Text size
Three numbers to start the day:
Berkshire Hathaway
We spent $ 24.7 billion on share repayments in 2020
It’s a record several times for Warren Buffett’s conglomerate and just one of the highlights of the legendary investor’s annual letter, which came out over the weekend.
Buffett has long been resistant to redemption, but it seems that Berkshire’s huge cash treasury and the remaining share price inspired him to change his tune. Investors liked the sound and Berkshire shares rose 3.5% on Monday.
Remember, 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 higher share of ownership in the company. It’s a tax-efficient way to return shareholder money and one that Buffett himself is looking for in the companies he invests in.
AppleS
The initial order for the iPhone 13s could reach 100 million
This is according to an analyst reading the tea leaves in the supply chain. It would compare to an initial version of 80 million iPhone 12 units in 2020.
The next line of the iPhone will probably not be revealed until September, but Apple will start working with its suppliers months in advance. If the initial order for the iPhone 13 is actually 25% higher than for the iPhone 12, this is a sign that management expects the 5G smartphone update cycle to last until next year.
Wall Street is already expecting 2021 to be a huge year for iPhone sales. The consensus forecast is about 220 million units, just over the record of 231 million in 2015. Then came the iPhone 6 with a larger screen.
The airlines’ stock index has increased by 27% since the beginning of 2021
Thanks to the growing optimism about the timing of vaccinations against Covid-19 and the ongoing economic recovery. Basically, investors now expect airlines to have more passengers who buy tickets – and faster – than they did a few months ago.
Weekend news approved by the Food and Drug Administration
Johnson & JohnsonS
(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 that has just passed the House of Representatives.
Investors bet they were betting on a return of domestic flights before international routes and on leisure trips before business. Lately, the biggest winners have been US-oriented budget carriers
Spirit Airlines
(SAVE) and
JetBlue Airways
(JBLU).
Numbers of Barron’s is our daily podcast. Find out more Here.
Write to Nicholas Jasinski at [email protected]