Well, maybe not hates, but he sure doesn't love them right now. --------------------------------------------------------------------------------------------------
Buffett Thinks Stocks Are Gross(ly Overvalued)
| | | "Diversification is protection against ignorance," Warren Buffett once said. "It makes very little sense for those who know what they're doing." Yet the Oracle of Omaha just plunked a cool $25 million or so of his stock holdings into broad-market index ETFs — suggesting that he'd rather park at least a sliver of his vast holdings in an investment he considers basic than keep it in individual stocks. Buffett's Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) released its latest list of stocks it's bought and sold, and the changes amount to a great big raspberry in the direction of Wall Street's current lofty valuations. While Buffett bought around $1.5 billion in equities, he sold another $7 billion or so, leaving the company with a record $128 billion piled up in cash. Worse yet, the companies Buffett sold suggest he's losing confidence in the U.S. and global economies. To learn more about which companies Buffett bought and sold, and what that might signal for your own investments, read the rest. | |
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| | | In this video, we'll explain what dividend yields are, how to calculate them, how to figure out whether a company can keep paying its dividend, and how to spot the best dividend stocks. | |
Amazon's Rising Shipping Costs Pressure Prime Pricing Amazon.com (NASDAQ: AMZN) looks like a victim of its own success. The number of subscribers to its Prime program, a proven sales-booster that offers members free one- or two-day shipping and other perks, jumped by roughly 50% in 2019, to 150 million members worldwide. Unfortunately for Amazon, it costs money to ship all of those extra packages — perhaps more money than the company's making from Prime itself. Year over year, the number of packages Amazon shipped to Prime members quadrupled in its most recent fourth quarter. (How all those trucks and planes pumping carbon into the atmosphere square with CEO Jeff Bezos's recent $10 billion commitment to fight climate change, we dunno.) But shipping costs also rose 43% in Q4, and 37% for the full year, against a smaller — but still gargantuan! — 21% jump in quarterly revenue. When shipping costs rise twice as fast as sales, something's gotta give. And by "something," we mean "Amazon Prime membership prices," and by "give," we mean "increase." For more on how this surge in shipping might (or might not) affect Amazon's fortunes, read the rest.
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3 Myths of the Cloud vs. Console Gaming War Since the hallowed days of the Atari, most home video games have been played on a console hooked up to the TV. (Or, fine, on a computer, lest we get yelled at by legions of PC gamers.) But now a fleet of new services aim to cut out the console partially or entirely, instead streaming games from the cloud. Remote servers run the games; with a fast enough connection, gamers can receive video from that hardware and send commands to it via their controllers. Just as streaming services have overtaken physical media in music and movies, a lot of investors assume they'll do the same for video games. But they might be mistaken. We've rounded up three key assumptions people are making about the future of cloud gaming, the better to puncture them: - Cloud gaming is cheaper than consoles. A breakdown of actual costs over time suggests that's not the case.
- Cloud gaming has advantages consoles don't. Mobile games already lay claim to cloud gaming's convenience and low up-front costs, while consoles still pack a lot more hardware power than their streaming counterparts.
- Movies and music did it, so why not games? Allow us to introduce you to a delightful concept known as "Internet provider data caps."
For all the details on why these three suppositions don't hold up to scrutiny, read the rest.
| | | How does a routine become habit-forming? One important part is figuring out a reward for the routine itself. For example, as Charles Duhigg (best-selling author of The Power of Habit) explains, the reward for brushing your teeth is not necessarily what you think it is. | |
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