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Long Haul Buffett Buys

Long Haul Buffett Buys

5.94k followers9 symbols Watchlist by The Motley Fool

Here are eight Buffett-approved businesses built for the long haul.

9 symbols

  • Why P&G (PG) Could Beat Earnings Estimates Again
    Zacks

    Why P&G (PG) Could Beat Earnings Estimates Again

    P&G (PG) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

  • Is WMFAX a Strong Bond Fund Right Now?
    Zacks

    Is WMFAX a Strong Bond Fund Right Now?

    MF Bond Report for WMFAX

  • Bloomberg

    Tesla's Overexcited Fans Should Cool Down a Little

    (Bloomberg Opinion) -- Back when Tesla Inc. delivered 95,000 cars to customers during the spring quarter of 2019, the stock price was languishing at about $235 and Elon Musk’s electric car company was valued at “only” $40 billion. Fast forward a year and the shares are now priced at more than $1,200. With a market capitalization of $224 billion, Tesla has surpassed Toyota Motor Corp. as the world’s most valuable automaker.Yet in the second quarter of 2020, Tesla delivered 91,000 vehicles — about 5% fewer than the same period last year. That’s pretty underwhelming for a company whose fans view it as a fast-growing technology company in the mold of Amazon.com Inc., rather than a sluggish metal-bashing carmaker. So how is the massive recent jump in its market value justified?In fairness, it shows resilience to sell this many cars when the company’s main California plant was shut by the pandemic for much of the spring period. Doubtless, Tesla’s new Shanghai plant picked up the production slack, which suggests the expense and effort of getting that China factory up and running was worth it. The launch of Tesla’s new Model Y crossover vehicle will have helped. Ford Motor Co. and General Motors Co. both saw their U.S. deliveries decline by a third in the same quarter. Nevertheless, Tesla’s stock market acolytes pushed the shares up another 8% on Thursday, adding $16.5 billion to the market value. Such exuberance is hard to understand. Musk’s company sold 7,650 more vehicles than analysts expected during the second quarter, and the stock price jump equates to about $2 million of added shareholder value for each of those additional sales. This seems a little excessive given that a Tesla Model 3 sells for less than $40,000, and the profit margin on those cars is pretty slim.  The shareholder reaction makes even less sense when you consider that Tesla investors aren’t really meant to buying the stock because of the company’s current sales, which are less than 4% of Volkswagen AG’s. Rather, the investment case is a long-term one: that it will come to occupy a dominant position in clean transport and energy in the years ahead. That explains why the shares trade at 320 times its analyst-estimated earnings this year. Viewed through this lens, Tesla’s ability to shift a few thousand extra cars in recent weeks shouldn’t matter so much for the valuation.  Investors’ tendency to overreact to Tesla news made more sense when its survival was open to doubt. A year ago it was laying off workers, U.S. sales were slowing and its retail strategy was confused. Senior staff kept heading for the exit. The company was burning through cash and ran pretty low on financial fuel. It had just $2.2 billion of cash in March 2019, compared with more than $8 billion now.But subsequent evidence that Tesla can sell cars for more than it costs to produce them has transformed the mood — and with it Tesla’s stock price.Instead of “killing” off Tesla, the tepid electric offerings of established carmakers such as Audi and Mercedes have only underscored the quality of their rival’s battery and powertrain technology (the same can’t be said of Tesla’s build quality). Volkswagen’s software problems with its forthcoming ID.3 electric vehicle suggest catching Tesla won’t be straightforward, even with the Germans’ vast resources.Tesla’s stratospheric valuation appears to have become self-reinforcing. Should it require more money to fund its roughly $9 billion of capital expenditure over the next three years, it can raise it from shareholders without worrying about diluting them too much.Similarly, holders of more than $4 billion of convertible bonds that Tesla issued to fund its expansion should be happy to convert them into stock, rather than demand cash repayment, taking some of the pressure off the company and its balance sheet.  Still, Tesla’s valuation remains impossible to justify by any standard metrics. Analysts’ average price target is more than 40% below the current level. Even Musk has suggested that the share price, which has almost trebled since the start of 2020, is too high — although, as with his taunting of the U.S. Securities and Exchange Commission and his comments about “fascist” lockdowns, it’s usually better to tune out what Musk says and focus on his actions instead.  The skeptics might have more faith in Tesla’s new position as the leader of the automaker pack when Musk stops his provocations and his shareholders stop getting giddy over modest good news.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • NZD and AUD On The Rise
    FX Empire

    NZD and AUD On The Rise

    Summer holidays combined with Independence Day in the United States can result in very low volatility and overall a boring session on the global indices.

