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CPCat
CPCat
·
2022-08-28
Unfortunately majority just knee jerseys... but this article is so right.
Why Investors Should Ignore the Fed, Interest Rates, and Most News
The stock market often makes big moves based on short-term news. When Jerome Powell mentions that in
Why Investors Should Ignore the Fed, Interest Rates, and Most News
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CPCat
CPCat
·
2022-08-15
Good... the headlines gave me a fright!
Did Warren Buffett Really Lose Almost $44 Billion in 3 Months?
The Oracle of Omaha's company reported an eye-popping second-quarter loss -- but not all is what it seems.
Did Warren Buffett Really Lose Almost $44 Billion in 3 Months?
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CPCat
CPCat
·
2022-08-10
The 30% y-o-y projected growth is good, if it happens...
Palantir: Taking Over The World
SummaryInvestors probably shouldn't count pennies regarding Palantir and its earnings results.Instea
Palantir: Taking Over The World
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CPCat
CPCat
·
2022-08-09
Good learning on how to profit from a "flat" stock.
Options Strategies: Covered Calls & Covered Puts
Learn the basics of covered calls and covered puts, and when to use them to manage your risks when t
Options Strategies: Covered Calls & Covered Puts
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CPCat
CPCat
·
2022-07-30
Hope that H2 will really recover.
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CPCat
CPCat
·
2022-07-11
Hope there won't be another prolonged lock down...
Alibaba Falls 6%, Nio Sheds 4%: What's Weighing On Hong Kong Stocks Today
Shares of U.S.-listed Chinese companies were trading lower in Hong Kong on Monday, with major tech s
Alibaba Falls 6%, Nio Sheds 4%: What's Weighing On Hong Kong Stocks Today
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CPCat
CPCat
·
2022-07-04
In this case, better yo buy BRK.B instead?
Why Buffett is Buying Occidental Petroleum Stock
Berkshire Hathaway is executing a slow-motion takeover of Occidental Petroleum.Berkshire owns 16.4%
Why Buffett is Buying Occidental Petroleum Stock
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CPCat
CPCat
·
2022-06-28
Excellent article. Good learnings on how to employ options to maximize profits.
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CPCat
CPCat
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2022-06-20
Good strategy.
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CPCat
CPCat
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2022-06-15
Still far from old days... :-)
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majority just knee jerseys... but this article is so right.","listText":"Unfortunately majority just knee jerseys... but this article is so right.","text":"Unfortunately majority just knee jerseys... but this article is so right.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9994510522","repostId":"2262977847","repostType":4,"repost":{"id":"2262977847","kind":"highlight","pubTimestamp":1661561509,"share":"https://ttm.financial/m/news/2262977847?lang=&edition=full_marsco","pubTime":"2022-08-27 08:51","market":"us","language":"en","title":"Why Investors Should Ignore the Fed, Interest Rates, and Most News","url":"https://stock-news.laohu8.com/highlight/detail?id=2262977847","media":"TheStreet","summary":"The stock market often makes big moves based on short-term news. When Jerome Powell mentions that in","content":"<html><head></head><body><p>The stock market often makes big moves based on short-term news. When Jerome Powell mentions that interest rates may continue to rise to combat inflation, the Dow and Nasdaq generally drop -- unless they don't because people expected worse or assume that the news was already priced into the market.</p><p>It's an inexact science where people make reactionary moves that send markets up or down based on some sort of prevailing wisdom. Basically, people take short-term news and conflate it to have long-term meaning.</p><p>The media -- of which I have been a member for roughly 30 years -- do not generally help calm the short-term hysteria.</p><p>People don't get paid to go on cable-news channels to express<b> </b>reasoned long-term opinions. They're supposed to fire off hot takes, which make it seem as if the Fed's rate move or the monthly jobs number has a huge<b> </b>impact on the stock market.</p><p>In reality, broader economic conditions clearly have an impact on individual stocks, but that's not nearly as simple as people would have you believe.</p><p>For example, a weakening economy might be worse for <a href=\"https://laohu8.com/S/AAPL\">Apple</a> because people might be wary of buying expensive new phones. Or the same economy could benefit Apple because consumers will hold back on vacations, new cars, and other expensive purchases and spend on more-affordable luxuries like streaming TV, music, and fitness, or maybe even a new phone, which is a lot cheaper than many vacations.</p><h2>Short-Term Stock Market Moves Don't Much Matter</h2><p>A lot of people day-trade and try to guess how the market might perform day-to-day or even hour-to-hour. Long-term investors buy good companies and hold them for years. That's how the average person can build wealth, and it's a strategy that does not depend on you trying to figure out what Federal Reserve Chairman Jerome Powell's comment or any Fed move means at a micro level.</p><p>Instead, every news report is a piece of a bigger puzzle. Yes, the country's long-term financial health tells you things about how various companies will perform, but isolated data points generally mean very little.</p><p>If we go back to looking at Apple, for example, the company's quarterly earnings reports often show double-digit growth in every category -- and the stock price falls after the report. Sometimes that's because investors expected more or analysts didn't like the outlook management described. But you can't judge companies based on one quarter.</p><p>When you assess an earnings report, you have to compare it with the company's long-term road map. Did Apple, for example, grow service revenue, something the tech giant has been working on for years? Are long-term sales goals being met even if they're not happening in exactly the way the company thought they might?</p><p>For example, when Apple introduces the new iPhone, in September, sales may be front-loaded or people may wait a few weeks, until the holiday season, before they buy. In a broader sense, many customers may wait until their current phone gets paid off. It's a 12-month cycle where the destination, not how you get there, matters.</p><h2>So Much Noise, So Little News</h2><p>It's a 24-hour/7-day-a-week news cycle, and media outlets tied to that wheel can't tell you that what's happening in the moment is one data point of many, not a meaningful, actionable item on its own.</p><p>Higher interest rates, for example, mean higher mortgage rates, which in turn could slow the housing market and bring prices down (or at least slow their growth).</p><p>That's not a simple equation. Cheaper sale prices with higher mortgage rates might increase affordability for buyers but they also slow wealth creation for sellers.</p><p>Both are interesting data points when you look at lots of different stocks, but evaluating a company's prospects is much more about how its management executes a plan while adjusting for economic conditions.</p><p><a href=\"https://laohu8.com/S/PTON\">Peloton</a> and <a href=\"https://laohu8.com/S/NFLX\">Netflix</a>, for example, have taken very different approaches to the end of the pandemic-driven boom.</p><p>Netflix always talked about how it was pulling growth forward, warning that at some point there would be quarters with slight drops. The company explained how it would get more efficient with its content spending and focus on new areas like video games to drive growth.</p><p>You can believe that strategy will work -- I'm bullish on more focused content spending and I think games are lighting money on fire. But how the company executes on its clearly explained strategy means a lot more to its future than an interest rate move or whether <a href=\"https://laohu8.com/S/DIS\">Disney</a> has an Avengers movie in theaters at this exact moment.</p><p>Peloton, for its part, has never really articulated a plan for a return to growth after the pandemic pushed forward its customer acquisition. Yes, the broader economy matters more to Peloton than it does to Netflix, but you should buy, sell, or ignore the company's stock based on whether you believe in its long-term business plan, not because the cost of financing a bike just got marginally more expensive.</p><p>The media want to keep things simple. That's why the weatherperson tells you it's going to snow, how much may fall, and what the temperature will be, not the underlying science that leads to those things happening.</p><p>It's easy to conflate single data points to stock market moves because when we get data, the market moves, but those moves don't actually speak to long-term performance.</p><p>When you consider investing in a company or selling a stock you own, look at as many data points as you can, and don't make blanket assumptions that higher interest rates or a weaker economy are bad (or good) for that company.</p><p>Remember that charts, numbers, expert opinions, and everything else are tools to help you understand the bigger picture. No one of them is the last word.</p></body></html>","source":"thestreet_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Investors Should Ignore the Fed, Interest Rates, and Most News</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Investors Should Ignore the Fed, Interest Rates, and Most News\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-08-27 08:51 GMT+8 <a href=https://www.thestreet.com/investing/why-investors-should-ignore-the-fed-interest-rates-and-most-news><strong>TheStreet</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The stock market often makes big moves based on short-term news. When Jerome Powell mentions that interest rates may continue to rise to combat inflation, the Dow and Nasdaq generally drop -- unless ...