27 October 2013
Für Elise
Larry Williams' quote
•Don’t bet big on any trade.
•Use money management. “Ralph Vince opened my eyes to this; it is the most critical factor of all. Nothing is more important to survival.”
•Fade the advisors and public; they are most often wrong while the commercials are most often correct.
•Don’t let your emotions run your trading game.
•Trade what you see, not what someone tells you that you should be seeing. Forget the news; trade what you see.
“Above all, fundamentals matter,” Williams concludes. “As I see it, price goes up or down, from point A to point B, due to fundamental conditions. That means we must understand fundamentals. However, the path price takes is not direct; it is a path driven by the news and emotions of the day. That’s where technical analysis shines.”
•Use money management. “Ralph Vince opened my eyes to this; it is the most critical factor of all. Nothing is more important to survival.”
•Fade the advisors and public; they are most often wrong while the commercials are most often correct.
•Don’t let your emotions run your trading game.
•Trade what you see, not what someone tells you that you should be seeing. Forget the news; trade what you see.
“Above all, fundamentals matter,” Williams concludes. “As I see it, price goes up or down, from point A to point B, due to fundamental conditions. That means we must understand fundamentals. However, the path price takes is not direct; it is a path driven by the news and emotions of the day. That’s where technical analysis shines.”
Labels: Investment Quote
23 October 2013
1.被恨的人沒有痛苦，恨人的人卻終將遍體鱗傷，所以, 絕不去恨人。
2.緣分是本書，翻得不經意會錯過，讀得太認真會流淚。
3.不同傻子爭辯，否則就搞不清誰是傻子了。
4.學歷是銅牌，能力是銀牌，人脈是金牌，思維是王牌。
5.成功的人不是贏在起點，而是贏在轉折點。
6.錢有兩種：花掉的是錢，是財產；沒花掉的是“紙”，是遺產。
7.長得那麼美那麼帥氣，自己卻不知道，這就是氣質；那麼有錢那麼有才華，別人卻不知道，這就是修養。
8.把脾氣拿出來，那叫本能；把脾氣壓下去，那叫本事。
9.簡單的事重複做，你就是專家；重複的事用心做，你就是贏家。
10.人之所以會心累，就是常常徘徊在堅持和放棄之間，舉棋不定。
11.有時候，雖然能想明白，但心裏就是接受不了。
12.一個人最幸福的時刻，就是找對了人，他包容你的不足，並愛著你的一切。
13.心結如果真的打不開，你就給它繫成個花樣，其實生活就是這樣。
14.誰走進你的生命，是由命運決定；誰停留在你生命中，卻是由你自己決定。
15.不解釋的，才叫從容。不執著的，才叫看破。不完美的，才叫人生。
16.有一天你會明白，善良比聰明更難。聰明是一種天賦，而善良是一種選擇。
17.你難過的事情，有一天，你一定會笑著說出來。
18.我羡慕的不是風華正茂的情侶，而是攙扶到老的夫婦。
19.不埋怨誰，不嘲笑誰，也不羡慕誰，陽光下燦爛，風雨中奔跑，做自己的夢，走自己的路。改變自己人生的人永遠是自己。
2.緣分是本書，翻得不經意會錯過，讀得太認真會流淚。
3.不同傻子爭辯，否則就搞不清誰是傻子了。
4.學歷是銅牌，能力是銀牌，人脈是金牌，思維是王牌。
5.成功的人不是贏在起點，而是贏在轉折點。
6.錢有兩種：花掉的是錢，是財產；沒花掉的是“紙”，是遺產。
7.長得那麼美那麼帥氣，自己卻不知道，這就是氣質；那麼有錢那麼有才華，別人卻不知道，這就是修養。
8.把脾氣拿出來，那叫本能；把脾氣壓下去，那叫本事。
9.簡單的事重複做，你就是專家；重複的事用心做，你就是贏家。
10.人之所以會心累，就是常常徘徊在堅持和放棄之間，舉棋不定。
11.有時候，雖然能想明白，但心裏就是接受不了。
12.一個人最幸福的時刻，就是找對了人，他包容你的不足，並愛著你的一切。
13.心結如果真的打不開，你就給它繫成個花樣，其實生活就是這樣。
14.誰走進你的生命，是由命運決定；誰停留在你生命中，卻是由你自己決定。
15.不解釋的，才叫從容。不執著的，才叫看破。不完美的，才叫人生。
16.有一天你會明白，善良比聰明更難。聰明是一種天賦，而善良是一種選擇。
17.你難過的事情，有一天，你一定會笑著說出來。
18.我羡慕的不是風華正茂的情侶，而是攙扶到老的夫婦。
19.不埋怨誰，不嘲笑誰，也不羡慕誰，陽光下燦爛，風雨中奔跑，做自己的夢，走自己的路。改變自己人生的人永遠是自己。
Labels: Life
Plan
To buy 10% of total trading capital per trade in the US market next time. In such a way, I will be able to buy 10 times before trading capital is used up, then another 30 times by using margin, if necessary.