  • Facebook Under Fire as Companies Pause Social Media Ads: List
    Bloomberg

    Facebook Under Fire as Companies Pause Social Media Ads: List

    (Bloomberg) -- Here’s a list of companies that are planning to halt spending on social media. Some have joined a boycott of Facebook Inc. after critics accused the social network of inadequately policing hateful and misleading content on its platform:Harley Davidson Inc. -- The motorcycle maker said in an email it was pausing Facebook ads in July “to stand in support of efforts to stop the spread of hateful content.”Pernod Ricard SA -- The French distiller of Jameson whiskey and Absolut Vodka, which spends more than 1.5 billion euros ($1.69 billion) on advertising annually, is boycotting Facebook and some other U.S. sites through July 31 and working with partners on an app to help victims of online abuse.Daimler AG -- The Mercedes-Benz maker is pausing its paid advertising on Facebook platforms in July, while adding that it expects to the relationship to resume because it’s confident the social-media company will take “necessary steps.”Molson Coors Beverage Co. -- The brewer is choosing to pause advertising on Facebook, Instagram and Twitter while it reviews its own standards and ways to protect the brands and guard against hate speech, Chief Marketing Officer Michelle St. Jacques said in an internal email.Constellation Brands -- The maker of Corona beer and Kim Crawford wines is pausing Facebook ads for the month of July.Dunkin’ Brands Group -- The donut chain is temporarily pausing its paid media on Facebook and Instagram, a spokesperson says, adding that it’s in discussions with Facebook about efforts to stop hate speech and thwart “the spread of “racist rhetoric and false information.”Lego A/S -- Stopping all advertising on social media for at least 30 days to review its standards and will “invest in other channels” during that time.The Body Shop -- The beauty chain says it’s halting paid activity on all Facebook channels and asking the social-media company to enhance and enforce its content-moderation policies.Starbucks Corp. -- Pausing advertising on all social media platforms. Will post on social media without paid promotion.Microsoft Corp. -- Paused global advertising spending on Facebook and Instagram because of concerns about ads appearing next to inappropriate content, according to a person familiar with the matter.Unilever Plc -- Halting advertising on Facebook, Instagram and Twitter in the U.S. through Dec. 31.Volkswagen AG -- The ad stop on Facebook affects the direct ad accounts of the German manufacturer’s brands, including Porsche, Audi and Lamborghini. VW, its ad agencies and the Anti Defamation League will enter talks with Facebook over how to deal with hate speech, discrimination and false information, according to an emailed statement.Mars -- Starting in July, a pause on paid advertising globally across social-media platforms, including Facebook, Instagram, Twitter and Snapchat.Target Corp. -- Pausing ads on Facebook in July.Coca-Cola Co. -- Pausing advertising on all social media platforms.Clorox Co. -- Will stop advertising spending with Facebook through December.Conagra Brands Inc. -- Will stop advertising in U.S. on Facebook and Instagram through the rest of the year.Ford Motor Co. -- Halting U.S. social media for 30 days, won’t purchase social media ads for Bronco unveiling.Honda Motor Co. -- “For the month of July, Honda will withhold its advertising on Facebook and Instagram, choosing to stand with people united against hate and racism.” Acura, a Honda brand, said in a tweet that it was “choosing to stand with people united against hate and racism.”Hershey Co. -- Will halt spending on Facebook in July and cut its spend on the platform by a third for the remainder of the year, according to Business Insider.Diageo Plc -- Pausing paid advertising globally on major social media platforms beginning in July.PepsiCo Inc. -- Pulling ads on Facebook from July through August.Verizon Communications Inc. -- “We’re pausing our advertising until Facebook can create an acceptable solution that makes us comfortable and is consistent with we’ve done with YouTube and other partners,” said John Nitti, chief media officer for Verizon.SAP SE -- “We will suspend all paid advertisements across Facebook and Instagram until the company signals a significant, action-driven commitment to combatting the spread of hate speech and racism on its platforms.”Levi Strauss & Co. -- Pausing all paid Facebook and Instagram advertising globally and across all brands through July.Diamond Foundry Inc. -- Pulling all of advertising from Facebook, including Instagram, for the month of July.Patagonia Inc. -- Will pull all ads on Facebook and Instagram, effective immediately, through at least the end of July, pending meaningful action from Facebook.Viber Media Inc. -- The messaging service, owned by Japanese conglomerate Rakuten, plans to cut ties with the social network entirely, according to the Guardian.VF Corp. -- The North Face will pause ads on Facebook for the month of July. Vans, another VF brand, will also pull ad dollars from Facebook and Instagram next month, and said it will use the money to support Black communities through empowerment and education programs.REI -- “For 82 years, we have put people over profits. We’re pulling all Facebook/Instagram advertising for the month of July.”Upwork Inc. -- No Facebook advertising in July.Eileen Fisher Inc. -- Pulling ads from Facebook through July.Adidas AG -- Will stop ads on Facebook and Instagram internationally through July, according to Adweek.Puma SE -- Will stop all advertisements on Facebook and Instagram throughout July.Madewell Inc. -- Will pause ads on Facebook and Instagram through July.Pfizer Inc. -- Removing all advertising from Facebook and Instagram in July, calls on Facebook to heed the concerns of the StopHateForProfit boycott campaign “and take action.”Chipotle Mexican Grill Inc. -- To pause Facebook advertising beginning July 1, according to an email.Chobani -- The Greek-yogurt company paused all paid social-media advertising.Peet’s Coffee -- Paused advertising on Facebook.Sony Interactive Entertainment Inc. -- ”In support of the StopHateForProfit campaign, we have globally suspended our Facebook and Instagram activity, including advertising and non-paid content, until the end of July.”(Updates with Sony Interactive Entertainment)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Business Wire

