🎂 Buffett's birthday, but OpenAI's gift

A free Buffett insight, OpenAI's fresh investment, trouble for Indian stocks, and a really high bumblebee | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for August 30th in 3:10 minutes.   🇺🇸 When the world's biggest economy has an election looming, you do your research. Or you [tune into the latest episode of our Finimize Podcast](, and hear abrdn's Sree Kochugovindan explain how the event could influence markets. [Listen here]( Today's big stories - OpenAI’s been getting cozy with Microsoft and Thrive, eyeing up a valuation over $100 billion - Celebrate Buffett's birthday with a free Insight about the Oracle's latest moves – [Read Now]( - Foreign institutional investors started fleeing India’s souped-up stock market Bringing Up A Hundred [Bringing Up A Hundred] What’s going on here? OpenAI has been [chatting]( up investors to snag some more billions, eyeing a valuation past the $100 billion mark. What does this mean? Venture capital firm Thrive Capital is reportedly leading the latest funding round with a planned cash injection of around $1 billion. And Microsoft is looking to get in on the action too. Although the details are yet to be hashed out, the multi-billion-dollar round is anticipated to push OpenAI’s valuation up from $86 billion to over $100 billion. And it’d be the biggest fund injection the company’s seen since Microsoft’s last investment of $10 billion in January 2023. Why should I care? For markets: The race is on. To fuel its grand ambition of creating machines that can outsmart us at most jobs, OpenAI needs to rake in some serious cash. Remember, this is tech that guzzles data, fired up by supercomputers with really hefty chips – and all of that costs money. Case in point: OpenAI dropped over $100 million on GPT-4, its most powerful model so far, and the next one looks like it’ll be even pricier. So as costs mount, investors have to ponder whether all this cash being pumped into AI will reap the rewards. And that’s not the only pressure OpenAI’s feeling: it’s got competition, with everyone from Anthropic to Google and Elon Musk’s xAI nipping at its heels. The bigger picture: The big leagues. Tech companies can reach sky-high valuations, but they’re not the only ones. On Wednesday, Warren Buffett’s Berkshire Hathaway broke into the $1 trillion club, making it the first publicly traded US company outside of the tech world to do so. Sure, lower interest rates might nibble away at the returns on Berkshire’s mountain of cash. But unlike some flashy tech names, this old-school powerhouse has cash – and solid profit – to justify its trillion-dollar status. You might also like: [How to use ChatGPT to analyze a stock.]( 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=Bringing Up A Hundred&utm_campaign=daily-global-30-08-2024&utm_source=email) Analyst Take It’s Warren Buffett’s Birthday. Here Are The Portfolio Moves He’s Making Now. [It’s Warren Buffett’s Birthday. Here Are The Portfolio Moves He’s Making Now.]( By David Kass, Analyst [Warren Buffett]( is turning 94 years old this week, and for some of us, it feels like a sort of unofficial holiday. I’ve been tracking his [legendary investment plays]( and advice for over 40 years now and I make it a point to go to Nebraska every year for his annual shareholder meeting. And his birthday’s got me thinking about his recent [stock moves]( and what he might have up his sleeve for the year ahead. That’s today’s Insight: [the latest moves of Omaha’s most famous stockpicker, with guest analyst (and noted Buffett expert) David Kass](. [Read or listen to the Insight here (for free)]( You’ve got the keys, now it’s time to start the engine There’s no getting around it: today’s markets are volatile. But if you have steady hands and nerves of steel, you could use Leveraged and Inverse ETFs to [use market movements to your advantage](. You need to know how to use them correctly, though. Leveraged trades mean you can amplify your gains, sure, but the same goes for your losses. Inverse ETFs see you [bet against the market without shorting an asset](. And if you’re going against the grain, you’ll need to have conviction. So we’ve [worked with Direxion]( – the investing platform aimed at decisive investors – to develop a [free guide]( covering the risks, rewards, and need-to-knows of Leveraged and Inverse ETFs. [Read The Guide]( Cold Feet [Cold Feet] What’s going on here? After spending months funding a relationship with India’s stock market, foreign institutional investors seem to have a case of the jitters. What does this mean? India’s economy is picking up fast: it’s forecast by the International Monetary Fund to grow 7% this year alone. No wonder, then, that global investors have pushed the country’s stocks up 40% in the past year. But all that attention has left them looking expensive. The MSCI India index’s forward price-to-earnings ratio – a key valuation metric – is currently 24, roughly 25% above its ten-year average. What’s more, the valuation gap between the index and its Asian counterparts is at a record high. And that seems to have spooked foreign investors: Bloomberg revealed this week that global institutional investors took $1 billion more out of India’s stock market than they put in this August. Why should I care? Zooming in: Never skip history class. At least domestic investors seem eager to make up the gap. The younger generation of investors in India has been putting more cash into stocks, rather than traditional stores of wealth like gold or real estate. In fact, adjusting for withdrawals, Indian retail investors have poured $70 billion into the country’s stocks since 2022. But it might not just be that this generation’s risk-tolerant: some experts doubt that younger investors fully understand the repercussions of putting so much of their money on the line. They’ve never seen a market crash first hand, after all. The bigger picture: China’s handing India an opportunity. Trade barriers between the US and China are mounting faster than you can say, “tariff”. That’s encouraged international companies to move supply chains from China to other developing nations, like – you guessed it – India. And as businesses set up shop, the country should see more investment and jobs as a result – a surefire way to keep the economy moving forward. You might also like: [How to buy India’s red-hot stocks on the cheap.]( 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=Cold Feet&utm_campaign=daily-global-30-08-2024&utm_source=email) 💬 Quote of the day "Rule number one: Never lose money. Rule number two: Never forget rule number one." – Warren Buffett (the legendary investor, who turned 94 on Friday) [Tweet this]( Join the Oracle Of Wall Street this December They say you can’t predict the future. Well, try saying that to [Meredith Whitney](, the analyst who predicted the 2008 financial crisis. Once known as the “Oracle Of Wall Street”, Meredith Whitney has been sounding the alarm again, predicting that [several factors in the US]( could push several regional banks over the edge. So forget about your tarot card appointment: [grab your ticket for the Modern Investor Summit]( this December 3rd and 4th, and find out what Meredith Whitney sees coming for the global economy. (Plus, [secure your free ticket by the end of the month](, and you could win an Echo Dot. Swanky, hey.) [Get Your Free Ticket]( 🎯 On Our Radar 1. Back in business. [Abercrombie and Fitch]( is making something of a comeback. 2. Like Google maps, but for technical ETFs. [Direxion's guide to trading leveraged and inverse ETFs is live.](* 3. Nature’s robots. Mushrooms are now being used to create the [robots of the future](. 4. Talk about being “in the money". [Get the lingo down]( before you trade options. 5. Sky high. How you could bump into a [bumblebee at the top of Mount Everest](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... All events in UK time.5️⃣ [Five Top Tips Every Options Trader Should Know:]( 5pm, September 11th 🔨 [Five Portfolio Hacks For Busy Investors:]( 5pm, September 12th 🚀 [2024 Modern Investor Summit](: 2pm, December 3rd ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. 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