Latest news with #BuyAmerican
Business Insider
02-05-2025
- Business
- Business Insider
Warren Buffett disciples want to know what he plans to do with all that cash
Warren Buffett kept quiet when stocks tumbled. The famed investor will break his silence on Saturday with nearly five hours of questions at Berkshire Hathaway's annual shareholder meeting. The $1 trillion conglomerate, which Buffett still heads at 94, owns many businesses, including auto insurer Geico and the BNSF Railway, and holds billion-dollar stakes in public companies such as Apple and Coca-Cola. If it's affecting the US economy, it's affecting Berkshire. That, combined with Buffett's decades of investing experience, will have tens of thousands of followers hanging off his every word during the event in his hometown of Omaha. More than a dozen of Buffett's close followers told Business Insider the burning questions they want him to answer, from tariff impacts and Berkshire's cash pile to his retirement plans and Apple disposals. Trade war fallout Tariffs have reignited investors' fears of inflation and recession, sparking an exodus from US stocks, Treasurys, and the dollar in recent weeks. "I'd like to hear how the tariffs are affecting Berkshire's businesses now, and how they may affect the businesses in the future," Steven Check, the CEO of Check Capital Management, told BI. He also wanted to hear Buffett's views on tariffs from a global perspective. Adam Mead, the author of " The Complete Financial History of Berkshire Hathaway " and a money manager, told BI that Trump's tariffs "might change the calculus" for Berkshire's solar projects, adding they likely source many of their panels and equipment from overseas. Adam Schwartz, the founder and chief investor of Black Bear Value Partners, told BI he hoped Buffett would address tariffs and advise investors on protecting their portfolios. Schwartz said, "Does he view the tariff policy as a structural change in the environment, and how do you handicap the downside?" John Longo — a finance professor, investment chief, and the author of "Buffett's Tips: A Guide to Financial Literacy and Life" — told BI he hoped Buffett would say whether he still thinks the US trade deficit is an urgent problem as he argued in a Fortune article in 2003. Spending plans Buffett nearly doubled Berkshire's pile of cash, Treasury bills, and other liquid assets to a record $334 billion last year, partly by selling a net $134 billion of stocks and halting share buybacks in the second half. His followers want to know what he plans to do with that war chest, which exceeds Coca-Cola's entire market value. He could use the dry powder to make a blockbuster acquisition, scoop up stocks, reinstate share purchases, or even pay a dividend. "Why is he amassing this huge cash position, and where would the stock market need to fall for him to write ' Buy American. I Am. ' like he did in the fall of 2008?" asked Bill Smead, the founder and chief investor of Smead Capital Management. Smead was referring to Buffett's famous New York Times op-ed at the height of the financial crisis, in which he urged others to join him in making long-term bets on American businesses. Alex Morris, the author of "Buffett and Munger Unscripted" and the founder of investment research service TSOH, told BI he was "curious" to hear whether Buffett still believes Berkshire should have a minimum of $30 billion in cash reserves, and what "the largest deal they could do today" would be. Buffett's acolytes are also waiting impatiently to learn whether the legendary bargain hunter capitalized on the recent stock plunge. "Has Berkshire been investing its cash after the sharp market decline in April?" asked David Kass, a finance professor at the University of Maryland and longtime Buffett blogger. Signature stocks Berkshire sold 67% of its biggest stock position, Apple, in the first nine months of 2024. But it left the remaining 300 million shares intact in the fourth quarter, even though the iPhone maker's stock traded higher than it did earlier in the year. That raises a roughly "$60 billion question of why not sell the whole position?" Mead told BI. "It's a bit perplexing." Darren Pollock, a portfolio manager at Cheviot Value Management, also queried the remaining Apple stake. The stock is down around 12.5% year-to-date. "He's Warren Buffett, he obviously has a thoughtful rationale, and I'd love to hear it," Pollock told BI. Berkshire businesses Buffett often sheds light on Berkshire's myriad subsidiaries during his annual Q&A. "I always enjoy the color provided on the key businesses," Paul Lountzis, the president of Lountzis Asset Management, told BI. He reeled off Geico, the overall insurance division, the BNSF Railway, Berkshire Hathaway Energy, and Berkshire's manufacturing and retailing segments. Several followers said they hoped Buffett would compare Geico, the revitalized auto insurer, to its archrival Progressive on profitability, market share, and underwriting expenses. Mead said he wanted to know why Berkshire valued energy giant BHE below $50 billion in a deal last year to buy a minority interest from his late friend Walter Scott's estate, despite valuing it closer to $90 billion when Berkshire purchased non-insurance chief Greg Abel's stake in 2022. "Is BHE really worth that much less today compared to then, or was that a quirk in the purchase agreement with the Scott estate?" Mead asked. Winding down At 94, Buffett has been detailing his estate planning and championing his planned successor, Abel, in his recent letters to shareholders. Kass told BI he'd like to know whether Buffett plans to resign as CEO in the near future. Others said they were hungry for insights into how Abel would run the company. Lawrence Cunningham, the author of numerous books about Berkshire and the director of the University of Delaware's Weinberg Center on Corporate Governance, told BI he wanted to hear from Abel, "particularly his vision for Berkshire's future and how he plans to uphold the company's core values and strategic direction." Luke Rahbari, the CEO of Equity Armor Investments, told BI he was eager for Abel to elaborate on how he'll "approach capital allocation, including stock picking and acquisitions, and how might his leadership style differ from Buffett's?" Morris referred to how Buffett urged the US government in his latest shareholder letter to use Berkshire's record tax payment to help the less fortunate. "Relative to current US policies, what does Warren believe would be the most effective additional way to take care of the people who got the short straws?" he asked. Brett Gardner, an analyst and the author of the recently released "Buffett's Early Investments," told BI he's crossing his fingers that the Berkshire chief will be asked about some of his findings: such as whether an early bet, Philadelphia and Reading Railroad, was an "inspiration for Berkshire," and details on how Buffett analyzed the corporate governance risks attached to buying 5% of Disney in 1966. "Selfishly, I am hoping he gets some questions on my book!" Gardner added. Brian Gongol, a Buffett superfan who's been a shareholder since 2007, told BI his question was inspired by Buffett's oft-repeated advice: "Invest in yourself." "I'd like to know what he thinks was Berkshire's best reinvestment in itself, whether it took place this past year or simply bore fruit in the last year," he said.
