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Kelly McParland: Trump behaving like a self-serving monarch

Kelly McParland: Trump behaving like a self-serving monarch

National Post16-05-2025

For a guy who peddled glossy golden high-top sneakers and a line of superhero trading cards bearing his image during his run for the presidency, accepting a 'free' US$400 million flying palace from a foreign country eager for his favour is just another day at the office for Donald Trump.
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In Trump's case, the office is the White House, and the luxury jet he's been offered by the Qatari government is just more evidence of the high favour in which he's held around the world, according to official spokespeople. That the Trump family business is building a luxury golf and beachside residential development in Qatar in a deal including a company owned by the Qatari government is beside the point. As is the fact the president is accepting the gift from a foreign power while prosecuting a tariff war launched on the premise that Americans should do their business with fellow Americans — for the sake of the nation — rather than favouring unAmerican competitors.
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Doesn't matter. In a country where each new day starts with another headline about the latest capers in the Oval Office, it's just another big ho-hum. Remember last week when he wanted to tariffize the movies, as if anyone could define precisely what made a film American when virtually every such venture involves input from around the globe? Or the sudden need to rescue white people from South Africa, where they make up just eight per cent of the population but own 75 per cent of the private land?
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What's notable about the Qatari commotion is not that it's worse than any other hundred-or-so Trumpian brouhahas, but how little these episodes disturb the placid surface of American indifference. As the president was welcoming the exceedingly generous freebie from an authoritarian monarchy where political parties are banned, his Republican disciples in Congress were releasing their plans to slash up to US$880 billion in spending, largely targeted at the Medicaid program that provides health coverage to low-income adults, children, pregnant women, the elderly and people with disabilities.
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The Congressional Budget Office calculates the plan would remove coverage for about eight million people who can't afford their own. New costs would be imposed on those earning above the federal poverty level, which starts at US$1,300 a month for individuals.
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The disparity between the president's good fortune and that of his flock, many of them no doubt firm Maga-ites, was noted, but caused no serious disturbance. And no wonder, it's not like anything's changed.
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The Wall Street Journal recently reported that the richest 19 households in the U.S. gained an extra US$1 trillion in wealth last year. More, it said, than Switzerland's entire economy. The country's top 1 per cent now hold 31 per cent of its wealth, against 3 per cent for the bottom half of the population. From outside its borders, the U.S. may bear a worrying resemblance to the Bourbon nobility just before the French Revolution, but within its walls, America's aristocracy appears perfectly safe. The last time Americans stormed anything, it was in support of the very administration — all covered by generous, subsidized health benefits — that demands they start paying their own way for doctor visits.

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Billionaire Warren Buffett Sold 39% of Berkshire's Stake in Bank of America and Is Loading Up on a Famed Consumer Brand That's Skyrocketed 7,700% Since Its IPO
Billionaire Warren Buffett Sold 39% of Berkshire's Stake in Bank of America and Is Loading Up on a Famed Consumer Brand That's Skyrocketed 7,700% Since Its IPO

Globe and Mail

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  • Globe and Mail

Billionaire Warren Buffett Sold 39% of Berkshire's Stake in Bank of America and Is Loading Up on a Famed Consumer Brand That's Skyrocketed 7,700% Since Its IPO

