- GRIT
- Posts
- BREAKING: Global Stock Market Rout Intensifies
Good Morning!
Happy Monday! Have a great week:
👉Buffett sells Apple
👉Siegel urges Fed
👉CrowdStrike hits back
BREAKING: The global stock market rout has intensified
BUFFETT: Sells Apple
Warren Buffett’s Berkshire Hathaway sold nearly half its huge Apple stake last quarter, an unexpected move for a long-term investor. By the end of Q2, Berkshire’s Apple holdings were worth $84.2 billion, indicating a 49% reduction. Despite the sale, Apple remains Berkshire's largest stock holding. This sale is part of a broader trend, with Berkshire selling over $75 billion in equities in Q2, boosting its cash reserves to a record $277 billion.
Source: CNBC
Buffett had already reduced the Apple stake by 13% in Q1 for potential tax benefits. He hinted that selling now could help if future capital gains taxes rise. However, the scale of this sale suggests other motives. Apple shares surged 23% in Q2, hitting a new record amid AI advancements. Additionally, Buffett has been trimming other major holdings, including a $3.8 billion reduction in Bank of America shares.
🎯GRIT TAKE: We don’t know the exact reason… upgrade to VIP now to read the full GRIT Take!
SIEGEL: Urges Fed
Wharton's Jeremy Siegel has urged the Federal Reserve to cut the federal funds rate by 75 basis points immediately following a disappointing jobs report. He also suggests another 75 basis point cut at the Fed's September meeting, bringing the rate between 3.5% and 4%.
Source: CNBC
Siegel noted that a move between meetings is rare but has historical precedent, citing an emergency cut by Fed Chair Alan Greenspan in 2001. Currently, the Fed's rate is 5.25% to 5.5%. Siegel believes the job market data and lower inflation support his call for a rate cut, predicting markets would rally if the Fed acts swiftly.
CrowdStrike: Hits Back
CrowdStrike revealed that Delta Air Lines declined onsite help during a major outage last month, leading to thousands of flight cancellations. Delta's CEO, Ed Bastian, stated that the outage, which occurred at a peak travel time, cost the airline about $500 million. Delta plans to seek damages and has hired law firm Boies Schiller Flexner.
Source: Bloomberg
In response, CrowdStrike's lawyer, Michael Carlinsky, accused Delta of creating a misleading narrative. He claimed CrowdStrike CEO George Kurtz offered assistance, but Delta did not respond. The dispute has led to legal threats and a sharp decline in CrowdStrike's shares.
Chart of the Day
📊 Cheap Stocks
Source: Carbon Finance
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @wallstmemes
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss, however arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy and Disclaimer Policy
If you have any questions please contact us at info@gritcap.io
Reply