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Three numbers to start your day:
Berkshire Hathaway
Spent $ 24.7 billion on share buybacks in 2020
It’s a record multiple times for Warren Buffett’s conglomerate, and just one of the highlights of the legendary value investor’s annual letter, released this weekend.
Buffett has long opposed buybacks, but it seems Berkshire’s massive cash supply and lagging stock price inspired him to change his tune. Investors were pleased with the sound of it, raising Berkshire shares by 3.5% on Monday.
Remember, when a company repurchases its own shares, it reduces the number of shares outstanding. That makes any remaining stock more valuable, as it represents a greater ownership interest in the company. It is a tax-efficient way to return money to shareholders, and one that Buffett himself looks for in the companies in which he invests.
Apple‘s
First order for iPhone 13s can reach 100 million
That’s according to a reading of an analyst from the tea leaves of the supply chain. It would be comparable to an initial build of 80 million iPhone 12 units in 2020.
The next iPhone lineup probably won’t be unveiled until September, but Apple is starting to partner with its suppliers months in advance. If the original iPhone 13 order is in fact 25% larger than for the iPhone 12, that’s a sign that management expects the 5G-driven smartphone upgrade cycle to last well into next year.
Wall Street already expects 2021 to be a huge year for iPhone sales. The consensus forecast is for about 220 million units, just below the record of 231 million in 2015. That was when the iPhone 6 came out with a larger screen.
Aviation stocks index is up 27% since early 2021
Thanks to growing optimism about the pace of the Covid-19 vaccinations and the ongoing economic recovery. In fact, investors now expect airlines to let more passengers buy tickets – and sooner – than they did a few months ago.
News over the weekend that the Food and Drug Administration has approved
Johnson & Johnson‘s
Single-dose (JNJ) vaccine only adds to the optimism. And there is $ 14 billion in aid for the aviation industry in the $ 1.9 trillion stimulus bill just passed by the House of Representatives.
Investors seem to be betting on a recovery of domestic flying ahead of international routes, and leisure travel for business. The biggest winners lately have been American budget airlines such as
Spirit Airlines
(SAVE) and
JetBlue Airways
(JBLU).
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Write to Nicholas Jasinski at [email protected]