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Three numbers to start the day:
Berkshire Hathaway
He spent $ 24.7 billion on stock rewards in 2020
It’s a record several times for Warren Buffett’s conglomerate, and just one of the highlights of the legendary value investor’s annual letter, which came out over the weekend.
Buffett has long been resistant to redemptions, but it seems Berkshire’s huge hoarding of money and the delayed stock price have inspired him to change his tune. Investors liked the sound and rose Berkshire shares by 3.5% on Monday.
Remember that when a company repurchases its own shares, it reduces the number of outstanding shares. This makes each remaining share more valuable as it represents a greater stake in the company. It is a form of tax efficiency to return money to shareholders and that Buffett himself is looking for the companies in which he invests.
apple‘s
The initial order for the iPhone 13 could reach 100 million
This is according to the reading of an analyst sheet of tea leaves in the supply chain. It would compare to an initial version of 80 million units of iPhone 12 by 2020.
The next iPhone line is unlikely to be released until September, but Apple is starting work with its suppliers months earlier. If your initial order for the iPhone 13 is in fact 25% larger than that for the iPhone 12, it’s a sign that management expects the 5G-based smartphone update cycle to last quite well. next year.
Wall Street already expects 2021 to be a huge year for iPhone sales. The consensus forecast is about 220 million units, slightly less than the 2015 record of 231 million. That’s when the larger screen iPhone 6 came out.
Airline stock index 27% since early 2021
Thank you for the growing optimism about the pace of vaccinations against Covid-19 and the ongoing economic recovery. Basically, investors now expect airlines to have more passengers buying tickets – and rather – than a few months ago.
News over the weekend that the Food and Drug Administration approved
Johnson & Johnson‘s
(JNJ) the single-dose vaccine only adds to the optimism. And there is $ 14 billion in aid to the airline industry in the $ 1.9 trillion stimulus bill just approved by the House of Representatives.
It seems that investors are betting on a rise in domestic flight before international routes and a leisure trip before business. Lately, the main winners have been budget operators focused on the United States
Spirit Airlines
(DESA) i
JetBlue Airways
(JBLU).
Numbers by Barron’s is our daily podcast. Find out more here.
Write to Nicholas Jasinski to [email protected]