Latest news with #WarrenBuffett
Yahoo
37 minutes ago
- Business
- Yahoo
Warren Buffett Has Discovered There's No Accounting For Tastes Through Berkshire's Candy Company: 'There Are All Kinds Of Crazy Things In The World That Consumers Do'
At Berkshire Hathaway's (NYSE:BRK) (NYSE:BRK) 2023 annual meeting, CEO Warren Buffett shared a rare insight into why See's Candies, a beloved West Coast confectioner owned by the conglomerate since 1972, hasn't expanded successfully beyond its core markets. What Happened: "We have this wonderful brand that doesn't travel," Buffett said. "The mystique, the actual product, the feelings people have about some things... it's limited to given markets." Despite See's strong economy in California and the western U.S., attempts to replicate that success elsewhere repeatedly fell short. "We tried everything in the world to move the brand... and we always think we were right for the first week," Buffett said. "Then we find out that the magic—we can beat any other candy store pretty much—but there aren't any candy stores anymore to speak of, as the world has changed." Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Buffett compared See's regional success to Dr Pepper's dominance in certain markets like Dallas–Fort Worth, noting that even national advertising and widespread awareness can't override local preferences. "There are all kinds of crazy things in the world that consumers do," he added, pointing out that East Coast customers prefer dark chocolate, while West Coast buyers gravitate toward milk chocolate. Why It's Important: See's Candies began in 1921 when Charles See and his family opened their first shop in Los Angeles, offering chocolates based on his mother Mary See's original recipes. The company quickly earned a reputation for quality and freshness, building a loyal customer base across California. A major turning point came in 1972 when Buffett and Charlie Munger's Berkshire Hathaway acquired See's for $25 million. What began as a modest operation with $30 million in annual revenue and under $5 million in pretax income grew into a confectionery powerhouse, generating over $380 million in annual sales and $80 million in profits, reported Markets Insider in 2019. Buffett's admiration for See's is also no secret. During shareholder meetings, he famously keeps a box of See's peanut brittle close by. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share! Photo Courtesy: Photo Agency on Send To MSN: Send to MSN UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Warren Buffett Has Discovered There's No Accounting For Tastes Through Berkshire's Candy Company: 'There Are All Kinds Of Crazy Things In The World That Consumers Do' originally appeared on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
39 minutes ago
- Business
- Yahoo
UnitedHealth (UNH) Sets Sights on Market Comeback After Brutal Quarter
UnitedHealth Group's stock (UNH) has hit a rough patch, weighed down by regulatory pressure on its Medicare Advantage programs and rising medical costs. But stepping back from the current turbulence, there's reason for cautious optimism. UnitedHealth's strategic direction and diversified business model leave it well-positioned to benefit from long-term healthcare trends, even as it navigates short-term headwinds. All things considered, I remain cautiously bullish on UNH. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter UnitedHealth is facing challenges on multiple fronts. Most notably, the Department of Justice (DOJ) is investigating potential fraud in its largest revenue source, the Medicare Advantage (MA) business. This follows a civil inquiry into whether the company exaggerated patient diagnoses to secure higher payments for its MA plans, a serious allegation. UnitedHealth has denied any knowledge of a criminal investigation, so for now, that aspect remains speculative. These concerns come as the Centers for Medicare & Medicaid Services (CMS) plans to audit all Medicare Advantage programs, placing additional scrutiny on UnitedHealth. Given that the MA business is a critical part of UnitedHealthcare—one of the company's two core segments alongside Optum—this spotlight could have meaningful implications. In its first quarter 2025 earnings, UnitedHealthcare's revenues were $84.6 billion out of total revenues of $109.6 billion. As of Q1 2025, UnitedHealthcare had 8.2 million MA members, making up nearly 20% of the total domestic membership. In addition to mounting regulatory pressure, UnitedHealth's Medicare Advantage (MA) business is being squeezed by rising medical costs. An aging population is driving higher-than-expected utilization of healthcare services, while government reimbursement rates are slow to keep pace. For example, the planned 5.06% increase in reimbursement for 2026, though helpful, is unlikely to fully offset the surge in expenses, leaving MA providers like UnitedHealth in a difficult position. These cost pressures have already forced the company to lower its full-year 2025 earnings guidance. Compounding the situation are the lingering effects of the February 2024 ransomware attack on its Change Healthcare subsidiary, which exposed sensitive data of millions of patients. On top of that, the company is still reeling from the tragic assassination of former CEO Brian Thompson last December, adding further disruption during an already turbulent period. For investors, turbulent periods like this echo Warren Buffett's famous advice: 'Be fearful when others are greedy, and greedy when others are fearful.' UnitedHealth's newly reappointed CEO, Stephen J. Hemsley, is well-suited to lead through uncertainty, having already steered the company through the 2008 financial crisis during his previous tenure from 2006 to 2017. Importantly, UnitedHealth's business model is both defensive and diversified, extending well beyond its Medicare Advantage operations. Its Optum segment, which includes health services, pharmacy benefits management, and healthcare technology, is a major growth driver. In the first quarter alone, Optum's revenue rose by $2.8 billion to $63.9 billion. Optum's success also reinforces the MA business through its focus on value-based care, creating a potential flywheel effect that enhances overall efficiency and patient