Tag Archives: Warren Buffet

Overstock CEO Patrick Byrne resigns after disclosing romance with Russian agent

Former Overstock CEO Patrick Byrne revealed the Deep State Coup a few days ago on Fox News. Mr Byrne said he had released the statement because he realized that someone would uncover his involvement in the federal investigation if he did not reveal it himself.

He decided to come forward after a conversation with his «Omaha rabbi», a reference, he said, to Mr Warren Buffet who are a good friend of him. In the statement, he referred to what he described as a romantic relationship with Ms Maria Butina, who is serving an 18-month prison term after being accused by federal prosecutors of trying to infiltrate powerful political circles at the direction of the Russian government.

Mr. Byrne said he helped the F.B.I with the «Clinton Investigation» and «Russia Investigation.» Those, he said, «turned out to be less about law enforcement and more about political espionage conducted against Hillary Clinton and Donald Trump.»

He describe the people who runs the country for the «Men in Black». (and he is not talking about the film). The Men in Black is at the top of the F.B.I og they offered Mr. Byrne 1 Billion dollars to not speak up about all this mess. He refused.

Instead, he is selling his own retail company Overstock and maybe Target will buy it?

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The 5th largest food company in the world

One of the worlds richest and one of the best investors,Warren Buffet, is on the way to build a food empire. Ketchup maker Heinz, backed by Berkshire Hathaway Inc, which is own by Warren Buffet and the private equity firm 3G Capital, which is own by Brazil`s richest man, Jorge Paulo Lemann, will combine with Kraft Foods Group Inc (KRFT.O).

It is a $46 billion deal and that makes it the third largest North American food company. The transaction will create a global food behemoth with annual sales of $28 billion, and Heinz ketchup, Maxwell House coffee, Polly-O Cheese and Jell-O desserts will be some of the brands under its corporate umbrella.

heinz-tomato-ketchup-lid-sterling-silver-hallmarked-ljm

The complicated deal will result in Heinz shareholders owning 51 percent of the company, and Kraft shareholders getting 49 percent. Owners of Kraft shares will also get a hefty $16,50 a share special dividend, funded by the Brazilian firm 3G and Berkshire.

Kraft Heinz will be the fifth-largest food company in the world.

Warren Buffet has long said he want to do more «elephant»-style deals with all the money he has on hand. I think he like food and beverage, because both 3G and Bershire has been fairly acquisitive over the past few years.

They bought Burger King and Tim Hortons, as well as Heinz.

The Dow was losing 300 points today and momentum stocks getting hit harder, so why was the legendary investor Warren Buffet so hungry today, and why hasn`t he lost faith in stocks?

Fist of all; M&A now is lucrative, given ample liquidity and still low-interest rates globally. This is not only happening in the food and beverage industry, but also in tech, health care and biotech industries. I wouldn`t be surprised if that stock catches a further bid on this M&A news.

Berkshire will own more than 300M shares of the new firm and will have paid less than $30 each for them. Naturally, The Oracle has no intention of taking profits. «You won`t see Berkshire reduce is interest,» says Buffet.

«We will be in this stock forever.»

The new company will be publicly traded under the name Kraft Heinz Co, and it expects to save about $1,5 billion in annual costs by the end of 2017. Jorge Paulo Lemann, and his company 3G, has a reputation for introducing aggressive cost cuts at other companies.

Kraft Foods Group Inc is up 35,62% today. Trading at $83,17. Berkshire Hathaway Inc is trading at $217,000 today. EPS; 12,090,84, with a market cap of 356,07B.

It is a shift in the market at the moment as consumers are demanding more healthier food.

Maybe Warren Buffet and Jorge Paulo Lemann will do something with that?

 


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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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International Business Machines (IBM) Take Advantage of the Drop

IBM dropped significantly today when it reported its earnings, which were significantly less than the consensus analyst estimate. This major earnings failure comes at the same time as investors are beginning to question IBM’s sustainability and power; whether or not Big Blue really has the same ability to grow as it did before.

