Core Insights - Honeywell International Inc. reported mixed fourth-quarter 2025 results, with adjusted earnings per share (EPS) of $2.59, exceeding analysts' estimates of $2.54, while revenue of $9.76 billion fell short of expectations of $9.85 billion [1] Financial Performance - For fiscal 2026, Honeywell anticipates adjusted EPS in the range of $10.35 to $10.65, slightly below analyst estimates of $10.38, and expects sales between $38.8 billion and $39.8 billion, compared to the street view of $39.62 billion [2] - In the first quarter of 2026, the company projects adjusted EPS of $2.25 to $2.35, compared to the consensus estimate of $2.34, and revenue expectations of $9.1 billion to $9.4 billion, versus consensus of $9.29 billion [2] Strategic Outlook - Honeywell's CEO, Vimal Kapur, highlighted a record backlog of over $37 billion as a strong position for 2026, with plans to complete the separation of its automation and aerospace businesses by the third quarter of 2026 [3] - The company has established a new segment structure aimed at driving cross-portfolio synergies and accelerating long-term profitable growth [3] Analyst Ratings and Price Targets - Following the earnings announcement, Wells Fargo analyst Joseph O'Dea maintained an Equal-Weight rating and raised the price target from $215 to $235 [5] - Barclays analyst Julian Mitchell kept an Overweight rating and increased the price target from $250 to $259 [5] - RBC Capital analyst Deane Dray maintained an Outperform rating and raised the price target from $249 to $268 [5]

Economic Indicators - The number of Americans filing for initial jobless claims fell by 1,000 to 209,000, compared to the expected 206,000 [1] - U.S. Q3 nonfarm productivity was reported at +4.9% quarter-over-quarter, while unit labor costs remained unchanged at -1.9% quarter-over-quarter, both in line with expectations [1] - The U.S. trade deficit for November widened to -$56.8 billion, worse than the expected -$43.4 billion [1] - Factory orders in the U.S. rose by +2.7% month-over-month in November, exceeding expectations of +1.7% [1] Stock Market Performance - Wall Street's major indices closed mixed, with Microsoft (MSFT) dropping about -10% due to record high spending and slowing cloud sales growth [2] - Las Vegas Sands (LVS) fell over -13% after reporting weaker-than-expected Q4 Macau profit [2] - United Rentals (URI) slumped over -12% following disappointing Q4 results [2] - Conversely, Meta Platforms (META) surged over +10% after posting strong Q4 results and issuing optimistic Q1 revenue guidance [2] Corporate News - Notable companies such as Exxon Mobil (XOM), Chevron (CVX), and American Express (AXP) are set to release quarterly results today, with S&P 500 companies expected to see an average earnings increase of +8.4% for Q4 compared to the previous year [8] - Casio Computer's stock surged over +16% after announcing a potential doubling of its full-year net profit [15] - Fujitsu's stock climbed over +5% after raising its full-year net profit guidance [15] International Economic Data - The Eurozone economy expanded by +1.5% last year, marking its fastest growth since 2022, with preliminary data showing a Q4 GDP growth of +0.3% quarter-over-quarter and +1.3% year-over-year [10][12] - Spain's annual inflation rate eased to a 7-month low in January, while the Eurozone's unemployment rate fell to 6.2%, better than expected [10][11]

Core Insights - The article discusses the investment considerations between Keppel DC REIT and Keppel Corporation, highlighting their distinct business models and investment focuses. Group 1: Business Overview - Keppel DC REIT is a data centre REIT with S$6.3 billion in assets under management as of December 31, 2025, and operates 25 data centres across 10 countries [3] - Keppel Corporation is a diversified conglomerate involved in asset management, infrastructure, data centres, and utilities, providing a broader range of services compared to the REIT [5][6] Group 2: Income vs. Growth Potential - Keppel DC REIT offers a consistent distribution yield averaging 4.6% over the past decade, appealing to income-focused investors [7] - Keppel Corporation has a lower dividend yield of 3.1% but presents higher capital growth potential due to its transition to an asset-light business model and involvement in growth sectors like renewable energy [9][12] Group 3: Financial and Valuation Comparison - Keppel DC REIT's share price is S$2.23 with a market cap of S$5.44 billion, and it has a last 12-month yield of 4.7% [11] - Keppel Corporation's share price is S$10.95, with a market cap nearing S$20 billion, and it has shown a steady increase in revenue and profit [12] Group 4: Investment Suitability - For investors seeking consistent income and lower volatility, Keppel DC REIT is recommended [15] - For those looking for business diversity and growth potential, Keppel Corporation is suggested as a better fit [15][16]

