Money Morning Staff
Warren Buffett's Takeover Targets: Grab Shares Now…Get Rich When Berkshire Buys
Iconic investor and Chairman and Chief Executive Officer of Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) Warren Buffett announced that his company was eyeing acquisition targets, sending many "follow the guru" investors on a search for the next big takeover.
Berkshire's cash rose to a three-year high of $38.2 billion and Buffett said the firm was on the prowl for new buyouts.
"We will need more good performance from our current businesses and more major acquisitions," wrote Buffett. "We're prepared. Our elephant gun has been reloaded, and my trigger finger is itchy."
This Data-Security Sector Stock Has Gained 21.5% in Two Weeks… With Lots More to Come
Tags: data-security sector
'Occupy Wall Street' Protests Wear On for 10th Day
For more than a week now hundreds of citizens have "occupied" Wall Street in an effort to protest the financial system and the coddling of big banks.
Protestors have been present at Zuccotti Park near Wall Street since Sept. 17. The goal is to "flood into lower Manhattan, set up beds, kitchens, peaceful barricades and occupy Wall Street for a few months," according to "Occupy Wall Street," the group behind the show of civil disobedience.
The Wall Street protests started out quietly enough, but gained national media attention when allegations of police brutality surfaced. Several videos on the group's Web site show police officers using pepper spray on passive activists.
In many ways, the protests seem long overdue. Since the economy collapsed in 2008, thousands of protesters have descended on Washington at various times to protest government spending and bailouts. However, the financial firms behind the collapse of the global economy have managed to evade accountability with savvy PR and extensive lobbying efforts.
The Dodd-Frank Financial Reform and Consumer Protection Act did little to rein in large U.S. banks, and many of the largest corporations in America continue to dodge taxes through creative accounting.
Just last month, Rolling Stone reported on malfeasance and corruption at the Securities and Exchange Commission (SEC).
The SEC allegedly destroyed the files of some 18,000 investigations, thus whitewashing the records of countless financial firms and Wall Street players – some of whom played a key role in the financial collapse of 2008.
Protestors in New York carried signs bearing slogans such as: "End Corporate Personhood," and "How Do We End the Deficit? End the War, Tax the Rich."
Many of the protesters are young, not surprisingly. Youth unemployment stands at 18% — double the national rate. Furthermore, it's the younger generations of America that will suffer the most from cuts to federal spending. Social Security, Medicare and other benefits have all been jeopardized by previous generations, who overspent on tax cuts, entitlements, and wars.
"There's a major divide between the rich and the poor in this country," protestor Alexander Holmes, 26, told the New York Times, summing up his frustration. "One in 10 people are unemployed and my vote is nullified by corporate lobbyists."
News and Related Story Links:
- Money Morning:
The Insidious Truth About Federal Reserve Policy
Money Morning's Fitz-Gerald on Global Implications of Japan Disaster
Fears of a nuclear catastrophe in Japan caused the Nikkei 225 Index to suffer its worst two-day losses in 25 years this week, but stocks rallied back 5.7% today (Wednesday). The Dow Jones Industrial Average fell 242 points today to close at 11,613.30. Money Morning Chief Investment Strategist Keith Fitz-Gerald joined FoxBusiness' "Bulls & Bears" [...]
Commodities, "BEE" Markets and Multinational Stocks Are Best Investments For 2011
[Editor's Note: This is the first installment of a two-part interview with Money Morning Chief Investment Strategist Keith Fitz-Gerald, during which the investing veteran explores the state of the U.S. economy, stock market and commodities prices. The second part appears tomorrow (Friday).]
The U.S. recovery will continue this year, and U.S. stocks will continue to advance, though investors can expect whipsaw trading patterns and must beware of the point when the U.S. Federal Reserve ends the cheap-money mindset that's fueling the advances, says Money Morning Chief Investment Strategist Keith Fitz-Gerald.
But uncertainty also brings opportunity, and Fitz-Gerald sees tremendous profit potential for those who are willing to remain invested – and who have the courage to make opportune choices. Commodities of all types, so-called "BEE" (Big Emerging Economy) markets and the stocks of companies that derive a major portion of their sales from these fast-growing overseas economies should be on everyone's investment menu.
And don't ignore multinational stocks from your own backyard: While it might surprise many investors to discover this, many U.S.-based companies are major players abroad, Fitz-Gerald says.
"I see the markets generally rising until mid-2011, which is when the reality of stimulus spending, the looming budget battle and fiscal follies set in. I believe that 15% is not out of the question, though not all in a straight line and not all at once," says Fitz-Gerald, a former professional trade advisor and best-selling author who is a regular contributor to Money Morning.
In a wide-ranging interview with Money Morning Executive Editor William Patalon III, Fitz-Gerald assessed the health of the U.S. and global economies, provided his outlook for the U.S. stock market, and for commodity prices, and even offered a fix-it plan that Washington would do well to take note of.
To read the text of Keith Fitz-Gerald's interview, please read on…
Money Morning's Keith Fitz-Gerald To Address State of the Union in Second Fox Business Appearance This Week
Money Morning Chief Investment Strategist Keith Fitz-Gerald is scheduled to appear today (Wednesday) as a guest on the hour-long Varney & Co. show on Fox Business News.
On that show, which begins at 9:30 a.m. (EST), Fitz-Gerald is tentatively scheduled to sit in for co-anchor Chris Cotter, and to talk about State of the Union issues with company "co-members" Charlie Payne and Tracy Byrnes. The list of guests is currently scheduled to include:
Available CBOE Weeklys
[Editor's Note: The following is a list of Weekly Options available for trade on the Chicago Board Options Exchange (CBOE). To read a story about so-called "Weeklys" - how they work and how they benefit investors – please click here.]
Standard options have long offered a more flexible way to invest. But a relatively new product called Weekly Options, or "Weeklys," gives investors an even more efficient way to use leverage and target profits. As of Jan. 5, there were 40 underlying assets – including stocks, exchange-traded funds, and indexes – available as Weekly Options on the Chicago Board Options Exchange (CBOE).
Answer Our Question of the Week: Is This a True Bull Market?
Money Morning Contributing Writer Jon D. Markman has been saying it every week now: The bulls have it! Between the New York Stock Exchange continuously reaching new highs, the Dow Jones Industrial Average rising up along its eight-day average (see chart), and a rebounding retail sector, there's reason to celebrate what appears to be a market recovery offering investors a profit.
We Want To Hear From You: Time to Answer the Question of the Week
With the inaugural installment of our new "Money Morning Question of the Week" feature under our belts, we are extremely excited about the insightful and passionate responses our readers continue to share on the topic of health care. We are dedicated to reporting and sharing cutting edge news and information with you, and we think feedback is a necessary part of making this process as successful as possible.
Please take some time to ponder this week's question, and share any thoughts, concerns or questions you have about U.S. debt. Some fear it, some are angered by it, and others are finding ways to profit from it. We want to know what you think about our country's situation and how it will affect you in all the positions you may hold – taxpayer, employee, business owner or investor.
Check back here later this week as we post the answers and pose a new question for discussion – don't be shy, we are ready and waiting to hear what you have to say!
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