Warren Buffett's Berkshire Hathaway reduced its stake in Apple again, selling an estimated 116 million shares. This is the second quarter in a row that Buffett has trimmed his holdings in the tech giant. While Apple remains Berkshire's largest investment, Buffett may have sold due to valuation concerns, as Apple's stock has rallied significantly in recent months. Despite the sale, Berkshire is still Apple's largest shareholder outside of index funds.
Berkshire Hathaway, led by Warren Buffett, saw a significant increase in operating profit in the first quarter, with a strong performance in insurance underwriting. However, net earnings fell due to fluctuations in stock investments. The company's cash hoard reached a record high, while it also bought back more stock. These results will be discussed at the upcoming shareholder meeting, where Buffett will share his insights on investing and the economy.
Due to issues with their current provider, Mohela, the Department of Education will move over a million student loan borrowers to new servicers. The process is underway, and affected borrowers will receive notifications and need to set up new accounts with the new servicers. Automatic payments may need to be re-enrolled to receive discounts. If you encounter problems with your servicer, you can file a complaint with the Federal Student Aid unit.
The Federal Reserve hasn't reduced interest rates, meaning credit card interest charges will remain high. Experts advise consumers to proactively reduce their own credit card rates by calling their issuers, transferring balances to zero-interest cards, or consolidating debt with low-interest personal loans. Despite high inflation and interest rates, some credit card issuers still offer generous balance transfer terms, making it a prime time to take action and save money on credit card debt.
The IRS plans to ramp up audits of wealthy taxpayers, large corporations, and complex partnerships. They aim to increase the audit rate for those with total positive income over $10 million by more than double by 2026. The IRS also plans to nearly triple audit rates on large corporations and boost them by tenfold for large partnerships. This emphasis on tax fairness prioritizes compliance resources for those with the highest potential for non-compliance.
Warren Buffett's wealth largely comes from compounding interest after age 65. He started investing young and advises starting early, even with small amounts. Compounding accumulates interest on interest, growing wealth significantly over time. Don't try to time the market; instead, stay invested and ride out market fluctuations. Set up automated investments and have a clear goal in mind to stay motivated. Simple strategies like investing in an S&P 500 index fund can also be effective.
Economists predict growth in nonfarm payrolls and a stable unemployment rate in April's job market report. This resilience could hinder interest rate reductions by the Federal Reserve due to the ongoing inflation issue. Experts expect strong hiring in healthcare and hospitality, but other sectors could see gains in the coming months. Wage growth is also expected to remain steady, potentially easing concerns about inflation. However, economists are cautious, as the labor market has surprised them before.
Turkey's inflation soared to 69.8% in April, due to rising costs in sectors like education, hotels, and restaurants. This is the highest inflation rate since 2022, but it's lower than expected. Despite this, economists predict interest rates will remain high as the government aims to curb inflation.
The U.S. economy added fewer jobs than expected in April, but the unemployment rate rose. This report suggests the Federal Reserve may consider cutting interest rates to control inflation, easing concerns about a rapid pace of growth. The healthcare and social assistance sectors saw significant job increases, while part-time employment declined. The labor market remains strong but the softer data has raised the possibility of interest rate cuts in the coming months.
China's electric car industry is booming, but a surge of new models has sparked a price war. To survive, Chinese automakers like GAC and BYD must compete on price and innovation, investing in technology partnerships and localizing production outside of China. Meanwhile, foreign manufacturers face challenges in navigating China's competitive market and regulatory scrutiny from other countries concerned about the impact of Chinese EVs on their industries.
A fired trader from Societe Generale claims he was a "scapegoat" for unauthorized trades. He alleges that supervisors were aware of his daily reports and profits, and blames their failure to detect the risky transactions. Despite not losing money, SocGen fired him after revealing the trades could have led to significant losses. The trader highlights a lack of regulations in the trading industry and calls for justice for traders.
Due to climate change, homeowners should consider upgrading their homes to withstand extreme weather events such as hurricanes. Upgrading roofs, windows, and doors can protect against wind damage and water infiltration. While expensive, these upgrades can save money in the long run by reducing damage and potential losses. Experts predict an active 2024 hurricane season, making it crucial for homeowners to prepare their homes now.