Labels: plan
Sold all stock index ETF's bought in the US market with profit
Sold them due to uneasy feeling. US major indexes dropped steeply intraday for unknown reason today, which is not a good sign for me. DIA sold at 154.22, EWC sold at 29.48, EWD sold at 35.40, EWL sold at 32.44, VOO sold at 80.27.
Now I'm on net cash position again in US market now.
Now I'm on net cash position again in US market now.
Labels: Live Trading Records
22 October 2013
EUR.USD
Bought EUR.USD at 1.3666 / 1.36514 (1.36587 on average), sold at 1.36585 with a minor loss.
Labels: Live Trading Records - Forex
SPY
bought 174.38, sold 174.31 with a minor loss.
Labels: Live Trading Records
19 October 2013
SPDR S&P 500 (SPY)
Sold all SPY at 173.96 with profit.
Labels: Live Trading Records
SPDR S&P 500 (SPY)
Added SPY at 173.53.
Labels: Live Trading Records
17 October 2013
Shutdown over For Now: Obama signs bill to end partial shutdown, hike debt ceiling
US Congress has approved the Senate's bipartisan bill, ending the debt limit stalemate in Washington after 16 days of the US Federal Government shutdown. Debt crisis has thus been averted. A potentially crippling U.S. debt default was averted late Wednesday, as Congress passed legislation to end a two-week political battle that had rattled financial markets, splintered the Republican Party and showcased Washington dysfunction.
Labels: News
Bought iShares MSCI Sweden (EWD)
Bought EWD at 33.66, daily RSI 14 below 20 in Yahoo! Finance, oversold, and 1 minute RSI 14 near 20.
Holdings as of 30 Sep 2013 for:
Overall Portfolio Composition (%)
Stocks: 99.94
Bonds: 0.00
Top 10 Holdings (61.19% of Total Assets)
Company Symbol % Assets
Hennes & Mauritz AB HMB 10.12
ERICSSON LM TEL CL B ERIXF 9.94
NORDEA AB EUR 0.3963 NRDEF 8.48
VOLVO AB CL B VOLVF 5.59
Svenska Handelsbanken SHBA 5.32
Atlas Copco AB ATCOA 4.80
Swedbank AB SWEDA 4.65
TeliaSonera AB TLSN 4.48
Skandinaviska Enskilda Banken AB SEBA 4.03
Assa Abloy AB ASSAB 3.78
Equity Holdings
Average Price/Earnings 16.21
Average Price/Book 2.03
Average Price/Sales 1.53
Average Price/Cashflow 2.82
Sector Weightings (%)
Basic Materials
4.80
Consumer Cyclical
10.13
Financial Services
28.91
Realestate 0.00
Consumer Defensive
5.37
Healthcare
3.21
Utilities 0.00
Communication Services
6.91
Energy
1.18
Industrials
26.25
Technology
13.25
Holdings as of 30 Sep 2013 for:
Overall Portfolio Composition (%)
Stocks: 99.94
Bonds: 0.00
Top 10 Holdings (61.19% of Total Assets)
Company Symbol % Assets
Hennes & Mauritz AB HMB 10.12
ERICSSON LM TEL CL B ERIXF 9.94
NORDEA AB EUR 0.3963 NRDEF 8.48
VOLVO AB CL B VOLVF 5.59
Svenska Handelsbanken SHBA 5.32
Atlas Copco AB ATCOA 4.80
Swedbank AB SWEDA 4.65
TeliaSonera AB TLSN 4.48
Skandinaviska Enskilda Banken AB SEBA 4.03
Assa Abloy AB ASSAB 3.78
Equity Holdings
Average Price/Earnings 16.21
Average Price/Book 2.03
Average Price/Sales 1.53
Average Price/Cashflow 2.82
Sector Weightings (%)
Basic Materials
4.80
Consumer Cyclical
10.13
Financial Services
28.91
Realestate 0.00
Consumer Defensive
5.37
Healthcare
3.21
Utilities 0.00
Communication Services
6.91
Energy
1.18
Industrials
26.25
Technology
13.25
Labels: Live Trading Records
16 October 2013
Bought iShares MSCI Switzerland Capped Index (EWL)
Bought EWL at 30.81, daily RSI 14 below 20 in Yahoo! Finance, oversold, and 1 minute RSI 14 near 20.
