Latest news with #marketdownturn
Yahoo
24-05-2025
- Business
- Yahoo
What You Can Learn From How Billionaires Handle a Market Downturn
Market downturns are a fact of life, and if you've been investing for any length of time, you've probably been through at least one. While many lose money during a downturn, there are always others who manage to come out unscathed — or even richer — once the dust settles. Read More: Find Out: Some of these successful investors go on to be quite wealthy, and those of us with more modest portfolios can learn something from them. Here's what you can learn from how billionaires handle a market downturn. Warren Buffett, at age 94, has been through a few market downturns, and his well-known advice still rings true. 'Be greedy when others are fearful, and fearful when others are greedy,' is one of Buffett's most-quoted sayings. He first made this philosophy public in an op-ed in the New York Times in 2008, and it still rings true today. Billionaire investors like Buffett see a market correction as a buying opportunity. When Mark Cuban sold his online streaming company, to Yahoo for $5.7 billion in 1999, he instantly became a billionaire. One-third of the streaming company was owned by Cuban, who now found himself with $1.4 billion of Yahoo stock. As heady as the sounded, Cuban knew that he needed to protect himself. He sold calls and bought puts as a hedge, and when the market crashed shortly afterward, he was protected. Try This: Bill Ackman, founder of Pershing Square Capital, loves a good downturn. He specializes in buying companies whose stocks have taken a nosedive and holding them as they rebound. One of his latest purchases is Nike (NASDAQ: NKE), which has been falling steadily since 2022, having lost over 50% of its value in those three years. Moves like this have other investors taking notice, which can support the stock as the company tries to turn things around. David Tepper is the founder of Appaloosa Capital and is well-known in investing circles for his contrarian approach. He famously made wildly successful trades in 1987, gobbling up distressed bonds on Black Monday; in 2008 and 2009, he bought distressed financial institutions and mortgage-backed securities amid the housing crisis. Tepper's hedge fund returned over 130% in 2009, cementing his legacy as a contrarian investor. George Soros has made his billions by studying global economic trends and acting decisively. Soros's investing approach includes the assumption that biases and emotions of investors can distort prices, particularly in times of volatility. In 2008, for example, Soros recognized that the market was over-leveraged and took action by investing in credit default swaps before the market crashed. There are a few things these investors have in common. One, of course, is that they are extraordinarily successful. Another is that they are opportunists, taking advantage of a market downturn rather than fleeing to safety. A third common thread is that they don't veer very far from their core investing philosophies, no matter what the market does. They stay true to what they know, and while they may do more of what made them rich when they see the opportunities a downturn presents, they don't shift their focus very much, if at all. More From GOBankingRates 10 Genius Things Warren Buffett Says To Do With Your Money This article originally appeared on What You Can Learn From How Billionaires Handle a Market Downturn
Bloomberg
22-05-2025
- Business
- Bloomberg
Why Hong Kong's Rich Are Selling Their Dwellings
Hong Kong's rich families are learning about the unpredictability of market downturns. Now some have to sell the homes they live in to cut debt. Bloomberg's Venus Feng speaks on The China Show. (Source: Bloomberg)
Bloomberg
21-05-2025
- Business
- Bloomberg
Hong Kong's Rich Families Sell Their Own Dwellings to Cut Debt
Hong Kong's rich families are learning about the unpredictability of market downturns. Now some have to sell the homes they live in to cut debt. This week, a sea-view villa previously owned by wealthy businessman Chan Ping Che was listed by receivers for HK$430 million ($55 million). Meanwhile investment firm Gale Well Group Ltd.'s Chief Executive Officer Jacinto Tong sold his penthouse apartment for HK$138 million last month, according to land registry filings.
Globe and Mail
09-05-2025
- Business
- Globe and Mail
This money manager used the April downturn to buy defensive stocks
Money manager Kevin Burkett has been using the recent market downturn to pick up a few stocks he thinks will not only weather the current economic storm but also become long-term winners in his clients' portfolios. 'We look for companies that not only generate sustainable returns on capital, but also have competitive advantages that allow them to thrive across market cycles,' says Mr. Burkett, partner and portfolio manager at Victoria-based Burkett Asset Management Ltd., which oversees about $430-million in assets. His team became more defensive last fall, increasing its fixed-income holdings. In recent weeks, as the tariff war started to roil markets and valuations came down, Mr. Burkett and his team started to increase equities holdings, buying defensive stocks in sectors such as utilities and consumer staples. The firm's balanced portfolio, which includes an approximately 60-40 split of stocks and bonds, was up 9.3 per cent over the past 12 months. Its three-year annualized return was 8.2 per cent, while its five-year annualized return was 11.4 per cent. The performance is based on total returns, gross of fees as of March 31. (Fees range from 0.40 per cent to 1.25 per cent depending on the size of a client's portfolio.) The Globe spoke with Mr. Burkett recently about what he's been buying and selling: Name three stocks you own today and why. Stella Jones Inc. SJT-T, the Montreal-based manufacturer of pressure-treated wood products such as utility poles and railway ties, is a company we bought in late April at an average price of $67.11 a share. We like that its customers, such as railways, telecom and electrical companies, are stable businesses largely independent of economic swings. This is a business we've owned before, but sold in the middle of 2023 after a strong run-up. It's an example of a solid company we've decided to buy back, given its recent drop. Enbridge Inc. ENB-T, the Calgary-based pipeline company, is a stock we bought in late February for $61.24 a share. We tend to trade between Enbridge and Pembina Pipeline Corp. We think Enbridge is best positioned to deliver stable growth through the current business cycle. It operates long-term, fee-based contracts, which lowers cash flow sensitivity to commodity price fluctuations. When you think about the impact of energy tariffs, it comes mostly at the cost of the shipper, so we don't see exposure in pipelines to tariffs on cross-border energy flows. That's a nice feature, too: Enbridge's footprint across North America offers a competitive advantage. Bunzl PLC BZLFY, is a British company that sells food packaging, personal protection and safety equipment to customers across industries such as health care, construction, supermarkets, retail and offices. It has an extensive North American business as well. We originally bought it in late December and again in April. Our average cost is $20.05 a share. It's a stable, conservative business and a great defensive company in a macroeconomic backdrop like we're in now. Name a stock you sold recently. Andlauer Healthcare Group Inc. AND-T, a logistics company in the health care industry, is a stock we sold after it recently announced it was being taken over by United Parcel Service Inc. UPS-N for $55 a share. We bought the stock in February and March for an average price of $43.50 a share. We liked that it had a stable customer base in the health care field. It's also defensive, given the aging population, increased retail drug purchases and strong moat given the strict regulations around pharmaceutical transportation in Canada. It has also been making acquisitions in the U.S. While we were lucky with the quick stock appreciation after the UPS acquisition, we were also a bit disappointed. We wanted to own it for a longer period of time and hoped it would do better than the UPS acquisition price. We sold our shares on April 24 for $53.42 each. We decided not to wait until the deal closed so we could put the money into another stock. This interview has been edited and condensed.
