🤓 Buffett backed the right Japanese company

Buffett's Japanese bet paid off – again | Uber made investors forget about its chequered past | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for February 8th in 3:15 minutes.   😎 Trends matter: don't keep up, and you'll end up missing the memo on low-rise jeans or blinged-out Crocs. So join us for [Unlocking Trading Opportunities In 2024]( on February 26th, and find out how to stay in sync with the market this year. [Grab your free ticket]( Today's big stories - Buffett-backed Mitsubishi’s stock shot to a record high after a sumo-sized buyback - Stocks, bonds, cash, and where you might want to be when interest rates start falling – [Read Now]( - Uber brought home enough bread to make investors forget about its infamous stock market flop Staying Present [Staying Present] What’s going on here? Japanese trading company Mitsubishi [announced]( a buyback, proving that if you want a birthday gift worth keeping, you need to buy it yourself like Buffett. What does this mean? Warren Buffett tends to stick to what he knows: cherry cola, ice cream, and US companies with strong prospects that are trading for decent prices. But he treated himself to something a little different on his 90th birthday around three years back. He bought serious stakes in five Japanese trading firms with similar business models – investing in a chocolate box of different types of companies – to Berkshire Hathaway. That trip out of the States paid off. The stock prices of all five have more than tripled since then, with Mitsubishi’s pulling ahead by another 10% on Wednesday after the carmaker promised to buy back a tenth of its own shares. Why should I care? For markets: Backing buybacks. Buffett loves buybacks, even calling their critics “economic illiterates”. The plus side is clear: shareholders can end up with a bigger stake since there are fewer shares in the market. What’s more, because buybacks tend to be a show of confidence, many new investors flock to a stock when they happen, bringing up the price for existing shareholders. Still, even Buffett agrees that they can go awry if a company buys its own shares back at too high a price. Investors won’t bite if the newly increased price is at odds with the company’s profit and prospects, so the stock could end up lower than it started. The bigger picture: Test your patience. Japan has successfully turned economy-bruising deflation into a healthy dose of inflation, while government incentives are shaping Japanese companies into profit-making machines. That wasn’t the case when Buffett took his punt, though. This isn’t proof of any truth behind the “Oracle of Omaha” nickname, of course. Instead, it’s a point for long-term value investing, when you spot a bargain with potential and patiently sit on it. You might also like: [Macro and markets guide to Japan](. 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=Staying Present&utm_campaign=daily-global-08-02-2024&utm_source=email) Analyst Take What 96 Years Of Interest Rate Cuts Tell Us About Where To Invest Now [What 96 Years Of Interest Rate Cuts Tell Us About Where To Invest Now]( The Federal Reserve is expected to cut interest rates this year, and probably more than once. You should know what that might mean for your [stocks and bonds](. Schroders has checked out the history, studying [22 rate-cutting periods]( dating all the way back to 1928. The UK investment group says that if current [trends]( hold, it could be a good year for bonds – and a great one for stocks. That’s today’s Insight: [where you might want to be when interest rates start falling](. [Read or listen to the Insight here]( SPONSORED BY PROSPER Unlock your investing karma Proper’s [peer-to-peer lending platform]( lets you connect with qualified borrowers seeking loans. And in exchange for helping them meet their personal finance goals, you could get monthly income, portfolio diversification, and solid returns. That’s a combination we can get behind. You can invest in fractions of a loan, meaning you can afford to pick a few and diversify your portfolio. Or if you’d rather, [automated investing tools]( can work with your parameters for you. Plus, fine-tuned security technology keeps a close watch on any potential cyberattacks 24/7. [Discover the alternative investment that actually does good](. [Find Out More]( Investment is made through borrower payment dependent notes (“Notes”) tied to the underlying personal loan and offered pursuant to a Prospectus filed with the SEC. Notes are not guaranteed or FDIC insured, and investors may lose some or all of the principal invested. Investors should carefully consider the risks, uncertainties, and other information described in the Prospectus before investing. Investors should consult their financial advisor if they have any questions or need additional information. Nothing on this page is intended to be investment advice. *** Prosper’s investment platform is only available in certain states in the United States. Investors in certain states may also be subject to financial suitability requirements. When you support our sponsors, you support us. Thanks for that. Street Cred [Street Cred] What’s going on here? Uber announced its first-ever annual [profit]( on Wednesday, which might just be enough to shake its reputation as a loser. What does this mean? Uber might’ve replaced the term “hail a cab” in modern vocabulary, but the ride-hailing and food delivery app is still known for posting the biggest loss within a day of debuting on the US stock market. Clearly, though, cash can forgive a multitude of sins. Predictions that Uber would turn its first profit brought investors on board, pushing the company’s stock to an all-time high. This time, that trust was rewarded. Uber did make more than $1 billion in profit last year, promising that the cash would keep coming in. Investors have been burned before, though, so they want Uber to hold itself to account by paying out a dividend – a plea that could be granted or denied as soon as next week. Why should I care? For markets: A new attitude. Tech investors used to scoff in the face of dividends, so enamored with eccentric founders’ visions of world-dominating computer power that they were happy for every spare penny to be funneled straight into the cogs. But nowadays, super-rich US tech firms seem to think they can do both. Meta recently announced its first-ever dividend payment while pledging more investments in the future. Investors were only too happy to have their cake and eat it too, sending the social media giant’s stock up over 20%. The bigger picture: Amazon won’t budge. Microsoft, Apple, and Meta all hand out dividends now, but Amazon’s keeping its mitts firmly in its own pockets. The ecommerce behemoth batted off any suggestion of such a policy in a recent conference call, saying that there are plenty of places to put cash besides shareholders’ wallets. Investors must have been brushing up on stoicism: they haven’t taken any frustration out on its share price (yet). You might also like: [The real concern isn’t tech stock performance, it’s your psychology](. 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=Street Cred&utm_campaign=daily-global-08-02-2024&utm_source=email) 💬 Quote of the day "People who think they know everything are a great annoyance to those of us who do." – Isaac Asimov (an American writer and professor) [Tweet this]( SPONSORED BY INVESTALERT Your chance to pilot a cutting-edge investing tool InvestAlert.ai is revolutionizing the investment landscape. By creating a super-smart Portfolio Copilot, InvestAlert.ai is fitting everyday investors out with a sophisticated yet cost-efficient digital advisor. So now, retail investors can receive expert-level guidance about their [portfolio construction, risk management, and performance]( – an experience usually reserved for institutional investors, the rich or well-connected. And if you’re quick, you can be one of the first. InvestAlert.ai is looking for investors who actively use platforms like eToro and Robinhood to [try out the Portfolio Copilot™ first-hand for free](. All you need to do is [register and include your broker name in the referral code box](, and you could be at the forefront of the digital investing age. [Discover More]( When you support our sponsors, you support us. Thanks for that. 📍 Be in the right place at the right time. And by right place, we mean right here. [Promote Your Brand]( 🎯 On Our Radar 1. Another day, another reason to stay on the couch. [Soccer is a brain injury]( waiting to happen. 2. Theory will only get you so far in the real world. Here's how to [master options trading](.* 3. Welcome to The Tortured Poets Department. Taylor Swift's next album may be – gasp – [grammatically incorrect](. 4. As good as (white) gold. The global energy revolution needs lithium and [this company]( could plug the gap.* 5. Fraudsters have got their hands on AI. 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