    Wells Fargo Announces Second Quarter 2020 Earnings Information

    Wells Fargo & Company (NYSE: WFC), as previously announced, will report its second quarter 2020 earnings results on Tuesday, July 14, 2020, at approximately 5 a.m. PT (8 a.m. ET). The results will be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/.

  • 'It's Tesla's world and everyone else is paying rent': analyst
    Yahoo Finance

    'It's Tesla's world and everyone else is paying rent': analyst

    Here's why Tesla's stock continues to be on fire.

  • Telecom Stock Roundup: Verizon Boycotts Facebook Ads, Nokia Inks New 5G Deal & More
    Zacks

    Telecom Stock Roundup: Verizon Boycotts Facebook Ads, Nokia Inks New 5G Deal & More

    While Verizon (VZ) boycotts advertising campaigns in the social media platform of Facebook, Nokia (NOK) secures 5G deal with Taiwan Mobile.

  • U.S. Auto Sales Fail to Recover in Q2: More Pain Ahead?
    Zacks

    U.S. Auto Sales Fail to Recover in Q2: More Pain Ahead?

    Moody's forecasts global auto sales decline of at least 20% year over year in 2020, with major impacts to be felt in North America and EMEA.

  • Sustainable Investment Forms Part of the New Normal: 5 Picks
    Zacks

    Sustainable Investment Forms Part of the New Normal: 5 Picks

    ESG policies and practices yielded positive outcomes during the coronavirus slump. Also, millennials-driven sustainable investing trend will continue post-pandemic.

  • General Motors Clinches $223M Lucrative U.S. Army Contract
    Zacks

    General Motors Clinches $223M Lucrative U.S. Army Contract

    General Motors' (GM) latest contract is for the first batch of 649 such vehicles, while the overall approved requisition objective is for 2,065 vehicles over the next decade.

  • Wells Fargo Hits Brakes on Student Loans Amid School Disruption
    Bloomberg

    Wells Fargo Hits Brakes on Student Loans Amid School Disruption

    (Bloomberg) -- Wells Fargo & Co. is pulling back from student lending as the U.S. surge in coronavirus cases threatens to further disrupt higher education and the broader U.S. economy.The firm, which has been reviewing businesses under new Chief Executive Officer Charlie Scharf, said student loans for the upcoming academic year will be granted only to people who submitted applications before July 1 or to customers who already have an outstanding balance on a prior student loan from the bank.“Wells Fargo has decided to narrow its student-lending focus,” Manuel Venegas, a spokesperson for the bank, said in a statement.The pandemic is disrupting academic programs and undermining the ability of many borrowers to repay as it halts commerce and costs tens of millions of Americans their jobs. Already, more than 40 million student-loan accounts were in deferment as of mid-June, according to Equifax.San Francisco-based Wells Fargo had a $10.6 billion private student-loan book at the end of the first quarter -- a portfolio that’s been shrinking in recent years. Private makes up about $130 billion of the $1.7 trillion student-debt pie, according to data provider MeasureOne.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • GlobeNewswire

