Charlie Munger’s View on the Airline Industry
The airline industry is a cyclical industry. The cyclical sector has a sizable correlation with the various phases of the business cycle.
The Shanghai Composite Index (SSE) showed a huge fall in performance at the beginning of 2016 since there was a huge contraction in China’s manufacturing PMI.
On May 16, 2016, Berkshire Hathaway (BRK) took a new stake worth $1.0 billion in Apple (AAPL). That came after Apple reported its 1Q16 earnings on April 26, 2016.
Charlie Munger discussed some of his strategies and favorite stocks at the annual meeting of the Daily Journal in February 2017.
AIG’s analyst ratings have remained stable to positive over the past few months on improved earnings in 3Q16 and expectations for 4Q16.
In 4Q16, American International Group (AIG) spent $206.0 million on restructuring initiatives that target inefficiencies and expense reduction.
AIG saw a sequential as well as year-over-year fall in operating income for 4Q16 on weaker performance in its commercial segment.
American International Group (AIG) deploys cash flows for organic expansion, new offerings, and technology upgrades to increase its presence globally.
American International Group (AIG) has seen steep losses in the recent quarter, resulting in weaker operating flows for 2016.
American International Group (AIG) saw higher adverse development due to higher claims, led by losses in its liability and financial lines.
American International Group’s (AIG) Consumer Insurance division has seen restructuring, new partnerships, and divestitures amid volatile performance.
American International Group (AIG) stock has fallen steeply over the past few trading sessions, mainly due to weaker operating performance and a net loss in 4Q16.
Janus Capital’s Bill Gross said on January 20, 2017, Trump’s inauguration day, that there will be more investing during this presidency.
Goldman Sachs believes we may see a great market disruption in the present scenario. It believes more pressure on immigration could affect some US businesses.
Some investment firms are waiting for a change in policy so they can reevaluate their positions accordingly.
On February 3, 2017, a team of Goldman Sachs (GS) analysts wrote, “One month into the year, the balance of risks is somewhat less positive in our view.”
After a brief decline on Wednesday, the S&P 500 energy sector lost strength and fell on February 16. The rise in crude oil inventories dented the sentiment.
After gaining for six consecutive trading days to record high levels, the S&P 500 index pulled back on Thursday.
As of February 2017, Berkshire Hathaway (BRK-B) stock has risen 3.2% in the past month and 31% in the past year.
So far in February 2017, three of the seven analysts covering Berkshire Hathaway have rated it as a “buy” or a “strong buy.”