Posts Tagged ‘global economy’

Got Time? Buy Buffett’s Brain

January 18th, 2013 Comments off

SeekingAlpha, noting trends in the global economy, picks out five stocks it says will be lucrative in the long run, and one of them is Berkshire Hathaway (BRK-A, BRK-B). As the housing market continues to recover, columnist Frank J. Constantino says Berkshire does has a broad range of investments, but a direct tie to the construction industry: Shaw Industries, which sells flooring and carpeting; Benjamin Moore and Co. produces paint and wall coverings; Johns-Manville manufactures insulation and commercial roofing; the Nebraska Furniture Mart, the largest single furniture store in the nation; as well as Clayton Homes, the largest producer of factory-built homes in North America. As MHProNews has learned, while Berkshire trades at 17.7 times earnings, it is trading at 1.3 times book value, a more important indicator. BRK-A was up +0.01% today, and while BRK-B fell -0.27% today, its stock is just shy of its 52-week high.

(Image credit: Wikipedia)

Warren Buffett Opines

October 24th, 2012 Comments off

NASDAQ reports in a TV interview this morning, Oct. 24, on CNBC, Warren Buffett says the housing market has turned a corner and home construction is improving, and he expects Berkshire businesses tied to that industry to pick up. Despite the global economy slowdown, the Oracle of Omaha says the U.S. is doing better than either Europe or Asia, and has high praise for Fed Chairman Ben Bernanke, saying he “has done an absolutely superb job,” although he questions his policy of quantitative easing. Buffett says he expects Berkshire’s carpet business to double its profits this year, and Clayton Homes will see an increase of 15 percent in production. As a result he expects Berkshire to add 8,000 employees to the roughly 270,000 employed at the beginning of the year, MHProNews has learned.

(Photo credit: businessinsider)

Spain’s Pain could Hit Here

October 24th, 2012 Comments off

CNNMoney reports the third quarter in Spain has seen a shrinkage of 0.4 percent in both government and household spending. The fourth largest economy in the Eurozone contracted 1.7 percent year-over-year for Q3 2012, compared to 1.3 percent in the second quarter. A 25 percent unemployment rate and the government’s plans for more austerity measures to reduce debt have led to angry protests in the streets. As MHProNews has learned, the interdependence of the global economy can have far reaching effects. In the past months, investors have responded to the ups and downs of Eurozone members when dealing in the U.S. stock market, given that the EU is one of our very largest trading partners.

(Image credit: HousingWire)

Business Organizations Dismayed by Obama

October 1st, 2012 Comments off

WashingtonExaminer says a poll of manufacturers and small business owners commissioned by the National Association of Manufacturers (NAM) and National Federation of Independent Businesses (NFIB) reveals 55 percent would not have started their businesses in today’s economic climate. Additionally, 69 percent say President Obama’s regulatory policies have hurt their business and 54 percent say China and India are more supportive of small business and manufacturers than the U.S. Sixty-seven percent report there is not enough stability to expand their businesses. Jay Timmons, president of NAM, says, “There is far too much uncertainty, too many burdensome regulations and too few policymakers willing to put aside their egos and fulfill their responsibilities to the American people. To fix this problem, we need immediate action on pro-growth tax and regulatory policies that put manufacturers in the United States in a position to compete and succeed in an ever-more competitive global economy.” MHProNews has learned NFIB president Dan Danner notes the government has erected too many barriers to growth that increase the cost of doing business.

(Image credit: National Association of Manufacturers)