    SHAREHOLDER ALERT: CLAIMSFILER REMINDS ELAN, FSCT, R, WFC INVESTORS of Lead Plaintiff Deadline in Class Action Lawsuits

    NEW ORLEANS, July 03, 2020 -- ClaimsFiler, a FREE shareholder information service, reminds investors of pending deadlines in the following securities class action lawsuits:.

  • GuruFocus.com

    Tesla Still Amazes Nonbelievers

    Why is a car manufacturer getting a highly absurd valuation? Continue reading...

  • GM's China sales drop 5% in second quarter, underperforms industry recovery
    Reuters

    GM's China sales drop 5% in second quarter, underperforms industry recovery

    General Motors Co's <GM.N> vehicle sales in China dropped 5.3% between April and June from the corresponding period last year, underperforming the industry average amid a recovery from the coronavirus fallout on the world's biggest auto market. China's overall figure, which includes passenger and commercial vehicles, rose 4.4% in April and 14.5% in May, said the China Association of Automobile Manufacturers (CAAM), adding that it expected auto sales to grow 11% in June. GM, China's second-biggest foreign automaker after Volkswagen AG <VOWG_p.DE>, delivered 713,600 vehicles in the country in the second quarter, the company said in a statement, after reporting a drop of 43% in sales in the first quarter, due to the pandemic.

  • Reuters

    GM delivered 713,600 units in Q2 in China, down 5% y/y

    General Motors Co's vehicle sales in China fell at a slower pace of 5.3% between April and June compared with the same period last year, as the Detroit automaker's China operations recover from coronavirus-induced lows. GM, China's second-biggest foreign automaker, delivered 713,600 vehicles in the country in the second quarter this year, the company said in a statement, after it reported a 43% sales drop in the first quarter due to the pandemic.

  • Barrons.com

    The Unemployment Rate Is “Grossly” Understated. Here’s Why.

    An 11% jobless rate doesn’t square with the number of people filing for unemployment insurance. Plus, market commentary on the muni market outlook, auto stocks, fiscal stimulus, and consequences of a Blue election wave.

  • Were Hedge Funds Right About Piling Into Visa Inc (V)?
    Insider Monkey

    Were Hedge Funds Right About Piling Into Visa Inc (V)?

    We are almost done with the second quarter. Investors decided to bet on the economic recovery and a stock market rebound. S&P 500 Index returned almost 20% this quarter. In this article we look at how hedge funds traded Visa Inc (NYSE:V) and determine whether the smart money was really smart about this stock. Is […]

  • Were Hedge Funds Right About Souring On Wells Fargo & Company (WFC)?
    Insider Monkey

    Were Hedge Funds Right About Souring On Wells Fargo & Company (WFC)?

    We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]

  • Were Hedge Funds Right About Selling The Procter & Gamble Company (PG)?
    Insider Monkey

    Were Hedge Funds Right About Selling The Procter & Gamble Company (PG)?

    We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]

  • WFC ALERT: The Klein Law Firm Announces a Lead Plaintiff Deadline of August 3, 2020 in the Class Action Filed on Behalf of Wells Fargo & Company Limited Shareholders
    Newsfile

    WFC ALERT: The Klein Law Firm Announces a Lead Plaintiff Deadline of August 3, 2020 in the Class Action Filed on Behalf of Wells Fargo & Company Limited Shareholders

    New York, New York--(Newsfile Corp. - July 2, 2020) - The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Wells Fargo & Company (NYSE: WFC) alleging that the Company violated federal securities laws.Class Period: April 5, 2020 and May 5, 2020Lead Plaintiff Deadline: August 3, 2020Learn more about your recoverable losses in DNK:http://www.kleinstocklaw.com/pslra-1/wells-fargo-company-loss-submission-form?id=7750&from=5The filed complaint alleges that Wells Fargo & Company made materially false and/or ...

  • Were Hedge Funds Right About Betting On Verizon Communications Inc. (VZ)?
    Insider Monkey

    Were Hedge Funds Right About Betting On Verizon Communications Inc. (VZ)?

    We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]