Warren Buffett says US-China trade war 'bad for the whole world'

Warren Buffett said on Monday that a trade war between the United States and China would be "bad for the whole world."

Buffett spoke after US President Donald Trump tweeted on Sunday that he would raise tariffs on $200 billion of Chinese imports to 25 percent from 10 percent beginning on Friday.

Trump also said he would soon slap a 25-percent tariff on $325 billion of Chinese goods that have not been taxed.

Major stock markets fell worldwide on Monday in response to the tweet, which preceded scheduled trade talks this week, and was a "rational" response, Buffett said on CNBC television.

Buffett's conglomerate Berkshire Hathaway Inc owns or invests in many companies that do business in China, including Apple Inc, in which it has a more than $50 billion stake, and Chinese electric car maker BYD Co.

"If we actually have a trade war it will be bad for the whole world," Buffett said.

A full-scale trade war is unlikely, he said, but "would be bad for everything Berkshire owns."

Berkshire Vice Chairman Charlie Munger, also speaking on CNBC, said Trump was not "totally crazy" for wanting higher tariffs on some goods, but that a trade war would be "massively stupid."

Despite the concerns, Buffett said it would be "nonsense" for investors to sell stocks based on negative headlines, adding that the United States and China will be the world's superpowers for the next 100 years and will always have tensions.

He also said the battle would not affect how Omaha, Nebraska-based Berkshire operates.

The company owns more than 90 companies including utilities, makers of industrial parts and chemicals, Geico auto insurance and Dairy Queen ice cream, and ended March with $191.8 billion of equity investments.

"We will buy the same stocks today that we were buying last week," and would be "delighted" if a good Chinese business expressed interest in a Berkshire transaction, Buffett said.

HIGHER STAKES FOR CHINA

Trump on Monday tweeted that the United States had for many years lost $600 billion to $800 billion annually on trade, and "with China we lose 500 Billion Dollars. Sorry, we're not going to be doing that anymore!"

Buffett said tough talk ahead of trade negotiations was understandable, saying that for some people "the best technique is to act half-crazy," but it would be ineffective to "shake your fist first and then shake your finger later on."

He added that Trump's planned tariffs raise the stakes for Chinese leader Xi Jinping.

"You're talking about two personalities who are very much used to getting their way in politics, and talking about how they will be perceived in their own country in terms of their behavior," Buffett said. "It gets very complicated."

Buffett said the trade dispute has already had an effect on Berkshire's BNSF railroad.

Meanwhile, Jim Weber, the chief executive officer of Berkshire's Brooks Running unit, said in an interview last week that his company was ending most shoe production in China and moving it to Vietnam because of tariff concerns.

Buffett also said the United States should bolster its trade relations with Canada and Mexico.

"We've got lots and lots and lots of common interests," he said. "Trade with Mexico and Canada is enormously important. We should treat them as neighbors, and not adversaries."

source: news.abs-cbn.com

Warren Buffett says trade war would be 'bad for the whole world'

Warren Buffett said on Monday that a trade war between the United States and China would be "bad for the whole world."

Buffett spoke after U.S. President Donald Trump tweeted on Sunday that he will raise tariffs on $200 billion of Chinese imports to 25 percent from 10 percent beginning on Friday, and "shortly" slap a 25 percent tariff on $325 billion of Chinese goods that have not been taxed.

Major stock markets fell worldwide on Monday in response to the president's tweet, which was a "rational" response, Buffett said on CNBC television.

His conglomerate Berkshire Hathaway Inc owns or invests in many companies that do business in China, including Apple Inc in which it has a more than $50 billion stake.

"If we actually have a trade war it will be bad for the whole world," Buffett said. "With some people in negotiations, the best technique is to act half-crazy."

A full-scale trade war "would be bad for everything Berkshire owns," Buffett added, though the probability it might happen is low.

Buffett said tough talk ahead of negotiations was understandable, but that it was ineffective to "shake your fist first and then shake your finger later on." He added that Trump's threat raises the stakes for Chinese leader Xi Jinping.

"You're talking about two personalities who are very much used to getting their way in politics, and talking about how they will be perceived in their own country in terms of their behavior," he said. "It gets very complicated."

