Warren Buffett is the fifth-richest man in the world, according to the Forbes Real Time Billionaires Index, and one the most successful investors of this age. His company, Berkshire Hathaway Inc., reported a 40% rise in operating earnings in the third quarter. Berkshire Hathaway also reported a record $157.2 billion cash holding as of Sept. 30.
The majority of Buffett’s earnings came from his insurance business, with Geico reporting total underwriting earnings of over $1 billion in the last quarter. His equity holdings, however, declined in value over the past quarter.
The primary driver behind Berkshire Hathaway’s investment loss is its majority stake in tech giant Apple Inc. (NASDAQ:AAPL). Apple’s shares declined by over 11% in the third quarter, causing Buffett to incur an investment loss of over $24 billion during this period.
While Buffett’s total investment portfolio might have been impacted due to because of declining share prices, he has benefitted from dividend payouts in the last quarter.
“The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings (losses) per share that can be extremely misleading to investors who have little or no knowledge of accounting rules,” Berkshire Hathaway said in a news release reporting its operating results.
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Some of his most reliable stock holdings include:
Coca-Cola
Buffett has credited The Coca-Cola Co. (NYSE:KO) as his “secret sauce” for success, as it has been one of Berkshire Hathaway’s most profitable investments.
The beverage producer’s dividend payouts have padded Berkshire Hathaway’s bottom line. Buffett, who owns 400 million shares of Coca-Cola, received dividend payments of approximately $704 million as of 2022.
“All Charlie (Munger) and I were required to do was cash Coke’s quarterly dividend checks. We expect that those checks are highly likely to grow,” Buffett said in a shareholder letter.
Buffett’s investment in Coca-Cola amounted to $25 billion as of Dec. 31, 2022, accounting for 5% of Berkshire Hathaway’s net worth as of last year.
Coca-Cola is widely regarded as a popular dividend aristocrat, as the company has raised dividends consecutively over the past 61 years. Morgan Stanley and JP Morgan Chase & Co. have an Overweight rating on Coca-Cola stock. Morgan Stanley has a price target of $65, indicating a potential upside of over 13%. JP Morgan raised its price target to $62, which reflects an of over 8%.
Bank of America
Bank of America Corp. (NYSE:BAC) played an important role in stabilizing the U.S. banking system after the collapse of the Silicon Valley Bank and other bank runs. Buffett owns approximately 1.03 billion shares of Bank of America, accounting for 9.23% of his portfolio.
The Oracle of Omaha’s total investment in Bank of America is valued at over $30 billion, making it the second-largest holding in Berkshire Hathaway’s portfolio.
As the Federal Reserve gradually eases interest rate hikes, many analysts expect bond prices to recover in 2024, making banking stocks such as Bank of America generate substantial profits.
“He’s [Buffett] holding on to his Bank of America. It’s his second-largest position. Why is he doing that? Why isn’t he trimming that? Well, I’ll tell you why because next year, if we get the bond rally the way everybody expects, their net profit — their net interest margins are going to go up, and everybody’s going to be very happy,” said Lee Munson, president and chief investment officer of Portfolio Wealth Advisors.
New York-based investment bank Oppenheimer & Co. Inc. holds an Outperform rating on Bank of America stock, with a price target of $51. This indicates a potential upside of over 72%. BMO Capital Markets has a Market Perform rating on the stock with a price target of $40, which reflects a potential upside of over 35%.
Occidental Petroleum
Buffett bought over 17 million shares of Occidental Petroleum Corp. (NYSE:OXY) in the last quarter. He is a majority shareholder of Occidental with a more than 25% stake in the oil producer.
Occidental Petroleum’s efforts to reduce its carbon footprint are expected to strengthen its foothold in the oil industry as countries push toward eliminating carbon emissions. Earlier this month, Occidental Petroleum partnered with BlackRock to invest in building the world’s largest direct air capture facility in Texas.
Berkshire Hathaway expects to generate over $960 million in dividends from Occidental Petroleum. Buffett is slated to benefit from the rising stock price as well, as JPMorgan expects Occidental stock to hit $78, indicating a potential upside of nearly 30%.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