May was a month to remember for Wall Street's most-famous billionaire money manager, Warren Buffett. On May 3, the company Buffett has been CEO of for six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), reported its first-quarter operating results, and the Oracle of Omaha announced during his company's annual shareholder meeting that he'd be stepping down as CEO at the end of the year. But this wasn't all. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Institutional investors with at least $100 million in assets under management were required to file Form 13F with the Securities and Exchange Commission by no later than May 15. Even though Berkshire's first-quarter operating results made clear that Buffett was a net seller of stocks for a 10th consecutive quarter, the company's cash flow statement didn't spill the beans on which stocks he was buying and selling. A 13F opens the proverbial hood for investors to see which stocks Wall Street's preeminent billionaire investor bought and sold in the first quarter. Based on Berkshire Hathaway's 13F for the March-ended quarter and various regulatory filings, we know that Buffett purchased 13 stocks, including a mystery company. On the flipside, Berkshire's chief oversaw the removal or reduction of eight stocks. What really stands out is Buffett's persistent selling of one of his (current) core holdings, and his continued purchasing of a beloved consumer brand that's skyrocketed since it became a public company 21 years ago. Bank of America stock gets the axe for the third consecutive quarter No sector tends to be favored more by the Oracle of Omaha than financials. Even though banks and insurance companies are relatively boring businesses that ebb-and-flow with the health of the U.S. economy, it's a sector that intrigues Berkshire's chief and for which he has a good understanding. For years, money-center giant Bank of America (NYSE: BAC) was Berkshire Hathaway's largest financial stock and No. 2 holding by market value, behind only Apple. But beginning on July 17, 2024 -- we know this specific date, because Berkshire Hathaway held in excess of 10% of BofA's outstanding shares, and was thus required to file Form 4 detailing all shares purchased and sold until its ownership dipped below 10% -- the selling spigot opened. For three consecutive quarters, Buffet has sold shares of Bank of America. What was once a position of more than 1.03 billion shares has been reduced by more than 401 million shares, or 39%. As of this writing on May 28, Bank of America has fallen to No. 4 in Berkshire's $276 billion portfolio, behind Apple, American Express, and Coca-Cola, in terms of market value. This persistent selling of Bank of America stock may very well be nothing more than benign profit-taking. Warren Buffett orchestrated a capital infusion with BofA in August 2011 that ultimately netted Berkshire the option to exercise warrants for up to 700 million shares of BofA stock at $7.14 per share. Buffett jumped at the opportunity to do so in mid-2017. With the peak marginal corporate income tax rate at its lowest level since 1939, locking in gains at an advantageous rate would be very Buffett-like. But it's also possible there are more nefarious reasons behind the Oracle of Omaha's steady paring of his company's Bank of America stake. For example, Bank of America is the most interest-sensitive of all money-center banks. When the Federal Reserve rapidly increased interest rates between March 2022 and July 2023, no big bank enjoyed a more tangible benefit to net interest income than BofA. Yet with the nation's central bank now in the midst of a rate-easing cycle, it's BofA that could see its net interest income hit hardest if rates dramatically fall. Additionally, Berkshire's CEO is an unwavering value investor -- and Bank of America is no longer the screaming bargain it once was. In August 2011, Bank of America's common stock was trading at a 62% discount to its book value. Through much of the first quarter, BofA stock traded at a 20% to 30% premium to its book value. While this isn't egregiously (or even historically) pricey, it's getting near Bank of America's priciest valuation, relative to book, since prior to the Great Recession. The Oracle of Omaha loaded up on this consumer goods stock for a third straight quarter While Warren Buffett has been continually reducing Berkshire Hathaway's exposure to Bank of America since July 2024, he's been building up a sizable stake, worth more than $1.2 billion (as of March 31, 2025), in one of America's most-famed consumer brands. In mid-November, when Berkshire Hathaway released its 13F detailing third-quarter trading activity, investors took note that Buffett put a slice of Domino's Pizza (NASDAQ: DPZ) on his proverbial plate. Berkshire Hathaway gobbled up 1,277,256 shares in the September-ended quarter, added 1,104,744 shares in the December-ended quarter, and topped things off in the latest quarter with 238,613 more shares. All told, Berkshire Hathaway now holds 2,620,613 shares of Domino's Pizza, which equates to a 7.7% stake in the company. Though Domino's Pizza stock wasn't much of a hit with investors through its first six years as a public company, it's been virtually unstoppable over the last 15 years. Inclusive of dividends, Domino's is nearing a total return of almost 7,700% since its July 2004 initial public offering (IPO). Domino's massive outperformance of the benchmark S&P 500, and the reason(s) Buffett has been a buyer, can be broken down to three factors. The first variable is an all-important intangible that can be a dealbreaker for Warren Buffett and his top advisors: trust. Domino's Pizza kicked off a fresh advertising campaign in 2009 that flat-out admitted its pizza was terrible and vowed to do better. The company's straightforward marketing campaign and efforts to engage and maintain transparency helped it win over consumers. It takes a long time to build trust with consumers, but Domino's has done an exemplary job. Secondly, Domino's management team has consistently laid out multiyear growth strategies and been able to achieve them. The latest of its plans is the "Hungry for MORE" initiative. Domino's five-year plan is to lean into technology to spruce up its supply chain and increase productivity. It'll also be relying on its franchisees to help build up the company's brand. With 31 consecutive years of international same-store sales growth under its belt, clearly the company is doing something right. 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Billionaire Bill Ackman Wants to Be the Next Warren Buffett, and He Is Buying an AI Stock Up 855% in 10 Years (Hint: Not Nvidia)
Billionaire Bill Ackman Wants to Be the Next Warren Buffett, and He Is Buying an AI Stock Up 855% in 10 Years (Hint: Not Nvidia)