Overall Portfolio Composition (%)
Stocks: 99.90
Bonds: 0.00
Top 10 Holdings (72.91% of Total Assets)
Company Symbol % Assets
NESTLE SA CHAM ET VE NSRGF 17.55
ROCHE HLDG AG DIV RT RHHVF 14.38
NOVARTIS AG BASL NVSEF 13.29
ABB LTD ZUERICH ABLZF 4.54
UBS AG Common Stock UBS 4.43
CIE FINANCIERE RICH CFRHF 4.37
Credit Suisse Group CSGN 4.27
SYNGENTA AG BASEL SYENF 3.64
ZURICH FINCL SVCS ZFSVF 3.59
Swiss Re Ag Common Stock Chf.1 N/A 2.85
Equity Holdings
Average Price/Earnings 17.16
Average Price/Book 2.33
Average Price/Sales 1.81
Average Price/Cashflow 5.16
Sector Weightings (%)
Basic Materials
9.99
Consumer Cyclical
7.58
Financial Services
17.07
Realestate
0.65
Consumer Defensive
20.03
Healthcare
31.98
Utilities 0.00
Communication Services
1.35
Energy
1.70
Industrials
4.82
Technology
4.82
Overall Portfolio Composition (%)
Stocks: 99.90
Bonds: 0.00
Top 10 Holdings (72.91% of Total Assets)
Company Symbol % Assets
NESTLE SA CHAM ET VE NSRGF 17.55
ROCHE HLDG AG DIV RT RHHVF 14.38
NOVARTIS AG BASL NVSEF 13.29
ABB LTD ZUERICH ABLZF 4.54
UBS AG Common Stock UBS 4.43
CIE FINANCIERE RICH CFRHF 4.37
Credit Suisse Group CSGN 4.27
SYNGENTA AG BASEL SYENF 3.64
ZURICH FINCL SVCS ZFSVF 3.59
Swiss Re Ag Common Stock Chf.1 N/A 2.85
Equity Holdings
Average Price/Earnings 17.16
Average Price/Book 2.33
Average Price/Sales 1.81
Average Price/Cashflow 5.16
Sector Weightings (%)
Basic Materials
9.99
Consumer Cyclical
7.58
Financial Services
17.07
Realestate
0.65
Consumer Defensive
20.03
Healthcare
31.98
Utilities 0.00
Communication Services
1.35
Energy
1.70
Industrials
4.82
Technology
4.82
Labels: Live Trading Records
Bought iShares MSCI Canada Index (EWC)
Bought EWC at 28.34, daily RSI 14 near 20 in Yahoo! Finance, oversold, and 1 minute RSI 14 near 20.
Overall Portfolio Composition (%)
Stocks: 95.96
Bonds: 0.00
Top 10 Holdings (40.89% of Total Assets)
Company Symbol % Assets
ROYAL BANK OF CANADA RY.TO 7.34
Toronto Dominion Bank N/A 6.59
BANK OF NOVA SCOTIA BNS.TO 5.44
SUNCOR ENERGY INC. SU.TO 4.28
BANK OF MONTREAL BMO.TO 3.43
Canadian National Railway Co CNI.TO 3.40
CDN NATURAL RES CNQ.TO 2.72
ENBRIDGE INC ENB.TO 2.59
VALEANT PHARMACEUTICALS INTL IN VRX.TO 2.57
CIBC N/A 2.53
Equity Holdings
Ratio EWC
Average Price/Earnings 15.81
Average Price/Book 1.81
Average Price/Sales 1.72
Average Price/Cashflow 2.77
Sector Weightings (%)
Basic Materials
13.17
Consumer Cyclical
4.53
Financial Services
36.01
Realestate
2.27
Consumer Defensive
3.17
Healthcare
3.55
Utilities
0.62
Communication Services
3.00
Energy
25.55
Industrials
7.13
Technology
0.99
Overall Portfolio Composition (%)
Stocks: 95.96
Bonds: 0.00
Top 10 Holdings (40.89% of Total Assets)
Company Symbol % Assets
ROYAL BANK OF CANADA RY.TO 7.34
Toronto Dominion Bank N/A 6.59
BANK OF NOVA SCOTIA BNS.TO 5.44
SUNCOR ENERGY INC. SU.TO 4.28
BANK OF MONTREAL BMO.TO 3.43
Canadian National Railway Co CNI.TO 3.40
CDN NATURAL RES CNQ.TO 2.72
ENBRIDGE INC ENB.TO 2.59
VALEANT PHARMACEUTICALS INTL IN VRX.TO 2.57
CIBC N/A 2.53
Equity Holdings
Ratio EWC
Average Price/Earnings 15.81
Average Price/Book 1.81
Average Price/Sales 1.72
Average Price/Cashflow 2.77
Sector Weightings (%)
Basic Materials
13.17
Consumer Cyclical
4.53
Financial Services
36.01
Realestate
2.27
Consumer Defensive
3.17
Healthcare
3.55
Utilities
0.62
Communication Services
3.00
Energy
25.55
Industrials
7.13
Technology
0.99
Labels: Live Trading Records
12 October 2013
Bought Vanguard S&P 500 ETF (VOO)
Bought VOO at 77.47, daily RSI 14 near 20 in Yahoo! Finance, oversold, and 1 minute RSI 14 near 20.