Core Viewpoint - Adani Group is significantly increasing its reliance on domestic financing amid global market volatility and ongoing legal challenges, aiming to support its ambitious infrastructure investment plans [1][3]. Financing Strategy - The conglomerate has ramped up funding from local debt capital markets to approximately $2 billion in 2025, a ten-fold increase from the previous year, with plans to raise this to $10 billion over the next three years [2]. - Local banks' share of Adani Group's total debt has risen from about 30% two years ago to roughly 50% as of September [11]. Investment Plans - Adani Group is pursuing a five-year investment plan that could involve capital expenditures of up to $100 billion, which may strain balance sheets if reliance on Indian lenders increases [3]. Market Conditions - The US Securities and Exchange Commission's actions regarding a fraud case against Adani have highlighted the uncertainties surrounding the conglomerate, making local funding more appealing [4]. - Despite scrutiny, local creditors are showing a strong willingness to extend more debt to Adani Group, indicating confidence in its projects [5]. Recent Fundraising Activities - Adani Group's flagship firm successfully issued a $110 million public rupee bond that was fully subscribed within an hour, and Adani Power Ltd raised ₹7,500 crore ($818 million) in local-currency bonds, marking its largest issuance [6]. - The group has also engaged multiple state-run entities and top private sector lenders for funding, including Life Insurance Corporation of India and HDFC Bank Ltd [7]. Diversification and Global Trends - The shift towards local lenders is seen as a sensible strategy in the current global environment, with local market liquidity being favorable for infrastructure investments [8]. - The group's diversification in funding reflects a broader trend of de-dollarisation and India's recalibration on the global stage, as evidenced by recent trade agreements [10]. Future Outlook - Adani Group plans to buy back at least $100 million in dollar bonds this year, increasing its share of local borrowing due to lower costs associated with issuing rupee debt [13]. - Despite challenges, the group has maintained access to liquidity and has successfully closed transactions amid legal uncertainties [15].

Core Viewpoint - Berkshire Hathaway has undergone a significant leadership change with Greg Abel taking over from Warren Buffett, marking a new era for the company as investors await Abel's strategic plans in the upcoming earnings update [1]. Group 1: Leadership Transition - Warren Buffett, the longtime CEO of Berkshire Hathaway, has handed over leadership to Greg Abel at the end of 2025 [1]. - The upcoming earnings update at the end of February will be the first opportunity for investors to hear about Abel's future plans for the company [1]. Group 2: Investment Strategy Changes - Greg Abel is reportedly planning to sell Kraft Heinz stock, a major investment in Berkshire Hathaway's portfolio, which indicates a shift in investment strategy [2]. - Buffett had previously expressed that investing in Kraft Heinz was likely a mistake, suggesting that Abel's potential sale aligns with Buffett's critical views on the investment [4]. Group 3: Management Style - Abel is expected to adopt a more active management style compared to Buffett's historically hands-off approach, which could lead to more dynamic decision-making within the company [5]. - Despite the anticipated changes, Abel's long tenure under Buffett suggests continuity in investment philosophy, as he has been involved in many recent decisions and is not an outsider [7].

