Finimize - 👋 Target snubs inflation

Hi Reader, here's what you need to know for March 2nd in 3:07 minutes.

💪 Stocks, bonds, and commodities are up against it right now, so it could be an ideal time to look for gains in less traditional places. Join ORE System’s Nick Donarski for How To Diversify Your Portfolio With NFTs on Wednesday, and find out how digital collectibles could add a new dimension to your investments. Get your free ticket

Today's big stories

Target reported better-than-expected earnings
There’s one key reason Warren Buffett is sticking with Berkshire Hathaway’s Apple holdings through thick and thin – Read Now
Zoom reported slowing growth as workers swap video calls for boardrooms

Strategic Thinking

What’s Going On Here?

Target reported better-than-expected quarterly earnings on Tuesday, as the US big-box retailer shows that it pays to plan three steps ahead.

What Does This Mean?

Target did all it could last quarter to mitigate the effect of supply shortages, buying $2 billion more in backroom stock than it normally would ahead of the holiday season. And that foresight paid off handsomely: customers made 8% more trips to Target’s stores and website last quarter than the same time in 2020, helping push overall profit up by a better-than-expected 12%. That growth’s arguably all the more impressive considering what the tail-end of 2020 looked like: the US was awash with cash after the government doled out stimulus checks to keep Americans afloat. Add in the fact that Target forecasted better-than-expected revenue growth for this year, and investors didn’t need much convincing: they sent the retailer’s shares up 13%.

Why Should I Care?

The bigger picture: Spend money to make money.
Trouble is, Target’s costs are due for a growth spurt too. The company announced earlier this week that it’s upping hourly wages, in hopes of better competing for workers in a competitive labor market. In fact, it reckons it'll spend $300 million more this year on salaries and healthcare benefits alone, which – on top of already high supply chain costs – could end up dragging on the retailer’s profit margins (tweet this).

Zooming out: Inflation isn’t all that.
This is just another sign that the retail sector as a whole is in rude health. Walmart posted a robust set of earnings last month, and US department store Kohl’s – which is expecting the introduction of customer-favorite brands like Calvin Klein to help boost sales – gave a better-than-expected revenue outlook for the year on Tuesday. All these strong results suggest consumer demand is actually holding up pretty well – all the more surprising considering how fast prices are rising right now.

You might also like: How to inflation-proof your portfolio.

Copy to share story: https://www.finimize.com/wp/news/strategic-thinking/

🙋 Ask a question

Analyst Take

Why Warren Buffett Is A Big Fan Of Apple

Carl Hazeley, Analyst

What’s Going On Here?

When Warren Buffett speaks, investors listen – and Warren Buffett has just spoken.

In his annual shareholder letter, the Berkshire Hathaway CEO drew attention to his company’s “giants”: four investments that “account for a very large chunk of Berkshire’s value”.

Three of those are an insurer, a railroad firm, and an energy company.

But the fourth is Apple – a company Buffett’s been enamored with for years, even though its sky-high valuation is arguably at odds with its potential profit growth.

So that’s today’s Insight: why Buffett’s sticking with the iPhone-maker through thick and thin, and whether you should too.

Read or listen to the Insight here

Crypto killed the Super Bowl star

Snoop Dogg was great, sure. And those LA Rams, what a team.

But there was one real standout at the Super Bowl: the much-discussed crypto commercials. Yup, crypto’s really taken over at this point.

So you know you can invest in crypto, but how should you? Check out Titan: it’s crypto investing on autopilot.

Just let Titan’s team of investment analysts choose from thousands of different coins and projects, and leave them to manage your crypto portfolio for you.

Cut through the crypto noise: discover what Titan can do for you.

Create My Crypto Portfolio

Refer to Titan’s Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Brokerage services are provided to Titan Clients by Apex Clearing, an SEC registered broker-dealer and member FINRA/SIPC. For more information, see our disclosures.

At this time, New York state residents cannot yet invest in Titan Crypto. Pending regulatory approval, we’ll notify users once New York state is approved to invest in Titan Crypto. The image is for illustrative purposes only and does not represent actual performance of any strategy. Past performance is no guarantee of future results. Performance stated is net of fees. Investing includes the risk of loss. Cryptocurrency advisory services are provided by Titan Global Capital Management USA LLC. Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849).