Overall Portfolio Composition (%)
Stocks: 99.36
Bonds: 0.00
Top 10 Holdings (18.04% of Total Assets)
Company Symbol % Assets
Apple Inc. AAPL 2.81
Exxon Mobil Corporation Common XOM 2.76
Johnson & Johnson Common Stock JNJ 1.74
General Electric Company Common GE 1.67
Chevron Corporation Common Stoc CVX 1.62
Google Inc. GOOG 1.58
Microsoft Corporation MSFT 1.58
Procter & Gamble Company (The) PG 1.46
Wells Fargo & Company Common St WFC 1.42
JP Morgan Chase & Co. Common St JPM 1.40
Equity Holdings
Average Price/Earnings 15.37
Average Price/Book 2.19
Average Price/Sales 1.47
Average Price/Cashflow 7.70
Sector Weightings (%)
Basic Materials
3.32
Consumer Cyclical
11.61
Financial Services
15.51
Realestate
1.95
Consumer Defensive
10.20
Healthcare
12.88
Utilities
3.23
Communication Services
3.83
Energy
10.55
Industrials
10.38
Technology
16.53
Overall Portfolio Composition (%)
Stocks: 99.36
Bonds: 0.00
Top 10 Holdings (18.04% of Total Assets)
Company Symbol % Assets
Apple Inc. AAPL 2.81
Exxon Mobil Corporation Common XOM 2.76
Johnson & Johnson Common Stock JNJ 1.74
General Electric Company Common GE 1.67
Chevron Corporation Common Stoc CVX 1.62
Google Inc. GOOG 1.58
Microsoft Corporation MSFT 1.58
Procter & Gamble Company (The) PG 1.46
Wells Fargo & Company Common St WFC 1.42
JP Morgan Chase & Co. Common St JPM 1.40
Equity Holdings
Average Price/Earnings 15.37
Average Price/Book 2.19
Average Price/Sales 1.47
Average Price/Cashflow 7.70
Sector Weightings (%)
Basic Materials
3.32
Consumer Cyclical
11.61
Financial Services
15.51
Realestate
1.95
Consumer Defensive
10.20
Healthcare
12.88
Utilities
3.23
Communication Services
3.83
Energy
10.55
Industrials
10.38
Technology
16.53
Labels: Live Trading Records
Bought SPDR Dow Jones Industrial Average (DIA)
Bought DIA at 151.20, daily RSI 14 below 20 in Yahoo! Finance, oversold, and 1 minute RSI 14 near 20.
Labels: Live Trading Records
11 October 2013
Bought SPDR S&P 500 (SPY)
Bought SPY at 167.70 yesterday. daily chart RSI 14 near 20 in Yahoo! Finance, oversold, and excited by permanently optimistic Americans.
Buy orders for DIA, QQQ and VOO not filled, awaiting 1 minute chart RSI 14 drop to 20.
Overall Portfolio Composition (%)
Stocks: 99.49
Bonds: 0.00
Top 10 Holdings (17.58% of Total Assets)
Company Symbol % Assets
Apple Inc. AAPL 2.88
Exxon Mobil Corporation Common XOM 2.52
Microsoft Corporation MSFT 1.68
Google Inc. GOOG 1.63
General Electric Company Common GE 1.62
Johnson & Johnson Common Stock JNJ 1.62
Chevron Corporation Common Stoc CVX 1.56
Procter & Gamble Company (The) PG 1.38
Berkshire Hathaway Inc Class B BRK.B 1.36
Wells Fargo & Company Common St WFC 1.33
Equity Holdings
Average Price/Earnings 15.24
Average Price/Book 2.19
Average Price/Sales 1.46
Average Price/Cashflow 7.53
Sector Weightings (%)
Sector SPY
Basic Materials
3.52
Consumer Cyclical
11.11
Financial Services
15.22
Realestate
1.89
Consumer Defensive
10.67
Healthcare
12.95
Utilities
3.07
Communication Services
3.65
Energy
10.44
Industrials
10.78
Technology
16.70
Buy orders for DIA, QQQ and VOO not filled, awaiting 1 minute chart RSI 14 drop to 20.
