Value Investing Warren Buffett's successors

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• Warren Buffett's successors
• China's economic weapons against the USA in the Trade War
• How often is an inversion a clear indicator of recession?
• Frontdoor, Inc. – Growing Core Business with Recurring Revenue Model & High Value-Add Services
• A case for pro-active management

Warren Buffett's successors Posted: 06 Dec 2018 03:08 AM PST It is speculated that the most probable Buffett's successors are likely to be either Ajit Jain or Greg Abel. It is also known that they have "added billions to shareholders value". But has anybody found any more precise measurement of their investments' performance (in % YoY basis)? submitted by /u/ajkomajko [link] [comments]

China's economic weapons against the USA in the Trade War Posted: 05 Dec 2018 11:02 AM PST In the context of the Trade War, what could be the weapons of China ? Of course, tariffs come first to my mind and ban of US businesses operations on Chinese soil. However, concerning the treasury bills, I had a thought: Could China hedge its position slowly through its state-owned banks (CDS, options...) and then unload massively (as a big economic bombing) a good chunk of their treasury bills to damage the US federal government? Other ideas of potential retaliation weapons? Thank you in advance for your comments. submitted by /u/TheseInevitable [link] [comments]

How often is an inversion a clear indicator of recession? Posted: 05 Dec 2018 06:35 PM PST I do not know whether this right forum to post, but would like to share my thought process. Feel free to comment/discuss pros and cons of this. The question was asked by my friend and reasoning is my thought process. ​ >How often is an inversion a clear indicator of recession? ​ In theory, it should create recession 100%. The simple reason/justification how it works: ​ Normally, banks find a borrower, lend them ARM, fixed or commercial term loans normally ranges 3 to 30 years. During this process, bank as a service provider, borrows from underwriters and lend it to borrower. Or Borrow from another bank (Temporary) - inter bank transaction (FED fund rate) - and lend it to borrower. ​ When short term rates (3-month) are higher than long term rates, they can not find any underwriter for longer term loans, neither profitable to borrow from another bank using inter bank transaction. ​ When someone is able to get 4% return on 3 months low risk loan, why would someone lend for 10 year 3.75% return? ​ When this situation prevails for six months, The banking lending operations reduced or stand still for six months, companies won't get financing, people won't get financing. ​ Since our US economy runs in credit based, most of the purchasing power is diminished, resulting revenue and profit reduction (or loss) for companies…etc ​ ​ ​ ​ submitted by /u/firebyrealestate [link] [comments]

Frontdoor, Inc. – Growing Core Business with Recurring Revenue Model & High Value-Add Services Posted: 05 Dec 2018 11:19 AM PST submitted by /u/themarketplunger [link] [comments]

A case for pro-active management Posted: 05 Dec 2018 11:48 AM PST As we approach the end of the economic expansion, thoughtful risk-management is quite important, is your investment portfolio best positioned to withstand a bear market drawdown? During the last 10 years the narrative has strongly favored passive, index following investment as excess liquidity from central bank drove interest rates to historical lows giving multiple shoots of adrenaline to risk-assets. We have seen one of the strongest performances in equities and bonds in the last several decades. Investors have gotten comfortable with multi-year double digit returns driven in part by strong growth and high valuations in technology coupled with financial engineering — share-buybacks funded with cheap debt financing. The near 3X increase in the S&P500 has increased the prominence of Exchange Traded Funds (vehicles that give you exposure to different segments of the market) growing to nearly $6 trillion and the popularity of robo-advisors (computer driven portfolio optimization) now managing over 225 billion. It appears most investors have gotten comfortable during many years of historically low market volatility and strong returns. Memories of economic cycles and large market corrections are somewhat lost with time while newer generation of investors have not experienced this in their adult lifetimes. The passive vs. active debate is a heated one. The passive investment has multiple merits for the non-professional investor like low cost, little to no time commitment but it also give caps your returns with those of the overall market and exposes to inevitable material losses. The timing and length of these wealth drawdowns can be punitive for clients counting of capital accumulation for an important financial decision like a large purchase, investment, or retirement. As the economy slows, fiscal and monetary stimulus phases out, and new political players come into place escalating geo-political risks, cross-asset class performance synchronize with little to no place to hide. This causes risk-appetite to wane impact asset returns driven by the economic cycle and investor psychology — growth, credit and easy money is inherently cyclical and does not last forever. This is when pro-active risk management, thoughtful security and sector allocation begins to shine, right before the strong tide of positive returns goes out. Turbulent times offer great opportunities for those who commit full time to the challenge of hard work studying the macro (top-down) and micro (bottom-up) environment to act decisively when the time is right. Irrespective of active vs. passive, we believe that everyone should have access to the best investment strategies that only affluent investors can afford. We are doing meaningful work for clients to compound wealth and achieve long term financial goals through our managed account investment management solution launched in September, 2018. We are grateful to have the trust of anchor investors with their initial capital commitments. We use our prior experience in pro-active risk and portfolio management to limit downside risk during difficult times and position the portfolio to benefit from attractive asymmetric opportunities across bonds, equities, and derivatives. We are off to a great start with encouraging results during the first three months despite strong market volatility. We look forward to sharing, in a transparent and open manner, our approach to investment management, progress to date, and forward looking views on strategy over the coming weeks. submitted by /u/vicvv3 [link] [comments]

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