outcomes. And with powerful long-term tailwinds in the healthcare sector, particularly from an aging population, UnitedHealth—as the largest MA provider—remains well-positioned for future growth. On Wall Street, UNH sports a Moderate Buy consensus rating based on 19 Buy, six Hold, and one Sell ratings in the past three months. UNH's average price target of $380.59 implies a 28% upside potential over the next 12 months. Given the factors surrounding the stock, UNH has been subject to many rating downgrades this past month. For instance, HSBC analyst Sidharth Sahoo downgraded UNH to Sell due to several risks, including 'potential increases in the medical loss ratio, policy risks related to Optum Rx, and lower return on equity expectations. Additionally, the cancellation of 2025 earnings guidance has increased the downside risk for future earnings, and potential Medicaid funding cuts could further impact the company's financial performance.' Not all analysts share Sahoo's cautious outlook. JPMorgan's Lisa Gill maintains a Buy rating on UnitedHealth, viewing the recent stock decline as 'overdone.' She contends that The Guardian's report, which contributed to market volatility, misrepresents how UnitedHealth manages hospitalizations. In her view, the misconduct allegations don't hold up under scrutiny. Gill essentially dismisses the report's claims, emphasizing a logical rationale behind UnitedHealthcare incentivizing nursing facilities to reduce unnecessary hospitalizations, since it can lead to better outcomes and lower costs for all parties. That said, such programs must be implemented with care and integrity. Ethically, once a hospital transfer becomes medically necessary—say, in the case of stroke symptoms—it should never be delayed or denied. In response to the article, UnitedHealth issued a statement asserting that the Department of Justice had previously reviewed the matter and chose not to take further action. In summary, UnitedHealth's recent volatility could present a compelling opportunity for investors willing to ride out the turbulence. The company is clearly facing a tough stretch, with heightened regulatory scrutiny, rising medical costs, and the lasting impact of the Change Healthcare cyberattack creating significant near-term headwinds. However, looking beyond the immediate challenges, UnitedHealth's relatively conservative valuation and well-diversified business model provide a strong platform for long-term recovery. The road ahead may be uneven, but the company appears well-positioned to navigate the storm and emerge stronger on the other side. Disclaimer & DisclosureReport an Issue
Globe and Mail
2 hours ago
- Business
- Globe and Mail
Is Berkshire Hathaway Stock a Buy Now?
It has been a few weeks since Warren Buffett shocked Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investors by announcing his intention to step down as CEO at the end of 2025 after more than 60 years at the helm of the massive conglomerate. Berkshire's stock reacted negatively after the announcement and remains about 7% below where it was before the company's annual meeting, where the news was revealed. And it's worth noting that this is during a period when the S&P 500 gained about 2%. Obviously, the leadership of the legendary billionaire investor is a big reason many people own the stock. However, the company's succession plan has been in place for a long time, and in the foreseeable future, not much is really changing even though Warren Buffett is stepping down. So here's a summary of why I'm not planning to sell a single share of Berkshire, and why investors may want to consider adding after the post-Buffett dip. A diverse and recession-resistant portfolio, all in one stock Berkshire Hathaway owns more than 60 subsidiary business, according to its website, and it's important for investors to realize that all of its businesses have their own leadership teams that largely operate independently of Berkshire's central office. In other words, Buffett has virtually nothing to do with the day-to-day operations of GEICO, Dairy Queen, Duracell, or any of Berkshire's other businesses. Ajit Jain has been in charge of insurance operations, and Greg Abel, the incoming CEO, has already been in charge of non-insurance operations, so there really isn't that much changing with Buffett's departure. Most of Berkshire's businesses are rather recession resistant. For example, GEICO will keep collecting auto insurance premiums and Berkshire Hathaway Energy will receive payment for its utility services, even in an economic downturn. In addition to its businesses, Berkshire has a large portfolio of common stocks, as well as about $348 billion in cash on its balance sheet. The stock portfolio is managed by Buffett along with two portfolio managers, Todd Combs and Ted Weschler, and while Abel will have the final say on capital allocation, it's likely that the two managers will play a somewhat larger role in the stock portfolio. They've both established solid track records of stock-picking so far, and this could ultimately be a net positive for investors, as both have a somewhat more modern (that is, tech-centric) stock approach. Finally, Berkshire's cash gives management unprecedented financial flexibility to take advantage of opportunities as they arise. However, with interest rates still relatively high and the cash stockpile earning well in excess of $10 billion in annual interest income for Berkshire, Abel and his team aren't likely to be in a big rush to put it to work. But if a recession or market crash arrives, no company will have as much financial firepower as Berkshire. It's cheaper than you might think At the current share price, Berkshire has a market cap of $1.085 trillion, making it the only non-technology company in the trillion-dollar club. But just because it has a 13-figure valuation doesn't necessarily mean it's an expensive stock. Here's why. Two of the three components of Berkshire are very easy to value. It has about $348 billion in cash, and the current market value of the stock portfolio is just under $277 billion as of this writing, not including an undisclosed "secret stock" position Berkshire is accumulating. Backing these two numbers out of the valuation shows that the market is