Yahoo
22-04-2025
- Business
- Yahoo
Trump orders federal procurement overhaul
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. President Donald Trump last week ordered federal agencies to overhaul their procurement systems and regulations. It's the biggest effort to modernize how federal agencies buy products and services since Congress passed the Federal Acquisition Streamlining Act and the Federal Acquisition Reform Act into law in the '90s, according to Federal News Network. Trump's April 15 executive order said the FAR had evolved 'into an excessive and overcomplicated regulatory framework.' He called for it to include only those 'provisions required by statute or essential to sound procurement,' and said any provisions that do not advance these objectives should be removed. In a second order on April 16, Trump also directed agencies to purchase only commercially available products and services, rather than unique government systems or custom solutions, unless they are given a waiver from the agency's approval authority. The FAR was enacted in 1984 to establish uniform procedures for acquisitions across executive departments and agencies. Now the Office of Federal Procurement Policy within the White House's Office of Management and Budget will conduct the sweeping review and rewrite of the FAR within 180 days of Trump's April 15 order. 'Led by OFPP, the FAR Council will rewrite the FAR in plain English, eliminate non-statutory and duplicative regulations, remove DEI and wokeness and add buyer guides in place of burdensome and outdated requirements,' according to the order. The FAR incorporates regulations like Buy American, the Service Contract Act, the Competition and Contracting Act and the Davis-Bacon Act. It's not yet clear how they will be altered, but the administration has expressed strong support for domestic purchasing requirements, saying in an April 3 fact sheet that 'Buy American is the epitome of common-sense public policy.' That means civil builders need to be ready to adapt. Although Trump's order aims to simplify the procurement system, it also sets in motion a period of regulatory uncertainty that may prove challenging for federal contractors, according to an April 17 post by lawyers at global law firm Dentons. 'Contractors may be forced to navigate a fragmented environment where some agencies adopt new deviations and reforms more quickly than others, and contracts almost certainly will be subject to a patchwork of requirements depending on when they were awarded, creating inconsistency across the federal procurement landscape,' according to the Dentons lawyers. The transitional period may increase internal costs because contractors will need to update compliance systems, retrain staff and reassess risk management strategies, per Dentons. Trump set a 15-day deadline for agencies to designate a senior procurement official to work with the FAR Council and a 20-day deadline for the OMB director to provide guidance to agencies. The second Trump administration has been moving quickly to update the rules governing how projects get done. On April 15, Trump also ordered federal agencies to integrate technology into their permit reviews in an effort to speed up the processing time for infrastructure projects. Recommended Reading Trump orders permitting agencies to embrace tech
Yahoo
24-03-2025
- Politics
- Yahoo
Judge Denies Trump Bid to Resume Deporting Accused Gang Members
(Bloomberg) -- A federal judge denied the Trump administration's request to throw out a temporary court order barring deportations of accused Venezuelan gang members under the Alien Enemies Act, further escalating a standoff between the courts and the White House. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs New York Subway Ditches MetroCard After 32 Years for Tap-And-Go Libraries Warn They Could Be 'Cut off at the Knees' by DOGE US District Judge James Boasberg on Monday denied a government request to vacate his temporary order, ruling that none of the men can be removed until they've had a chance to challenge claims that they belong to the violent gang. The ruling came hours before a federal appeals court will hear arguments on the issue. The judge said some of the men affected by a deportation proclamation issued by President Donald Trump deny being gang members. 'Each vehemently denies being a member of Tren de Aragua and thus subject to the proclamation,' the judge said. 'Several in fact claim that they fled Venezuela to escape the predations of the group, and they fear grave consequences if deported solely because of the Government's unchallenged labeling.' Lawyers for the US Justice Department have argued that Trump's invocation of the controversial Alien Enemies Act can't be reviewed by the courts, but Boasberg said he doesn't need to resolve that question at this stage in the litigation because the individuals are likely to win on a different argument — that they deserve a hearing. 'The court need not resolve the thorny question of whether the judiciary has the authority to assess this claim in the first place,' the judge said. 'That is because plaintiffs are likely to succeed on another equally fundamental theory: before they may be deported, they are entitled to individualized hearings to determine whether the Act applies to them at all.' A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers Tesla's Gamble on MAGA Customers Won't Work One Man's Crypto Windfall Is Funding a $1 Billion Space Station Dream The Real Reason Trump Is Pushing 'Buy American' ©2025 Bloomberg L.P.