Globe and Mail

timean hour ago

  • Globe and Mail

Billionaire Bill Ackman Wants to Be the Next Warren Buffett, and He Is Buying an AI Stock Up 855% in 10 Years (Hint: Not Nvidia)

In 1965, Warren Buffett took control of Berkshire Hathaway. He said that in hindsight it was a "doomed" textile mill "headed for extinction." But he saved the business, and laid the foundation for lasting growth, by shifting its focus to insurance. That brilliant decision created a steady inflow of investable capital in the form of insurance premiums, and Buffett used that cash to great effect over the years. Berkshire's market value has increased more than 5,500,000% since Buffett took control, for an average annual return of 20% over six decades. Buffett deserves much of the credit. He (along with the late Charlie Munger) engineered acquisitions, stock purchases, and share buybacks that ultimately turned Berkshire into a trillion-dollar business, one of only 11 in the world at this writing. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » While Buffett plans to step down as chief executive at Berkshire this year, billionaire Bill Ackman hopes to recreate his success with Howard Hughes Holdings. Ackman recently added another 900 million shares to his hedge fund, bringing his total ownership to 46.9%. He plans to turn Howard Hughes into a "modern-day version of Berkshire" by acquiring controlling interests in private and public companies. If Ackman succeeds, he could become the "next Warren Buffett." Here's the artificial intelligence stock he just bought. Bill Ackman just bought Amazon, an AI stock up 855% in the last decade Bill Ackman ranks among the 20 most successful hedge-fund managers as measured by net gains, according to LCH Investments. And Pershing Square outperformed the S&P 500 (SNPINDEX: ^GSPC) by 24 percentage points over the last five years. Those accomplishments make Ackman an excellent source of inspiration. 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But the company is also developing about 1,000 generative AI applications that will improve productivity and efficiency across its retail business, from front-end tasks like customer service to back-end tasks like coding. AWS is ideally positioned to monetize AI. It already operates the largest public cloud as measured by revenue and customers, but it has also introduced new products at all three layers of the computing stack. That includes custom chips for AI training and inference at the infrastructure layer, AI-model development tools like Bedrock at the platform layer, and AI applications like Amazon Q at the software layer. That three-tiered strategy is paying off. CEO Andy Jassy recently told analysts: "Our AI business has a multibillion-dollar annual revenue run rate," and "continues to grow triple-digit year-over-year percentages." Most Wall Street analysts anticipate upside in Amazon stock in the next year Amazon shares soared 855% over the last decade as the company built strong positions in online retail, digital advertising, and cloud computing. And Wall Street is still predominantly bullish. Among the 71 analysts who follow the company, 96% rate the stock a buy, and the median target price is $235 per share, which implies 14% upside from the current share price of $205. Wall Street expects Amazon's earnings to increase at 10% annually through 2026. That makes the current price-to-earnings (P/E) ratio of 33 look somewhat expensive. But I think analysts are underestimating the company, as they have in the past -- Amazon topped the consensus earnings estimate by an average of 21% during the last six quarters. Long-term investors should feel comfortable buying a small position today. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.

