the expansion of its franchises beyond video games with new licensing deals.</p><h2>The valuations and verdict</h2><p>Roblox can&#39;t be valued by its profits yet, but it trades at about ten times its 2022 sales after its recent post-earnings pullback. Nintendo trades at 16 times forward earnings and just four times this year&#39;s sales.</p><p>Roblox is growing faster than Nintendo, but it faces a much more challenging slowdown. Its lack of profits and high debt-to-equity ratio of 6.7 could also limit its appeal as interest rates rise. Nintendo&#39;s brand is stronger, its business is better diversified across the hardware and software markets, it&#39;s firmly profitable, and it has a low debt-to-equity ratio of 0.3.</p><p>Nintendo might not attract a lot of attention from the bulls until it finally unveils a proper successor to the Switch, which was launched nearly five years ago. Nonetheless, it&#39;s still a much more appealing investment than Roblox in this challenging market for pandemic-era growth stocks.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Better Video Game Stock: Roblox vs. Nintendo</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBetter Video Game Stock: Roblox vs. Nintendo\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-02-20 11:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/02/19/better-video-game-stock-roblox-vs-nintendo/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Roblox (NYSE:RBLX) and Nintendo (OTC:NTDOY) both generated robust growth throughout 2020 as the pandemic caused people to stay at home and play more video games.Roblox's social gaming platform -- ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/02/19/better-video-game-stock-roblox-vs-nintendo/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4535":"淡马锡持仓","BK4547":"WSB热门概念","BK4565":"NFT概念","BK4085":"互动家庭娱乐","RBLX":"Roblox Corporation","NTDOY":"任天堂","BK4554":"元宇宙及AR概念","BK4551":"寇图资本持仓"},"source_url":"https://www.fool.com/investing/2022/02/19/better-video-game-stock-roblox-vs-nintendo/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2212567482","content_text":"Roblox (NYSE:RBLX) and Nintendo (OTC:NTDOY) both generated robust growth throughout 2020 as the pandemic caused people to stay at home and play more video games.Roblox's social gaming platform -- which enables players to create, share, and monetize block-based experiences without any coding knowledge -- attracted millions of younger gamers throughout the crisis. Nintendo sold more Switch consoles, and millions of cooped up gamers flocked to the casual online world of Animal Crossing: New Horizons to socialize with other people.However, both companies experienced decelerating growth last year as the lockdown measures were relaxed. Should investors consider buying either gaming stock right now as they face challenging post-lockdown comparisons?Image source: Getty Images.The differences between Roblox and NintendoRoblox generates most of its revenue by selling a virtual currency called Robux. Its players can use Robux to buy additional in-game experiences, items, and cosmetic upgrades for their avatars. It also offers subscription plans, which grant players a monthly stipend of discounted Robux.Nintendo makes most of its money by selling Switch consoles and games. It generates a sliver of its revenue from older consoles, mobile games, playing cards, and licensing fees for its franchises.Roblox gauges its growth in terms of daily active users (DAUs), engagement hours, and average bookings per DAU (ABPDAU). Nintendo mainly reports its growth in terms of console and game shipments. Roblox is also deeply unprofitable, while Nintendo's bottom line is firmly in the black.Roblox faces a tough post-lockdown slowdownRoblox's revenue surged 82% to $924 million in 2020, then jumped another 108% to $1.92 billion in 2021. Those growth rates seem impressive, but its bookings -- which include its deferred revenue and other adjustments -- actually give investors a clearer picture of its underlying growth.Roblox's bookings surged 171% to $1.88 billion in 2020 as more people played its games throughout the pandemic, but grew just 45% to $2.73 billion in 2021 as more students returned to school.Roblox ended 2021 with 45.5 million DAUs, representing 40% growth from a year earlier. Its total engagement hours grew 35% to 41.4 billion, but its ABPDAU increase just 4% to $59.85. Moreover, its ABPDAU actually declined year-over-year in both the third and fourth quarters of the year.Roblox also recently revealed that its bookings rose just 2%-3% year-over-year in January, and that its ABPDAU likely declined 22%-23% during the month. Roblox blames that slowdown on its overseas expansion and a focus on gaining older users, but its high-growth days are clearly over. Analysts expect its reported revenue to increase just 23% in 2022.On the bottom line, Roblox's net loss widened from $71 million in 2019 to $253 million in 2020, then widened again to $492 million in 2021. Analysts expect it to remain deeply unprofitable for the foreseeable future.Nintendo could generate stronger growth in 2022Nintendo's revenue soared 34% to 1.76 trillion yen ($15.2 billion) in fiscal 2020, which ended last March. Its shipments of Switch consoles and software units both grew 37% as more people stayed at home.But in the first nine months of 2021, Nintendo's revenue declined 6% year-over-year to 1.32 trillion yen ($11.4 billion). Its Switch shipments tumbled 21% due to a tough comparison to the previous year and ongoing supply chain challenges, but its software shipments still rose 2%. Nintendo expects its revenue to decline 6% for the full year.Nintendo's net profit surged 86% to 480 billion yen ($4.15 billion) in 2020, but dipped 3% to 367 billion yen ($3.18 billion) in the first nine months of 2021. It expects its net profit to decline 16% for the full year.For 2022, analysts expect Nintendo's revenue to stay nearly flat with just 6% earnings growth. Those growth rates seem anemic, but several catalysts could help it exceed analysts' expectations: a resolution of its supply chain issues, robust sales of the Switch OLED, big upcoming games (including Metroid Prime 4 and a new Legend of Zelda game), and the expansion of its franchises beyond video games with new licensing deals.The valuations and verdictRoblox can't be valued by its profits yet, but it trades at about ten times its 2022 sales after its recent post-earnings pullback. Nintendo trades at 16 times forward earnings and just four times this year's sales.Roblox is growing faster than Nintendo, but it faces a much more challenging slowdown. Its lack of profits and high debt-to-equity ratio of 6.7 could also limit its appeal as interest rates rise. Nintendo's brand is stronger, its business is better diversified across the hardware and software markets, it's firmly profitable, and it has a low debt-to-equity ratio of 0.3.Nintendo might not attract a lot of attention from the bulls until it finally unveils a proper successor to the Switch, which was launched nearly five years ago. Nonetheless, it's still a much more appealing investment than Roblox in this challenging market for pandemic-era growth stocks.","news_type":1},"isVote":1,"tweetType":1,"viewCount":191,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9006170072,"gmtCreate":1641667888908,"gmtModify":1676533638036,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"👍","listText":"👍","text":"👍","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9006170072","repostId":"1134509683","repostType":4,"repost":{"id":"1134509683","pubTimestamp":1641612579,"share":"https://www.laohu8.com/m/news/1134509683?lang=&edition=full","pubTime":"2022-01-08 11:29","market":"us","language":"en","title":"3 COVID Stocks That Will Make Billions in 2022","url":"https://stock-news.laohu8.com/highlight/detail?id=1134509683","media":"Motley Fool","summary":"These three COVID-19 stocks could rake in a tremendous amount of cash this year.","content":"<html><head></head><body><p>It&#39;s a new year and COVID-19 is still with us. Last year we saw Emergency Use Authorizations for multiple COVID vaccines and treatments across the healthcare space. Pharmaceutical companies are set to make billions of dollars in 2022. Here are three stocks that should thrive.</p><p><b>Pfizer</b>(NYSE:PFE), the $310 billion mega cap, is expected to bring in not $1 billion or $10 billion but over $50 billion in sales for its COVID vaccine and antiviral pill. Scrappy <b>Novavax</b>(NASDAQ:NVAX)is finally introducing its COVID vaccine around the world. How many billions will it receive? And we have a dark horse candidate in <b>Vir Biotechnology</b>(NASDAQ:VIR). It has a drug that could easily be a $1 billion blockbuster for the tiny biotech.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/488a166201699c1f3d6536aa3e640ecf\" tg-width=\"2000\" tg-height=\"1333\" width=\"100%\" height=\"auto\"/><span>IMAGE SOURCE: GETTY IMAGES.</span></p><p><b>A safe harbor in stormy weather</b></p><p><b>George Budwell(Pfizer):</b>Pfizer is the undisputed champion of COVID-19 pharmaceutical products. In 2022 alone, Wall Street expects the pharma giant to rake in $55 billion in sales between its novel coronavirus vaccine, Comirnaty, and its oral antiviral pill, Paxlovid.</p><p>What&#39;s more, analysts are starting to warm up to the idea that Paxlovid might be a sustainable revenue generator for the company over the course of the current decade. When the drug was first allowed on the market by the Food and Drug Administration under the Emergency Use Authorization pathway last month, Wall Street thought Paxlovid would likely peak from a commercial standpoint within a year or so, and then experience a dramatic drop in sales as the pandemic faded from view.