Overall Portfolio Composition (%)
Stocks: 99.49
Bonds: 0.00
Top 10 Holdings (17.58% of Total Assets)
Company Symbol % Assets
Apple Inc. AAPL 2.88
Exxon Mobil Corporation Common XOM 2.52
Microsoft Corporation MSFT 1.68
Google Inc. GOOG 1.63
General Electric Company Common GE 1.62
Johnson & Johnson Common Stock JNJ 1.62
Chevron Corporation Common Stoc CVX 1.56
Procter & Gamble Company (The) PG 1.38
Berkshire Hathaway Inc Class B BRK.B 1.36
Wells Fargo & Company Common St WFC 1.33
Equity Holdings
Average Price/Earnings 15.24
Average Price/Book 2.19
Average Price/Sales 1.46
Average Price/Cashflow 7.53
Sector Weightings (%)
Sector SPY
Basic Materials
3.52
Consumer Cyclical
11.11
Financial Services
15.22
Realestate
1.89
Consumer Defensive
10.67
Healthcare
12.95
Utilities
3.07
Communication Services
3.65
Energy
10.44
Industrials
10.78
Technology
16.70
Labels: Live Trading Records
10 October 2013
美国公布鲜为人知的长寿秘诀
在现有的长寿因素中，近日又增加了几个新内容。美国新闻网最新总结了有关长寿的调查数据，得出长寿需要两大法宝：锻炼和白开水。
女性散步半小时防乳腺癌。南卡罗来纳大学的研究者经过30年的研究发现，经常参加中等强度体育锻炼的女性死于乳腺癌的可能性降低了33%，而那些锻炼量最大的女性死于乳腺癌的可能性会减半。中等强度的体育锻炼只需要每天散步半个小时即可，在相同的时长内提高锻炼的强度会让女性获得更多的健康功效。
男性每周锻炼3个小时不早亡。瑞典乌普萨拉大学的学者经过35年的研究发现，经常参加中高强度体育锻炼的男性早亡的可能性会下降32%。每周进行3个小时中高强度的体育锻炼（如踢足球、游泳和力量训练等），或是在自家花园和农家院里辛勤劳作同样长的时间，就能获得这样的效果。
只喝白开水启动长寿基因。在不进行任何锻炼的情况下，如果6个月内不喝任何碳酸饮料和果汁，只喝纯净的白开水，体重就能下降3.5公斤。约翰霍普金斯大学的研究者发现，只要每天少喝1杯含糖饮料，就能让人体更有效地燃烧热量，人体功能运行的精确程度还没有达到识别稍微少喝些含糖饮料就会造成新陈代谢功能紊乱的地步。只喝白开水会让你获得显著的健康功效，让长寿基因的功能启动起来。
女性散步半小时防乳腺癌。南卡罗来纳大学的研究者经过30年的研究发现，经常参加中等强度体育锻炼的女性死于乳腺癌的可能性降低了33%，而那些锻炼量最大的女性死于乳腺癌的可能性会减半。中等强度的体育锻炼只需要每天散步半个小时即可，在相同的时长内提高锻炼的强度会让女性获得更多的健康功效。
男性每周锻炼3个小时不早亡。瑞典乌普萨拉大学的学者经过35年的研究发现，经常参加中高强度体育锻炼的男性早亡的可能性会下降32%。每周进行3个小时中高强度的体育锻炼（如踢足球、游泳和力量训练等），或是在自家花园和农家院里辛勤劳作同样长的时间，就能获得这样的效果。
只喝白开水启动长寿基因。在不进行任何锻炼的情况下，如果6个月内不喝任何碳酸饮料和果汁，只喝纯净的白开水，体重就能下降3.5公斤。约翰霍普金斯大学的研究者发现，只要每天少喝1杯含糖饮料，就能让人体更有效地燃烧热量，人体功能运行的精确程度还没有达到识别稍微少喝些含糖饮料就会造成新陈代谢功能紊乱的地步。只喝白开水会让你获得显著的健康功效，让长寿基因的功能启动起来。
Labels: Health
08 October 2013
US Debt limit overtaking US federal government shutdown as U.S. crisis focus
All buys on hold though DIA is closing to buy conditions.
Labels: News
07 October 2013
Buffett's Crisis-Lending Haul Reaches $10 Billion
Billionaire Warren Buffett tossed lifelines to a handful of blue-chip companies during the financial crisis. Five years later the payoff on those deals is becoming clear: $10 billion and counting.
Mr. Buffett approached that figure after he collected another hefty payment last week, bringing to nearly 40% the pretax income on his crisis-era investments, according to a Wall Street Journal analysis.
The bounty is a vivid illustration of one of Mr. Buffett's favorite investing maxims: "Be fearful when others are greedy, and be greedy when others are fearful."
The latest windfall for the Omaha, Neb., billionaire and his conglomerate, Berkshire Hathaway Inc., came when candy maker Mars Inc. repaid $4.4 billion that its subsidiary, Wrigley, borrowed in 2008. That payment alone is expected to net Berkshire a profit of at least $680 million.
"In terms of simple profitability, an average investor could have done just as well investing in the stock market if they bought during the panic period," Mr. Buffett said in an interview Saturday. He was referring to a monthslong stretch beginning in the fall of 2008 when the stocks of some of his favorite companies, including Wells Fargo & Co. and American Express Co., fell to historic lows. "You make your best buys when people are overwhelmingly fearful."
But few investors, if any, capitalized on the crisis as expertly.