In actuality, IBM is not nearly the company it was before. The company is currently going through a huge transition from a hardware company to a software company, focusing on high growth areas such as the cloud. The company has already shed off many of their hardware businesses by selling them off, and today has even reported that they will pay GlobalFoundries $1.5 billion to take their semiconductor chip units, a part of the business that has been unprofitable for years.

The main argument against IBM is that their revenues have been falling for years now, and will likely continue into the future. That, however, is misguided, since the most fundamental reason that IBM’s revenues have been falling is because they have been going through this business transition, and need time to re-stabilize their business.

At trailing and forward P/E ratios of just 10, IBM is exceptionally undervalued. This is a company that has major market share in a rapidly growing part of the tech industry: the cloud.The growth prospects and what IBM could do with their new business position are enormous, yet the market is valuing its growth potential like it’s nothing.

Also, IBM is a dividend aristocrat, meaning that the company has increased their dividends for more than 25 years in a row, adding up to a very nice flow of cash. The company is also a serial re-purchaser of their own stock. Spending billions of dollars in buybacks every year, the company is still speeding up their share repurchases, especially since they think shares are so undervalued now.

The company is also very good at setting goals and achieving them, never straying from the path to success. Management lays out what they call “road maps” every few years, which involve setting an EPS price target for the future years. They easily attained their last road map target a few years back, and are currently on a good track to surpass their 2014 target of $16 per share.

It’s also worth a mention that respected investor Warren Buffett also holds IBM as one of his core “Big Four” holdings. These Big Four stocks are four companies (WFC, KO, AXP, and IBM) that he has held through thick and thin, good and bad. These are companies that he expects to hold forever, and expects them to be extremely lucrative over that time period as well. He recently purchased IBM, but the other three were bought in the 1960s and 1980s, and have now netted him gains in the thousands of percentages and vastly outperformed the market. Also, IBM is a technology company, an industry that Buffett has long declared too hard to understand and changeable. The fact that IBM is one of the only tech companies in his entire portfolio shows that he has probably already done much research on the company and therefore trusts it above all others.

In conclusion, IBM is a great company that is trading at incredibly low valuations in the short term. These valuations should stabilize to an acceptable level in the future, which should most likely also reflect some premiums because of Warren Buffett’s support of the company and it’s shareholder-friendly history. The current bearishness in the company is only an effect of revenues that have dropped in the short-term due to an inevitable company transition into the software business. This issue of revenues will come to pass when the company gets back on track with their business and finishes their transition into the software business. Investors should look to IBM for sustainability, growth, and undervaluation.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Who is Elon Musk?

 

The mind behind Tesla, SolarCity and SpaceX is the entrepreneur Elon Musk. A man with many plans. He is also the founder of PayPal and Zip2. Widely considered a co-founder of each. He has also envisioned a conceptual high-speed transportation system known as the hyperloop.

tesla

Elon Musk met his first wife Justine Musk at Ontario`s Queen`s University. They married in 2000 and separated eight years later. They have six sons, the eldest of whom, died of SIDS when he was 10 weeks old.

 

In 2012, he ended a four-year relationship with his second wife, British actress Talulah Riley, but in a 60 Minutes interview on March 30,2014 he said he is still happy together with Talulah. In February 11, 2014, Musk was invited to attend a state dinner at the White House.

 

Most of you probably know the story of Steve Jobs (Apple Inc), but Elon Musk is often compared to Steve Jobs and Henry Ford. It can`t be better than that. I personally like people who is thinking big. Really BIG! Thinking they want to go to the moon or into the space. Just like John F. Kennedy.

 

First of all, Elon Musk is an investor. He earned his big money during the financial crises in 1998. This is how succesful investors are doing it. Earning money no matter where the market goes. The most important thing is to be on the right side of the market!

 

Elon Musk was born in Pretoria in South Africa, in 1971, to a Canadian mother and a South African-born British father. He taught himself computer programming and sold the computer code for a video game called Blaster for $500 when he was 12 years old.

 

In 1992, Elon Musk transferred to the University of Pennsylvania where he received a bachelor`s degree in economics from the Wharton School. He stayed on a year to finish his second bachelor`s degree in physics.