</p><p>But less than three weeks out from the drug&#39;s initial approval, it is becoming painfully obvious that Paxlovid will probably be required as a fail-safe against the worst outcomes from COVID-19 for several more years. The highly infectious omicron variant, after all, will certainly not be the last major iteration of the virus.</p><p>What this all means is that Pfizer ought to be one of the few large-cap drugmakers with a sizable, long-term COVID-19 revenue source. Pfizer, in turn, should have ample free cash flows to feed its generous shareholder reward program, as well as its ambitious business development plans, for the foreseeable future.</p><p>So, if you&#39;re looking for a stock that can weather the dual headwinds of sky-high inflation and rising interest rates, Pfizer might be worth checking out.</p><p><b>Revenue forecasts for Novavax:  $2 billion to $8 billion</b></p><p><b>Taylor Carmichael(Novavax):</b>Novavax is on the verge of greatness this year. The company&#39;s stock price is down to $125 a share. That&#39;s where it started in 2021, so last year was pretty much a washout for the stock.</p><p>Back in February the share price zoomed over $300 when Novavax reported positive phase 3 data for its COVID vaccine. But then the small biotech ran into manufacturing issues. While its vaccine is said by many to be the best in class, scaling up the contract manufacturing for an estimated 2 billion doses of vaccine is easier said than done. And those realities have caused the stock to drop about 60% off its highs.</p><p>Nonetheless, Novavax has already hit the $1 billion revenue mark, so its vaccine was a blockbuster even before it was approved, because of all the preorders. Now that authorizations are pouring in from around the globe, it&#39;s highly likely that Novavax will ship a massive number of vaccine doses in 2022. The company&#39;s already achieved a manufacturing capacity of 100 million doses a month, or 1.2 billion doses in a year. On the third-quarter earnings call, management predicted it would reach a manufacturing capacity of 150 million doses every month (or 1.8 billion doses a year) by the end of the fourth quarter. And the company expects to continue to scale and forecasts that it will distribute 2 billion doses in 2022.</p><p>Two billion doses of vaccine, at a price point of $16 (Operation Warp Speed paid $1.6 billion to pre-order 100 million doses) gives us a back-of-the-envelope calculation of $32 billion in revenue. Of course, Novavax will be distributing a lot of vaccines to the developing world at a reduced rate. While the company has been quiet about its prices, Denmark said back in August that it paid almost $21 a dose under the European Union (EU) agreement. The EU has ordered 200 million doses, so that&#39;s over $4 billion in sales, just in Europe.</p><p>Analysts are being extremely conservative, with a forecast ranging from $2 billion to $8 billion for Novavax in 2022. (The company&#39;s market cap sits at $9 billion.) While there may be hiccups along the way, Novavax is sure to make billions of dollars off its COVID-19 vaccine in 2022. And there could be significant upside to the stock if the company does indeed deliver 2 billion doses as it says it will.</p><p><b>The antibody market all to itself</b></p><p><b>Patrick Bafuma(Vir Biotechnology):</b>The omicron variant is currently running rampant, and this time, we are short a few treatments. Previously favored monoclonal antibody treatments from <b>Eli Lilly</b> (bamlanivimab plus etesevimab) as well as the REGEN-COV cocktail from <b>Roche</b>and<b>Regeneron</b> are believed to have marked diminished activity against the current variant. This leaves a single infusiont hought to be active against omicron--<b>GlaxoSmithKline</b> and Vir Biotechnology&#39;s sotrovimab. This monoclonal antibody previously demonstrated a reduced risk of hospitalization and death by 79% in adults with mild to moderate COVID-19 and at high risk of progression to severe disease. And it&#39;s the only one left right now to fight the omicron variant.</p><p>Being the sole monoclonal antibody on the block will have its privileges. Through the first nine months of 2021, REGEN-COV brought in $3.5 billion in net product sales, while Eli Lilly&#39;s antibody combination brought in $1.17 billion. The U.S. government has already contracted for approximately $1 billion worth of sotrovimab. With hospitals overflowing with patients, anything that can help alleviate some of the stress on the system is likely going to be highly sought after.</p><p>And while Pfizer&#39;s Paxlovid will be hugely beneficial to ease the COVID-19 burden on the healthcare system, the oral medication has significant and complex drug-drug interaction potential. In fact, its interaction list reads like a who&#39;s who of commonly prescribed medications. This includes popular blood thinning agents such as Plavix and Xarelto, common analgesics like Tramadol and oxycodone, anxiolytics like Klonopin and Xanax, as well as cholesterol-fighting statins. With the National Institutes of Health issuing a statement voicing its concern over Paxlovid&#39;s possible drug interactions, this leaves plenty of room for sotrovimab to continue to be widely prescribed. With Vir getting 72.5% of sotrovimab sales per its agreement with GSK, the $4.4 billion biotech looks like a bargain right now.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 COVID Stocks That Will Make Billions in 2022</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 COVID Stocks That Will Make Billions in 2022\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-01-08 11:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/01/07/3-covid-stocks-that-will-make-billions-in-2022/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It's a new year and COVID-19 is still with us. Last year we saw Emergency Use Authorizations for multiple COVID vaccines and treatments across the healthcare space. Pharmaceutical companies are set to...</p>\n\n<a href=\"https://www.fool.com/investing/2022/01/07/3-covid-stocks-that-will-make-billions-in-2022/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NVAX":"诺瓦瓦克斯医药","PFE":"辉瑞","VIR":"Vir Biotechnology, Inc."},"source_url":"https://www.fool.com/investing/2022/01/07/3-covid-stocks-that-will-make-billions-in-2022/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1134509683","content_text":"It's a new year and COVID-19 is still with us. Last year we saw Emergency Use Authorizations for multiple COVID vaccines and treatments across the healthcare space. Pharmaceutical companies are set to make billions of dollars in 2022. Here are three stocks that should thrive.Pfizer(NYSE:PFE), the $310 billion mega cap, is expected to bring in not $1 billion or $10 billion but over $50 billion in sales for its COVID vaccine and antiviral pill. Scrappy Novavax(NASDAQ:NVAX)is finally introducing its COVID vaccine around the world. How many billions will it receive? And we have a dark horse candidate in Vir Biotechnology(NASDAQ:VIR). It has a drug that could easily be a $1 billion blockbuster for the tiny biotech.IMAGE SOURCE: GETTY IMAGES.A safe harbor in stormy weatherGeorge Budwell(Pfizer):Pfizer is the undisputed champion of COVID-19 pharmaceutical products. In 2022 alone, Wall Street expects the pharma giant to rake in $55 billion in sales between its novel coronavirus vaccine, Comirnaty, and its oral antiviral pill, Paxlovid.What's more, analysts are starting to warm up to the idea that Paxlovid might be a sustainable revenue generator for the company over the course of the current decade. When the drug was first allowed on the market by the Food and Drug Administration under the Emergency Use Authorization pathway last month, Wall Street thought Paxlovid would likely peak from a commercial standpoint within a year or so, and then experience a dramatic drop in sales as the pandemic faded from view.But less than three weeks out from the drug's initial approval, it is becoming painfully obvious that Paxlovid will probably be required as a fail-safe against the worst outcomes from COVID-19 for several more years. The highly infectious omicron variant, after all, will certainly not be the last major iteration of the virus.What this all means is that Pfizer ought to be one of the few large-cap drugmakers with a sizable, long-term COVID-19 revenue source. Pfizer, in turn, should have ample free cash flows to feed its generous shareholder reward program, as well as its ambitious business development plans, for the foreseeable future.So, if you're looking for a stock that can weather the dual headwinds of sky-high inflation and rising interest rates, Pfizer might be worth checking out.Revenue forecasts for Novavax:  $2 billion to $8 billionTaylor Carmichael(Novavax):Novavax is on the verge of greatness this year. The company's stock price is down to $125 a share. That's where it started in 2021, so last year was pretty much a washout for the stock.Back in February the share price zoomed over $300 when Novavax reported positive phase 3 data for its COVID vaccine. But then the small biotech ran into manufacturing issues. While its vaccine is said by many to be the best in class, scaling up the contract manufacturing for an estimated 2 billion doses of vaccine is easier said than done. And those realities have caused the stock to drop about 60% off its highs.Nonetheless, Novavax has