Warren Buffett’s 3 Most Profitable Pieces Of Advice (Forbes)
Warren Buffett has once again spoken with more sage advice for the masses. His annual letter to shareholders, which is as unadorned as a Nebraska cornfield, as usual, is a bounty for all investors. In this year’s Berkshire Hathaway letter, you don’t have to dig very deep to find the best nuggets. They are on pages 10 through 12.
It’s Dalio Versus Everyone Else as Money Flows to Europe Stocks (Bloomberg)
Billionaire Ray Dalio has $18.45 billion in bets against Europe’s biggest stocks. Most of the rest of the investing world is headed in the other direction. U.S. stocks lost $9.7 billion in investment so far this month while Eurozone shares have gained $3.2 billion, according to data compiled by Bloomberg. Peers of Dalio’s firm, Bridgewater Associates, are mostly wagering that Eurozone equities will rise. “I’m surprised. That’s a big bet. Dalio and his team are very confident,” said Rick Herman, managing director of asset allocation who helps oversee about $30 billion at BB&T Institutional Investment Advisors Inc. “That’s definitely out of consensus. European stocks are cheaper, and they also have stronger earnings growth.”
Buffett Says ‘Terrible Mistake’ for Long-Term Investors to be in Bonds (Reuters)
NEW YORK (Reuters) – Billionaire Warren Buffett prodded ordinary investors on Saturday to stay invested in U.S. stocks, ignoring price swings, guidance from people with fancy credentials and the temptation to load up on bonds. Buffett said it is a “terrible mistake” for investors with long-term horizons – among them, pension funds, college and endowments and savings-minded individuals – to measure their investment “risk” by their portfolio’s ratio of bonds to stocks. The long-time bull on U.S. companies and the economy issued his latest letter to Berkshire Hathaway Inc shareholders on Saturday.
Hedge Funds Did Something Highly Unusual During the Market’s Recent Meltdown — and It’s a Great Sign for Stocks (Business Insider)
Moves in stocks that are the most popular with hedge funds have historically been an exaggerated version of the broader market, for better or worse. When the equity market falls, hedge fund favorites tend to take an outsized beating, and vice versa. Which is why the group’s performance was so surprising as the S&P 500 suffered a 10% correction earlier this month. Theoretically, it should’ve gotten smoked. But the Goldman Sachs Hedge Fund VIP index— which consists of the 50 stocks that matter most to 808 hedge funds with $2.1 trillion under management — actually outperformed the benchmark during the turbulent period, according to the firm.