Berkshire Hathaway, Inc.’s BRKABRKBfourth-quarter earnings report released on Saturday showed that the investment-holding company’s cash position at the end of the year increased from the September level.
What Happened: Tesla TSLA CEO Elon Musk offered an opinion for investing the cash reserves of the Warren Buffett-led company. He was responding to a trader’s tweet soliciting opinions regarding the stocks Berkshire can buy with the $128 billion+ cash it holds.
“Starts with a T…,” the billionaire replied, apparently referring to his flagship electric vehicle venture Tesla.
Musk followed it up with a tweet in which he said Charlie Munger had the choice to invest in Tesla way back at a valuation of around $200 million when both had lunch together almost 15 years ago. Munger is Buffett’s trusted lieutenant and second-in-command at Berkshire in his capacity as Vice Chairman.
This is not the first time Musk is recounting the incident that transpired between him and Munger. In reply to a tweet in February 2022, the Tesla CEO said he had lunch with Munger in 2009, when the latter discussed all the ways Tesla would fail. While agreeing with Munger on Tesla potentially failing, Musk apparently said it was worth trying anyway.
Why It’s Important: Musk’s rendezvous with Munger, going by the timeline the former mentioned, apparently took place ahead of Tesla’s IPO on June 29, 2010. Since then, Tesla has grown in rank and is currently a mega-cap company with a market capitalization of roughly $623 billion. Tesla bull Cathie Wood expects the stock to hit $500 by 2026, up from the current $196.88, considering only the EV part of the Tesla story. If the autonomous ride-hailing opportunity is also accounted for, the stock could hit north of $1,500, she said.
Meanwhile, Buffett said in his annual letter to shareholders that Berkshire will hold a boatload of cash and U.S. Treasury bills, along with a wide array of businesses, in the future. He also suggested that the company will not indulge in any activity that could result in any uncomfortable cash needs at inconvenient times, including financial panics and unprecedented insurance losses.
Buffett’s philosophy has always been making value buys and holding those investments for the long term. While Berkshire per se does not pay out dividends, a significant portion of its investment holdings pays dividends. So, it remains to be seen if Tesla would make the cut for a Buffett investment.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