valuing Berkshire's operating businesses at $460 billion. Over the past four quarters, the company has produced about $33 billion in operating profit, excluding investment income, which mainly comes from interest on its cash. So that means Berkshire trades for less than 14 times earnings, at least in terms of its fully owned businesses. Plus, there's a big case to be made that Berkshire could unlock significant profitability from its massive insurance business by improving its technology. The bottom line I've said before that if I could only own one stock, it would be Berkshire. And although I own far more than just one stock, Berkshire is one of my largest investments and I have no plans to change that. I'd even go so far as to say that it's never a bad time to buy shares of Berkshire. It holds up better than most other stocks during most downturns and has a solid history of coming out even stronger on the other side. The bottom line is that Berkshire offers a diverse collection of rock-solid businesses all in one investment, and it has unmatched financial flexibility. With all the right pieces in place for continued success, Berkshire Hathaway could be a smart buy on any weakness. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway 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 $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor 's total average return is982% — 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
Time of India
3 hours ago
- Business
- Time of India
Sebi unveils new rules to enhance oversight in equity derivatives market
Mumbai: The Securities and Exchange Board of India (Sebi) has announced new rules to strengthen oversight of the equity derivatives market . The changes include a new method for calculating open interest, revised position limits linked to cash market liquidity and tighter monitoring of large positions in index options and single-stock derivatives to curb excessive speculation. Open Interest Calculation by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo One of the key changes is the introduction of a new way to measure traders' positions in the derivatives market - Futures Equivalent Open Interest . The new method considers how sensitive a derivatives position is to movements in the underlying asset and is seen as a more accurate measure of market risk. This would replace the existing 'notional value' method to a 'delta-based' model. Reduce Manipulation in Stock Ban Period Sebi has also changed how trading limits are set for single-stock derivatives. The new rules link the Market Wide Position Limits in single stock derivatives more closely to the stock's actual trading activity in the cash market. This is aimed at reducing manipulation in illiquid stocks. A key issue with the current method is that it assigns full notional value even to far-out-of-the-money options, many of which have little or no intrinsic value. This can artificially inflate the market-wide position limit (MWPL) in certain stocks, pushing them into F&O ban periods. Live Events "Tying the MWPL to cash market delivery volume will reduce the potential manipulation and better align derivatives risk with the underlying cash market liquidity," Sebi said. Further, the regulator has tightened rules around the F&O ban mechanism. Once a stock is in the ban, any trading in its derivatives must lead to a reduction in the trader's overall exposure by the end of the day. Clearing corporations have been asked to impose penalties for any violations. New trading limits for index F&O Sebi has set new limits on how much traders or entities can hold in index derivatives. Starting July 1, 2025, exposure in index options will be capped at ₹1,500 crore on a net basis and ₹10,000 crore on a gross basis per entity. In index futures, the limits will depend on the type of the market participants. The regulator also clarified that passive breaches, such as those caused by a fall in overall market open interest, won't be treated as violations. Pre-session open Sebi has extended the pre-open session to cover current-month futures on both stocks and indices. In the last five trading days of expiry, this window will include next-month contracts as well, to help smooth rollovers.
Time of India
3 hours ago
- Time of India
Unnatural sex against wife's will is cruelty: MP HC
Representative image BHOPAL/JABALPUR: Madhya Pradesh high court (HC) held that forcing unnatural sex on one's wife, coupled with physical assault and cruelty, constitutes an offence under IPC section 498A, and upheld an FIR registered by a woman against her husband. The court, however, said the husband cannot be prosecuted under IPC sections 377 or 376 as 'marital rape' is not an offence under the law. Police had registered a case against the accused under IPC sections 377, 323 and 498A which he challenged in HC, contending that unnatural sex with wife is not recognised as an offence in Indian law. Also, 498A is not applicable as no dowry harassment has been alleged in the FIR, he argued. Justice G S Ahluwalia of Gwalior bench, in his order, said, "Committing unnatural sex with a wife against her wishes and on her resistance, assaulting and treating her with physical cruelty will certainly fall within the definition of cruelty. It is not out of place to mention here that demand of dowry is not sine qua non for cruelty." The order said, "From a plain reading of IPC section 498A, it is clear that any wilful conduct which is of such nature as is likely to drive the woman to commit suicide or cause grave injury or danger to life, limb, or health, whether mental or physical, to the woman, would amount to cruelty." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo It is clear that unnatural sex with wife would not be an offence under section 376 or 377 of IPC, HC said, and quashed this charge in the FIR. "However, since there are specific allegations that whenever the wife resisted the unnatural conduct of petitioner, she was assaulted and treated with physical cruelty, this court is of the opinion that offence under section 498A IPC is made out. Accordingly, this application is partially allowed. Offence under section 377 is hereby quashed. However, FIR in relation to offence under Section 498A and 323 stands," the court said.