already hit the $1 billion revenue mark, so its vaccine was a blockbuster even before it was approved, because of all the preorders. Now that authorizations are pouring in from around the globe, it's highly likely that Novavax will ship a massive number of vaccine doses in 2022. The company's already achieved a manufacturing capacity of 100 million doses a month, or 1.2 billion doses in a year. On the third-quarter earnings call, management predicted it would reach a manufacturing capacity of 150 million doses every month (or 1.8 billion doses a year) by the end of the fourth quarter. And the company expects to continue to scale and forecasts that it will distribute 2 billion doses in 2022.Two billion doses of vaccine, at a price point of $16 (Operation Warp Speed paid $1.6 billion to pre-order 100 million doses) gives us a back-of-the-envelope calculation of $32 billion in revenue. Of course, Novavax will be distributing a lot of vaccines to the developing world at a reduced rate. While the company has been quiet about its prices, Denmark said back in August that it paid almost $21 a dose under the European Union (EU) agreement. The EU has ordered 200 million doses, so that's over $4 billion in sales, just in Europe.Analysts are being extremely conservative, with a forecast ranging from $2 billion to $8 billion for Novavax in 2022. (The company's market cap sits at $9 billion.) While there may be hiccups along the way, Novavax is sure to make billions of dollars off its COVID-19 vaccine in 2022. And there could be significant upside to the stock if the company does indeed deliver 2 billion doses as it says it will.The antibody market all to itselfPatrick Bafuma(Vir Biotechnology):The omicron variant is currently running rampant, and this time, we are short a few treatments. Previously favored monoclonal antibody treatments from Eli Lilly (bamlanivimab plus etesevimab) as well as the REGEN-COV cocktail from RocheandRegeneron are believed to have marked diminished activity against the current variant. This leaves a single infusiont hought to be active against omicron--GlaxoSmithKline and Vir Biotechnology's sotrovimab. This monoclonal antibody previously demonstrated a reduced risk of hospitalization and death by 79% in adults with mild to moderate COVID-19 and at high risk of progression to severe disease. And it's the only one left right now to fight the omicron variant.Being the sole monoclonal antibody on the block will have its privileges. Through the first nine months of 2021, REGEN-COV brought in $3.5 billion in net product sales, while Eli Lilly's antibody combination brought in $1.17 billion. The U.S. government has already contracted for approximately $1 billion worth of sotrovimab. With hospitals overflowing with patients, anything that can help alleviate some of the stress on the system is likely going to be highly sought after.And while Pfizer's Paxlovid will be hugely beneficial to ease the COVID-19 burden on the healthcare system, the oral medication has significant and complex drug-drug interaction potential. In fact, its interaction list reads like a who's who of commonly prescribed medications. This includes popular blood thinning agents such as Plavix and Xarelto, common analgesics like Tramadol and oxycodone, anxiolytics like Klonopin and Xanax, as well as cholesterol-fighting statins. With the National Institutes of Health issuing a statement voicing its concern over Paxlovid's possible drug interactions, this leaves plenty of room for sotrovimab to continue to be widely prescribed. With Vir getting 72.5% of sotrovimab sales per its agreement with GSK, the $4.4 billion biotech looks like a bargain right now.","news_type":1},"isVote":1,"tweetType":1,"viewCount":118,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9968474496,"gmtCreate":1669308722816,"gmtModify":1676538181781,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Okieee","listText":"Okieee","text":"Okieee","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9968474496","repostId":"1193359618","repostType":4,"repost":{"id":"1193359618","pubTimestamp":1669293016,"share":"https://www.laohu8.com/m/news/1193359618?lang=&edition=full","pubTime":"2022-11-24 20:30","market":"us","language":"en","title":"Palantir: I Am Still Not Willing To Gamble","url":"https://stock-news.laohu8.com/highlight/detail?id=1193359618","media":"Seeking Alpha","summary":"SummaryPalantir is still not profitable but reported solid third quarter results and is still growin","content":"<html><head></head><body><h2>Summary</h2><ul><li>Palantir is still not profitable but reported solid third quarter results and is still growing with a healthy pace.</li><li>The company could continue to grow with a high pace in the years to come.</li><li>Stock-based compensations and the resulting dilution of outstanding shares are still discouraging for shareholders.</li><li>Although Palantir&#39;s stock has declined already 80% from its previous all-time high, the stock is still overvalued in my opinion and not a great investment.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a010feafd9264848fea7b7e30ebe25cb\" tg-width=\"1080\" tg-height=\"720\" referrerpolicy=\"no-referrer\"/><span>Scott Olson</span></p><p>My first and only article about Palantir Technologies Inc. (NYSE:PLTR) was published in February 2022. At that point, the stock was trading for $14 and although the stock had already declined 67% at that point from its previous all-time highs, I stated thatPalantir was a risky bet. In the meantime, the stock has been cut almost in half again and is now trading about 80% below its previous all-time high. Nevertheless, Palantir is still not a good investment, and I will explain why I am still cautious about the stock.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7dde9d87a6c57be44bdc788e65a9bda1\" tg-width=\"635\" tg-height=\"417\" referrerpolicy=\"no-referrer\"/><span>Data by YCharts</span></p><h2>Quarterly Results</h2><p>We can start by looking at the third quarter results, which Palantir reported at the beginning of November. And for starters, we must point out that Palantir is still increasing with a solid growth rate while other technology companies are already struggling and are not able to report double-digit revenue growth anymore.</p><p>Revenue in the third quarter increased from $392.1 million in the same quarter last year to $477.9 million in this quarter – resulting in 21.9% year-over-year growth. Loss from operations declined from $91.9 million in Q3/21 to $62.2 million in Q3/22 and although Palantir could improve, the business is still not profitable. But diluted net loss per share increased from $0.05 to a loss of $0.06 in this quarter.</p><p>Additionally, the total customers for Palantir increased from 203 in the same quarter last year to 337 right now – resulting in 66% year-over-year growth. And compared to the previous quarter, Palantir added 33 net new customers.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/775a52ff7988f009fb5679e4a65341e4\" tg-width=\"640\" tg-height=\"358\" referrerpolicy=\"no-referrer\"/><span>Palantir Q3/22 Presentation</span></p><p>During the third quarter of fiscal 2022, Palantir closed 78 deals of at least $1 million with 32 of these deals being at least $5 million and 19 deals were at least $10 million.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/44937fe9eca5417fd0c51facb9d3648f\" tg-width=\"640\" tg-height=\"358\" referrerpolicy=\"no-referrer\"/><span>Palantir Q3/22 Presentation</span></p><p>And when looking at the guidance for fiscal 2022, Palantir is now expecting $1.9 billion to $1.902 billion in revenue. Palantir raised its guidance and is now expecting an adjusted income from operations to be between $384 million to $386 million.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/54098b8b48757becfeea0894faab6e65\" tg-width=\"640\" tg-height=\"359\" referrerpolicy=\"no-referrer\"/><span>Palantir Q3/22 Presentation</span></p><h2>Growth Opportunities In Challenging Times</h2><p>But despite the raised guidance, when listening to Alexander Karp during the earnings calls or in interviews, he is seeing difficult times ahead. During the last earnings call, Alexander Karp made the following statement:</p><blockquote>By the way, that&#39;s why we prepared and then that&#39;s the technical thing. Why do we have 8 quarters of free cash flow? Do you think it&#39;s a coincidence, we were preparing for this. We have -- why do we have $2.4 billion in the bank and no debt? We weren&#39;t living in the metasphere. We were living in this world in the way we thought it would be -- and we&#39;ve been essentially -- you could even look at this as a prep. We&#39;re a prepper company. We&#39;ve been preparing it&#39;s like -- preppers have their rucksack and a rifle. We have PG, GAIA, Foundry and $2.4 billion in the bank and no debt. That&#39;s our company.</blockquote><p>And when looking at the balance sheet, Palantir is positioned quite well. On September 30, 2022, the company had $2,411 million in cash and cash equivalents as well as $57 million in short-term marketable securities. And aside from having no debt on the balance sheet, the company also has no goodwill on its balance sheet. In case of Palantir, 74% of its $3,319 million in total assets are highly liquid assets (cash, cash equivalents and marketable securities), which is good in case of crisis.