Three numbers to start your day:
Berkshire Hathaway Spent $24.7 Billion on Share Buybacks in 2020
It’s a record several times over for Warren Buffett’s conglomerate, and just one of the highlights from the legendary value investor’s annual letter, which came out over the weekend.
Buffett has long been resistant to buybacks, but it appears that Berkshire’s enormous cash hoard and lagging stock price have inspired him to change his tune. Investors liked the sound of that, and boosted Berkshire stock 3.5% on Monday.
Remember, when a company repurchases its own stock, it reduces the number of shares outstanding. That makes each remaining share more valuable, because it represents a greater ownership stake in the company. It’s a tax-efficient way to return money to shareholders, and one that Buffett himself seeks out in the companies that he invests in.
Apple’s Initial Order for iPhone 13s Could Hit 100 Million
That is according to one analyst’s reading of the supply-chain tea leaves. It would compare with an initial build of 80 million iPhone 12 units in 2020.
The next iPhone lineup likely won’t be unveiled until September, but Apple begins to work with its suppliers months in advance. If its initial iPhone 13 order is in fact 25% larger than it was for the iPhone 12, that is a sign that management expects the 5G-driven smartphone upgrade cycle to last well into next year.
Wall Street already expects 2021 to be a huge year for iPhone sales. The consensus forecast is for about 220 million units, just short of 2015’s record 231 million. That was when the larger-screen iPhone 6 came out.
Index of Airline Stocks Up 27% Since Start of 2021
Thank growing optimism about the pace of Covid-19 vaccinations and the economic recovery under way. Basically, investors now expect airlines to have more passengers buying tickets—and sooner—than they did just a few months ago.
News over the weekend that the Food and Drug Administration approved Johnson & Johnson’s (JNJ) single-dose vaccine just adds to the optimism. And there is $14 billion in aid for the airline industry in the $1.9 trillion stimulus bill that just passed the House of Representatives.
Investors appear to be betting on a rebound in domestic flying before international routes, and leisure travel ahead of business. The biggest gainers lately have been U.S.-focused budget carriers like Spirit Airlines (SAVE) and JetBlue Airways (JBLU).
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Write to Nicholas Jasinski at [email protected]