</p>\n\n<a href=\"https://www.thestreet.com/investing/why-investors-should-ignore-the-fed-interest-rates-and-most-news\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.thestreet.com/investing/why-investors-should-ignore-the-fed-interest-rates-and-most-news","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2262977847","content_text":"The stock market often makes big moves based on short-term news. When Jerome Powell mentions that interest rates may continue to rise to combat inflation, the Dow and Nasdaq generally drop -- unless they don't because people expected worse or assume that the news was already priced into the market.It's an inexact science where people make reactionary moves that send markets up or down based on some sort of prevailing wisdom. Basically, people take short-term news and conflate it to have long-term meaning.The media -- of which I have been a member for roughly 30 years -- do not generally help calm the short-term hysteria.People don't get paid to go on cable-news channels to express reasoned long-term opinions. They're supposed to fire off hot takes, which make it seem as if the Fed's rate move or the monthly jobs number has a huge impact on the stock market.In reality, broader economic conditions clearly have an impact on individual stocks, but that's not nearly as simple as people would have you believe.For example, a weakening economy might be worse for Apple because people might be wary of buying expensive new phones. Or the same economy could benefit Apple because consumers will hold back on vacations, new cars, and other expensive purchases and spend on more-affordable luxuries like streaming TV, music, and fitness, or maybe even a new phone, which is a lot cheaper than many vacations.Short-Term Stock Market Moves Don't Much MatterA lot of people day-trade and try to guess how the market might perform day-to-day or even hour-to-hour. Long-term investors buy good companies and hold them for years. That's how the average person can build wealth, and it's a strategy that does not depend on you trying to figure out what Federal Reserve Chairman Jerome Powell's comment or any Fed move means at a micro level.Instead, every news report is a piece of a bigger puzzle. Yes, the country's long-term financial health tells you things about how various companies will perform, but isolated data points generally mean very little.If we go back to looking at Apple, for example, the company's quarterly earnings reports often show double-digit growth in every category -- and the stock price falls after the report. Sometimes that's because investors expected more or analysts didn't like the outlook management described. But you can't judge companies based on one quarter.When you assess an earnings report, you have to compare it with the company's long-term road map. Did Apple, for example, grow service revenue, something the tech giant has been working on for years? Are long-term sales goals being met even if they're not happening in exactly the way the company thought they might?For example, when Apple introduces the new iPhone, in September, sales may be front-loaded or people may wait a few weeks, until the holiday season, before they buy. In a broader sense, many customers may wait until their current phone gets paid off. It's a 12-month cycle where the destination, not how you get there, matters.So Much Noise, So Little NewsIt's a 24-hour/7-day-a-week news cycle, and media outlets tied to that wheel can't tell you that what's happening in the moment is one data point of many, not a meaningful, actionable item on its own.Higher interest rates, for example, mean higher mortgage rates, which in turn could slow the housing market and bring prices down (or at least slow their growth).That's not a simple equation. Cheaper sale prices with higher mortgage rates might increase affordability for buyers but they also slow wealth creation for sellers.Both are interesting data points when you look at lots of different stocks, but evaluating a company's prospects is much more about how its management executes a plan while adjusting for economic conditions.Peloton and Netflix, for example, have taken very different approaches to the end of the pandemic-driven boom.Netflix always talked about how it was pulling growth forward, warning that at some point there would be quarters with slight drops. The company explained how it would get more efficient with its content spending and focus on new areas like video games to drive growth.You can believe that strategy will work -- I'm bullish on more focused content spending and I think games are lighting money on fire. But how the company executes on its clearly explained strategy means a lot more to its future than an interest rate move or whether Disney has an Avengers movie in theaters at this exact moment.Peloton, for its part, has never really articulated a plan for a return to growth after the pandemic pushed forward its customer acquisition. Yes, the broader economy matters more to Peloton than it does to Netflix, but you should buy, sell, or ignore the company's stock based on whether you believe in its long-term business plan, not because the cost of financing a bike just got marginally more expensive.The media want to keep things simple. That's why the weatherperson tells you it's going to snow, how much may fall, and what the temperature will be, not the underlying science that leads to those things happening.It's easy to conflate single data points to stock market moves because when we get data, the market moves, but those moves don't actually speak to long-term performance.When you consider investing in a company or selling a stock you own, look at as many data points as you can, and don't make blanket assumptions that higher interest rates or a weaker economy are bad (or good) for that company.Remember that charts, numbers, expert opinions, and everything else are tools to help you understand the bigger picture. No one of them is the last word.","news_type":1,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9}},"isVote":1,"tweetType":1,"viewCount":1893,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9999466553,"gmtCreate":1660572472075,"gmtModify":1676535357063,"author":{"id":"3582520228861009","authorId":"3582520228861009","name":"CPCat","avatar":"https://static.tigerbbs.com/3bafaf3d39abfb78a4bedf785310721a","crmLevel":11,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3582520228861009","idStr":"3582520228861009"},"themes":[],"htmlText":"Good... the headlines gave me a fright!","listText":"Good... the headlines gave me a fright!","text":"Good... the headlines gave me a fright!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9999466553","repostId":"2259015474","repostType":2,"repost":{"id":"2259015474","kind":"highlight","pubTimestamp":1660555476,"share":"https://ttm.financial/m/news/2259015474?lang=&edition=full_marsco","pubTime":"2022-08-15 17:24","market":"us","language":"en","title":"Did Warren Buffett Really Lose Almost $44 Billion in 3 Months?","url":"https://stock-news.laohu8.com/highlight/detail?id=2259015474","media":"Motley Fool","summary":"The Oracle of Omaha's company reported an eye-popping second-quarter loss -- but not all is what it seems.","content":"<html><head></head><body><p>It's been an "interesting" year on Wall Street. I say interesting with quotes because we've witnessed some truly unprecedented economic data and headlines. In no particular order, we've:</p><ul><li>Watched the U.S. inflation rate soar to levels not seen since the early days of the Reagan administration.</li><li>Seen Russia's invasion of Ukraine cripple an already fragile energy supply chain.</li><li>Borne witness to back-to-back quarters of U.S. gross domestic product declines that hasn't officially been labeled as a recession.</li><li>Witnessed the Federal Reserve begin a monetary tightening cycle with the stock market in a notable decline.</li></ul><p>As if this wasn't enough, Wall Street was graced with an eye-popping headline following the release of <b>Berkshire Hathaway</b>'s (BRK.A 1.66%) (BRK.B 1.71%) earnings report on Aug. 6, 2022. In the three months ended June 30, 2022, Berkshire Hathaway lost -- and I hope you're sitting down for this -- $43.76 billion dollars.</p><p>How on Earth did Berkshire CEO Warren Buffett, one of the greatest investors of our generation, manage to lose almost $44 billion in three months' time? Let me spoil it for you: All is not what it seems in Berkshire's quarterly earnings report.</p><p><img src=\"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F695508%2Fwarren-buffett-motley-fool6-brka-brkb-berkshire.jpg&w=700&op=resize\" tg-width=\"700\" tg-height=\"467\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"/></p><p>Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.</p><h2>Berkshire Hathaway's historic quarterly loss isn't what it seems</h2><p>Back in 2016, the Financial Accounting Standards Board passed new measures aimed at making corporate income statements, and generally accepted accounting principles (GAAP) reporting, more transparent for investors. One of these measures, ASU 2016-01 ("Recognition and Measurement of Financial Assets and Financial Liabilities"), eliminated the need to classify various categories of equity investments and, instead, required that equity investments be measured at fair value. This meant that changes in equity investments from one quarter to the next would be recognized as net income, or a net loss. Berkshire Hathaway officially adopted this accounting change in its reporting beginning in 2018.</p><p>In simpler terms, the closing price of Warren Buffett's investments on March 31, 2022 represented their fair value at the end of the first quarter. Comparably, the closing price of securities on June 30, 2022 represented their fair value at the end of the second quarter. In addition to counting the realized gains and losses recognized by selling stocks, ASU 2016-01 requires Buffett's company to recognize the unrealized gains and losses as a result of share price movements in its investment portfolio from one quarter to the next.</p><p>During the second quarter, the three major U.S. stock indexes were pummeled. The timeless <b>Dow Jones Industrial Average</b>, broad-based <b>S&P 500</b>, and tech-centric <b>Nasdaq Composite</b> respectively plunged by 11.3%, 16.5%, and 22.4% in a three-month stretch. Not surprisingly, Berkshire Hathaway's investment portfolio took it on the chin as well. This resulted in a staggering "loss" of $66.9 billion from investments and derivative contracts in just three months, and the aforementioned net loss of almost $44 billion for the second quarter.</p><p><img src=\"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F695508%2Finvestor-looking-at-financials-magnifying-glass-getty.jpg&w=700&op=resize\" tg-width=\"700\" tg-height=\"467\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"/></p><p>Image source: Getty Images.</p><h2>Warren Buffett's company is as strong as ever</h2><p>Did Warren Buffett lose close to $44 billion in three months? On paper, and based on financial requirements, yes. But when looking at what counts, this was another successful quarter for the Oracle of Omaha and his company.</p><p>To begin with, Warren Buffett and his investing lieutenants, Todd Combs and Ted Weschler, aren't traders. While they might chase the rare arbitrage play or high-yielding stock in an inflationary environment, most of Berkshire Hathaway's more than four dozen holdings are longer-term investments. In fact, the Oracle of Omaha has continuously held 15 stocks for at least a decade. Stocks are always going to ebb and flow, which makes unrealized gains and losses something of a moot point in Berkshire Hathaway's quarterly operating results.</p><p>A far better measure of Warren Buffett's success as an investor can be found in his annual letter to shareholders. In that letter, investors can see that Berkshire Hathaway's Class A shares (BRK.A) have averaged a 20.1% annual return since the Oracle of Omaha became CEO in 1965. Imagine averaging a 20.1% annual return for 57 years!</p><p>To add, "unrealized losses" is simply another phrase that means opportunity for Warren Buffett. A declining stock market provides the Oracle of Omaha and his investing team with the opportunity to deploy their mammoth cash pile into stocks, acquisitions, or even share buybacks. The plunging stock market during the second quarter allowed Buffett to buy $57.3 billion worth of equity securities, as well as $1 billion worth of the company's Class A and B common stock. Buffett and his right-hand man Charlie Munger have overseen $62.1 billion in aggregate stock buybacks since July 2018.</p><p>Another thing for investors to note is that Berkshire Hathaway's over five dozen owned entities performed extremely well during the challenging second quarter (Q2). Total insurance earnings hit $3 billion, which was up from $1.9 billion in Q2 2021, while railroad BNSF saw its quarterly profit rise to $2.15 billion from $1.98 billion in the prior-year quarter. All told, Berkshire Hathaway's operating businesses increased their net income to $10 billion in Q2 2022 from $8.6 billion in the prior-year period.