</p><p>But not only is Palantir prepared for challenging times due to a solid balance sheet, Alexander Karp is also expecting the company to profit from the uncertain times ahead. During an interview with CNBC at the end of September, he made the following statement:</p><blockquote>Bad times are incredibly good for Palantir... bad times really uncover the durable companies, and tech is going through bad times... interest rates are the reason.</blockquote><p>Karp also states that Palantir’s software is at war – in Europe and around the world. And he sees the software as a way for nations to impose and defend their values. And Karp sees great growth potential in the years ahead – not only because Palantir might profit from bad times:</p><blockquote>We recognize that our path to growth is not always linear, but with the opportunity that lies ahead, we continue to recruit and retain the top talent at a time when other companies in the technology sector are slashing their plans and cutting workforces.</blockquote><blockquote>We have spent the last 2 decades building our products for the world in which we actually live. The disruption and uncertainty that we&#39;re seeing around us from Ukraine, the pandemic and inflation, it&#39;s driving customers towards us and to our software.</blockquote><p>In the second quarter earnings call, Alexander Karp said his ambition was to drive the company to $4.5 billion in revenue in 2025. In the same earnings call, Karp also expected that Palantir will finally be profitable in 2025. And of course, it is not unreasonable for Palantir to expect high growth rates. In its Form S-1. Palantir wrote its total addressable market [TAM] should be approximately $119 billion with the commercial sector being around $56 billion and the government sector being around $63 billion. This TAM is excluding institutions and countries where Palantir has chosen not to sell its software.</p><p>This seems to be in line with the expectations of other studies. And not only has Palantir a market share of only around 2% right now – giving the company enough room to grow by gaining market shares. Different studies are also expecting growth rates in the double digits for the market. When looking at the advanced analytics market, some expect even a CAGR above 20% in the years to come.</p><p>And during the last earnings call, Alexander Karp also pointed out where he is seeing the huge competitive advantage of Palantir – especially compared to peers like Microsoft (MSFT) or Snowflake (SNOW):</p><blockquote>The answer is really the ontology. It&#39;s why our platforms remain far ahead of the competition. And that&#39;s because the ontology, it&#39;s the missing link in terms of what you need to realize value from all of these investments. It&#39;s the component and the architecture that&#39;s required to get data apps to actually deliver value on top of cloud data warehouses or to get AI to scale throughout the enterprise or to turn your digital twin into something that&#39;s actionable and operational within the enterprise. And we&#39;ve spent 15 years investing in a road map that&#39;s deep and built upon the ontology, and it continues to be the focus of all the core investments that we&#39;re making around product.</blockquote><h2>Reservation Against Palantir</h2><p>But despite the competitive advantage Karp sees for Palantir in the years to come, the business is also facing risks in its path toward growth. In his last letter to shareholders, Alexander Karp wrote:</p><blockquote>It has been our experience, however, that some countries, particularly in continental Europe, including Germany, have fallen behind the United States in their willingness and ability to implement enterprise software systems that challenge existing habits and modes of operation.</blockquote><blockquote>There have been repeated attempts to build replicas of Silicon Valley in continental Europe, in Germany and elsewhere, but the results have been decidedly mixed.</blockquote><blockquote>We have found that large institutions in the United States have been far more willing to investigate the most significant sources of systemic dysfunction within their organizations, which in the current moment often relate to the ability or rather inability of an institution to metabolize its own data.</blockquote><p>And this is an aspect that should certainly not be underestimated for Palantir’s ambitions to grow in the years to come. And from a German perspective I think Karp is correct in his assessment of people living here (as well as institutions) having strong reservations against Palantir.</p><h2>Stock-Based Compensation Leading To Dilution</h2><p>Not only is the business facing several risks, but shareholders are also facing risks by owning the stock right now. And one huge risk shareholders are facing is the stock-based compensation which is leading to a constant dilution of shares and in the last few quarters, the number of outstanding shares increased with a high pace. Right now, we have 2,073 million outstanding shares compared to 1,964 million one year earlier and 1,763 million after the IPO of Palantir. This is resulting in an increase of almost 18% in less than two years and in my opinion, this is not a good sign for investors. And finally, this dilution has a huge negative impact on the intrinsic value of Palantir.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ba9fe6b4274d2704f89363d89bcddb6a\" tg-width=\"635\" tg-height=\"435\" referrerpolicy=\"no-referrer\"/><span>Data by YCharts</span></p><p>Of course, stock-based compensations can also have a positive side as it is a good way to get great talent for the business and employees, that are behind the company and the company’s goals (as they are also profiting from a thriving business resulting in a higher share price). And this can certainly have a positive effect on the business in the long run. However, diluted in the high single digits annually is extreme – even for a company growing with a high pace.</p><h2>Intrinsic Value Calculation</h2><p>A final risk for shareholders is simply overpaying for a stock that is not worth what it is currently trading for.</p><p>We can start by looking at simple valuation metrics – especially the price-free-cash-flow ratio as well as the price-sales ratio. Looking at the price-earnings ratio doesn’t make much sense as the metric is negative. Of course, the price-sales ratio declined over the last year, but Palantir is still trading for 9 times sales which is certainly not cheap. When looking at the S&amp;P 500 (SPY), there are only about 45 companies trading with a higher price-sales ratio. And the median P/S ratio of the S&amp;P 500 is 2.72 at the time of writing. And even when looking at technology stocks (according to Finviz; market cap above $2 billion), the median P/S ratio is 4.41. But as long as we are talking about price-sales ratios we also have to point out that Snowflake is trading for 28 times sales right now and compared to these valuation multiples, Palantir’s valuation seems to be quite reasonable.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/38f5a49a57b61fa9fbd749ed81950b1d\" tg-width=\"635\" tg-height=\"447\" referrerpolicy=\"no-referrer\"/><span>Data by YCharts</span></p><p>When looking at the price-free-cash-flow ratio, Palantir is trading for a multiple of 84. Although this is below the 2021 P/FCF peak of 750 and below the average of 227, Palantir is still trading for extremely high valuation multiples (and usually even high growth rates can’t justify valuation multiples close to 100). And once again, we can point out that Snowflake is trading for a P/FCF ratio of 155 – twice as high as Palantir.</p><p>When using a discount cash flow calculation, we can take the free cash flow of the last four quarters as basis. But let’s be more optimistic and use the highest free cash flow Palantir could report so far ($320 million in free cash flow). When taking this amount as basis and assume 6% growth till perpetuity (like we always do with high quality businesses) the company must grow its free cash flow about 17% annually for the next ten years to be fairly valued (assuming 2,073 million outstanding shares and a 10% discount rate).</p><p>I would not say such growth rates are impossible for a company – we can find several examples of businesses growing with such a CAGR over 10 years or even longer. But 17% growth for 10 years would probably be one of the highest growth rates I ever used in an intrinsic value calculation just to reach fair value for a stock. And these calculations are assuming no further dilution of shares, which seems rather unlikely at this point. In the last two years, the company has been diluting in the high single digits and to set dilution off, Palantir rather must grow its free cash flow about 25% annually to be fairly valued for the next few years. And 25% growth is also not impossible but no growth rate I would use in any way (in my opinion, this would be investing based on hope).</p><h2>Conclusion</h2><p>Although the stock price is now more than 40% lower than when my last article was published, I am afraid the conclusion must be the same. The stock is still not fairly valued and not a great investment. With thousands of other stocks being available and us being able to identify at least 100 high-quality businesses with a wide economic moat, I don’t see any reason to bet on Palantir. A company where it is difficult to estimate the growth potential and where the huge stock-based compensations and resulting stock dilutions are offsetting to any investor. And the potential high growth potential Palantir could have is not enough at this point to bet on Palantir.