✂️ Buffett's latest move

Berkshire sells Bank of America shares, Elliott grabs some Starbucks, and the lowdown on "spray-on" sneakers | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for July 23rd in 3:11 minutes.   🤫 The loudest person in the room isn't always right. So join us for [Secret Strategies Of A Long-Term Investor]( on July 24th at 5pm and learn about the tools you need to be successful. [Grab your free ticket]( Today's big stories - Warren Buffett cashed in some Bank of America stock, but it’s not a breakup - Four things to bear in mind about the looming food crisis – [Read Now]( - Activist fund Elliott Investment Management ordered up a serving of Starbucks, creating a buzz A Little Off The Top [A Little Off The Top] What’s going on here? Warren Buffett’s Berkshire Hathaway [sold]( about $1.5 billion of Bank of America shares, trimming its stake. What does this mean? Berkshire still owns about 999 million shares – a stash that’s valued at over $42 billion. And the conglomerate is nowhere near saying goodbye to Buffett’s favorite bank stock: with such a small adjustment, it’s more likely just tweaking the asset mix. See, the Berkshire and Bank of America love affair goes way back. Buffett’s firm bought its first $5 billion stake in 2011, in the still-unstable days after the global financial crisis, and it’s been adding to its pile ever since – until now, that is. Why should I care? Zooming in: It’s not you, it’s Berkshire. Buffett’s firm sold a slice of another major holding – Apple – earlier this year. But the iPhone maker still makes up 40% of its US-listed assets, thanks in part to a strong rally over the past few months. The problem for Berkshire is that it’s not finding much to buy. See, today’s lofty share valuations have meant big-cap stocks are priced too high to meet Buffett’s strict criteria. Meanwhile, smaller companies just won’t cut it, even if they look cheap: they can’t offer a stake hefty enough for such a big fish. So Berkshire’s left sitting on a huge $190 billion cash pile. Most of that is held in short-term government bonds, earning around $10 billion a year – not bad for a risk-free investment. The bigger picture: Money out, money in. Higher interest rates empty most folks’ pockets as mortgage payments and borrowing costs jump. And when groceries and other stuff become more expensive, that just adds to the pressure. But for investors, a more than 5% return on cash is pretty tempting when inflation is around 2% to 3%. That’s one reason for the record flows into [money market funds](, which offer those higher interest rates. You might also like: [Why A ChatGPT iPhone Has Wall Street Buzzing](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=A Little Off The Top&utm_campaign=daily-global-23-07-2024&utm_source=email) Analyst Take A Food Crisis Is Brewing: Here’s How To Shield Your Portfolio [A Food Crisis Is Brewing: Here’s How To Shield Your Portfolio]( [Photo of Reda Farran, CFA] Reda Farran, CFA, Analyst The world is on track for a [temperature rise]( of up to 2.9°C above pre-industrial levels this century – almost double a target agreed to at the 2015 Paris climate talks. And that’s going to have massive implications for [agriculture]( everywhere. Here are [four things]( you need to know, as a food-eating human and as an investor. That’s today’s Insight: [four things to keep in mind about the looming food crisis](. [Read or listen to the Insight here]( SPONSORED BY STREETBEAT Improve your revenue strategy with AI – and then take all the credit Your clients want a personalized experience – and they won’t hesitate to look elsewhere to find it. 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Any historical returns, expected returns or probability projections are hypothetical and may not reflect actual future performance. See Terms and Conditions at [Streetbeat.com](. When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Caffeine Addiction [Caffeine Addiction] What’s going on here? Activist hedge fund Elliott Investment Management has [brewed]( up a hefty stake in Starbucks, aiming to perk up the company’s share price decline before it gets too bitter. What does this mean? Activist funds buy stakes in firms and push for change to pull up share prices. And Elliott’s gone and ordered up a venti serving of Starbucks, just as the world’s biggest coffee chain is facing a steaming hot dilemma. Once the go-to place for anyone with a MacBook writing a novel, Starbucks now relies heavily on to-go orders. And after reporting a sharp drop in visits and weaker-than-expected profit in the first quarter, the coffee retailer ground down its forecast for the second time this year, causing a steep stock selloff. Now, investors are hyped to see what Elliott can do – and that helped the stock initially froth up 7%. Why should I care? Zooming out: Tall orders. The activist playbook generally involves selling off bits of the business, giving execs the boot, and ripping up the existing strategy in favor of something new. And Elliott’s one of the best in this biz: when it steps in, a stock typically jolts higher and stays that way for at least a year. So this could be good for Starbucks. It doesn’t always go down smoothly, though. These outside experts sometimes get flak for chasing short-term wins over long-term stability and growth. The bigger picture: Sour aftertastes. Like value investors, activists tend to zero in on companies when they think a stock’s price is way below what it’s worth. And some big brands are in their sights this year: Nike, Estée Lauder, McDonald’s, and UPS – to name a few. But if you’re chasing this industry’s potential stock targets, you’ll want to watch your step: Goldman Sachs has found that shares bought by activists generally tend to head south after about six months. You might also like: [Carl Icahn: Invest like an activist](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Caffeine Addiction&utm_campaign=daily-global-23-07-2024&utm_source=email) 💬 Quote of the day "If I waited for perfection... I would never write a word." – Margaret Atwood (a Canadian writer) [Tweet this]( Get your mind in the right place, and your portfolio will follow Mindset matters: your perspective on life can affect your work, relationships, and your money. But it’s easy to settle into a comfort zone, even if it’s not your most productive state of mind, and overhauling your way of thinking is no quick task. That’s why Belong’s cofounder and behavioural economist Samantha Rosenberg is presenting our [Secret Strategies Of A Long-Term Investor event](. Join, and you’ll discover essential tools and [habits that can help you build long-term wealth](, and practical advice for implementing them into your existing strategy and day-to-day life. Plus, you’ll be presented with Samantha’s tips for shaping a durable investment journey, which she’s vetted during her career in behavioural economics. [Grab your free ticket to join the event.]( [Get Your Ticket]( 🎯 On Our Radar Wanted: A friend. This writer gave themself one month to [find a new friend](. Staking crypto could help your returns. Here's [how it works and the potential risks]( to watch out for.* A shot in the arm. [Energy drinks]( are everywhere now, but they might be more dangerous than you think. Only investing in stocks is like only ever eating tomato pasta for dinner. [Multi-asset investing]( can help you craft a portfolio that truly suits your tastes.** The perfect fit. “Spray on” shoes and [the world of sneakers](. *Stocks is a derivative product offered by Change Securities B.V. that replicates the performance of your favourite companies’ shares - full or fractional. ** See important disclosures [here](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... All events in UK time. 🤫 [Secret Strategies Of A Long-Term Investor:]( 5pm, July 24th 💰[How To Invest Like A Modern Warren Buffett:]( 5pm, Aug 14th 😎 [Make More Out Of Your Portfolio With US-listed Options:]( 5pm, Aug 15th 🔨 [Five Portfolio Hacks For Busy Investors:]( 5pm, Sept 12th 🚀 [2024 Modern Investor Summit](: 2pm, December 3rd ❤️ Share with a friend Thanks for reading {NAME}. 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