</p><p>Sure, Warren Buffett oversaw a nearly $44 billion "loss" in the second quarter. However, his company is as strong as it's ever been.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Did Warren Buffett Really Lose Almost $44 Billion in 3 Months?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDid Warren Buffett Really Lose Almost $44 Billion in 3 Months?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-08-15 17:24 GMT+8 <a href=https://www.fool.com/investing/2022/08/15/did-warren-buffett-really-lose-44-billion-3-months/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It's been an \"interesting\" year on Wall Street. I say interesting with quotes because we've witnessed some truly unprecedented economic data and headlines. In no particular order, we've:Watched the U....</p>\n\n<a href=\"https://www.fool.com/investing/2022/08/15/did-warren-buffett-really-lose-44-billion-3-months/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BRK.B":"伯克希尔B","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4538":"云计算","BK4176":"多领域控股","BRK.A":"伯克希尔","ORCL":"甲骨文","BK4550":"红杉资本持仓","BK4528":"SaaS概念","BK4097":"系统软件","BK4534":"瑞士信贷持仓","BK4516":"特朗普概念","BK4581":"高盛持仓"},"source_url":"https://www.fool.com/investing/2022/08/15/did-warren-buffett-really-lose-44-billion-3-months/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2259015474","content_text":"It's been an \"interesting\" year on Wall Street. I say interesting with quotes because we've witnessed some truly unprecedented economic data and headlines. In no particular order, we've:Watched the U.S. inflation rate soar to levels not seen since the early days of the Reagan administration.Seen Russia's invasion of Ukraine cripple an already fragile energy supply chain.Borne witness to back-to-back quarters of U.S. gross domestic product declines that hasn't officially been labeled as a recession.Witnessed the Federal Reserve begin a monetary tightening cycle with the stock market in a notable decline.As if this wasn't enough, Wall Street was graced with an eye-popping headline following the release of Berkshire Hathaway's (BRK.A 1.66%) (BRK.B 1.71%) earnings report on Aug. 6, 2022. In the three months ended June 30, 2022, Berkshire Hathaway lost -- and I hope you're sitting down for this -- $43.76 billion dollars.How on Earth did Berkshire CEO Warren Buffett, one of the greatest investors of our generation, manage to lose almost $44 billion in three months' time? Let me spoil it for you: All is not what it seems in Berkshire's quarterly earnings report.Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.Berkshire Hathaway's historic quarterly loss isn't what it seemsBack in 2016, the Financial Accounting Standards Board passed new measures aimed at making corporate income statements, and generally accepted accounting principles (GAAP) reporting, more transparent for investors. One of these measures, ASU 2016-01 (\"Recognition and Measurement of Financial Assets and Financial Liabilities\"), eliminated the need to classify various categories of equity investments and, instead, required that equity investments be measured at fair value. This meant that changes in equity investments from one quarter to the next would be recognized as net income, or a net loss. Berkshire Hathaway officially adopted this accounting change in its reporting beginning in 2018.In simpler terms, the closing price of Warren Buffett's investments on March 31, 2022 represented their fair value at the end of the first quarter. Comparably, the closing price of securities on June 30, 2022 represented their fair value at the end of the second quarter. In addition to counting the realized gains and losses recognized by selling stocks, ASU 2016-01 requires Buffett's company to recognize the unrealized gains and losses as a result of share price movements in its investment portfolio from one quarter to the next.During the second quarter, the three major U.S. stock indexes were pummeled. The timeless Dow Jones Industrial Average, broad-based S&P 500, and tech-centric Nasdaq Composite respectively plunged by 11.3%, 16.5%, and 22.4% in a three-month stretch. Not surprisingly, Berkshire Hathaway's investment portfolio took it on the chin as well. This resulted in a staggering \"loss\" of $66.9 billion from investments and derivative contracts in just three months, and the aforementioned net loss of almost $44 billion for the second quarter.Image source: Getty Images.Warren Buffett's company is as strong as everDid Warren Buffett lose close to $44 billion in three months? On paper, and based on financial requirements, yes. But when looking at what counts, this was another successful quarter for the Oracle of Omaha and his company.To begin with, Warren Buffett and his investing lieutenants, Todd Combs and Ted Weschler, aren't traders. While they might chase the rare arbitrage play or high-yielding stock in an inflationary environment, most of Berkshire Hathaway's more than four dozen holdings are longer-term investments. In fact, the Oracle of Omaha has continuously held 15 stocks for at least a decade. Stocks are always going to ebb and flow, which makes unrealized gains and losses something of a moot point in Berkshire Hathaway's quarterly operating results.A far better measure of Warren Buffett's success as an investor can be found in his annual letter to shareholders. In that letter, investors can see that Berkshire Hathaway's Class A shares (BRK.A) have averaged a 20.1% annual return since the Oracle of Omaha became CEO in 1965. Imagine averaging a 20.1% annual return for 57 years!To add, \"unrealized losses\" is simply another phrase that means opportunity for Warren Buffett. A declining stock market provides the Oracle of Omaha and his investing team with the opportunity to deploy their mammoth cash pile into stocks, acquisitions, or even share buybacks. The plunging stock market during the second quarter allowed Buffett to buy $57.3 billion worth of equity securities, as well as $1 billion worth of the company's Class A and B common stock. Buffett and his right-hand man Charlie Munger have overseen $62.1 billion in aggregate stock buybacks since July 2018.Another thing for investors to note is that Berkshire Hathaway's over five dozen owned entities performed extremely well during the challenging second quarter (Q2). Total insurance earnings hit $3 billion, which was up from $1.9 billion in Q2 2021, while railroad BNSF saw its quarterly profit rise to $2.15 billion from $1.98 billion in the prior-year quarter. All told, Berkshire Hathaway's operating businesses increased their net income to $10 billion in Q2 2022 from $8.6 billion in the prior-year period.Sure, Warren Buffett oversaw a nearly $44 billion \"loss\" in the second quarter. However, his company is as strong as it's ever been.","news_type":1,"symbols_score_info":{"BRK.A":1,"BRK.B":0.9,"ORCL":0.9}},"isVote":1,"tweetType":1,"viewCount":1364,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9907347087,"gmtCreate":1660148159152,"gmtModify":1703478425010,"author":{"id":"3582520228861009","authorId":"3582520228861009","name":"CPCat","avatar":"https://static.tigerbbs.com/3bafaf3d39abfb78a4bedf785310721a","crmLevel":11,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3582520228861009","idStr":"3582520228861009"},"themes":[],"htmlText":"The 30% y-o-y projected growth is good, if it happens...","listText":"The 30% y-o-y projected growth is good, if it happens...","text":"The 30% y-o-y projected growth is good, if it happens...","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/9907347087","repostId":"1126896125","repostType":4,"repost":{"id":"1126896125","kind":"news","pubTimestamp":1660141824,"share":"https://ttm.financial/m/news/1126896125?lang=&edition=full_marsco","pubTime":"2022-08-10 22:30","market":"us","language":"en","title":"Palantir: Taking Over The World","url":"https://stock-news.laohu8.com/highlight/detail?id=1126896125","media":"Seeking Alpha","summary":"SummaryInvestors probably shouldn't count pennies regarding Palantir and its earnings results.Instea","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Investors probably shouldn't count pennies regarding Palantir and its earnings results.</li><li>Instead, we should focus on the big picture and consider that Palantir expanded its commercial customer count in the U.S. by 250% YoY.</li><li>Palantir is a dominant, monopolistic style company with significant competitive advantages, an extremely long growth runway, and excellent profitability potential.</li><li>As the company continues to expand operations, grow revenues, and improve profitability, its share price should appreciate considerably in the coming years.</li></ul><p>Palantir Technologies Inc. (NYSE:PLTR) is taking over the world, and you're worried about one earnings announcement? Instead of posting a small profit of three cents per share, Palantir reported a loss of one cent per share. Many investors did not take the news well, and Palantir ended Monday's session down by about 14%. Additionally, Palantir dropped by another 8% by late Tuesday's session.</p><p><img src=\"https://static.tigerbbs.com/577c4de0e0341969c2876744fe70f1e8\" tg-width=\"640\" tg-height=\"676\" referrerpolicy=\"no-referrer\"/></p><p>PLTR(StockCharts.com)</p><p>Moreover, Palantir's stock is still down by about 80% from its ATH, floating around its IPO price from almost two years ago. However, Palantir is a high-growth company with a highly long growth runway. Furthermore, Palantir demonstrates substantial profitability potential and should become increasingly profitable with time. Also, as a Palantir investor, I am more focused on the 250% YoY increase in the U.S. commercial customer count rather than the one-cent loss.</p><p>Palantir is a rapidly growing monopolistic-style company that has the potential to take over the world. No, not literally, but Palantir's software products and services are being adopted by more and more agencies and companies in the U.S. and globally. Therefore, Palantir should continue expanding operations, growing revenues, and increasing profits as the company advances. This dynamic should lead to increased demand for the company's shares, and Palantir's stock price should appreciate considerably in the coming years.</p><p>Palantir is a monopolistic, high-growth company with a remarkably long growth runway and massive profitability potential. Moreover, Palantir has a significant competitive advantage - the U.S. government. U.S. government agencies prefer Palantir, and for a good reason. Before Palantir's solutions, agency databases were "siloed," forcing users to search specific databases individually. Now, everything is linked together using Palantir. For example, thanks to Palantir, the FBI can access critical data from a police department without going through miles of red tape.</p><p>There is some mystery about what Palantir does and what makes the company unique. In essence, Palantir's software combines various operational elements, making them work seamlessly and safely. Palantir could also be viewed as the master of data, and critical information, a remarkably profitable business in this age. Many market participants are too busy "counting pennies" rather than concentrating on the future.