By comparison, the U.S. government invested about $420 billion through its Troubled Asset Relief Program. The government also demanded beneficial terms and collected sizable dividend payments for a return of about $50 billion, or 12%, thus far, according to the U.S. Treasury's website.
Mr. Buffett said he hopes to use the cash to make other big investments soon that will bring equally attractive returns. Berkshire will continue to buy stocks to add to its portfolio of over $100 billion, because "it's still better to have equities than cash," he said.
But big acquisitions such as the 2010 purchase of railroad operator BNSF Railway Co. for $26 billion have gotten harder to find. As prices have risen along with the economic recovery, Mr. Buffett has publicly lamented the paucity of transformative deals that would allow Berkshire to put some of its cash to use.
Starting with Mars in April of 2008, when credit markets began to tighten in advance of the financial crisis, some big-name companies looked to Mr. Buffett—and Berkshire's huge war chest—as a lender of last resort.
In addition to much-needed capital, the companies acquired something equally valuable: Mr. Buffett's implicit endorsement of their long-term prospects. Shares of these companies generally went up after they revealed Berkshire's involvement.
In six major deals, Berkshire invested a total of about $26 billion. Mr. Buffett used Berkshire's gigantic cash hoard to move swiftly and exact lucrative terms that created a stream of payments from the borrowers.
Mr. Buffett's deal-making started in the early days of the crisis and continued deep into the recovery. The last of the deals was a 2011 loan to Bank of America Corp. for $5 billion.
Besides Mars and Bank of America, Berkshire made investments in Goldman Sachs Group Inc., Swiss Re Ltd., Dow Chemical Co., and General Electric Co.
Several deals are continuing to pay hefty dividends. Berkshire also owns equity stakes in the firms, or warrants to buy them, that add several billion dollars more to the company's return on investments, at least on paper.
Although the warrants on some of these deals effectively came free with Berkshire's purchase of preferred shares, accounting rules require the company to split its cost between the stock and warrants acquired. That means Berkshire records gains differently in its books than a cash-in, cash-out tally adding up to about $10 billion.
As the economy has recovered, and with credit available at more attractive rates, some of the companies have opted to redeem securities owned by Berkshire or adjust the terms in ways favorable to Mr. Buffett.
Dow Chemical, which borrowed $3 billion from Berkshire to help fund the 2009 acquisition of Rohm & Haas, has said buying back the preferred stock is a priority.
Also last week, Berkshire became one of Goldman's largest shareholders with a $2.1 billion stake after the close of a five-year deal in which Berkshire injected $5 billion into the bank.
Berkshire bought 50,000 shares of preferred stock from Goldman that required the bank to pay $500 million in annual dividends. When Goldman redeemed the shares in March 2011, it paid Berkshire an extra $500 million as a premium.
The original deal also gave Berkshire warrants to buy 43.5 million common shares for an additional $5 billion, which would have made the conglomerate Goldman's largest shareholder. In March, the bank amended the terms to give Berkshire a smaller stake without Berkshire having to spend extra dollars.
Berkshire helped Mars finance its $23 billion purchase of Wrigley. The company has sought to refinance parts of its debt since then to take advantage of lower interest rates and an improved credit rating, a spokesman said.
Berkshire contributed $6.5 billion, including $2.1 billion for preferred stock in Wrigley that pays an annual dividend. Berkshire also bought an additional $1 billion of Wrigley debt later. Thus far, the investment is expected to net Berkshire nearly $4 billion, including annual dividends and a prepayment premium since the bonds were due in 2018.
Mr. Buffett's stake in Bank of America could pay off for years. Berkshire invested $5 billion in the bank in 2011, which adds about $300 million in annual pretax income. Bank of America Chief Executive Brian Moynihan recently said he doesn't plan to buy back the preferred shares any time soon. Berkshire also has until 2021 to exercise warrants for 700 million common shares for an additional $5 billion at $7.14 a share. Based on the bank's current stock price of about $14, the warrants create a paper profit of nearly $5 billion.
Write to Anupreeta Das at anupreeta.das@wsj.com
Mr. Buffett approached that figure after he collected another hefty payment last week, bringing to nearly 40% the pretax income on his crisis-era investments, according to a Wall Street Journal analysis.
The bounty is a vivid illustration of one of Mr. Buffett's favorite investing maxims: "Be fearful when others are greedy, and be greedy when others are fearful."
The latest windfall for the Omaha, Neb., billionaire and his conglomerate, Berkshire Hathaway Inc., came when candy maker Mars Inc. repaid $4.4 billion that its subsidiary, Wrigley, borrowed in 2008. That payment alone is expected to net Berkshire a profit of at least $680 million.
"In terms of simple profitability, an average investor could have done just as well investing in the stock market if they bought during the panic period," Mr. Buffett said in an interview Saturday. He was referring to a monthslong stretch beginning in the fall of 2008 when the stocks of some of his favorite companies, including Wells Fargo & Co. and American Express Co., fell to historic lows. "You make your best buys when people are overwhelmingly fearful."
