Morning Brief: Buffett reiterates his belief in the US economy
Monday, May 7, 2018
What to watch today
The week starts quietly in the financial markets. Earnings season has begun to wind down, but there are a couple of big companies set to announce results later this week including Disney (DIS) on Tuesday and Nvidia (NVDA) on Thursday.
Now may be a good time to take a breath and think longer term. On Saturday during Berkshire Hathaway’s (BRK-A, BRK-B) annual meeting, billionaire CEO Warren Buffett shared his experience from 1942. The 11-year-old Buffett was faced with World War II headlines dominating front page news. At the time, he bought his first stock, which immediately saw its price fall during the first few days of Buffett holding it. Within about four months, Buffett was up about $5 per share and he sold for a quick profit. “This is not a happy story,” Buffett said, noting that he would’ve earned multiples more had he held for a little longer.
“The overriding question is how is American business going to do over the course of your lifetime,” Buffett said. It’s something investors should think about before they make short-term trades.
Top news
Oil surges to fresh highs on growing supply worries: Oil prices rose to their highest levels since late-2014 on Monday, boosted by Venezuela’s deepening economic crisis and a looming decision on whether the United States will re-impose sanctions on Iran. [Reuters]
Nestle to pay $7.15B to Starbucks to jump-start coffee business: Swiss-based food giant Nestle will pay Starbucks (SBUX) $7.15 billion in cash for the rights to sell the U.S. coffee chain’s products around the world in a global alliance aimed at reinvigorating their coffee empires. The deal on Monday for a business with $2 billion in sales reinforces Nestle’s position as the world’s biggest coffee company tries to fortify its place atop a fast-changing market. [Reuters]
Fidelity employees fired after alleged misuse of reimbursement programs: Fidelity Investments has fired or allowed more than 200 employees to resign over alleged misuse of workplace-benefits programs, according to people familiar with the matter. Behind the layoffs and resignations was a company audit of computer-buying and physical-fitness benefit programs over the last year. That review found misuse in offices across the country, the people familiar said. [The Wall Street Journal]
Mondelez gobbles up cookie maker Tate’s Bake Shop: Food giant Mondelez International Inc. is adding another brand to its pantry. The company late Sunday agreed to acquire cookie maker Tate’s Bake Shop for about $500 million, as it seeks to address changing consumer tastes. {The Wall Street Journal]
For more of the latest news, go to Yahoo Finance
Highlights from the Berkshire Hathaway 2018 Annual Shareholder Meeting
Charlie Munger calls Elon Musk ‘brilliant’ and bitcoin ‘stupid and immoral’
Berkshire-Amazon-JPMorgan health care initiative to have a CEO soon
Munger says single-payer health care will come when Democrats take control
Warren Buffett: ‘Cyber is uncharted territory and it’s going to get worse, not better’
If you missed Berkshire’s annual meeting, watch it on demand only on Yahoo Finance
Yahoo Finance Originals
Short sellers are excited about 2018, with bets against Tesla, Ralph Lauren, AB InBev and more
Tinder CEO on data privacy: ‘We don’t sell data’
Americans’ thirst for ‘super premium’ tequila is unquenchable
—
Like what you just read? Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. And feel free to share it with a friend!
The Morning Brief provides a quick rundown on what to watch in the markets, top news stories, and the best of Yahoo Finance Originals.
