Finimize - 😮 Four factors could bring stocks down

TOGETHER WITH

Hi Reader, here's what you need to know for February 28th in 3:12 minutes.

☕️ Finimized over an espresso tonic at VENUE in Prague, Czech Republic (2°C/35°F 🌤)

Today's big stories

Warren Buffett’s Berkshire Hathaway reported lackluster results in some of its key businesses
Four factors could be about to bring stocks down a notch – Read Now
China approved a ton of coal power plants last year, but there's hope for the country's green side yet

Not So Buff

What’s Going On Here?

Warren Buffett’s Berkshire Hathaway reported shrug-worthy results over the weekend.

What Does This Mean?

Buffett’s unrivaled reputation wasn’t born out of thin air: the value of his company’s stock has, on average, increased by twice as much as the US stock market every year for over 50 years. But Berkshire’s latest report hardly screamed success: the conglomerate’s all-important insurance and railroad businesses helped bring home record full-year operating earnings, sure, but hefty costs and slimming demand meant it ended the year in a slump. Berkshire’s $300-billion stock portfolio dropped off too. Now, Buffett often calls those slides meaningless given the firm’s long-term view, but the blip still dragged the firm to a nearly $23 billion loss last year.

Why Should I Care?

For markets: Money to burn.
Buffett’s annual letter – a surprisingly short one this time round – pushed one big point of contention: stock buybacks. See, there’s a new tax on buybacks in the US, with some arguing the cash would be better spent on workers’ pay or investing in the firm’s future. Buffett, though, defended their merits, saying they’re a smart way to use extra cash, especially when bought for fair prices. (Remember, buybacks reduce the number of shares available and give existing shareholders a bigger stake in the business and any profit.) Berkshire’s been a big fan of that tactic lately: with fewer promising acquisitions to spend money on, the firm bought back almost $8 billion of its shares last year.

The bigger picture: Gotta have faith.
Buffett sold more than $16 billion of stocks last quarter, dumping firms like TSMC, US Bancorp, and Bank of New York Mellon. That pulled its cash pile up to nearly $130 billion by the end of last year – but Buffett’s not completely pessimistic about markets. The Oracle of Omaha reminded investors to have faith in the US, saying there’s no reason to make a long-term bet against the world’s biggest economy.

You might also like: Buffett’s Berkshire Hathaway has a monstrous Japanese bet.

Copy to share story: https://go.finimize.com/wp/news/not-so-buff/

🙋 Ask a question

Analyst Take

Five Things That Could Send Stocks Lower

By Luke Suddards, Analyst

The S&P 500 had a supercharged start to the year.

Retail investors helped power it along, snapping up about $1.5 billion in US stocks a day – the biggest volume on record.

The problem – for the market anyway – is that it might not last.

See, a string of US economic data suggests there could be even more interest rate hikes ahead, and investors could well be growing more cautious.

That’s today’s Insight: retail investors and four other factors that could send stocks lower.

Read or listen to the Insight here

Efficient investing – hold the fees

In this increasingly digital age, you’ll be up to your neck in accounts, passwords, and platforms.

So when it comes to your investments, you might want to keep it simple and swap multiple brokers and services for one simple platform.

You can keep all your accounts in one place with Interactive Investor (ii), so you can see all your investments at a quick glance and adjust as soon as you spot a change.

Better still, ii’s flat-fee subscription plans mean you could save big on fees. Plus, there are no charges when you join, cancel, or transfer cash and investments.

Discover a more efficient way to invest with ii’s flat-fee plans.

Find Out More

Trading and other transactional costs apply. Investment value can go up or down and you could get back less than you invest. The value of international investments may be affected by currency fluctuations which might reduce their value in sterling. If you are unsure about the suitability of a particular investment or whether transferring your assets is the right course of action you should speak to suitably qualified financial adviser.

Coald Truth

What’s Going On Here?

Data out on Monday showed that China approved a whole load of new coal plants last year.

What Does This Mean?

Extreme heat tore through China last summer, with droughts drying up hydropower reservoirs and firing up demand for devices like air conditioning systems. And with the country – the world’s biggest energy importer, by the way – suffering a series of severe power shortages as a result, it turned to its old reliable: coal. In fact, China approved a batch of coal plants in 2022, with a cumulative capacity that equals all of the UK's combined. The whole shebang was lightning quick, with projects getting permits, financing, and breaking ground within a matter of months. But with China’s ongoing constructions already six times more than the rest of the world’s combined, the country’s climate goals look less tangible than ever.

Why Should I Care?

Zooming in: Let’s (not) get dirty.
In fairness, China still leads the world in clean energy investments. And with commodity prices swinging from left to right, the incentive to get greener is solid: making energy from wind and water is free, after all, once systems are up and running. So if there’s enough clean power to keep the country going, those coal plants won’t even need to get their hands dirty. But China might have to up its investments to make that happen, especially because some energy-hungry Chinese sectors could soon rebound now the country’s reopened.

The bigger picture: Some serious green.
Europe and the US are doing their bit too: the US’s inflation reduction act will pour up to $369 billion into clean energy programs over the coming decade, and the EU is currently spending over $70 billion in renewable energy subsidies a year. That’s all promising for green firms, and might just be why wind turbine manufacturers said this week that they expect business to go from lemons to lemonade next year.

You might also like: This could be a turning point for clean energy stocks.

Copy to share story: https://go.finimize.com/wp/news/coald-truth/

🙋 Ask a question

💬 Quote of the day

“I want my children to have all the things I couldn’t afford. Then I want to move in with them.”

– Phyllis Diller (an American stand-up comedian, author, and musician)

Tweet this

Meet your future community

Let’s face it, even the best brands need a little push to reach the right audience.