</p><p>I've said that Palantir does not need to be profitable now because specific companies (like Palantir) can increase profitability when their growth potential begins running out. For now, it does not matter if Palantir makes a modest profit or reports a slight loss in the greater scheme of things. It is enough that Palantir demonstrates the potential for significant profitability down the line. For now, Palantir should continue focusing on growing customer count, increasing revenues, hiring and retaining top talent, and providing the best products and services in its industry.</p><p>Furthermore, Palantir has worked closely with numerous government agencies for years, adding to the perception that Palantir is the most trustworthy company in its space. Thus, we see the continuous growth and increased interest in Palantir's solutions from commercial clients. Around this time last year, Palantir only had 39 corporate clients in the U.S.; now, that number is 119. In addition, Palantir's products are very sticky and have high switching costs. Therefore, once on Palantir's software, a company should become a long-term consumer of Palantir's products and services.</p><p><b>Q2 - Better Than The Initial Reaction</b></p><p><img src=\"https://static.tigerbbs.com/0e72499fcab454a0ee054156978ddb2c\" tg-width=\"640\" tg-height=\"728\" referrerpolicy=\"no-referrer\"/></p><p>Statement of operations(Investors.palantir.com)</p><p>We continue seeing robust revenue growth while the cost of revenue declines. YoY revenues jumped by 26%, but the cost of revenue increased by only 12%. Gross profit came in at $370.8 million, surging by 30% YoY. Therefore, we see Palantir becoming increasingly profitable with scale. This trend of higher profitability is constructive and should continue, becoming more pronounced as the company continues expanding operations and revenues in future years.</p><p>Additionally, we see a positive trend of lower operating expenses. Sales and marketing grew slightly, R&D declined, and SG&A expenses were roughly flat YoY. In general, operating costs fell by 4% YoY. Additionally, stock-based compensation continues declining, dropping by more than 30%YoY. The adjusted operating margin came in at 23%. The adjusted gross margin came in at approximately 80.8% for the quarter, demonstrating remarkable profitability and massive earnings potential.</p><p><b>Q2 - Remarkable Highlights</b><img src=\"https://static.tigerbbs.com/ba28d5bb7d058c85b3d9b0b35cd2f2cd\" tg-width=\"640\" tg-height=\"361\" referrerpolicy=\"no-referrer\"/></p><p>Q2 highlights(Investors.palantir.com)</p><p>We saw robust YoY revenue growth, with an ever higher 45% growth rate in the U.S. Palantir's commercial business is performing excellently, growing revenues by 46%, with outperformance in the U.S., increasing revenues by a whopping 120% in that crucial market. Moreover, the U.S. commercial customer count exploded by 250% YoY, illustrating incredible demand for Palantir's products and services and implying significant future growth and widespread adoption for Palantir.</p><p><b>Palantir Could Achieve Widespread Adoption</b></p><p>Karp, Palantir's CEO, said that Palantir remains focused on the long term, and so should you if you're a Palantir shareholder.</p><blockquote>"We are working towards a future where all large institutions in the United States and its allies abroad are running significant segments of their operations, if not their operations as a whole, on Palantir." - Alex Karp.</blockquote><p>We must consider that Palantir is in the very early stages of its operations, growth, and profitability. Yet, the company offers the top products and services in its space. If it did not, Palantir probably wouldn't be the contractor of choice for the U.S. government, including the DOD, CIA, NSA, and other intelligence agencies. Moreover, Palantir probably wouldn't be seeing such spectacular growth in the corporate space if its competitors had the upper hand. Furthermore, we see that Palantir has significant competitive advantages. Thus, we can conclude that Palantir could achieve widespread adoption in the corporate world. Suppose Alex Karp is right and large government, civil, and corporate institutions of the U.S. and its allies run significant portions of their operations on Palantir. In that case, the sky is the limit, and Palantir's stock price should advance significantly in the coming years.</p><p>Here's what Palantir's financials could look like in the future:</p><table><tbody><tr><td><b>Year</b></td><td><b>2022</b></td><td><b>2023</b></td><td><b>2024</b></td><td><b>2025</b></td><td><b>2026</b></td><td><b>2027</b></td></tr><tr><td>Revenue $</td><td>2b</td><td>2.6b</td><td>3.4b</td><td>4.4b</td><td>5.7b</td><td>7.3b</td></tr><tr><td>Revenue growth</td><td>30%</td><td>30%</td><td>30%</td><td>30%</td><td>28%</td><td>25%</td></tr><tr><td>Forward P/S ratio</td><td>7</td><td>8</td><td>9</td><td>9</td><td>8</td><td>8</td></tr><tr><td>Price</td><td>$9</td><td>$14</td><td>$21</td><td>$27</td><td>$32</td><td>$40</td></tr></tbody></table><p>Source: The Financial Prophet</p><p>Palantir is trading around seven times forward sales estimates, and the P/S multiple could expand as the company advances. Palantir has a log growth runway, and the company's revenue growth could be around 30% in the coming years. In comparison, Nvidia (NVDA) has slower growth projections, and the stock trades at about 14 times next year's sales estimates. Valuations of ten times sales and higher are widespread in the hardware and software industries.</p><p>Even Microsoft (MSFT), a mature software company, trades at approximately nine times forward sales, more expensive than Palantir. Therefore, we see that Palantir is relatively cheap and could experience multiple expansion as the company advances in future years. Thus, as Palantir continues increasing revenues and improving profitability, its stock could reach the $40 - 50 range within several years.</p><p><b>Risks To Palantir</b></p><p>Despite my bullish outlook for Palantir, market participants should consider several potential risks associated with this investment. While the growth story is strong at Palantir, shares are not cheap by traditional metrics. Furthermore, the company's earnings are still minimal and may not increase as much as I envision. Moreover, if the company's growth picture were to turn less bullish, the stock could head in the wrong direction. For instance, if Palantir lost favor with the government or had a data breach, the stock could experience a notable decline. Please consider these and other risks carefully before investing in Palantir.</p><p><b>Are You Getting The Returns You Want?</b></p><ul><li>Invest alongside the <b>Financial Prophet'sAll-Weather Portfolio</b>(<b>2021 return 51%</b>), and achieve optimal results in any market.</li><li>Our <b>Daily Prophet Report</b> provides the crucial information you need before the opening bell rings each morning.</li><li>Implement our <b>Covered Call Dividend Plan</b>and<b>earn an extra 40-60%</b> on some of your investments.</li></ul><p><b>All-Weather Portfolio vs. The S&P 500</b><img src=\"https://static.tigerbbs.com/2619c482b97b7e0b94fce0a7c81b09db\" tg-width=\"550\" tg-height=\"183\" referrerpolicy=\"no-referrer\"/></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir: Taking Over The World</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir: Taking Over The World\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-08-10 22:30 GMT+8 <a href=https://seekingalpha.com/article/4532201-palantir-taking-over-the-world><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryInvestors probably shouldn't count pennies regarding Palantir and its earnings results.Instead, we should focus on the big picture and consider that Palantir expanded its commercial customer ...</p>\n\n<a href=\"https://seekingalpha.com/article/4532201-palantir-taking-over-the-world\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4532201-palantir-taking-over-the-world","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1126896125","content_text":"SummaryInvestors probably shouldn't count pennies regarding Palantir and its earnings results.Instead, we should focus on the big picture and consider that Palantir expanded its commercial customer count in the U.S. by 250% YoY.Palantir is a dominant, monopolistic style company with significant competitive advantages, an extremely long growth runway, and excellent profitability potential.As the company continues to expand operations, grow revenues, and improve profitability, its share price should appreciate considerably in the coming years.Palantir Technologies Inc. (NYSE:PLTR) is taking over the world, and you're worried about one earnings announcement? Instead of posting a small profit of three cents per share, Palantir reported a loss of one cent per share. Many investors did not take the news well, and Palantir ended Monday's session down by about 14%. Additionally, Palantir dropped by another 8% by late Tuesday's session.PLTR(StockCharts.com)Moreover, Palantir's stock is still down by about 80% from its ATH, floating around its IPO price from almost two years ago. However, Palantir is a high-growth company with a highly long growth runway. Furthermore, Palantir demonstrates substantial profitability potential and should become increasingly profitable with time. Also, as a Palantir investor, I am more focused on the 250% YoY increase in the U.S. commercial customer count rather than the one-cent loss.Palantir is a rapidly growing monopolistic-style company that has the potential to take over the world. No, not literally, but Palantir's software products and services are being adopted by more and more agencies and companies in the U.S. and globally. Therefore, Palantir should continue expanding operations, growing revenues, and increasing profits as the company advances. This dynamic should lead to increased demand for the company's shares, and Palantir's stock price should appreciate considerably in the coming years.Palantir is a monopolistic, high-growth company with a remarkably long growth runway and massive profitability potential. Moreover, Palantir has a significant competitive advantage - the U.S. government. U.S. government agencies prefer Palantir, and for a good reason. Before Palantir's solutions, agency databases were \"siloed,\" forcing users to search specific databases individually. Now, everything is linked together using Palantir. For example, thanks to Palantir, the FBI can access critical data from a police department without going through miles of red tape.There is some mystery about what Palantir does and what makes the company unique. In essence, Palantir's software combines various operational elements, making them work seamlessly and safely. Palantir could also be viewed as the master of data, and critical information, a remarkably profitable business in this age. Many market participants are too busy \"counting pennies\" rather than concentrating on the future.I've said that Palantir does not need to be profitable now because specific companies (like Palantir) can increase profitability when their growth potential begins running out. For now, it does not matter if Palantir makes a modest profit or reports a slight loss in the greater scheme of things. It is enough that Palantir demonstrates the potential for significant profitability down the line. For now, Palantir should continue focusing on growing customer count, increasing revenues, hiring and retaining top talent, and providing the best products and services in its industry.Furthermore, Palantir has worked closely with numerous government agencies for years, adding to the perception that Palantir is the most trustworthy company in its space. Thus, we see the continuous growth and increased