Government As Investor – Air France-KLM Falls 11% After Dutch Govt Buy In

Here’s a useful little guide to the value of government as an investor – Air France-KLM’s stock fell 11% as the Dutch Government announced it had just bought some 13% of the company. Normally enough a large buyer emerges for a stock that stock rises in value. You know, greater demand and price, all that stuff?

So, what happened here?

France has reacted frostily to the Dutch government’s sudden purchase of a stake in Air France-KLM in attempt to counter French influence.

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Of Course Kraft Heinz Bonds Did Better Than Stocks, Seriously, Good Grief

In the annals of investment reporting this comes along as one of those no stercore* Sherlock moments. The bonds didn’t fall as far as the stock, recovered faster and ended up less down after the SEC announcement and writedowns last week. Well, yes, this is how debt and equity will respond to corporate announcements. The same happens on the upside too. On the really very simple basis that this is what debt and equity do, respond differently to corporate news.…

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Berkshire Hathaway Buys Back Stock As Warren Buffett Can’t Find Anything To Spend The Cash On

If we were to believe the likes of Robert Reich and Elizabeth Warren then Warren Buffett’s recent actions at Berkshire Hathaway would be tolling the death bell of modern capitalism. For Buffett has decided to buy back nearly $1 billion worth of Berkshire Hathaway stock, something he doesn’t normally do. The usual criticism from the knownothing left – there not being all that much of a know lots left these days – is that stock buybacks are detrimental to the economy.…

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The New Republic Might Care To Hire Someone Who Can Count Apple Stock

Stock buybacks and their effects upon the broader economy are a useful subject of study. Near all commentators do manage to get it wrong of course. All money is one of two things, either consumed or invested. This is true whether money goes to the workers or capitalists, whether this is done inside the company that made the original profit or outside it. And yes, both investment and consumption grow the economy.

But that’s, you know, a subtle argument.…

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Lordy Be But Nick Hanauer Is Ignorant Of Economics, Isn’t He?

Nick Hanauer is, to my mind at least, clearly gearing up for a run at political office. I don’t think merely being a Senator would quite match the ego so I guess we’ll have to see who the Democrats nominate for the White House next time around. The field is open after all. Hanauer’s problem is that as a – largely, he didn’t start from nothing – self-made VC billionaire he’s not exactly going to get the Bernie Bros onside.…

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Burberry Destroys £28.6 Million In Stock – Why Not, The Stock Is Cheap, It’s The Brand That’s Valuable

There’s a certain amount of shock being expressed at the idea that Burberry destroyed £28.6 million of stock last year in order to “protect the brand.” Further, that many other such luxury brands do much the same thing. The argument being that burning some portion of what doesn’t sell is more profitable over time than selling it off cheap. About which we might say a few things, the first and most obvious being that if those who do this for a living think it a good idea then we’ve really got to have some very strong evidence to gainsay them.…

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I Guarantee You – Guarantee – That Jeff Bezos Does Not Have $150 Billion

Amazon’s share price has been surging, Jeff Bezos owns a lot of the stock of Amazon. Thus we have the reports that Jeff Bezos is now worth $150 billion, the richest man of modern times therefore. This isn’t actually true for people just aren’t counting right.

Moneycontrol News
Amazon founder and CEO Jeff Bezos net worth went past $150 billion to become the richest person in modern history.

Well, yes, but no, but yes, butvickypollard.…

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Harold Meyerson’s Interesting Lack of Consistency

There’s nothing like intellectual consistency to inform and illuminate the world and this, from Harold Meyerson, is nothing like intellectual consistency:

Let that sink in for a moment. The staffers of CFIUS—probably the most business- and security-savvy civil servants in the government, headed by those at Treasury—are saying that the private-equity control of companies, which is a dominant feature of current American capitalism, reduces investment and results in profit extraction. CFIUS does not go on to say that the purchase of U.S.

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Fools, Stock Buybacks and Trump’s Tax Plan

We have another of those most annoying outbreaks of economic illiteracy concerning the pharmaceutical companies, stock buybacks and Trump’s tax plan. OK, perhaps better to say another iteration of the usual idiocy then. For what we’ve got is the usual assumption that when a company buys back its own stock that money then disappears. A ludicrous thought and assertion of course it is, but it’s one that’s pervasive across the American press. One of those proofs of the – true – contention that journalism is, after perhaps sociology professors, the most left wing profession in the country.…

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