The Trump administration is weighing an an executive order that would pressure defense contractors to spend less on stock buybacks and dividends while boosting investment in infrastructure and weapons production, a source said https://t.co/t8g13ZGzRH ...

Core Viewpoint - Stock market buybacks are an effective method for publicly traded companies to reward shareholders and demonstrate confidence for 2026 [1] Buyback Rationale - Companies can repurchase shares instead of reinvesting all profits or increasing dividends, which lowers share count and boosts metrics like earnings per share (EPS) [1][2] - A reduction in outstanding shares leads to an increase in EPS, benefiting long-term shareholders by increasing their ownership percentage [2][3] Benefits of Buybacks - Buybacks provide a targeted return on capital, favoring shareholders who prefer this method over dividends, which are taxable and distributed to all shareholders [3] - Remaining shareholders benefit from a higher ownership percentage when shares are repurchased [3] Notable Companies Engaging in Buybacks - **Apple Inc.**: - Year-to-date performance of +10.27% - Repurchased $20 billion in stock in Q3 and approximately $91 billion for the fiscal year as of October 31 [6][7] - Strong cash flow and disciplined capital return make it a solid long-term investment [7][9] - **Qualcomm Inc.**: - Repurchased 50 million shares since November 2024, returning $7.76 billion to shareholders [10] - Demonstrates confidence in its core business despite macroeconomic challenges [11][12] - **Home Depot**: - Launched a $15 billion stock repurchase program in 2023 but paused in 2025 to focus on debt management [14] - Anticipates long-term growth in home improvement demand, with a pent-up demand of around $20 billion expected in 2026 [15][16] Market Trends - 2026 is projected to be a significant year for share repurchases, with companies authorizing and deploying more cash for buybacks than ever before [4] - Companies with healthy cash flows and consistent capital-return policies are more likely to engage in effective buybacks [4]

Today in stocks and translation, we're going to take a look at how the Dow is actually calculated. Now, the Dow was born all the way back in 1896, nearly 130 years ago, before computers, before calculators. So, this index of 30 stocks had to be easy to calculate. And for sakes of simplicity, only the stock price is used. So, the higher the stock price, the greater the weight in the index. And almost every other index, by the way, like the S&P and the NASDAQ, they use a company's market capitalization, but t ...

Group 1 - Berkshire Hathaway, led by Warren Buffett, holds positions in over 40 publicly traded companies, with six being components of the Dow Jones Industrial Average [1] - Four out of five of Berkshire's largest holdings are Dow stocks: Apple, American Express, Coca-Cola, and Chevron [1] - Berkshire's public equity portfolio is valued at approximately $302 billion, with its property and casualty insurance businesses considered even more valuable [4] Group 2 - Visa is the largest among the major credit card companies in terms of market capitalization and transaction volume, benefiting from a network effect that encourages more merchants to accept Visa [5] - Visa converts nearly half of its revenue into free cash flow, indicating high operational efficiency [6] - Visa operates a capital-light business model, partnering with financial institutions to issue cards, thus avoiding credit risk and the obligation to pay user rewards [7][8] Group 3 - Visa has a predictable runway for future growth, recently rewarding shareholders with over $22 billion in stock buybacks and dividends [9] - In contrast, American Express spends more than double on cardmember perks than it collects in annual fees, highlighting a different financial strategy [10]

Corporate Buybacks & Market Confidence - US corporate buybacks have reached approximately $12 trillion (12,000 billion) so far this year, a 15% increase compared to the same period last year [1] - The increase in buyback authorizations and buybacks suggests potential nervousness in the market earlier in the year, with companies believing their shares are undervalued [2][4] - Corporate America seems relatively confident, as mentions of "economic slowdown" on conference calls have decreased [4] Economic Indicators & Consumer Behavior - The service sector, representing 85-90% of GDP, shows a rebound in new orders and increased activity, indicating improved corporate sentiment [5] - The consumer market is bifurcated, with the lower-end consumer facing challenges [5][6] - The recommendation is to avoid areas of the market heavily leveraged to the lower-end consumer [7] Investment Strategies & Sector Focus - The AI trade remains a key focus, driven by expected earnings growth in the information sector [7][8] - Companies are seeking ways to stretch disposable spending dollars, benefiting retailers like Walmart, Costco, TJX, and Ross Stores [8][9] - AI is expected to become pervasive across various industries, similar to the internet [11] - The public safety sector is also attractive, even with some AI influence [13] - The key is to focus on where money is being spent and which companies are poised to deliver faster earnings growth than the S&P 500, which is expected to be north of 13% next year [13]