Our one-million-strong community of modern investors is clever, clued-in, and keen to learn. In short, they’re exactly the type of folk you want to reach.

So whether you’re an established brand, scaleup, or startup, our promotional campaigns can help you reach the right audience at the right time.

Your tailored campaign will make the most of all the Finimize channels, including live event and Summit showcases, social media blasts, and curated newsletter placements – yup, right here.

Introduce yourself to your future community with Finimize.

Get In Touch

🌍 Finimize Live

🥳 Coming Up Soon…

All events in UK time.

💸 How To Pick Winning Exchange-Traded Funds: 5pm, March 7th
🌥 Do Recessions Have A Silver Lining?: 5pm, March 8th
🌎 Three Ways Long-Term Investors Can Act On Climate Change: 12pm, March 21st
🚀 What Will Be The Next Big Thing In Artificial Intelligence?: 1pm, March 22nd

🎯 On Our Radar

Thrifty business. Maybe second-hand shops aren’t for everyone.
We can finally live in peace. Science could cure a very annoying ailment.
Ah, the sweet tones of artificial intelligence. Super-smart tech is coming to a radio near you.
Open wide. Films with teeth have a bit of extra bite.
Check your cupboards. Chicken nuggets might need warning signs.

❤️ Share with a friend

Your Referrals: 0

Thanks for reading Reader. If you liked today's brief, we'd love for you to share it with a friend.

Share your unique link:

https://finimize.com/invite/?kid=177ZWC

You stay classy, Reader 😉

We’d love to hear your thoughts. Give feedback

Want to advertise with us too? Get in touch

Image Credits:

Image credits: Midjourney AI | Midjourney AI

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | 280 Bishopsgate, London, EC2M 4AG

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021

Key phrases

fewer promising acquisitions questionAnalyst TakeFive Things Interest rate hikes qualified financial adviser severe power shortages New York Mellon one simple platform monstrous Japanese bet INTERACTIVE INVESTOREfficient investing other transactional costs air conditioning systems biggest energy importer one big point four other factors flatfee subscription plans coal power plants new coal plants US economic data big storiesWarren Buffett US stock market

Older messages

🏡 Reconsider buying that house

Sunday, February 26, 2023

A major airline group just made a profit – finally | Brits might be better off renting for now | TOGETHER WITH Hi Reader, here's what you need to know for February 27th in 3:14 minutes. 🌶 If

🚨 Morgan Stanley’s cycle model is flashing “downturn”

Thursday, February 23, 2023

Nvidia beat expectations last quarter | Alibaba outdid everyone's expectations | TOGETHER WITH Hi Reader, here's what you need to know for February 24th in 3:15 minutes. ☕️ Finimized over an

⛏ Mined over matter

Wednesday, February 22, 2023

Stellantis had a knock-out year | Rio Tinto had a dire 2022 | TOGETHER WITH Hi Reader, here's what you need to know for February 23rd in 3:10 minutes. ☕️ Finimized over a bicerin at Caffè al

📖 Taking a leaf out of Buffett's book

Tuesday, February 21, 2023

Walmart had a strong quarter and a weak outlook | The eurozone perked up | TOGETHER WITH Hi Reader, here's what you need to know for February 22nd in 3:05 minutes. 🤩 Warren Buffett thinks you

🇨🇳 Goldman’s counting on China

Monday, February 20, 2023

Goldman expects a lot from Chinese stocks | Meta announced a subscription service | TOGETHER WITH Hi Reader, here's what you need to know for February 21st in 3:11 minutes. 🇬🇧 The UK's a bit of

The Demise of Credit Suisse

Friday, March 24, 2023

Plus! UBS: The Deal of the Decade? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

TikTok CEO’s testimony went viral

Friday, March 24, 2023

Plus: 'House hacking' your first home, and Amazon return-to-office. View in browser Subscribe March 24, 2023 Hello, Insiders. This is Shona Ghosh, the deputy executive editor for Insider in the

Wall Street: Real estate’s bounce back

Friday, March 24, 2023

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Happy Friday! Dan DeFrancesco in NYC, and I'm feeling inspired after watching this video of a bouncer

Yellen changes her tune

Thursday, March 23, 2023

Bloomberg Evening Briefing View in browser Bloomberg US Treasury Secretary Janet Yellen had a slightly different story Thursday when it came to the ongoing debate over insuring bank deposits beyond the

🔫 The great crypto showdown

Thursday, March 23, 2023

Coinbase was issued a serious warning | Accenture announced thousands of job cuts | TOGETHER WITH Hi Reader, here's what you need to know for March 24th in 3:09 minutes. 🗓 If you've already

Get ready for more blackouts

Thursday, March 23, 2023

Plus: Fox News behind closed doors, and inside the life of a golf cart girl. View in browser Subscribe March 23, 2023 Hello, Insiders! This is Joe Ciolli, a deputy executive editor in Insider's

Wall Street: For UBS, mo money mo problems

Thursday, March 23, 2023

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Almost Friday! Dan DeFrancesco in NYC, and I finally got the backstory on the crumbling mansion I used to see

Inflation is the enemy

Wednesday, March 22, 2023

Bloomberg Evening Briefing View in browser Bloomberg The US Federal Reserve raised interest rates by a quarter percentage point and indicated there may be more hikes to come. In doing so, the Fed

🇬🇧 Britain got bruised

Wednesday, March 22, 2023

The Fed struck a compromise | Inflation dashed Brits' hopes | TOGETHER WITH Hi Reader, here's what you need to know for March 23rd in 3:07 minutes. ⏱ Time slips by pretty easily – so you might

Issue #184: I can stop freaking out — my money is totally safe in the bank

Wednesday, March 22, 2023

plus the Squirrel Lady + Hugh Jackman's cinnamon rolls ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