But few investors, if any, capitalized on the crisis as expertly.
By comparison, the U.S. government invested about $420 billion through its Troubled Asset Relief Program. The government also demanded beneficial terms and collected sizable dividend payments for a return of about $50 billion, or 12%, thus far, according to the U.S. Treasury's website.
Mr. Buffett said he hopes to use the cash to make other big investments soon that will bring equally attractive returns. Berkshire will continue to buy stocks to add to its portfolio of over $100 billion, because "it's still better to have equities than cash," he said.
But big acquisitions such as the 2010 purchase of railroad operator BNSF Railway Co. for $26 billion have gotten harder to find. As prices have risen along with the economic recovery, Mr. Buffett has publicly lamented the paucity of transformative deals that would allow Berkshire to put some of its cash to use.
Starting with Mars in April of 2008, when credit markets began to tighten in advance of the financial crisis, some big-name companies looked to Mr. Buffett—and Berkshire's huge war chest—as a lender of last resort.
In addition to much-needed capital, the companies acquired something equally valuable: Mr. Buffett's implicit endorsement of their long-term prospects. Shares of these companies generally went up after they revealed Berkshire's involvement.
In six major deals, Berkshire invested a total of about $26 billion. Mr. Buffett used Berkshire's gigantic cash hoard to move swiftly and exact lucrative terms that created a stream of payments from the borrowers.
Mr. Buffett's deal-making started in the early days of the crisis and continued deep into the recovery. The last of the deals was a 2011 loan to Bank of America Corp. for $5 billion.
Besides Mars and Bank of America, Berkshire made investments in Goldman Sachs Group Inc., Swiss Re Ltd., Dow Chemical Co., and General Electric Co.
Several deals are continuing to pay hefty dividends. Berkshire also owns equity stakes in the firms, or warrants to buy them, that add several billion dollars more to the company's return on investments, at least on paper.
Although the warrants on some of these deals effectively came free with Berkshire's purchase of preferred shares, accounting rules require the company to split its cost between the stock and warrants acquired. That means Berkshire records gains differently in its books than a cash-in, cash-out tally adding up to about $10 billion.
As the economy has recovered, and with credit available at more attractive rates, some of the companies have opted to redeem securities owned by Berkshire or adjust the terms in ways favorable to Mr. Buffett.
Dow Chemical, which borrowed $3 billion from Berkshire to help fund the 2009 acquisition of Rohm & Haas, has said buying back the preferred stock is a priority.
Also last week, Berkshire became one of Goldman's largest shareholders with a $2.1 billion stake after the close of a five-year deal in which Berkshire injected $5 billion into the bank.
Berkshire bought 50,000 shares of preferred stock from Goldman that required the bank to pay $500 million in annual dividends. When Goldman redeemed the shares in March 2011, it paid Berkshire an extra $500 million as a premium.
The original deal also gave Berkshire warrants to buy 43.5 million common shares for an additional $5 billion, which would have made the conglomerate Goldman's largest shareholder. In March, the bank amended the terms to give Berkshire a smaller stake without Berkshire having to spend extra dollars.
Berkshire helped Mars finance its $23 billion purchase of Wrigley. The company has sought to refinance parts of its debt since then to take advantage of lower interest rates and an improved credit rating, a spokesman said.
Berkshire contributed $6.5 billion, including $2.1 billion for preferred stock in Wrigley that pays an annual dividend. Berkshire also bought an additional $1 billion of Wrigley debt later. Thus far, the investment is expected to net Berkshire nearly $4 billion, including annual dividends and a prepayment premium since the bonds were due in 2018.
Mr. Buffett's stake in Bank of America could pay off for years. Berkshire invested $5 billion in the bank in 2011, which adds about $300 million in annual pretax income. Bank of America Chief Executive Brian Moynihan recently said he doesn't plan to buy back the preferred shares any time soon. Berkshire also has until 2021 to exercise warrants for 700 million common shares for an additional $5 billion at $7.14 a share. Based on the bank's current stock price of about $14, the warrants create a paper profit of nearly $5 billion.
Write to Anupreeta Das at anupreeta.das@wsj.com
Labels: Reference, Warren Buffett
04 October 2013
DE.TEN - DE MASTER BLENDERS 1753 NV
DE.TEN (DE MASTER BLENDERS1753 NV) - Accepted acquisition offer at €12.50 per share a few months ago and confirmed to have been paid by the offeror on 24 Sep 2013 (noticed today only in the monthly trading account statement). This is a profitable trade for me though having waited a long time. Patience has been paid off handsomely.
Now I'm in net cash position and ready for taking advantage of the next opportunities in the US markets.
Now I'm in net cash position and ready for taking advantage of the next opportunities in the US markets.