</p><p><i>This article is written by Daniel Schönberger for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir: I Am Still Not Willing To Gamble</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir: I Am Still Not Willing To Gamble\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-24 20:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560037-palantir-pltr-still-overvalued><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryPalantir is still not profitable but reported solid third quarter results and is still growing with a healthy pace.The company could continue to grow with a high pace in the years to come.Stock...</p>\n\n<a href=\"https://seekingalpha.com/article/4560037-palantir-pltr-still-overvalued\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4560037-palantir-pltr-still-overvalued","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1193359618","content_text":"SummaryPalantir is still not profitable but reported solid third quarter results and is still growing with a healthy pace.The company could continue to grow with a high pace in the years to come.Stock-based compensations and the resulting dilution of outstanding shares are still discouraging for shareholders.Although Palantir's stock has declined already 80% from its previous all-time high, the stock is still overvalued in my opinion and not a great investment.Scott OlsonMy first and only article about Palantir Technologies Inc. (NYSE:PLTR) was published in February 2022. At that point, the stock was trading for $14 and although the stock had already declined 67% at that point from its previous all-time highs, I stated thatPalantir was a risky bet. In the meantime, the stock has been cut almost in half again and is now trading about 80% below its previous all-time high. Nevertheless, Palantir is still not a good investment, and I will explain why I am still cautious about the stock.Data by YChartsQuarterly ResultsWe can start by looking at the third quarter results, which Palantir reported at the beginning of November. And for starters, we must point out that Palantir is still increasing with a solid growth rate while other technology companies are already struggling and are not able to report double-digit revenue growth anymore.Revenue in the third quarter increased from $392.1 million in the same quarter last year to $477.9 million in this quarter – resulting in 21.9% year-over-year growth. Loss from operations declined from $91.9 million in Q3/21 to $62.2 million in Q3/22 and although Palantir could improve, the business is still not profitable. But diluted net loss per share increased from $0.05 to a loss of $0.06 in this quarter.Additionally, the total customers for Palantir increased from 203 in the same quarter last year to 337 right now – resulting in 66% year-over-year growth. And compared to the previous quarter, Palantir added 33 net new customers.Palantir Q3/22 PresentationDuring the third quarter of fiscal 2022, Palantir closed 78 deals of at least $1 million with 32 of these deals being at least $5 million and 19 deals were at least $10 million.Palantir Q3/22 PresentationAnd when looking at the guidance for fiscal 2022, Palantir is now expecting $1.9 billion to $1.902 billion in revenue. Palantir raised its guidance and is now expecting an adjusted income from operations to be between $384 million to $386 million.Palantir Q3/22 PresentationGrowth Opportunities In Challenging TimesBut despite the raised guidance, when listening to Alexander Karp during the earnings calls or in interviews, he is seeing difficult times ahead. During the last earnings call, Alexander Karp made the following statement:By the way, that's why we prepared and then that's the technical thing. Why do we have 8 quarters of free cash flow? Do you think it's a coincidence, we were preparing for this. We have -- why do we have $2.4 billion in the bank and no debt? We weren't living in the metasphere. We were living in this world in the way we thought it would be -- and we've been essentially -- you could even look at this as a prep. We're a prepper company. We've been preparing it's like -- preppers have their rucksack and a rifle. We have PG, GAIA, Foundry and $2.4 billion in the bank and no debt. That's our company.And when looking at the balance sheet, Palantir is positioned quite well. On September 30, 2022, the company had $2,411 million in cash and cash equivalents as well as $57 million in short-term marketable securities. And aside from having no debt on the balance sheet, the company also has no goodwill on its balance sheet. In case of Palantir, 74% of its $3,319 million in total assets are highly liquid assets (cash, cash equivalents and marketable securities), which is good in case of crisis.But not only is Palantir prepared for challenging times due to a solid balance sheet, Alexander Karp is also expecting the company to profit from the uncertain times ahead. During an interview with CNBC at the end of September, he made the following statement:Bad times are incredibly good for Palantir... bad times really uncover the durable companies, and tech is going through bad times... interest rates are the reason.Karp also states that Palantir’s software is at war – in Europe and around the world. And he sees the software as a way for nations to impose and defend their values. And Karp sees great growth potential in the years ahead – not only because Palantir might profit from bad times:We recognize that our path to growth is not always linear, but with the opportunity that lies ahead, we continue to recruit and retain the top talent at a time when other companies in the technology sector are slashing their plans and cutting workforces.We have spent the last 2 decades building our products for the world in which we actually live. The disruption and uncertainty that we're seeing around us from Ukraine, the pandemic and inflation, it's driving customers towards us and to our software.In the second quarter earnings call, Alexander Karp said his ambition was to drive the company to $4.5 billion in revenue in 2025. In the same earnings call, Karp also expected that Palantir will finally be profitable in 2025. And of course, it is not unreasonable for Palantir to expect high growth rates. In its Form S-1. Palantir wrote its total addressable market [TAM] should be approximately $119 billion with the commercial sector being around $56 billion and the government sector being around $63 billion. This TAM is excluding institutions and countries where Palantir has chosen not to sell its software.This seems to be in line with the expectations of other studies. And not only has Palantir a market share of only around 2% right now – giving the company enough room to grow by gaining market shares. Different studies are also expecting growth rates in the double digits for the market. When looking at the advanced analytics market, some expect even a CAGR above 20% in the years to come.And during the last earnings call, Alexander Karp also pointed out where he is seeing the huge competitive advantage of Palantir – especially compared to peers like Microsoft (MSFT) or Snowflake (SNOW):The answer is really the ontology. It's why our platforms remain far ahead of the competition. And that's because the ontology, it's the missing link in terms of what you need to realize value from all of these investments. It's the component and the architecture that's required to get data apps to actually deliver value on top of cloud data warehouses or to get AI to scale throughout the enterprise or to turn your digital twin into something that's actionable and operational within the enterprise. And we've spent 15 years investing in a road map that's deep and built upon the ontology, and it continues to be the focus of all the core investments that we're making around product.Reservation Against PalantirBut despite the competitive advantage Karp sees for Palantir in the years to come, the business is also facing risks in its path toward growth. In his last letter to shareholders, Alexander Karp wrote:It has been our experience, however, that some countries, particularly in continental Europe, including Germany, have fallen behind the United States in their willingness and ability to implement enterprise software systems that challenge existing habits and modes of operation.There have been repeated attempts to build replicas of Silicon Valley in continental Europe, in Germany and elsewhere, but the results have been decidedly mixed.We have found that large institutions in the United States have been far more willing to investigate the most significant sources of systemic dysfunction within their organizations, which in the current moment often relate to the ability or rather inability of an institution to metabolize its own data.And this is an aspect that should certainly not be underestimated for Palantir’s ambitions to grow in the years to come. And from a German perspective I think Karp is correct in his assessment of people living here (as well as institutions) having strong reservations against Palantir.Stock-Based Compensation Leading To DilutionNot only is the business facing several risks, but shareholders are also facing risks by owning the stock right now. And one huge risk shareholders are facing is the stock-based compensation which is leading to a constant dilution of shares and in the last few quarters, the number of outstanding shares increased with a high pace. Right now, we have 2,073 million outstanding shares compared to 1,964 million one year earlier and 1,763 million after the IPO of Palantir. This is resulting in an increase of almost 18% in less than two years and in my opinion, this is not a good sign