interest in Palantir's solutions from commercial clients. Around this time last year, Palantir only had 39 corporate clients in the U.S.; now, that number is 119. In addition, Palantir's products are very sticky and have high switching costs. Therefore, once on Palantir's software, a company should become a long-term consumer of Palantir's products and services.Q2 - Better Than The Initial ReactionStatement of operations(Investors.palantir.com)We continue seeing robust revenue growth while the cost of revenue declines. YoY revenues jumped by 26%, but the cost of revenue increased by only 12%. Gross profit came in at $370.8 million, surging by 30% YoY. Therefore, we see Palantir becoming increasingly profitable with scale. This trend of higher profitability is constructive and should continue, becoming more pronounced as the company continues expanding operations and revenues in future years.Additionally, we see a positive trend of lower operating expenses. Sales and marketing grew slightly, R&D declined, and SG&A expenses were roughly flat YoY. In general, operating costs fell by 4% YoY. Additionally, stock-based compensation continues declining, dropping by more than 30%YoY. The adjusted operating margin came in at 23%. The adjusted gross margin came in at approximately 80.8% for the quarter, demonstrating remarkable profitability and massive earnings potential.Q2 - Remarkable HighlightsQ2 highlights(Investors.palantir.com)We saw robust YoY revenue growth, with an ever higher 45% growth rate in the U.S. Palantir's commercial business is performing excellently, growing revenues by 46%, with outperformance in the U.S., increasing revenues by a whopping 120% in that crucial market. Moreover, the U.S. commercial customer count exploded by 250% YoY, illustrating incredible demand for Palantir's products and services and implying significant future growth and widespread adoption for Palantir.Palantir Could Achieve Widespread AdoptionKarp, Palantir's CEO, said that Palantir remains focused on the long term, and so should you if you're a Palantir shareholder.\"We are working towards a future where all large institutions in the United States and its allies abroad are running significant segments of their operations, if not their operations as a whole, on Palantir.\" - Alex Karp.We must consider that Palantir is in the very early stages of its operations, growth, and profitability. Yet, the company offers the top products and services in its space. If it did not, Palantir probably wouldn't be the contractor of choice for the U.S. government, including the DOD, CIA, NSA, and other intelligence agencies. Moreover, Palantir probably wouldn't be seeing such spectacular growth in the corporate space if its competitors had the upper hand. Furthermore, we see that Palantir has significant competitive advantages. Thus, we can conclude that Palantir could achieve widespread adoption in the corporate world. Suppose Alex Karp is right and large government, civil, and corporate institutions of the U.S. and its allies run significant portions of their operations on Palantir. In that case, the sky is the limit, and Palantir's stock price should advance significantly in the coming years.Here's what Palantir's financials could look like in the future:Year202220232024202520262027Revenue $2b2.6b3.4b4.4b5.7b7.3bRevenue growth30%30%30%30%28%25%Forward P/S ratio789988Price$9$14$21$27$32$40Source: The Financial ProphetPalantir is trading around seven times forward sales estimates, and the P/S multiple could expand as the company advances. Palantir has a log growth runway, and the company's revenue growth could be around 30% in the coming years. In comparison, Nvidia (NVDA) has slower growth projections, and the stock trades at about 14 times next year's sales estimates. Valuations of ten times sales and higher are widespread in the hardware and software industries.Even Microsoft (MSFT), a mature software company, trades at approximately nine times forward sales, more expensive than Palantir. Therefore, we see that Palantir is relatively cheap and could experience multiple expansion as the company advances in future years. Thus, as Palantir continues increasing revenues and improving profitability, its stock could reach the $40 - 50 range within several years.Risks To PalantirDespite my bullish outlook for Palantir, market participants should consider several potential risks associated with this investment. While the growth story is strong at Palantir, shares are not cheap by traditional metrics. Furthermore, the company's earnings are still minimal and may not increase as much as I envision. Moreover, if the company's growth picture were to turn less bullish, the stock could head in the wrong direction. For instance, if Palantir lost favor with the government or had a data breach, the stock could experience a notable decline. Please consider these and other risks carefully before investing in Palantir.Are You Getting The Returns You Want?Invest alongside the Financial Prophet'sAll-Weather Portfolio(2021 return 51%), and achieve optimal results in any market.Our Daily Prophet Report provides the crucial information you need before the opening bell rings each morning.Implement our Covered Call Dividend Planandearn an extra 40-60% on some of your investments.All-Weather Portfolio vs. The S&P 500","news_type":1,"symbols_score_info":{"PLTR":0.9}},"isVote":1,"tweetType":1,"viewCount":1806,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9904658292,"gmtCreate":1660041338120,"gmtModify":1703477255122,"author":{"id":"3582520228861009","authorId":"3582520228861009","name":"CPCat","avatar":"https://static.tigerbbs.com/3bafaf3d39abfb78a4bedf785310721a","crmLevel":11,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3582520228861009","idStr":"3582520228861009"},"themes":[],"htmlText":"Good learning on how to profit from a \"flat\" stock.","listText":"Good learning on how to profit from a \"flat\" stock.","text":"Good learning on how to profit from a \"flat\" stock.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9904658292","repostId":"1164287903","repostType":4,"repost":{"id":"1164287903","kind":"news","pubTimestamp":1660027382,"share":"https://ttm.financial/m/news/1164287903?lang=&edition=full_marsco","pubTime":"2022-08-09 14:43","market":"us","language":"en","title":"Options Strategies: Covered Calls & Covered Puts","url":"https://stock-news.laohu8.com/highlight/detail?id=1164287903","media":"Charles Schwab","summary":"Learn the basics of covered calls and covered puts, and when to use them to manage your risks when t","content":"<html><head></head><body><p>Learn the basics of covered calls and covered puts, and when to use them to manage your risks when trading options.</p><p><img src=\"https://static.tigerbbs.com/b8240e7962b3573d641d159391f78566\" tg-width=\"900\" tg-height=\"600\" referrerpolicy=\"no-referrer\"/></p><p>When employed correctly, covered calls and covered puts can help manage risk by potentially increasing profits and reducing losses simultaneously. Let's discuss how.</p><p><b>What is a covered call?</b></p><p>A covered call is when you <b>sell</b> <i>someone else</i> the right to purchase shares of a stock that <i>you already own</i> (hence "covered"), at a specified price (strike price), at any time on or before a specified date (expiration date). The payment you receive in exchange is called a premium, which you keep regardless of whether the call is exercised.</p><p>As a result, covered calls can help generate income in a flat or mildly uptrending market. If the price of the underlying stock rises above the call option's strike price, the covered call buyer can exercise their right to purchase the stock, and you would relinquish any gains on the underlying stock above the strike price. However, the premium you received offsets some of the risk of foregone profits—as well as some of the risk of a small decline.</p><p>In fact, the best-case-scenario for this strategy would be the stock price rising slightly, giving you both a modest gain from stock price appreciation and some premium income from the call.</p><p><b>When do you use a covered call?</b></p><p>Investors typically write covered calls when they have a neutral to slightly bullish sentiment on the underlying stock. In many cases, the best time to sell covered calls is either at the same time you establish a long equity position (known as a "buy/write"), or once the equity position has already begun to move in your favor.</p><p>When establishing a covered call position, most investors sell options with a strike price that is at-the-money (or ATM, meaning the option’s strike price is the same as the stock's current market price) or slightly out-of-the-money (or OTM, meaning the strike price is above the stock’s current market price). If you write an OTM or ATM covered call and the stock remains flat or declines in value, you’re hoping the option eventually expire worthless, and you get to keep the premium you received without further obligation.</p><p>If the stock price rises above the option's strike price, it’s likely your stock will be called away (assigned) at the strike price, either prior to or at expiration. This is usually a good thing. If you sold ATM or OTM calls, the trade will generally be profitable. In fact, your profit will usually exceed what you would have earned if you had simply bought the stock and then sold it at the appreciated price, as you would receive both the proceeds from the sale of the stock at the strike price and the option premium.</p><p>That said, if the stock rises significantly, leaving the options deep in-the-money (or ITM, meaning the stock's market price is above the option’s strike price), the stock investment on its own would have been better.</p><p>Here's a hypothetical example of a covered call trade. Let's assume you:</p><ul><li>Buy 1,000 shares of XYZ stock @ $72 per share</li><li>Sell 10 XYZ Apr 75 calls @ $2.00 (Note that each standard call or put generally represents 100 shares of the underlying stock, thus, the 1,000 shares "cover" the 10 calls sold).</li></ul><p>The two points provided by the covered call create some immediate downside protection because you wouldn't experience a loss on the position unless the stock you bought for $72 a share dropped below $70. Another way to think of it is that even if the stock price dropped to zero, you would still have $2,000 from the 10 covered calls you sold (that is: $2 x 10 covered calls x the option multiplier of 100).</p><p>The trade-off is that you would effectively cap your potential profit if the share price rose significantly above the strike price. For this trade, that would mean a maximum profit of $5,000, representing the sum of your capital gain from the stock appreciating up to the $75 strike price and your premium from the covered call (that is: $3 x 1,000 shares of stock + $2 x 10 options contracts x 100 options multiplier). In that sense, this trade would make sense only if you thought it unlikely the price of XYZ would exceed $77 by the April expiration (representing the sum of your $72 purchase price and your max profit of $5,000). If XYZ did increase above $77, it would have been more profitable not to have written the covered call.</p><p>As you can see in the profit and loss chart below:</p><ul><li>The breakeven price is $70.</li><li>The profit is capped at $5,000 for all prices above $75.</li><li>Losses will be incurred below $70; down to zero.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c288f9964e4489d40f7cb103dd2e7238\" tg-width=\"700\" tg-height=\"378\" referrerpolicy=\"no-referrer\"/><span>Note: Chart depicts strategy at expiration.