Labels: Individual Stocks, Live Trading Records
01 October 2013
US federal government shuts down
The U.S. government began a partial shutdown at midnight for the first time in 17 years, putting as many as 800,000 federal employees out of work today, closing national parks and halting some government services after Congress failed to break a partisan deadlock.
A partial federal government shutdown would cost the U.S. at least $300 million a day in lost economic output at the start, according to IHS Inc. (IHS) That's a fraction of the country's $15.7 trillion economy, and the impact is likely to grow over time as skittish consumers and businesses stay on the sidelines.
During the partial government shutdown, many essential government operations would cease. Internal Revenue Service call centers would close and more than 90 percent of Environmental Protection Agency workers would stay home. National parks and museums would be shuttered.
Other services continue uninterrupted. Social Security and Medicare benefits would be paid. U.S. troops would remain at their posts around the world and would get paid under a bill Obama signed yesterday. Air traffic controllers and airport security screeners would keep working.
Delaying Obamacare
Twice yesterday, the House voted to send a bill delaying Obamacare to the Senate. Twice, the Senate rejected the House's plans.
Debt Ceiling
Congress and Obama have been at loggerheads on fiscal policy since Republicans won control of the House. They took several disputes to the brink, including a potential government shutdown in April 2011, the debt ceiling in August 2011 and the expiration of tax cuts in December 2012.
In each case, lawmakers reached an agreement to prevent the worst possible outcome. Most recently, the House passed a tax bill Jan. 1, hours after income tax rate increases took effect.
Boehner and Majority Leader Eric Cantor tried to avoid this fight, offering a first proposal last month that would have let the Senate send a spending bill without conditions right to Obama.
They faced an uprising from Republicans, urged on by Senator Ted Cruz of Texas, who insisted on language that would defund Obamacare.
The House scaled back its demands twice, each time running into a party-line blockage from Senate Democrats and Obama, who increasingly saw the spending bill as a prelude to the debt-ceiling negotiations.
The House's latest volley, passed yesterday evening, would delay for one year the mandate that individuals purchase health insurance and would end government contributions to the health insurance of lawmakers, congressional staff members and political appointees.
Democrats see a quick path out of this crisis. They want Boehner to allow the House to vote on the Senate's version, which would extend government funding through Nov. 15 and exclude any Obamacare conditions.
Republicans said they want to force Obama to accept some concessions on his signature health care law.
Political Fallout
Some strategists expect the shutdown to drive both parties deeper into their respective fighting corners as they assess the economic and political fallout, hardening positions at least temporarily before any resolution can be reached.
A partial federal government shutdown would cost the U.S. at least $300 million a day in lost economic output at the start, according to IHS Inc. (IHS) That's a fraction of the country's $15.7 trillion economy, and the impact is likely to grow over time as skittish consumers and businesses stay on the sidelines.
During the partial government shutdown, many essential government operations would cease. Internal Revenue Service call centers would close and more than 90 percent of Environmental Protection Agency workers would stay home. National parks and museums would be shuttered.
Other services continue uninterrupted. Social Security and Medicare benefits would be paid. U.S. troops would remain at their posts around the world and would get paid under a bill Obama signed yesterday. Air traffic controllers and airport security screeners would keep working.
Delaying Obamacare
Twice yesterday, the House voted to send a bill delaying Obamacare to the Senate. Twice, the Senate rejected the House's plans.
Debt Ceiling
Congress and Obama have been at loggerheads on fiscal policy since Republicans won control of the House. They took several disputes to the brink, including a potential government shutdown in April 2011, the debt ceiling in August 2011 and the expiration of tax cuts in December 2012.
In each case, lawmakers reached an agreement to prevent the worst possible outcome. Most recently, the House passed a tax bill Jan. 1, hours after income tax rate increases took effect.
Boehner and Majority Leader Eric Cantor tried to avoid this fight, offering a first proposal last month that would have let the Senate send a spending bill without conditions right to Obama.
They faced an uprising from Republicans, urged on by Senator Ted Cruz of Texas, who insisted on language that would defund Obamacare.
The House scaled back its demands twice, each time running into a party-line blockage from Senate Democrats and Obama, who increasingly saw the spending bill as a prelude to the debt-ceiling negotiations.
The House's latest volley, passed yesterday evening, would delay for one year the mandate that individuals purchase health insurance and would end government contributions to the health insurance of lawmakers, congressional staff members and political appointees.
Democrats see a quick path out of this crisis. They want Boehner to allow the House to vote on the Senate's version, which would extend government funding through Nov. 15 and exclude any Obamacare conditions.
Republicans said they want to force Obama to accept some concessions on his signature health care law.
Political Fallout
Some strategists expect the shutdown to drive both parties deeper into their respective fighting corners as they assess the economic and political fallout, hardening positions at least temporarily before any resolution can be reached.
Labels: News