Yahoo
24-03-2025
- Business
- Yahoo
Kaisa Wins Hong Kong Court Approval for Offshore Debt Plan
(Bloomberg) -- Defaulted Chinese developer Kaisa Group Holdings Ltd. won a Hong Kong court's approval for its offshore restructuring, according to people familiar with the matter, clearing the way for it to proceed with its debt plan. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs New York Subway Ditches MetroCard After 32 Years for Tap-And-Go Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style The development comes after Hong Kong High Court Judge Linda Chan reserved a decision on the restructuring on Friday, saying that she needed to check on some matters, without elaborating. Companies often receive approval for such plans as the hearings wrap up. On Friday Chan had asked the company about a work fee to be paid to an ad-hoc group of creditors. The company had earlier reduced the fee to 1%. The High Court didn't reply to a request for comment. Once a symbol of the boom years in China's credit markets, Kaisa was sued in 2023 by creditors to liquidate after a 2021 bond default. With more than $12 billion of offshore borrowings subject to restructuring, Kaisa carries one of the largest debt loads in the industry. Even if a company gets court approval, it still faces challenges. A number of builders that also passed this stage in their restructurings are heading back to square one, after fresh liquidity problems amid a prolonged property crisis made it harder for them to honor their promises. Kaisa will still face a winding-up hearing on March 31. A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers Tesla's Gamble on MAGA Customers Won't Work One Man's Crypto Windfall Is Funding a $1 Billion Space Station Dream The Real Reason Trump Is Pushing 'Buy American' ©2025 Bloomberg L.P.
Yahoo
24-03-2025
- Business
- Yahoo
Heathrow Defends Handling of Blackout, Saying Shutdown Unavoidable
(Bloomberg) -- London's Heathrow airport defended its handling of Friday's unprecedented shutdown, rejecting assertions it had enough backup power to remain open after a fire knocked out the main substation supplying the hub. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs New York Subway Ditches MetroCard After 32 Years for Tap-And-Go Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style 'It would not have been possible for Heathrow to operate uninterrupted,' the airport said in an emailed statement. 'Given Heathrow's size and operational complexity, safely restarting operations after a disruption of this magnitude was a significant challenge.' Heathrow was responding to comments over the weekend from National Grid Plc Chief Executive Officer John Pettigrew, who told the Financial Times there were enough alternative power supplies to keep the airport running. The shutdown has led to criticism of the airport for a lack of redundancy and the actions of its CEO, Thomas Woldbye. He went home to sleep and left the decision to shut down flights to a deputy, The Times reported. British Airways chief Sean Doyle worked through the night into Friday to reroute flights headed to the airline's biggest hub. Heathrow managed to restart a few flights late on Friday after the blackout but services remained disrupted over the weekend. By Sunday the airport was operating at close to normal levels. The government announced an independent investigation into the fire, which Heathrow said it supports and that 'lessons can and will be learned.' Each of two alternate substations had enough power to supply Heathrow, Pettigrew told the FT, after its North Hyde location was shut down by fire. Flights were brought to a standstill and planes were diverted after a blaze broke out at a nearby power station late Thursday, forcing the airport to close. The backup systems helped the airport to land some aircraft and evacuate passengers, but not to run a full operation. Hours after the fire started, Woldbye went to bed, leaving Chief Operating Officer Javier Echave in charge, The Times said. A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers Tesla's Gamble on MAGA Customers Won't Work One Man's Crypto Windfall Is Funding a $1 Billion Space Station Dream The Real Reason Trump Is Pushing 'Buy American' ©2025 Bloomberg L.P. Sign in to access your portfolio
