Will earnings of US companies be good or bad for the reports that are coming out in the fourth quarter? According to this report, the analysts are quite divided on this matter. I will make a guess that the earnings will be good,. Why? I remember a statement from Warren Buffet that the companies in his group are doing well, except for those involved in the housing sector.
I will take this as a test to see if this is a good indicator. It may be possible that Warren Buffett's companies are doing better than the rest of the economy, but this is not likely to be the case., I think that his companies can be a good gauge for the economy. Be watchful!
I will take this as a test to see if this is a good indicator. It may be possible that Warren Buffett's companies are doing better than the rest of the economy, but this is not likely to be the case., I think that his companies can be a good gauge for the economy. Be watchful!
Bufett is a very cautious businessman, he invests in those American Companies that generate cash out of their businesses, which in turn give him steady dividends to generate cash flow for him.
ReplyDeleteInterestingly, he divested all his China stock holdings, except maybe for one Chinese Company who makes batteries for electric cars, but he exited the China market too early, but this shows his philosophy, caution is better than greed. For ordinary investors, he's the best model to follow, unlike Soros, who is more a hedge fund speculator, either make big, or lose just as big.
How we wish our 2 SWFs would take Bufett as a shi fu, instead of throwing away our money round the world, like distributing X'mas presents round the globe, engaging in gambling activites like Soros.
I think overall U.S. companies should have mixed bags performance.
ReplyDeleteGenerally over past 1 year (trade weighted basis), greenback trended down against major Asia currencies BUT fairly resilience against Euro (as the latter economy is in 'uglier' shape than U.S.).
This extreme forex volatility might significantly impact company profitability (in the form of forex gains or loss) when results are consolidated back in U.S. currency.
I still hold the view that Buffet recent capital injection of US$5mil (i.e. around US$7/- per share) was done mainly out of 'patriotic' reason.
He is setting a good example for rest of the rich Americans to emulate.
I salute his generosity and high morale principle in helping the economy and country.
Lip Wee
I mean his recent US$5Bil capital injection on Bank of America at around US$7/- per share.
ReplyDeleteLip Wee