Three Things (8/9)
Aug 9, 2022
“A nickel ain't worth a dime anymore.” -Yogi Berra
1) Buffett continues to buy: Berkshire Hathaway, under the direction of CEO Warren Buffett, continued its shopping spree, snatching up $3.8 billion in equities in Q2 and $45.2 billion for the year. The legendary investor's pocket emptying is a stark reversal from 2020-2021, when Berkshire was a $16 billion net seller of equities. Despite unloading some of its cash, Berkshire still holds $105.4 billion in its cash pile as of June.
Titan's Takeaway: After a few years of fickle fingers, Buffett seems to be deploying some of his cash ostensibly to take advantage of discounts amid a challenging economic climate. Often, the stock market is the only store in the world where people hate products on the sale rack. Buffett, on the other hand, is a coupon shopper.
2) Pfizer acquires Global Blood Therapeutics: Pfizer reached a deal to buy Global Blood Therapeutics (GBT) for $5.4 billion. The agreement follows a series of transactions for the pharmaceutical giant, which was flooded with cash from COVID-19 vaccine sales. The deal with GBT could help strengthen Pfizer's rare disease unit and establish a position in treating sickle-cell disease, a condition that afflicts nearly 20 million people worldwide.
Titan's Takeaway: Pfizer aims to grow revenue by $25 billion from M&A deals by 2030. The agreement with GBT, which has three sickle-cell drugs awaiting approval, could expedite Pfizer's ambitions after failing to launch its own medication.
3) SoftBank reports record quarterly loss: The Japanese conglomerate reported a quarterly loss of over $23 billion amid a broad technology selloff. Once a potent and profligate force in the tech boom, SoftBank has turned defensive as global interest rates rise and tech valuations plummet. With its Vision Fund 2 deeply underwater, SoftBank announced it had sold its entire stake in ride-share giant Uber in order to lock in dwindling profits for its Vision Fund 1.
Titan's Takeaway: SoftBank's Vision Funds, once lauded for their brash and audacious investments, may need LASIK. For SoftBank, it's a $100 billion operation.
Cash Management
© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.
Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.