Core Insights - Berkshire Hathaway Inc. (BRK.B) shares are currently overvalued compared to its industry, trading at a price-to-book multiple of 1.48, which is above the industry average of 1.41 but below the median of 1.57 [1][8] - The stock has gained 0.9% over the past year, while the industry has decreased by 0.2%, with the sector and S&P 500 composite gaining 11.6% and 17.6%, respectively [2] - Analysts have set a Zacks average price target of $537.75 per share for BRK.B, indicating a potential upside of 11% from the last closing price [3] Business Model and Operations - Berkshire Hathaway operates as a conglomerate with over 90 subsidiaries, providing stability across various economic cycles [2] - The insurance operations contribute approximately 25% of total revenues and are crucial for long-term value creation, benefiting from disciplined underwriting and a large underwriting float [4][14] - The energy segment (BHE) offers steady cash flows and is expanding its renewable energy investments, aligning with global trends in electrification and sustainability [9] Financial Performance - Berkshire maintains a conservative capital allocation strategy, holding over $100 billion in cash and cash equivalents, primarily invested in short-term U.S. Treasuries [12] - The return on equity (ROE) for the trailing 12 months is 7.3%, below the industry average of 8%, but has shown consistent improvement [15] - The return on invested capital (ROIC) is 5.9%, lower than the industry average of 6.2%, yet has increased every year since 2020 [16] Analyst Sentiment and Future Outlook - The Zacks Consensus Estimate for 2026 revenues indicates a 6% year-over-year increase, while earnings are expected to decrease by 2.5% year-over-year [17] - Recent adjustments in earnings estimates show a 22.6% increase for 2026, contrasting with no movement for peers Chubb and PGR [17] - Berkshire's equity portfolio is being reshaped, with exits from certain stakes and new investments in companies like Alphabet, reflecting a focus on stability and long-term value [13]

Group 1: Berkshire Hathaway's Stake in Kraft Heinz - Berkshire Hathaway Inc. is considering exiting its 27.5% stake in Kraft Heinz, which has been held for the past ten years, due to underperformance against Warren Buffett's expectations [2] - Kraft Heinz filed a prospectus supplement with the SEC for the potential resale of 325.4 million shares from Berkshire, valued at approximately $7.7 billion based on a share price of $23.8, leading to a 4.9% drop in Kraft Heinz's shares in after-hours trading [3] - This decision follows significant write-downs of $3.0 billion in 2019 and $3.76 billion in August, as Kraft Heinz plans to split into two companies later in 2026, a strategy previously criticized by Buffett and CEO Greg Abel [4] Group 2: Berkshire Hathaway's Acquisition Strategy - On January 2, 2026, Berkshire Hathaway completed a $9.7 billion acquisition of OxyChem from Occidental, indicating a strategic shift towards stable, cash-generative industrial assets [5] - Berkshire Hathaway operates as a diversified conglomerate with interests in various sectors including insurance, energy, industrials, transportation, and consumer products [5]

Earnings Reports - Nucor, described as the "best steel company in the world," will report earnings on Monday, with expectations that rate cuts may spur economic growth despite a lackluster mid-quarter update in December [1] - Boeing and General Motors will release results on Tuesday, with Boeing shares having rallied significantly, leading to cautious expectations for further gains [2][3] - A busy earnings day on Wednesday will feature reports from Corning, Danaher, Starbucks, GE Vernova, Meta Platforms, and Microsoft, all of which are holdings in Cramer's Charitable Trust [4] Company Insights - Danaher is expected to have its first strong quarter in years due to a resurgence in biotech orders [6] - Starbucks is considered "wildly overbought," requiring exceptionally strong earnings to maintain upward momentum, but is still viewed positively for the long term [6] - Microsoft shares are under pressure due to AI-driven disruption risks, which are seen as a false concern [7] - GE Vernova's results are anticipated to be underwhelming due to high expectations, while Corning is favored for long-term growth due to AI-related benefits [5] Market Context - Honeywell will report on Thursday, with potential for a disappointing stock reaction as investors await the company's breakup later this year [8] - Apple is set to post results after eight weeks of decline, attributed to concerns over rising memory costs affecting margins, but the recommendation remains to "own it, don't trade it" [9] - The Federal Reserve's interest rate decision is expected to remain unchanged, with potential market-moving news regarding Fed Chair Jerome Powell's replacement [10]

