2022/09/11 (066) Column
– Also With Help
Of Warren Buffett’s Life Experience“
Warren Buffett is considered one of the greatest living stock market champions of our time.
In the 1960s, the US investor took over the textile company Berkshire Hathaway, which was then in a state of wobble, and turned it into what is now srely the most successful investment holding company in the world. The incredible development is also reflected in the long-term chart development of Berkshire Hathaway A shares. Berkshire Hathaway is now the world’s most expensive stock in nominal terms. Berkshire A-share hasn’t had a single stock split in nearly six decades since Buffett’s entry. In the course of time, the prices climbed not only into the five-digit range, but also into the six-digit range. The A share is currently trading at around $460,000 or €440,000, and in the spring it was even more than $500,000!
This incredible success story of a financial market participant is the result of a consistently pursued value strategy by Warren Buffett and Charlie Munger. The two more than 90-year-old investment legends always focus their investments on undervalued stocks. Accordingly, Berkshire Hathaway usually goes on a shopping spree when the markets are in correction phases, which is always easy to understand for everyone. Because every quarter, Berkshire Hathaway has to disclose its investment portfolio in a mandatory report to the US Securities and Exchange Commission (SEC). And according to data just released, the wise old man Warren Buffett took advantage of second-quarter weakness to make acquisitions. Berkshire Hathaway increased its stake in the two oil companies Chevron and Occidental Petroleum and also bought more Apple shares. At around 43%, the cult champion has long been by far the largest position in Berkshire Hathaway’s portfolio, while Kraft Heinz, for example, as the sixth-largest investment, accounts for just under 3%. The portfolio most recently reported to the SEC contains 50 stocks, including Apple, Amazon, Diageo, Mastercard, Mondelez, Moody’s, T-Mobile US, Verisign and Visa, eight other champions.
“What does money mean anyway? A person is successful when he does what he likes between getting up and going to bed,” Bob Dylan once said. And is right. However, not everyone is fortunate enough to capitalize on their capable hobby. And to do what he wants every day. And is therefore financially dependent, not financially independent. As a successful musician, Bob Dylan certainly has no money problems. In this respect, it is understandable that he places his personal focus on a beautiful life. Regardless of the account balance, however, it is important to make everyday life as beautiful and pleasant as you secretly wish it to be! Visited with friends, family, (sports) events – and maybe even allowed yourself a house of your own. That’s why my DEVISE 2 DAY has become the focus of my life. Because, also because of the numerous positive answers, hints, acknowledgments, and or also criticisms, I can also, admittedly still more as a modest life, imagine myself as the editor of my DEVISE 2 DAY. And I also hope to be able to stand by you, yes exactly you, yes you, who is reading these lines. And that too with the help of Warren Buffett’s approach. So that you can simply live well. According to George Soros – by the way, my personal hero when it comes to understanding and/or acting on the financial market: „As long as the bias is self-reinforcing, expectations rise even faster than stock prices. Nowhere is the role of expectations more clearly visible than in financial markets. Buy and sell decisions are based on expectations about future prices, and future prices, in turn are contingent on present buy and sell decisions.“ That`s why have a good time and/or nose, not only with my 4XSetUp trading capabilities…
DEVISE 2 DAY 48h – Latest Market Price Action News
Wall Street Extends Gains For 3rd Session
US stocks extended gains for the third session on Friday, and snapped a 3-week losing streak as investors looked past hawkish headlines and piled into tech and growth stocks that have been battered since mid-August. Gains came ahead of next week’s CPI report, which is expected to show inflation slowed to 8.1% in August from 8.5% in July. The market movement came a day after Fed chair Jerome Powell, in a speech at the Cato Institute, reiterated that the central bank would do what it takes to tame inflation, further curbing any speculation of an imminent policy pivot. The sentiment is likely to remain subdued in anticipation of an economic slowdown and more tightening. On the corporate side, DocuSign jumped more than 10% after the company reported quarterly results that surprised investors on the upside while offering strong guidance. The Dow added 377 points, the S&P 500 1.5% and the Nasdaq 2.1%. For the week, the Dow gained almost 3%, and both the S&P and the Nasdaq about 4%.