for investors. And finally, this dilution has a huge negative impact on the intrinsic value of Palantir.Data by YChartsOf course, stock-based compensations can also have a positive side as it is a good way to get great talent for the business and employees, that are behind the company and the company’s goals (as they are also profiting from a thriving business resulting in a higher share price). And this can certainly have a positive effect on the business in the long run. However, diluted in the high single digits annually is extreme – even for a company growing with a high pace.Intrinsic Value CalculationA final risk for shareholders is simply overpaying for a stock that is not worth what it is currently trading for.We can start by looking at simple valuation metrics – especially the price-free-cash-flow ratio as well as the price-sales ratio. Looking at the price-earnings ratio doesn’t make much sense as the metric is negative. Of course, the price-sales ratio declined over the last year, but Palantir is still trading for 9 times sales which is certainly not cheap. When looking at the S&P 500 (SPY), there are only about 45 companies trading with a higher price-sales ratio. And the median P/S ratio of the S&P 500 is 2.72 at the time of writing. And even when looking at technology stocks (according to Finviz; market cap above $2 billion), the median P/S ratio is 4.41. But as long as we are talking about price-sales ratios we also have to point out that Snowflake is trading for 28 times sales right now and compared to these valuation multiples, Palantir’s valuation seems to be quite reasonable.Data by YChartsWhen looking at the price-free-cash-flow ratio, Palantir is trading for a multiple of 84. Although this is below the 2021 P/FCF peak of 750 and below the average of 227, Palantir is still trading for extremely high valuation multiples (and usually even high growth rates can’t justify valuation multiples close to 100). And once again, we can point out that Snowflake is trading for a P/FCF ratio of 155 – twice as high as Palantir.When using a discount cash flow calculation, we can take the free cash flow of the last four quarters as basis. But let’s be more optimistic and use the highest free cash flow Palantir could report so far ($320 million in free cash flow). When taking this amount as basis and assume 6% growth till perpetuity (like we always do with high quality businesses) the company must grow its free cash flow about 17% annually for the next ten years to be fairly valued (assuming 2,073 million outstanding shares and a 10% discount rate).I would not say such growth rates are impossible for a company – we can find several examples of businesses growing with such a CAGR over 10 years or even longer. But 17% growth for 10 years would probably be one of the highest growth rates I ever used in an intrinsic value calculation just to reach fair value for a stock. And these calculations are assuming no further dilution of shares, which seems rather unlikely at this point. In the last two years, the company has been diluting in the high single digits and to set dilution off, Palantir rather must grow its free cash flow about 25% annually to be fairly valued for the next few years. And 25% growth is also not impossible but no growth rate I would use in any way (in my opinion, this would be investing based on hope).ConclusionAlthough the stock price is now more than 40% lower than when my last article was published, I am afraid the conclusion must be the same. The stock is still not fairly valued and not a great investment. With thousands of other stocks being available and us being able to identify at least 100 high-quality businesses with a wide economic moat, I don’t see any reason to bet on Palantir. A company where it is difficult to estimate the growth potential and where the huge stock-based compensations and resulting stock dilutions are offsetting to any investor. And the potential high growth potential Palantir could have is not enough at this point to bet on Palantir.This article is written by Daniel Schönberger for reference only. Please note the risks.","news_type":1},"isVote":1,"tweetType":1,"viewCount":314,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9030303753,"gmtCreate":1645625241674,"gmtModify":1676534046331,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Thx","listText":"Thx","text":"Thx","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9030303753","repostId":"1187961883","repostType":4,"repost":{"id":"1187961883","pubTimestamp":1645622939,"share":"https://www.laohu8.com/m/news/1187961883?lang=&edition=full","pubTime":"2022-02-23 21:28","market":"us","language":"en","title":"S&P 500 Is in a Correction: History Favors Bulls, but Bears Have the Fed","url":"https://stock-news.laohu8.com/highlight/detail?id=1187961883","media":"Seeking Alpha","summary":"The S&P 500(SP500)(NYSEARCA:SPY)is experiencing its first correction since the spring 2020 COVID plu","content":"<html><head></head><body><p>The S&amp;P 500(SP500)(NYSEARCA:SPY)is experiencing its first correction since the spring 2020 COVID plunge.</p><p>The broader market cemented a drop of more than 10% from highs at the close Tuesday, the typical Wall Street definition of a correction.</p><p>&#34;The entire COVID Crash only lasted 23 trading days while this correction is already at 34 trading days,&#34; Bespoke Investment tweeted.</p><p><b>History points to a rebound</b>: Looking at recent history back to 1998, the stock market is higher a year after a correction. Twelve months later the S&amp;P 500 (SP500) (SPY) is up 9.3%, rising 2/3 of the time, according to Dow Jones.</p><p>The bullish theme holds even if the market keeps falling after hitting correction territory.</p><p>&#34;About half of the time a 10% correction becomes a 15% correction and a quarter of the time a 10% correction becomes a 20% correction,&#34; Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management, said on Bloomberg TV. &#34;If you bought down 10% it might get ugly earlier, which I think it will this time again, (but) a year later you&#39;ve been well served to step up into corrections.&#34;</p><p><b>Here come the hikes</b>: A big difference for 2022 is that the Federal Reserve is about embark on a rate-hike cycle, with the higher end of Wall Street forecasts indicating seven quarter-point hikes this year.</p><p>Don&#39;t forget that the S&amp;P hit correction territory while the Fed is still EASING, with tapering of asset purchases not wrapping up until March.</p><p>Goldman Sachs notes that the S&amp;P performs well during a rate-hike cycle (see chart below).</p><p>But that tends to be because of strong economic conditions and continued momentum. Now momentum is to the downside and there are concerns that the Fed is embarking on a policy mistake due to inflation sticker shock and will choke growth.</p><p>Charlie Biello of Compound Capital Advisors tweeted out the Fed response to S&amp;P corrections since 2009, which illustrates the difference:</p><ul><li>2010: -17%. Rates @ 0%, QE2.</li><li>2011: -21%. Rates @ 0%, Operation Twist.</li><li>2012: -11%. Rates @ 0%, QE3.</li><li>2016: -15%. Rates @ 0.25%, stopped hiking plan.</li><li>2018: -20%. Cut rates 3x in &#39;19.</li><li>Today: -12%. 3 more cuts priced in, 1st in March.</li></ul><p>The S&amp;P has already defied the historical trend of doing well in the three months leading up to the first hike in a cycle. The index rises 5.3% in those months, on average, according to UBS.</p><p><img src=\"https://static.tigerbbs.com/aac52e6d78c5d3fdd07748e8df3d731b\" tg-width=\"1280\" tg-height=\"732\" width=\"100%\" height=\"auto\"/></p><p><b>Recession risks</b>: A notable outlier in the correction rebound trend is November 2007, when the market ended down 37% a year later due to the Great Recession.</p><p>The market is not pricing a recession now, but therisks are rising, as BofA said recently noting flows into Treasuries and credit weakness in cyclical sectors.</p><p>The yield curve(NYSEARCA:TBT)(NASDAQ:TLT)(NASDAQ:SHY)continues to flatten, with the 10-year/2-year spread now below 40 basis points, down from about 160 basis points a year ago. A yield curve inversion is considered a recession signal.</p><p>But &#34;if the Fed were going to overtighten and kill the economy, cyclical stocks wouldn&#39;t be outperforming, Treasury yields would be dropping,&#34; Slimmon said. &#34;They&#39;re not.&#34;</p><p><img src=\"https://static.tigerbbs.com/9e4ab4c5c5cce7434ff941e39fba010c\" tg-width=\"1168\" tg-height=\"450\" width=\"100%\" height=\"auto\"/><b>Megacaps&#39; outsize influence</b>: Another big difference about this correction is the huge concentration of the index in a handful of high-growth stocks. It would be a big ask for the S&amp;P to match historical post-correction gains without their participation.</p><p>&#34;The S&amp;P has become a growth index,&#34; Slimmon said. &#34;Top 10 stocks are largely tech stocks.&#34;</p><p>&#34;While the S&amp;P 500 is down just over 10% from its all-time high, the mega-cap FANG+ index(NYSEARCA:FNGG)(NYSEARCA:GNAF)is now down 22.6% from its 11/4/21 closing high,&#34; Bespoke said.</p><p>Digging down into the individual issues, all the big names are in correction territory, if not bear market territory or worse. But the moves are disparate.</p><p>Among the companies with market caps still above $1T, Apple(NASDAQ:AAPL)is holding up the best, down 10% from its high. Alphabet(NASDAQ:GOOG)(NASDAQ:GOOGL)is down 15% and Microsoft(NASDAQ:MSFT)is off 18%. Amazon(NASDAQ:AMZN)is just in bear territory, off 20%.