Core Viewpoint - The article discusses the best stocks to buy and hold for 20 years, emphasizing the importance of durable fundamentals and long-term investment strategies in a complex market environment marked by geopolitical risks and economic uncertainties [2][5]. Market Environment - The investment landscape in 2026 is characterized by geopolitical risks, U.S. midterm elections, a leadership transition at the Federal Reserve, and diverging global monetary policies [2]. - Analysts project modest gains for equities in the U.S., Europe, and Japan, with over half of market participants predicting a potential correction due to concerns over AI-driven valuations [2]. Long-term Outlook - Despite short-term cautious sentiment, the long-term outlook remains positive, with historical trends suggesting that market pullbacks are temporary pauses in a bull cycle [3]. - AI is viewed as a solution to structural labor shortages, with the potential to support durable growth even if some stocks underperform [3]. Earnings Momentum - Earnings momentum for U.S. small caps is expected to improve as rate pressures ease, with optimism building around anticipated Federal Reserve rate cuts in 2026 [4]. - Goldman Sachs has a positive outlook based on strong economic momentum, easing inflation, healthy corporate balance sheets, and sustained AI-driven investment [4]. Stock Selection Methodology - The list of the "10 best stocks to buy and hold for 20 years" was curated using AI chatbots to identify stocks with strong fundamentals and positive analyst and hedge fund sentiment [5][7]. - Hedge fund sentiment was measured using Insider Monkey's database, which tracks 978 stocks as of Q3 2025, and stocks were ranked by upside potential [8]. Stock Highlights - **Costco Wholesale Corporation (NASDAQ:COST)**: Expected to benefit from increased consumer spending due to tax refunds, with a projected incremental $75 billion in refunds for households earning under $200,000 [11]. The company declared a quarterly cash dividend of $1.30 per share [12]. - **Berkshire Hathaway Inc. (NYSE:BRK-B)**: Possibly exiting its 27.5% stake in Kraft Heinz, with the potential resale of 325.4 million shares valued at approximately $7.7 billion [14][15]. The company also finalized a $9.7 billion acquisition of OxyChem, reflecting a strategy to focus on stable, cash-generative assets [17]. - **Eli Lilly and Company (NYSE:LLY)**: Received FDA Breakthrough Therapy designation for a new cancer treatment, enhancing its oncology pipeline visibility [20]. The company is advancing into a global Phase 3 trial for this asset, which addresses a high unmet need in ovarian cancer [21].

Core Viewpoint - Singapore Exchange Limited (SGX) plans to reduce board lot sizes from 100 units to 10 units for securities valued above S$10, which may enhance accessibility for retail investors, particularly for blue-chip stocks [1] Group 1: DBS Group Holdings - DBS Group Holdings is currently priced over S$58 per share, making a single lot cost nearly S$6,000, but a reduction in lot size could make it more accessible to retail investors [3][5] - For the first nine months of 2025, DBS achieved a record total income of S$17.6 billion, reflecting a 5% year-on-year increase [4] - Despite a 1% year-on-year decline in net profit to S$8.7 billion due to higher expenses, DBS increased dividends by 38.9% year-on-year to S$0.75 per share in 3Q2025 [4] Group 2: Jardine Matheson Holdings - Jardine Matheson is the highest-priced conglomerate on SGX, with shares close to US$75 (approximately S$96) [6] - In the first half of 2025, Jardine's revenue slightly declined by 1% year-on-year, but underlying profit grew by 11% to US$786 million [7] - The company has maintained a dividend of US$0.60 per share, with a long-term record of increasing dividends at a 5.3% CAGR since 2019 [7][8] Group 3: Haw Par Corp - Haw Par Corp, known for its Tiger Balm brand, reported a 7% increase in revenue to S$126.3 million in the first half of 2025, driven by strong demand for healthcare products [9] - Net earnings rose by 18.2% to over S$144 million, largely due to increased dividends from investments in blue-chip companies [10] - The company maintained an interim dividend of S$0.20 per share, with a payout ratio of 30.7%, making it a stable candidate for retail investors [11] Group 4: Implications for Investors - The potential reduction in lot size is expected to benefit the mentioned companies by attracting more retail investors, particularly those who were previously priced out [12][14] - These companies represent a diversified trio across different sectors, likely to lead the next maturation phase of the Singapore market [13][14]