 

Then he moved to California to pursue a PhD in applied physics at Standford but left the program after two days to pursue his entrepreneurial aspirations in the areas of the internet, renewable energy and outer space. He became an American citizen in 2002.

 

Musk did not start his business career at Tesla. His fist company was Zip2 which is a web software company. Zip2 developed and marketed an internet «city guide» for the newspaper publishing industry.

 

Compaq acquired Zip2 for US$307 million in cash and US$34 million is stock options in 1999. Musk received 7% or $22 million from the sale, and co-founder of Zip2 was his brother, Kimbal. Now, Mush had money to start a new project.

 

He co-founded X.com, an online financial services and e-mail payment company. One year later, the company merged with Confinity, which operated a subsidiary called PayPal. The original intent was to merge the two systems, but it never happened.

 

Musk favored the PayPal brand over the X.com brand, and PayPal`s early growth was due in large part to a successful viral growth campaign created by Musk. PayPal was acquired by eBay for $US 1,5 billion in stock, in October 2002.

 

PayPal`s largest shareholder was Elon Musk and he owned 11,7% of PayPal`s shares. He pocketed $165 million from the sale, which was good for the next project. His third company was SpaceX. Musk co-founded it with rocket propulsion engineer Tom Mueller in June 2002.

 

SpaceX develops and manufactures space launch vehicles with a focus on advancing the state of rocket technology. The company`s fist two launch vehicles are the Falcon 1 and Falcon 9 rockets, and its first spacecraft is the Dragon.

 

The company was awarded a $1,6 billion NASA contract on December 23, 2008. They designed Falcon 9/Dragon with astronaut transport in mind and the Augustine commission recommended that astronaut transport be handled by commercial companies like SpaceX.

Musk revealed that he was influenced by Isaac Asimov`s Foundation series and views space exploration as an important step in expanding the consciousnes of human life. But why is Elon Musk so interested in the space?

 

He had said that multiplanetary life may serve as a hedge against threats to the survival of the human species. «An asteroid or a super volcano could destroy us, and we face risks the dinosaurs never saw: an engineered virus, inadvertent creation of a micre black hole, catastrophic global warming or some as-yet unknown technology could spell the end of us.

 

He founded SpaceX with $100 million of his early fortune, and he wants to reduce the cost of human spaceflight by a factor of 10. In an interview, he said he hopes to send humans to Mars surface within 10 – 20 years.

 

Tesla Motors was co-founded by Martin Eberhard, Marc Tarpenning, JB Straubel, Ian Wright and Elon Musk, who became involved with the company in 2004, as a Series A investor. They started with the electric car called the Tesla Roadster, with sales of about 2,500 vehicles to 31 countries.

 

They began delivery of its four-door Model S sedan on 22 June 2012. Model X is scheduled to begin production in early 2015. I think many are waiting for that SUV to be released on the minivan market.

 

In addition to its own cars, Tesla sells electric powertrain systems to Daimler for Smart EV and Mercedes A Class and to Toyota for the RAV4EV. Musk was able to bring in both companies as long-term investors in Tesla.

 

Musk provided the initial concept for SolarCity, which was then co-founded by his cousins Lyndon and Peter Rive. Musk remains the largest shareholder and SolarCity is now the largest provider of solar power systems in the United States. The underlying motivation for funding both SolarCity and Tesla is to help combat global warming.

 

Like many other investors, Musk started his own foundation called Musk Foundation, which focuses its philanthropic efforts on science education, pediatric health and clean energy. He is trusted of the X Prize Foundation, promoting renewable-energy technologies.

 

In 2011, he visited Soma City in Fukushima, Japan, which had been devastated by tsunami, and he donated a solar power project valued at $250,000 to this city. He also donated a solar-power system for critical needs to a hurricane response center in Alabama that had been neglected by state and federal aid. SolarCity is not involved in this state.

 

Elon Musk joined The Giving Pledge in April 2012, offering an ethical commitment to donate the majority of his fortune to philanthropic causes. Musk became a member of the campaign first popularised by Warren Buffet and Bill Gates with class of 12 of America`s wealthiest families and individuals. What a great story!

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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