</p><p>Faring worse, Nvidia(NASDAQ:NVDA)is down 30%, Tesla(NASDAQ:TSLA)is off 34% and Meta(NASDAQ:FB)has nearly been cut in half, down 47%.</p><p>&#34;The safer growth stocks, which are the megacap tech stocks, are more vulnerable (now) because the high-flying growth stocks have been so thoroughly trashed,&#34; Slimmon said.</p><p>Can value take the baton? Slimmon argues that cyclicals can still outperform.</p><p>&#34;Tacking away from (high-growth tech) and being overweight some of the value areas in a year where they are working - and they certainly are so far - (is advised),&#34; he said. &#34;At the end of the &#39;70s the top 10 stocks were energy stocks and now they&#39;re tech stocks, so I think it&#39;s a great opportunity for active management.&#34;</p><p>Those leaning bearish would have to acknowledge we&#39;ve likely already seen the highs for 2022.</p><p>&#34;Last year saw more than 60 all-time closing highs for the S&amp;P 500,&#34; Bespoke said. &#34;This year we&#39;ve seen just one and it was on the first trading day of the year.&#34;</p><p>&#34;Would be something if this year sees exactly one all-time closing high and it&#39;s on the first trading day of the year. There&#39;s a first for everything though.&#34;</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>S&P 500 Is in a Correction: History Favors Bulls, but Bears Have the Fed</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nS&P 500 Is in a Correction: History Favors Bulls, but Bears Have the Fed\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-02-23 21:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/3803581-sp-500-in-correction-history-favors-bulls-but-bears-have-the-fed><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The S&P 500(SP500)(NYSEARCA:SPY)is experiencing its first correction since the spring 2020 COVID plunge.The broader market cemented a drop of more than 10% from highs at the close Tuesday, the typical...</p>\n\n<a href=\"https://seekingalpha.com/news/3803581-sp-500-in-correction-history-favors-bulls-but-bears-have-the-fed\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index"},"source_url":"https://seekingalpha.com/news/3803581-sp-500-in-correction-history-favors-bulls-but-bears-have-the-fed","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1187961883","content_text":"The S&P 500(SP500)(NYSEARCA:SPY)is experiencing its first correction since the spring 2020 COVID plunge.The broader market cemented a drop of more than 10% from highs at the close Tuesday, the typical Wall Street definition of a correction.\"The entire COVID Crash only lasted 23 trading days while this correction is already at 34 trading days,\" Bespoke Investment tweeted.History points to a rebound: Looking at recent history back to 1998, the stock market is higher a year after a correction. Twelve months later the S&P 500 (SP500) (SPY) is up 9.3%, rising 2/3 of the time, according to Dow Jones.The bullish theme holds even if the market keeps falling after hitting correction territory.\"About half of the time a 10% correction becomes a 15% correction and a quarter of the time a 10% correction becomes a 20% correction,\" Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management, said on Bloomberg TV. \"If you bought down 10% it might get ugly earlier, which I think it will this time again, (but) a year later you've been well served to step up into corrections.\"Here come the hikes: A big difference for 2022 is that the Federal Reserve is about embark on a rate-hike cycle, with the higher end of Wall Street forecasts indicating seven quarter-point hikes this year.Don't forget that the S&P hit correction territory while the Fed is still EASING, with tapering of asset purchases not wrapping up until March.Goldman Sachs notes that the S&P performs well during a rate-hike cycle (see chart below).But that tends to be because of strong economic conditions and continued momentum. Now momentum is to the downside and there are concerns that the Fed is embarking on a policy mistake due to inflation sticker shock and will choke growth.Charlie Biello of Compound Capital Advisors tweeted out the Fed response to S&P corrections since 2009, which illustrates the difference:2010: -17%. Rates @ 0%, QE2.2011: -21%. Rates @ 0%, Operation Twist.2012: -11%. Rates @ 0%, QE3.2016: -15%. Rates @ 0.25%, stopped hiking plan.2018: -20%. Cut rates 3x in '19.Today: -12%. 3 more cuts priced in, 1st in March.The S&P has already defied the historical trend of doing well in the three months leading up to the first hike in a cycle. The index rises 5.3% in those months, on average, according to UBS.Recession risks: A notable outlier in the correction rebound trend is November 2007, when the market ended down 37% a year later due to the Great Recession.The market is not pricing a recession now, but therisks are rising, as BofA said recently noting flows into Treasuries and credit weakness in cyclical sectors.The yield curve(NYSEARCA:TBT)(NASDAQ:TLT)(NASDAQ:SHY)continues to flatten, with the 10-year/2-year spread now below 40 basis points, down from about 160 basis points a year ago. A yield curve inversion is considered a recession signal.But \"if the Fed were going to overtighten and kill the economy, cyclical stocks wouldn't be outperforming, Treasury yields would be dropping,\" Slimmon said. \"They're not.\"Megacaps' outsize influence: Another big difference about this correction is the huge concentration of the index in a handful of high-growth stocks. It would be a big ask for the S&P to match historical post-correction gains without their participation.\"The S&P has become a growth index,\" Slimmon said. \"Top 10 stocks are largely tech stocks.\"\"While the S&P 500 is down just over 10% from its all-time high, the mega-cap FANG+ index(NYSEARCA:FNGG)(NYSEARCA:GNAF)is now down 22.6% from its 11/4/21 closing high,\" Bespoke said.Digging down into the individual issues, all the big names are in correction territory, if not bear market territory or worse. But the moves are disparate.Among the companies with market caps still above $1T, Apple(NASDAQ:AAPL)is holding up the best, down 10% from its high. Alphabet(NASDAQ:GOOG)(NASDAQ:GOOGL)is down 15% and Microsoft(NASDAQ:MSFT)is off 18%. Amazon(NASDAQ:AMZN)is just in bear territory, off 20%.Faring worse, Nvidia(NASDAQ:NVDA)is down 30%, Tesla(NASDAQ:TSLA)is off 34% and Meta(NASDAQ:FB)has nearly been cut in half, down 47%.\"The safer growth stocks, which are the megacap tech stocks, are more vulnerable (now) because the high-flying growth stocks have been so thoroughly trashed,\" Slimmon said.Can value take the baton? Slimmon argues that cyclicals can still outperform.\"Tacking away from (high-growth tech) and being overweight some of the value areas in a year where they are working - and they certainly are so far - (is advised),\" he said. \"At the end of the '70s the top 10 stocks were energy stocks and now they're tech stocks, so I think it's a great opportunity for active management.\"Those leaning bearish would have to acknowledge we've likely already seen the highs for 2022.\"Last year saw more than 60 all-time closing highs for the S&P 500,\" Bespoke said. \"This year we've seen just one and it was on the first trading day of the year.\"\"Would be something if this year sees exactly one all-time closing high and it's on the first trading day of the year. There's a first for everything though.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":154,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9968477985,"gmtCreate":1669308819547,"gmtModify":1676538181789,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Thanksss","listText":"Thanksss","text":"Thanksss","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9968477985","repostId":"1184446148","repostType":4,"repost":{"id":"1184446148","pubTimestamp":1669303814,"share":"https://www.laohu8.com/m/news/1184446148?lang=&edition=full","pubTime":"2022-11-24 23:30","market":"us","language":"en","title":"3 Big Reasons To Love Apple Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=1184446148","media":"TheStreet","summary":"Let’s take a step back from the news of the day: why is AAPL a great stock to own? Today, I list my ","content":"<html><head></head><body><p>Let’s take a step back from the news of the day: why is AAPL a great stock to own? Today, I list my top 3 fundamental reasons.</p><p>When it comes to <b>Apple</b> stock, even I am sometimes to blame for focusing a bit too much on the “here and now”. What do iPhone sales in the holiday quarter look like? Is Apple pulling back production in China? Can the stock build upon recent momentum?</p><p>So now, I take one step back. More fundamentally, what are some of the main reasons why investors might want to own AAPL shares? There are probably many of them, but I will start with my own top 3 list today.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a934c8d32eb2b80a07cf98af6caf9467\" tg-width=\"1240\" tg-height=\"827\" referrerpolicy=\"no-referrer\"/><span>Figure 1: 3 Big Reasons To Love Apple Stock</span></p><h2>AAPL Reason #1: Massive ROIC</h2><p>ROIC, or return on invested capital, is a metric that many analysts and investors like to track. It contrasts a company’s earnings (numerator) against the cash raised from debt and equity investors (denominator). Think of the formula:</p><p>ROIC = NOPAT ÷ Invested Capital, in which:</p><ul><li>NOPAT is the net operating profit after tax, a similar concept to net income</li><li>Invested capital is largely equity plus debt investments minus cash</li></ul><p>The higher the ROIC, the better. It means that the company is able to “deliver more with less”: lots of profits with relatively small quantities of capital invested into the firm.