</span></p><p><b>What is a covered put?</b></p><p>Covered puts work essentially the same way as covered calls, except that you're writing an option against a short position, meaning a stock you've borrowed and then sold on the open market. Whereas writing a covered call involves selling someone else the right to buy a stock you own, selling covered puts against a short equity position creates an obligation for you to buy the stock back at the strike price of the put option.</p><p>This strategy typically makes sense when you have a neutral to slightly bearish sentiment.</p><p>As with covered calls, you can sell covered puts either when you establish the position (called a "sell/write"), or once the short equity position has already begun to move in your favor.</p><p>Here's an example of a covered put trade. Let's assume you:</p><ul><li>Sell short 1000 shares of XYZ @ 72</li><li>Sell 10 XYZ Apr 70 puts @ 2</li></ul><p>In the chart below, you'll see that:</p><ul><li>The breakeven price is $74.</li><li>The profit is capped at $4,000 for all prices below 70, i.e.: $2 x 1,000 [shares of stock] + $2 x 10 [options contracts] x 100 [options multiplier]</li><li>Losses will be incurred above $74.</li></ul><p>You would want to employ this strategy only if you thought the price of XYZ wouldn't fall below $70 by the April expiration. If XYZ did fall below $70, the short stock trade alone would be more profitable. Losses are potentially unlimited if the stock price continued to increase, but they would always be $2,000 less than the stock trade alone.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/79dcc9c0e2f28eb658cca60354cd5a74\" tg-width=\"700\" tg-height=\"373\" referrerpolicy=\"no-referrer\"/><span>Note: Chart depicts strategy at expiration.</span></p><p><b>Risk managed, not eliminated</b></p><p>While covered calls and covered puts can reduce risk somewhat, they cannot eliminate it entirely. With that in mind, here are a few cautionary points about these strategies:</p><ul><li><b>Profits.</b> Covered options usually limit your profit potential if a stock moves substantially in your favor. Anytime you sell a covered option, you have established a minimum buying price (covered put) or maximum selling price (covered call) for your stock. Any stock movement beyond that established price creates no additional profit for you.</li><li><b>Losses.</b> Losses are reduced only by the amount of premium you received on the initial sale of the option. In addition, it’s rarely a good idea to sell a covered option if your stock position has already moved significantly against you. Doing so could cause you to establish a closing price that ensures a loss. So, before you sell, ask yourself, "Would I be happy if I had to close out my stock position at the strike price on this option?" If you can answer "yes," you’ll probably be okay.</li><li><b>Holding until expiration.</b> While our examples assume that you hold the covered position until expiration, you can usually close out a covered option at any time by buying it to close at the current market price. Regardless of whether the equity part of your strategy is profitable, waiting until expiration will maximize your return on an out-of-the-money option; however, you are not required to do so.</li><li><b>Assignment.</b> A significant change in the price of the underlying stock prior to expiration could result in an early assignment, and if your short option is in-the-money, you could be assigned at any time. Covered calls written against dividend paying stocks are especially vulnerable to early assignment.</li><li><b>Corporate events.</b> When companies merge, spin off, split, pay special dividends, etc., their options can become very complicated. </li></ul></body></html>","source":"lsy1660027232916","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Options Strategies: Covered Calls & Covered Puts</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOptions Strategies: Covered Calls & Covered Puts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-08-09 14:43 GMT+8 <a href=https://www.schwab.com/learn/story/options-strategies-covered-calls-covered-puts><strong>Charles Schwab</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Learn the basics of covered calls and covered puts, and when to use them to manage your risks when trading options.When employed correctly, covered calls and covered puts can help manage risk by ...</p>\n\n<a href=\"https://www.schwab.com/learn/story/options-strategies-covered-calls-covered-puts\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.schwab.com/learn/story/options-strategies-covered-calls-covered-puts","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1164287903","content_text":"Learn the basics of covered calls and covered puts, and when to use them to manage your risks when trading options.When employed correctly, covered calls and covered puts can help manage risk by potentially increasing profits and reducing losses simultaneously. Let's discuss how.What is a covered call?A covered call is when you sell someone else the right to purchase shares of a stock that you already own (hence \"covered\"), at a specified price (strike price), at any time on or before a specified date (expiration date). The payment you receive in exchange is called a premium, which you keep regardless of whether the call is exercised.As a result, covered calls can help generate income in a flat or mildly uptrending market. If the price of the underlying stock rises above the call option's strike price, the covered call buyer can exercise their right to purchase the stock, and you would relinquish any gains on the underlying stock above the strike price. However, the premium you received offsets some of the risk of foregone profits—as well as some of the risk of a small decline.In fact, the best-case-scenario for this strategy would be the stock price rising slightly, giving you both a modest gain from stock price appreciation and some premium income from the call.When do you use a covered call?Investors typically write covered calls when they have a neutral to slightly bullish sentiment on the underlying stock. In many cases, the best time to sell covered calls is either at the same time you establish a long equity position (known as a \"buy/write\"), or once the equity position has already begun to move in your favor.When establishing a covered call position, most investors sell options with a strike price that is at-the-money (or ATM, meaning the option’s strike price is the same as the stock's current market price) or slightly out-of-the-money (or OTM, meaning the strike price is above the stock’s current market price). If you write an OTM or ATM covered call and the stock remains flat or declines in value, you’re hoping the option eventually expire worthless, and you get to keep the premium you received without further obligation.If the stock price rises above the option's strike price, it’s likely your stock will be called away (assigned) at the strike price, either prior to or at expiration. This is usually a good thing. If you sold ATM or OTM calls, the trade will generally be profitable. In fact, your profit will usually exceed what you would have earned if you had simply bought the stock and then sold it at the appreciated price, as you would receive both the proceeds from the sale of the stock at the strike price and the option premium.That said, if the stock rises significantly, leaving the options deep in-the-money (or ITM, meaning the stock's market price is above the option’s strike price), the stock investment on its own would have been better.Here's a hypothetical example of a covered call trade. Let's assume you:Buy 1,000 shares of XYZ stock @ $72 per shareSell 10 XYZ Apr 75 calls @ $2.00 (Note that each standard call or put generally represents 100 shares of the underlying stock, thus, the 1,000 shares \"cover\" the 10 calls sold).The two points provided by the covered call create some immediate downside protection because you wouldn't experience a loss on the position unless the stock you bought for $72 a share dropped below $70. Another way to think of it is that even if the stock price dropped to zero, you would still have $2,000 from the 10 covered calls you sold (that is: $2 x 10 covered calls x the option multiplier of 100).The trade-off is that you would effectively cap your potential profit if the share price rose significantly above the strike price. For this trade, that would mean a maximum profit of $5,000, representing the sum of your capital gain from the stock appreciating up to the $75 strike price and your premium from the covered call (that is: $3 x 1,000 shares of stock + $2 x 10 options contracts x 100 options multiplier). In that sense, this trade would make sense only if you thought it unlikely the price of XYZ would exceed $77 by the April expiration (representing the sum of your $72 purchase price and your max profit of $5,000). If XYZ did increase above $77, it would have been more profitable not to have written the covered call.As you can see in the profit and loss chart below:The breakeven price is $70.The profit is capped at $5,000 for all prices above $75.Losses will be incurred below $70; down to zero.Note: Chart depicts strategy at expiration.What is a covered put?Covered puts work essentially the same way as covered calls, except that you're writing an option against a short position, meaning a stock you've borrowed and then sold on the open market. Whereas writing a covered call involves selling someone else the right to buy a stock you own, selling covered puts against a short equity position creates an obligation for you to buy the stock back at the strike price of the put option.This strategy typically makes sense when you have a neutral to slightly bearish sentiment.As with covered calls, you can sell covered puts either when you establish the position (called a \"sell/write\"), or once the short equity position has already begun to move in your favor.Here's an example of a covered put trade. Let's assume you:Sell short 1000 shares of XYZ @ 72Sell 10 XYZ Apr 70 puts @ 2In the chart below, you'll see that:The breakeven price is $74.The profit is capped at $4,000 for all prices below 70, i.e.: $2 x 1,000 [shares of stock] + $2 x 10 [options contracts] x 100 [options multiplier]Losses will be incurred above $74.You would want to employ this strategy only if you thought the price of XYZ wouldn't fall below $70 by the April expiration. If XYZ did fall below $70, the short stock trade alone would be more profitable. Losses are potentially unlimited if the stock price continued to increase, but they would always be $2,000 less than the stock trade alone.Note: Chart depicts strategy at expiration.Risk managed, not eliminatedWhile covered calls and covered puts can reduce risk somewhat, they cannot eliminate it entirely. With that in mind, here are a few cautionary points about these strategies:Profits. Covered options usually limit your profit potential if a stock moves substantially in your favor. Anytime you sell a covered option, you have established a minimum buying price (covered put) or maximum selling price (covered call) for your stock. Any stock movement beyond that established price creates no additional profit for you.Losses. Losses are reduced only by the amount of premium you received on the initial sale of the option. In addition, it’s rarely a good idea to sell a covered option if your stock position has already moved significantly against you. Doing so could cause you to establish a closing price that ensures a loss. So, before you sell, ask yourself, \"Would I be happy if I had to close out my stock position at the strike price on this option?