Three numbers to start the day:
Spent $ 24.7 billion on share buybacks in 2020
It’s a multiple times record for Warren Buffett’s conglomerate, and just one of the highlights of the legendary value investor’s annual letter, which was released over the weekend.
Buffett has long resisted buybacks, but it seems Berkshire’s huge cash hoard and low share price have inspired him to change his mind. Investors liked the sound of that, and Berkshire shares jumped 3.5% on Monday.
Remember, when a company repurchases its own shares, it reduces the number of shares outstanding. That makes each remaining share more valuable, because it represents a greater share of ownership of the company. It’s a fiscally efficient way to return money to shareholders, and one that Buffett himself looks for in the companies he invests in.
Initial order of iPhone 13s could reach 100 million
That’s according to an analyst’s reading of supply chain tea leaves. It would be compared to an initial build of 80 million iPhone 12 units in 2020.
The next iPhone lineup probably won’t be released until September, but Apple starts working with its vendors months in advance. If your initial iPhone 13 order is indeed 25% larger than the iPhone 12, that’s a sign that management expects the 5G-powered smartphone upgrade cycle to last into next year.
Wall Street already expects 2021 to be a great year for iPhone sales. The consensus forecast is around 220 million units, just short of the 2015 record of 231 million. That’s when the bigger screen iPhone 6 came out.
The Airline Stock Index increased 27% since the start of 2021
Thanks to growing optimism about the pace of Covid-19 vaccines and the economic recovery underway. In essence, investors now expect airlines to have more passengers buying tickets, and sooner, than a few months ago.
News from the weekend approved by the Food and Drug Administration
Johnson and Johnson‘s
(JNJ) the single-dose vaccine 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 seem to be betting on a rebound in domestic flights before international routes and in leisure travel before business. The biggest winners of late have been US-centric low-budget airlines.
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Write to Nicholas Jasinski at [email protected]