</p><p>Companies in a good competitive position whose wide moat protects the business model well tend to have high ROIC. On the other hand, cut-throat competition that chips away at a company’s profits and margins tends to lead to low ROIC.</p><p>Apple’s ROIC hovered around 35% in 2010, within three years following the launch of the iPhone and the iPad. That’s really not a bad number at all, considering Apple’s weighted cost of capital that is probably short of 10%.</p><p>But since then, Apple’s ROIC has skyrocketed (see below). Today, the number is a staggering 56%. Relative to the investment that debtholders and equity holders have placed into the company, Apple is a massive profit-producing machine.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/fbc66682044c0970e857a65b8974a103\" tg-width=\"1178\" tg-height=\"336\" referrerpolicy=\"no-referrer\"/><span>Figure 2: AAPL&#39;s ROIC.</span></p><p>There are two main reasons why Apple has been able to increase its ROIC, especially in the past five years. First, profits (the numerator) have increased as (1) the 5G-capable iPhone models became a hit among consumers, (2) Apple was able to maintain pricing power, and (3) margins improved with the growth of the services segment.</p><p>Second, investments in the company (the denominator) have decreased sharply, mostly due to Apple’s aggressive strategy of buying back shares since 2012(more on this below).</p><h2>AAPL Reason #2: Highly Efficient</h2><p>Although services represent a sizable 20% of total sales, Apple is still primarily a consumer products vendor. Companies like it live and die by how tightly it manages working capital – that is, receivables and inventory on the asset side, payables on the liability side.</p><p>The less cash a company ties up in receivables and inventory, and the longer it takes a company to pay its own vendors, the better. Introducing the concept of cash conversion cycle: the time it takes a company to convert cash into inventory, and then back into cash via sales.</p><p>On working capital management, Apple stands out. According to Finbox, Apple’s cash conversion cycle is -62 days – yes, a negative number. It effectively means that Apple does not tie up cash in operations at all: instead, operations are financed by Apple’s vendors.</p><p>The Cupertino giant is one of the few tech companies in the world that can pull this off.</p><h2>AAPL Reason #3: Shareholder Friendly</h2><p>One of the reasons why Apple has been able to increase its ROIC drastically (see #1 reason above) is due to share buybacks. Cash return to shareholders alone, in fact, is a great incentive to own Apple stock.</p><p>The chart below shows how Apple has been aggressive at buying its own shares since 2012 – shortly after CEO Tim Cook took over from legendary founder Steve Jobs. From 26 billion shares outstanding in 2013, the count has been cut by nearly half now.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/edc0fe435dfa3b213c100c70c5fed531\" tg-width=\"1186\" tg-height=\"339\" referrerpolicy=\"no-referrer\"/><span>Figure 3: AAPL&#39;s diluted shares.</span></p><p>The benefits have been twofold. First, fewer shares outstanding mean that net income is distributed across fewer shareholder units. As a result, earnings per share, a metric closely tracked by investors and analysts, have increased.</p><p>Second, Apple’s stock buyback program allows the company to be an ever-present bullish force in the market. Even when other investors turn sour on Apple stock, at least the Cupertino company can be there to create demand for its own shares.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Big Reasons To Love Apple Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Big Reasons To Love Apple Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-24 23:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.thestreet.com/apple/stock/3-big-reasons-to-love-apple-stock><strong>TheStreet</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Let’s take a step back from the news of the day: why is AAPL a great stock to own? Today, I list my top 3 fundamental reasons.When it comes to Apple stock, even I am sometimes to blame for focusing a ...</p>\n\n<a href=\"https://www.thestreet.com/apple/stock/3-big-reasons-to-love-apple-stock\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://www.thestreet.com/apple/stock/3-big-reasons-to-love-apple-stock","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1184446148","content_text":"Let’s take a step back from the news of the day: why is AAPL a great stock to own? Today, I list my top 3 fundamental reasons.When it comes to Apple stock, even I am sometimes to blame for focusing a bit too much on the “here and now”. What do iPhone sales in the holiday quarter look like? Is Apple pulling back production in China? Can the stock build upon recent momentum?So now, I take one step back. More fundamentally, what are some of the main reasons why investors might want to own AAPL shares? There are probably many of them, but I will start with my own top 3 list today.Figure 1: 3 Big Reasons To Love Apple StockAAPL Reason #1: Massive ROICROIC, or return on invested capital, is a metric that many analysts and investors like to track. It contrasts a company’s earnings (numerator) against the cash raised from debt and equity investors (denominator). Think of the formula:ROIC = NOPAT ÷ Invested Capital, in which:NOPAT is the net operating profit after tax, a similar concept to net incomeInvested capital is largely equity plus debt investments minus cashThe higher the ROIC, the better. It means that the company is able to “deliver more with less”: lots of profits with relatively small quantities of capital invested into the firm.Companies in a good competitive position whose wide moat protects the business model well tend to have high ROIC. On the other hand, cut-throat competition that chips away at a company’s profits and margins tends to lead to low ROIC.Apple’s ROIC hovered around 35% in 2010, within three years following the launch of the iPhone and the iPad. That’s really not a bad number at all, considering Apple’s weighted cost of capital that is probably short of 10%.But since then, Apple’s ROIC has skyrocketed (see below). Today, the number is a staggering 56%. Relative to the investment that debtholders and equity holders have placed into the company, Apple is a massive profit-producing machine.Figure 2: AAPL's ROIC.There are two main reasons why Apple has been able to increase its ROIC, especially in the past five years. First, profits (the numerator) have increased as (1) the 5G-capable iPhone models became a hit among consumers, (2) Apple was able to maintain pricing power, and (3) margins improved with the growth of the services segment.Second, investments in the company (the denominator) have decreased sharply, mostly due to Apple’s aggressive strategy of buying back shares since 2012(more on this below).AAPL Reason #2: Highly EfficientAlthough services represent a sizable 20% of total sales, Apple is still primarily a consumer products vendor. Companies like it live and die by how tightly it manages working capital – that is, receivables and inventory on the asset side, payables on the liability side.The less cash a company ties up in receivables and inventory, and the longer it takes a company to pay its own vendors, the better. Introducing the concept of cash conversion cycle: the time it takes a company to convert cash into inventory, and then back into cash via sales.On working capital management, Apple stands out. According to Finbox, Apple’s cash conversion cycle is -62 days – yes, a negative number. It effectively means that Apple does not tie up cash in operations at all: instead, operations are financed by Apple’s vendors.The Cupertino giant is one of the few tech companies in the world that can pull this off.AAPL Reason #3: Shareholder FriendlyOne of the reasons why Apple has been able to increase its ROIC drastically (see #1 reason above) is due to share buybacks. Cash return to shareholders alone, in fact, is a great incentive to own Apple stock.The chart below shows how Apple has been aggressive at buying its own shares since 2012 – shortly after CEO Tim Cook took over from legendary founder Steve Jobs. From 26 billion shares outstanding in 2013, the count has been cut by nearly half now.Figure 3: AAPL's diluted shares.The benefits have been twofold. First, fewer shares outstanding mean that net income is distributed across fewer shareholder units. As a result, earnings per share, a metric closely tracked by investors and analysts, have increased.Second, Apple’s stock buyback program allows the company to be an ever-present bullish force in the market. Even when other investors turn sour on Apple stock, at least the Cupertino company can be there to create demand for its own shares.","news_type":1},"isVote":1,"tweetType":1,"viewCount":229,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9968474714,"gmtCreate":1669308767538,"gmtModify":1676538181784,"author":{"id":"4098789595583910","authorId":"4098789595583910","name":"Lsiang","avatar":"https://static.tigerbbs.com/62eed67ef2903480b12edb04a756fb53","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Okiee","listText":"Okiee","text":"Okiee","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9968474714","repostId":"2285840582","repostType":4,"isVote":1,"tweetType":1,"viewCount":335,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}