Core Viewpoint - Warren Buffett will step down as CEO of Berkshire Hathaway at the end of this year, but will continue as chairman, ensuring the company's long-term value investing strategy persists [1] Group 1: Berkshire's Financial Position - Berkshire Hathaway has a record cash reserve of $381 billion and a portfolio of publicly traded stocks valued at $311 billion [3][6] - The company has generated substantial operating profits from its wholly owned businesses in insurance, utilities, and logistics, alongside significant dividends from its stock portfolio, including $816 million from Coca-Cola and $479 million from American Express in 2025 [6] - Buffett has authorized $77.8 billion in stock buybacks from 2018 to mid-2024, but there have been no repurchases in the last five quarters [4][8] Group 2: Reasons for Cash Accumulation - Berkshire has been reducing its stock exposure for 12 consecutive quarters, including selling over half of its stake in Apple, which raised significant cash [7] - The company is currently trading at a price-to-sales (P/S) ratio of 2.7, a 25% premium to its 10-year average of 2.2, which may explain Buffett's hesitation to authorize buybacks [10][12] Group 3: Succession Planning - Buffett announced he will step down as CEO and pass leadership to Greg Abel, which may influence his decision-making regarding financial strategies [13] - The company can repurchase shares as long as cash and equivalents exceed $30 billion, which is not an issue given the current cash reserves [14] - Buffett may prefer to leave significant financial decisions, such as buybacks or acquisitions, to his successor, who may have different priorities [15]

Group 1 - Precision Castparts manufactures castings, forgings, and fasteners for aerospace, industrial, and automotive markets [1] - At one point, General Electric accounted for 11% of Precision's revenue [1] - The stock was bought correctly at around 40, with the first sell based on the rule to sell when a stock closes for the week below a certain threshold [1] Group 2 - Warren Buffett's cash infusion will allow OXY to reward him with stock buybacks [2] - The Dow Jones futures rose on Warren Buffett's investments, particularly in Nucor and UnitedHealth [4] - Berkshire Hathaway's Q2 operating profit fell by 4% [4]

Four of the biggest US banks almost doubled their stock buybacks in the first full quarter following the Federal Reserve’s annual stress test, which the lenders all comfortably passed in June https://t.co/RAzXIQ40n1 ...

Market Overview - Major indexes are near record highs, with the S&P 500 adding $16 trillion in market cap since April lows [1] - The Fed is cutting rates [1] - Earning season is approaching [1] - September is historically the weakest month for the S&P 500 [8][9] - October has historically seen stock market crashes and volatility spikes [9] Stock Buybacks - Stock buybacks can lift earnings per share and support stock price [2] - 2025 stock buyback announcements are approaching $1 trillion, the year-end average [3] - Buyback executions occur in four waves per year, coinciding with earning seasons [4] - Buybacks have recently dropped off due to the buyback blackout window [5] - The buyback blackout window, from mid-August through mid-October, is nearing its peak [7][8] - The buyback bid is expected to return as earning season shifts into high gear [10] Investment Considerations - Watch for companies updating their share repurchase plans [10] - Monitor spikes in the VIX volatility index, as a higher VIX usually indicates weakness in stocks [11] - Keep an eye on long-term government rates, as a big jump can negatively impact stocks when buybacks are light [11][12]

Financial Projections and Share Repurchase - AT&T Inc. reiterated its financial projection for the full year 2025 and plans to repurchase $20 billion worth of shares between 2025 and 2027 [1] - The company remains on course to meet its previously declared financial goals, which include raising adjusted EBITDA, adjusted EPS, and consolidated service revenue [1] Customer Demand and Subscriber Growth - During the third quarter, AT&T reported solid customer demand in its wireless business [2] - The firm anticipates larger subscriber net additions for AT&T Fiber and AT&T Internet Air in the second half of 2025 compared to the first half for its Consumer Wireline division [2] Fiber Connectivity Expansion - By the end of 2030, AT&T expects to have more than 60 million fiber locations, which is about double its current coverage [3] - The company reiterated its plans to boost fiber internet connectivity [3] Business Overview - AT&T provides a wide range of wireless communication services and data solutions to various customer groups, including corporations, governmental organizations, wholesale customers, and individual consumers [3]