The election of a Trump ally in Poland could alter EU and Ukraine policies
The election of a Trump ally in Poland could alter EU and Ukraine policies

Winnipeg Free Press

time2 hours ago

  • Winnipeg Free Press

The election of a Trump ally in Poland could alter EU and Ukraine policies

WARSAW, Poland (AP) — Poland has elected Karol Nawrocki, a conservative historian and staunch nationalist, as its next president in a closely watched vote that signals a resurgence of right-wing populism in the heart of Europe. Nawrocki, who is set to take office on Aug. 6, is expected to shape the country's domestic and foreign policy in ways that could strain ties with Brussels while aligning the Central European nation of nearly 38 million people more closely with the administration of President Donald Trump in the United States. Here are some key takeaways: Conservative populism on the rise Nawrocki's victory underscores the enduring appeal of nationalist rhetoric among about half of the country along the eastern flank of NATO and the European Union, and its deep social divisions. The 42-year-old historian who had no previous political experience built his campaign on patriotic themes, traditional Catholic values, and a vow to defend Poland's sovereignty against the EU and larger European nations like Germany. His win also reflects the appeal of right-wing nationalism across Europe, where concerns about migration, national sovereignty, and cultural identity have led to surging support for parties on the right — even the far right in recent times. Far-right candidates did very well in Poland's first round of voting two weeks earlier, underlining the appeal of the nationalist and conservative views. Nawrocki picked up many of those votes. As his supporters celebrate his win, those who voted for the defeated liberal candidate, Warsaw Mayor Rafał Trzaskowski, worry that it will hasten the erosion of liberal democratic norms. Prime Minister Donald Tusk's troubles Nawrocki's presidency presents a direct challenge to Prime Minister Donald Tusk, who returned to power in late 2023 pledging to mend relations with the EU and restore judicial independence which Brussels said was eroded by Law and Justice, the party that backed Nawrocki. But Tusk's coalition — a fragile alliance of centrists, leftists, and agrarian conservatives — has struggled to push through key promises including a civil union law for same-sex couples and a less restrictive abortion law. Nawrocki, who opposes such measures, will have the power to veto legislation, complicating Tusk's agenda and potentially triggering political gridlock. Ties with the Trump administration Nawrocki's election could signal a stronger relationship between Poland and the Trump administration. Poland and the U.S. are close allies, and there are 10,000 U.S. troops stationed in Poland, but Tusk and his partners in the past have been critical of Trump. Nawrocki, however, has a worldview closely aligned with Trump and his Make America Great Again ethos. Trump welcomed Nawrocki to the White House a month ago and his administration made clear in other ways that he was its preferred candidate. A shifting focus on Ukraine While Nawrocki has voiced support for Ukraine's defense against Russian aggression, he does not back Ukrainian membership in NATO and has questioned the long-term costs of aid — particularly support for refugees. His rhetoric has at times echoed that of Trump, for instance by accusing Ukrainian President Volodymyr Zelenskyy of what he said was insufficient gratitude for Poland's assistance. With growing public fatigue over helping Ukrainian refugees, Nawrocki's approach could shift Poland's posture from strong ally to conditional partner if the war drags on much longer. Ties with the EU The election result is a setback for the EU, which had welcomed Tusk's return in 2023 as a signal of renewed pro-European engagement. Monday Mornings The latest local business news and a lookahead to the coming week. Nawrocki and the Law and Justice party have criticized what nationalists view as EU overreach into Poland's national affairs, especially regarding judicial reforms and migration policy. While the president does not control day-to-day diplomacy, Nawrocki's symbolic and veto powers could frustrate Brussels' efforts to bring Poland back into alignment with bloc standards, particularly on rule-of-law issues. Market jitters Though an EU member, Poland has its own currency, the zloty, which weakened slightly on Monday morning, reflecting investor concerns over potential policy instability and renewed tensions with EU institutions. Billions of euros in EU funding has been linked to judicial reforms which Tusk's government will now be unlikely to enact without presidential cooperation.

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