Oil Prices Jump On Friday, Still Post 2nd Weekly Drop
WTI crude futures surged 3.9% to settle at $86.79 per barrel, propelled by expectations of cuts to supply. Price caps on Russian natural gas mulled by EU ministers prompted President Putin to threaten the immediate halt of all energy exports to Europe, including oil and coal. In addition, this week OPEC+ unexpectedly agreed to cut output by 100,000 barrels a day from October, with Saudi Arabia signaling further action. Still, WTI futures edged down for the second consecutive week amid aggressive monetary tightening by major central banks and fresh Covid lockdowns in top importer China. The ECB delivered a historic 75bps rate hike, while Chairman Powell reiterated the Fed’s commitment to fighting inflation. In China, Chengdu extended a lockdown for most of its 21 million residents, highlighting the country’s strict adherence to its zero-Covid strategy that derails economic recovery and clouds the demand outlook.
MOEX Gains On Foreign Selling Prohibition
The MOEX Russia Index closed 1.5% higher at 2,430 on Friday, halting a three-session decline after the Moscow Exchange updated the list of shares that foreign investors are prohibited from selling upon their return to the Russian equity market on Monday. Previously, the long-awaited return for investors from “friendly” countries was expected to bring selling pressure to stocks, as many were locked out of the market when equity trading was suspended on February 24.DEVISE 2 DAY Another 48 Hours – Where I Was Wrong, Whre I Was Right
As a principled conservative freedom lover, i will be violating one of my principles this week.
And live my highest principle out, which is: “Sometimes you have to go against your own principles!”
What happened?! What happened!? I took some e-mails from my readers to heart; due to your criticism that my recent issues are bland and boring.
Not in what I write, but in terms of the number of various 4XSetUps Trading Capabilities. Which I hereby expressly do not contradict; that’s right. But I figured I’d use a smaller numbers 4XSetUps Trading Capabilities a try. Like an old US Wall Street veteran. And not like a young green soldier who, with wide blue eyes and/or running water in his mouth, can’t wait to go to war when he gets up in the morning. I don’t want my DECISE 2DAY Affiliate Financial Market Online Newspaper to satisfy your thirst for adventure, my lovely dear readers. Rather, I would like to help you so that, after reading each edition, you not only feel more informative and competent, but actually truly are. And thus make even better trading decisions (buy/sell or no trade).
But okay, admittedly; Count me in. After all, I write my thoughts primarily for my readers. Yes, also for you. right for you too. And I’ll just make sure that we’ll have an average of one or two handfuls of open 4XSetUps in the future! Although sometimes at 44 years I feel like Danny Glover (“I’m too old for this shit!”) from the 4-part Hollywood police cinema action movie Lethal Weapon. Who can hardly wait for his police colleagues to finally send him into retirement. Because of the everyday theather. But what else am I supposed to do? I’ve been dealing with US WallStreet for more than half my life, (in)directly (un)successfully…
However, basically I’m still bullish on the USD. Everything fits; about the USD index for us (compared to all major currencies from the index basket). And that’s why I want to secure our profits, because they have accumulated better than originally thought. By that I mean take our long 4XSetUps Trading Capability profits at the latest at 107 points. At 106.99 points and lower, stay neutral for the time being. And long again at 107.01 points and/or above; if the USD index falls down and/or comes back. A concrete Technical Analysis 4XSetUp will be available again next week. Because this week, in each DEVISE 2 DAY Affiliate Financial Market Online Newspaper, there will be new long 4XSetUp Trading Capability of various individual stocks, a single currency pair, and/or a stock market sector indices. In addition to the renewed long 4XSetUp Trading Capability in the DOW JONES Future, from to the start of this week…
good morning, good day, and/or good night
at whatever time, wherever you are !
right here right now :