\" If you can answer \"yes,\" you’ll probably be okay.Holding until expiration. While our examples assume that you hold the covered position until expiration, you can usually close out a covered option at any time by buying it to close at the current market price. Regardless of whether the equity part of your strategy is profitable, waiting until expiration will maximize your return on an out-of-the-money option; however, you are not required to do so.Assignment. A significant change in the price of the underlying stock prior to expiration could result in an early assignment, and if your short option is in-the-money, you could be assigned at any time. Covered calls written against dividend paying stocks are especially vulnerable to early assignment.Corporate events. When companies merge, spin off, split, pay special dividends, etc., their options can become very complicated.","news_type":1,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9}},"isVote":1,"tweetType":1,"viewCount":1333,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9901885292,"gmtCreate":1659161085416,"gmtModify":1676536267574,"author":{"id":"3582520228861009","authorId":"3582520228861009","name":"CPCat","avatar":"https://static.tigerbbs.com/3bafaf3d39abfb78a4bedf785310721a","crmLevel":11,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3582520228861009","idStr":"3582520228861009"},"themes":[],"htmlText":"Hope that H2 will really recover.","listText":"Hope that H2 will really recover.","text":"Hope that H2 will really recover.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9901885292","repostId":"1167462110","repostType":4,"isVote":1,"tweetType":1,"viewCount":1524,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9071630981,"gmtCreate":1657517070444,"gmtModify":1676536018969,"author":{"id":"3582520228861009","authorId":"3582520228861009","name":"CPCat","avatar":"https://static.tigerbbs.com/3bafaf3d39abfb78a4bedf785310721a","crmLevel":11,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3582520228861009","idStr":"3582520228861009"},"themes":[],"htmlText":"Hope there won't be another prolonged lock down...","listText":"Hope there won't be another prolonged lock down...","text":"Hope there won't be another prolonged lock down...","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9071630981","repostId":"1152771990","repostType":2,"repost":{"id":"1152771990","kind":"news","weMediaInfo":{"introduction":"Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals","home_visible":0,"media_name":"Benzinga","id":"1052270027","head_image":"https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa"},"pubTimestamp":1657516312,"share":"https://ttm.financial/m/news/1152771990?lang=&edition=full_marsco","pubTime":"2022-07-11 13:11","market":"hk","language":"en","title":"Alibaba Falls 6%, Nio Sheds 4%: What's Weighing On Hong Kong Stocks Today","url":"https://stock-news.laohu8.com/highlight/detail?id=1152771990","media":"Benzinga","summary":"Shares of U.S.-listed Chinese companies were trading lower in Hong Kong on Monday, with major tech s","content":"<html><head></head><body><p>Shares of U.S.-listed Chinese companies were trading lower in Hong Kong on Monday, with major tech stocks like <b>Alibaba Group Holdings</b>,<b>Tencent </b>,<b>Baidu</b>, and <b>JD.com Inc</b> slipping between 3% and 6%.</p><p><img src=\"https://static.tigerbbs.com/2ec73d8f6c17e6c8d9b3b401c2315726\" tg-width=\"406\" tg-height=\"722\" referrerpolicy=\"no-referrer\"/></p><p>In the electric vehicle segment, <b>Xpeng Inc</b>,<b>Li Auto Inc</b>, and <b>Nio Inc</b> cracked more than 4% during the afternoon hours.</p><p>Shares of these Chinese companies ended mixed on U.S. bourses on Friday.</p><p><b>Global Markets Recap:</b> At press time, the benchmark Hang Seng Index traded 2.84% lower, following cues from Asian peers.</p><p>Elsewhere, Shanghai's <b>SSE Composite Index</b> was down 1.36%, Australia’s <b>ASX 200</b> shed 0.94%, while Japan’s <b>Nikkei 225</b> was a percent higher.</p><p><b>Macro Factors:</b> Shanghai health officials said on Sunday said the city reported its first case from a new Omicron subvariant, triggering new rounds of mass testing and targeted lockdowns.</p><p>Meanwhile, all commercial and industrial businesses in Macau will be shut for at least a week from Monday as the authorities of China's special administrative region race to curb the surge of COVID-19 infections in the world's biggest gambling hub, Reuters reported.</p><p>According to SCMP, <b>Sean Darby</b>, global equity strategist at <b>Jefferies</b>, in a note published on Monday, said, “China is still a long way from a genuine recovery.”</p><p>“In contrast to the rest of the world, the Chinese consumer is not rebelling against the high cost of living but the inconvenience of the social restrictions and testing when Covid infections burst.”</p><p><b>Company In News:</b> China’s <b>State Administration for Market Regulation</b> (SAMR) on Sunday imposed fines on technology giants Alibaba and Tencent alongside other firms for failing to comply with anti-monopoly rules on the disclosure of transactions. The Chinese market regulator released a list of 28 deals that violated the rules.</p><p>During its second annual Power Day event, China-based EV maker Nio provided a peek into its future development plans for charging and battery technology. The company unveiled the 500 kW ultra-fast charging piles to compete with foreign peers like <b>Tesla Inc</b>, Electrekreported.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba Falls 6%, Nio Sheds 4%: What's Weighing On Hong Kong Stocks Today</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba Falls 6%, Nio Sheds 4%: What's Weighing On Hong Kong Stocks Today\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Benzinga </p>\n<p class=\"h-time\">2022-07-11 13:11</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Shares of U.S.-listed Chinese companies were trading lower in Hong Kong on Monday, with major tech stocks like <b>Alibaba Group Holdings</b>,<b>Tencent </b>,<b>Baidu</b>, and <b>JD.com Inc</b> slipping between 3% and 6%.</p><p><img src=\"https://static.tigerbbs.com/2ec73d8f6c17e6c8d9b3b401c2315726\" tg-width=\"406\" tg-height=\"722\" referrerpolicy=\"no-referrer\"/></p><p>In the electric vehicle segment, <b>Xpeng Inc</b>,<b>Li Auto Inc</b>, and <b>Nio Inc</b> cracked more than 4% during the afternoon hours.</p><p>Shares of these Chinese companies ended mixed on U.S. bourses on Friday.</p><p><b>Global Markets Recap:</b> At press time, the benchmark Hang Seng Index traded 2.84% lower, following cues from Asian peers.</p><p>Elsewhere, Shanghai's <b>SSE Composite Index</b> was down 1.36%, Australia’s <b>ASX 200</b> shed 0.94%, while Japan’s <b>Nikkei 225</b> was a percent higher.</p><p><b>Macro Factors:</b> Shanghai health officials said on Sunday said the city reported its first case from a new Omicron subvariant, triggering new rounds of mass testing and targeted lockdowns.</p><p>Meanwhile, all commercial and industrial businesses in Macau will be shut for at least a week from Monday as the authorities of China's special administrative region race to curb the surge of COVID-19 infections in the world's biggest gambling hub, Reuters reported.</p><p>According to SCMP, <b>Sean Darby</b>, global equity strategist at <b>Jefferies</b>, in a note published on Monday, said, “China is still a long way from a genuine recovery.”</p><p>“In contrast to the rest of the world, the Chinese consumer is not rebelling against the high cost of living but the inconvenience of the social restrictions and testing when Covid infections burst.”</p><p><b>Company In News:</b> China’s <b>State Administration for Market Regulation</b> (SAMR) on Sunday imposed fines on technology giants Alibaba and Tencent alongside other firms for failing to comply with anti-monopoly rules on the disclosure of transactions. The Chinese market regulator released a list of 28 deals that violated the rules.</p><p>During its second annual Power Day event, China-based EV maker Nio provided a peek into its future development plans for charging and battery technology. The company unveiled the 500 kW ultra-fast charging piles to compete with foreign peers like <b>Tesla Inc</b>, Electrekreported.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"00700":"腾讯控股","09866":"蔚来-SW","09988":"阿里巴巴-W","09618":"京东集团-SW","09868":"小鹏汽车-W","02015":"理想汽车-W"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1152771990","content_text":"Shares of U.S.-listed Chinese companies were trading lower in Hong Kong on Monday, with major tech stocks like Alibaba Group Holdings,Tencent ,Baidu, and JD.com Inc slipping between 3% and 6%.In the electric vehicle segment, Xpeng Inc,Li Auto Inc, and Nio Inc cracked more than 4% during the afternoon hours.Shares of these Chinese companies ended mixed on U.S. bourses on Friday.Global Markets Recap: At press time, the benchmark Hang Seng Index traded 2.84% lower, following cues from Asian peers.Elsewhere, Shanghai's SSE Composite Index was down 1.36%, Australia’s ASX 200 shed 0.94%, while Japan’s Nikkei 225 was a percent higher.Macro Factors: Shanghai health officials said on Sunday said the city reported its first case from a new Omicron subvariant, triggering new rounds of mass testing and targeted lockdowns.Meanwhile, all commercial and industrial businesses in Macau will be shut for at least a week from Monday as the authorities of China's special administrative region race to curb the surge of COVID-19 infections in the world's biggest gambling hub, Reuters reported.According to SCMP, Sean Darby, global equity strategist at Jefferies, in a note published on Monday, said, “China is still a long way from a genuine recovery.”“In contrast to the rest of the world, the Chinese consumer is not rebelling against the high cost of living but the inconvenience of the social restrictions and testing when Covid infections burst.”Company In News: China’s State Administration for Market Regulation (SAMR) on Sunday imposed fines on technology giants Alibaba and Tencent alongside other firms for failing to comply with anti-monopoly rules on the disclosure of transactions. The Chinese market regulator released a list of 28 deals that violated the rules.During its second annual Power Day event, China-based EV maker Nio provided a peek into its future development plans for charging and battery technology. The company unveiled the 500 kW ultra-fast charging piles to compete with foreign peers like Tesla Inc, Electrekreported.","news_type":1,"symbols_score_info":{"00700":0.9,"02015":0.9,"09618":0.9,"09866":0.9,"09868":0.9,"09988":0.9}},"isVote":1,"tweetType":1,"viewCount":2382,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9047455662,"gmtCreate":1656974526456,"gmtModify":1676535922806,"author":{"id":"3582520228861009","authorId":"3582520228861009","name":"CPCat","avatar":"https://static.tigerbbs.com/3bafaf3d39abfb78a4bedf785310721a","crmLevel":11,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3582520228861009","idStr":"3582520228861009"},"themes":[],"htmlText":"In this case, better yo buy BRK.B instead?","listText":"In this case, better yo buy BRK.B instead?","text":"In this case, better yo buy BRK.B instead?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9047455662","repostId":"1100209736","repostType":4,"repost":{"id":"1100209736","kind":"news","pubTimestamp":1656945280,"share":"https://ttm.financial/m/news/1100209736?lang=&edition=full_marsco","pubTime":"2022-07-04 22:34","market":"us","language":"en","title":"Why Buffett is Buying Occidental Petroleum Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=1100209736","media":"InvestorPlace","summary":"Berkshire Hathaway is executing a slow-motion takeover of Occidental Petroleum.Berkshire owns 16.4% ","content":"<html><head></head><body><ul><li><b>Berkshire Hathaway</b> is executing a slow-motion takeover of <a href=\"https://laohu8.com/S/OXY\">Occidental Petroleum</a>.</li><li>Berkshire owns 16.4% of the common and could control one-third with warrants.</li><li>Buffett likes undervalued assets, and OXY stock is undervalued.</li></ul><p>Spurred by purchases from Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A), Occidental Petroleum (NYSE:OXY) emerged as a big winner in 2022, with OXY stock more than doubling in price.</p><p>Occidental was founded in 1920 by Armand Hammer, whose 1996 biography called him a Soviet agent. Since Hammer’s death in 1990, Occidental has increasingly focused on domestic energy.</p><p>Occidental was a major player in the 2010s’ fracking boom. It continued to grow despite the fracking bust, buying Anadarko Petroleum for what became $38 billion in debt, just before the Covid-19 pandemic.</p><p>In 2020, it was on the verge of bankruptcy. But the company managed to survive, and by March of this year, Berkshire had scooped up more than 136 million shares. Berkshire continued to add to its position in the second quarter, which by the end of June had grown to a 16.4% stake.</p><p>Buffett’s move on Occidental is mainly aimed at its debt. Debt that looks bad to you and me can look good to Berkshire. Here’s how.</p><h3>Control the Debt</h3><p>As Kiplinger’s Dan Burrows points out, Berkshire owns $10 billion in preferred shares, which pay dividends of 8%, as well as 84 million warrants to buy more common stock, with a strike price of $59.62. When the warrants are included, Berkshire owns about one-third of the company. A Truist Securities analyst said Berkshire might buy all of Occidental if its credit rating improves.</p><p>Occidental had nearly $26 billion in long-term debt at the end of March, but this was down 27% year over year. Yet, it still had $371 million in interest expenses during the first quarter.</p><p>Occidental debt carries interest rates as high as 8.75%. But it has recently begun getting better prices, including 4.4% on a 25-year note.</p><p>If Occidental debt becomes investment grade, its value will increase and debt service costs will drop. Berkshire could then roll over the debt at lower prices and Occidental could even raise its dividend, which is currently just 13 cents a share. Buffett likes dividends.</p><h3>Buffett’s Energy Play</h3><p>Occidental is one of the largest producers of oil in the Permian Basin, with a maintenance hub in New Mexico. It also has interests in the Rocky Mountains and has done extensive work to lower its drilling costs, including building pipelines to drilling sites.</p><p>This means it lines up well with Berkshire Hathaway Energy, which mostly consists of electric and natural gas utilities, but also owns wind farms and solar energy contracts. Occidental production would deliver these operations with stable prices during a time of uncertainty. With oil now priced at over $100 a barrel, that is important.</p><p>Berkshire Hathaway announced last year that Berkshire Energy head Greg Abel will replace Buffett as its CEO when he eventually steps down.</p><p>After Buffett leaves, Abel will emerge as America’s most powerful energy executive. His track record includes buying renewable energy, with big investments in power lines and other long-distance infrastructure. Berkshire utilities would be self-sufficient, using its own fuel and selling electricity at retail.</p><h3>The Bottom Line on OXY Stock</h3><p>In addition to the Occidental stake, Berkshire also holds a nearly $26 billion stake in Chevron (NYSE:CVX). Chevron is up 25% so far in 2022.</p><p>Of course, nearly all energy stocks have risen this year in response to the Ukraine war. Permian producers EOG Resources (NYSE:EOG) and Pioneer Natural Resources (NYSE:PXD) are up 23%-24%. Exxon Mobil (NYSE:XOM) is up 43% thanks to its Permian production and refining capacity. But Occidental Petroleum’s gain tops them all, with OXY stock up 109% year to date.</p><p>Buffett likes undervalued assets, and the run-up in oil, combined with its debt, made OXY stock undervalued. Buffett has always made his big money when markets are panicking. At age 91, he is proving capitalism works again.</p></body></html>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Buffett is Buying Occidental Petroleum Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Buffett is Buying Occidental Petroleum Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-07-04 22:34 GMT+8 <a href=https://investorplace.com/2022/07/why-buffett-is-buying-oxy-stock/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Berkshire Hathaway is executing a slow-motion takeover of Occidental Petroleum.Berkshire owns 16.4% of the common and could control one-third with warrants.Buffett likes undervalued assets, and OXY ...</p>\n\n<a href=\"https://investorplace.com/2022/07/why-buffett-is-buying-oxy-stock/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"OXY":"西方石油"},"source_url":"https://investorplace.com/2022/07/why-buffett-is-buying-oxy-stock/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1100209736","content_text":"Berkshire Hathaway is executing a slow-motion takeover of Occidental Petroleum.Berkshire owns 16.4% of the common and could control one-third with warrants.Buffett likes undervalued assets, and OXY stock is undervalued.Spurred by purchases from Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A), Occidental Petroleum (NYSE:OXY) emerged as a big winner in 2022, with OXY stock more than doubling in price.Occidental was founded in 1920 by Armand Hammer, whose 1996 biography called him a Soviet agent. Since Hammer’s death in 1990, Occidental has increasingly focused on domestic energy.Occidental was a major player in the 2010s’ fracking boom. It continued to grow despite the fracking bust, buying Anadarko Petroleum for what became $38 billion in debt, just before the Covid-19 pandemic.In 2020, it was on the verge of bankruptcy. But the company managed to survive, and by March of this year, Berkshire had scooped up more than 136 million shares. Berkshire continued to add to its position in the second quarter, which by the end of June had grown to a 16.4% stake.Buffett’s move on Occidental is mainly aimed at its debt. Debt that looks bad to you and me can look good to Berkshire. Here’s how.Control the DebtAs Kiplinger’s Dan Burrows points out, Berkshire owns $10 billion in preferred shares, which pay dividends of 8%, as well as 84 million warrants to buy more common stock, with a strike price of $59.62. When the warrants are included, Berkshire owns about one-third of the company. A Truist Securities analyst said Berkshire might buy all of Occidental if its credit rating improves.Occidental had nearly $26 billion in long-term debt at the end of March, but this was down 27% year over year. Yet, it still had $371 million in interest expenses during the first quarter.Occidental debt carries interest rates as high as 8.75%. But it has recently begun getting better prices, including 4.4% on a 25-year note.If Occidental debt becomes investment grade, its value will increase and debt service costs will drop. Berkshire could then roll over the debt at lower prices and Occidental could even raise its dividend, which is currently just 13 cents a share. Buffett likes dividends.Buffett’s Energy PlayOccidental is one of the largest producers of oil in the Permian Basin, with a maintenance hub in New Mexico. It also has interests in the Rocky Mountains and has done extensive work to lower its drilling costs, including building pipelines to drilling sites.This means it lines up well with Berkshire Hathaway Energy, which mostly consists of electric and natural gas utilities, but also owns wind farms and solar energy contracts. Occidental production would deliver these operations with stable prices during a time of uncertainty. With oil now priced at over $100 a barrel, that is important.Berkshire Hathaway announced last year that Berkshire Energy head Greg Abel will replace Buffett as its CEO when he eventually steps down.After Buffett leaves, Abel will emerge as America’s most powerful energy executive. His track record includes buying renewable energy, with big investments in power lines and other long-distance infrastructure. Berkshire utilities would be self-sufficient, using its own fuel and selling electricity at retail.The Bottom Line on OXY StockIn addition to the Occidental stake, Berkshire also holds a nearly $26 billion stake in Chevron (NYSE:CVX). Chevron is up 25% so far in 2022.Of course, nearly all energy stocks have risen this year in response to the Ukraine war. Permian producers EOG Resources (NYSE:EOG) and Pioneer Natural Resources (NYSE:PXD) are up 23%-24%. Exxon Mobil (NYSE:XOM) is up 43% thanks to its Permian production and refining capacity. But Occidental Petroleum’s gain tops them all, with OXY stock up 109% year to date.Buffett likes undervalued assets, and the run-up in oil, combined with its debt, made OXY stock undervalued. Buffett has always made his big money when markets are panicking. At age 91, he is proving capitalism works again.","news_type":1,"symbols_score_info":{"OXY":0.9}},"isVote":1,"tweetType":1,"viewCount":1844,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9042014562,"gmtCreate":1656402217856,"gmtModify":1676535821999,"author":{"id":"3582520228861009","authorId":"3582520228861009","name":"CPCat","avatar":"https://static.tigerbbs.com/3bafaf3d39abfb78a4bedf785310721a","crmLevel":11,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3582520228861009","idStr":"3582520228861009"},"themes":[],"htmlText":"Excellent article. Good learnings on how to employ options to maximize profits.","listText":"Excellent article. Good learnings on how to employ options to maximize profits.","text":"Excellent article. Good learnings on how to employ options to maximize profits.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9042014562","repostId":"2246818713","repostType":4,"isVote":1,"tweetType":1,"viewCount":1436,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9049133772,"gmtCreate":1655768567796,"gmtModify":1676535699306,"author":{"id":"3582520228861009","authorId":"3582520228861009","name":"CPCat","avatar":"https://static.tigerbbs.com/3bafaf3d39abfb78a4bedf785310721a","crmLevel":11,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3582520228861009","idStr":"3582520228861009"},"themes":[],"htmlText":"Good strategy.","listText":"Good strategy.","text":"Good strategy.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9049133772","repostId":"2244144354","repostType":4,"isVote":1,"tweetType":1,"viewCount":2329,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9055663013,"gmtCreate":1655265560632,"gmtModify":1676535600502,"author":{"id":"3582520228861009","authorId":"3582520228861009","name":"CPCat","avatar":"https://static.tigerbbs.com/3bafaf3d39abfb78a4bedf785310721a","crmLevel":11,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3582520228861009","idStr":"3582520228861009"},"themes":[],"htmlText":"Still far from old days... :-)","listText":"Still far from old days... :-)","text":"Still far from old days... :-)","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9055663013","repostId":"2243698842","repostType":4,"isVote":1,"tweetType":1,"viewCount":2164,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"defaultTab":"posts","isTTM":true}