Buffett said the trade dispute has already had an effect on Berkshire's BNSF railroad.

Last week, Jim Weber, the chief executive officer of Berkshire's Brooks Running unit, said in an interview that his company was ending most of its shoe production in China and moving it to Vietnam because of tariff concerns.

Buffett nonetheless said the problems will not affect how Omaha, Nebraska-based Berkshire operates. "We will buy the same stocks today that we were buying last week," he said.

Berkshire ended March with $191.8 billion of equity investments. It also owns more than 90 companies including energy and utility companies, the Geico auto insurer and the Dairy Queen ice cream chain. (Reporting by Jonathan Stempel and Jennifer Ablan in New York; Editing by Jeffrey Benkoe)

source: news.abs-cbn.com

Billionaire Warren Buffett gives new hint about his successor

OMAHA -- Billionaire Warren Buffett on Saturday gave a clue on who might succeed him to run his Berkshire Hathaway empire, but did not completely reveal his hand.

The world's third-richest man also said at his company's annual shareholder meeting that its recent investment in Amazon was not a shift in strategy to focus on Silicon Valley firms, which have largely remained missing from Berkshire's voluminous portfolio.

Buffett, 88, was pressed by questions -- each greeted with a torrent of applause -- about who would succeed him.

Without answering directly, Buffett said Gregory Able, 57, and Ajit Jain, 67 -- both promoted last year to the board of directors -- would in the near future join him and long-time business partner Charlie Munger, 95, on the stage to answer shareholder questions.

"You could not have two better operating managers than Greg and Ajit. It's just fantastic what they've accomplished," said Buffett, who is known as the "Oracle of Omaha."

For decades, Buffett and Munger have been the two stars of Berkshire Hathaway, but on Saturday, Jain answered a shareholder question, though he did so from the floor.

'UNBUREAUCRATIC' 


Abel joined the company in 1992 in the energy division, and for more than a year has overseen all non-insurance activities, while Jain came on board in 1986 in the insurance division, which he currently leads.

But who will prevail, or could they jointly take the helm?

"One of the reasons we have trouble with these questions is because Berkshire is so very peculiar. We have a different, kind of unbureaucratic way of making decisions," said Munger.

"But I don't want to be like everybody else because this has worked better. So I think you're going to have to endure us," he said.

Buffett's departure is likely to open a new era at the company, especially with shares of Berkshire considered to be 10 to 15 percent above their real value thanks to the billionaire's presence at the helm.

Some analysts say a Buffett-less Berkshire Hathaway could be a candidate for being broken up into multiple companies.

INVESTING IN TECH 

Buffett and Munger on Saturday also faced an onslaught of questions about strategy for investing in technology companies after Berkshire revealed a stake in Amazon.

Buffett said Amazon chief Jeff Bezos has pulled off "close to a miracle" by transforming an online book seller into the e-commerce giant it is today.

Munger also acknowledged that he and Buffett felt "ashamed" for missing the boat on Google.

"We just sat there sucking our thumbs," he said. "We screwed up."

But there's no indication of a strategy shift at Berkshire to invest more heavily in tech, aside from its new stake in Amazon and a $40 billion stake in Apple.

On Saturday, Berkshire Hathaway announced a net profit of $21.66 billion -- a result that does not take into account expected losses from its stake in Kraft Heinz, which has recently depreciated assets valued in the billions of dollars.

Berkshire Hathaway has holdings in companies such as American Express, JPMorgan Chase and Goldman Sachs, and is active in sectors like insurance (Geico), rail (BNSF) and energy (PacifiCorp).

The Berkshire Hathaway shareholder meeting, which draws tens of thousands to the small city of Omaha in the American heartland, has been dubbed "Woodstock for Capitalists."

Unlike other annual meetings, the goal here is not to release company results but to hear Buffett identify companies that he might invest in, or from which he might withdraw his money.

Some 20,000 people secured a coveted pass to hear Buffett speak in person, after lining up from 5:00 am, with thousands more left to soak up the atmosphere from outside the theater.

Buffett kicked off the day by touring the souvenir stands at CHI Health Center and mingling with the crowd of attendees, made up of leading executives, investors and billionaires from around the world.

This year, many Chinese delegations made the trip.

Buffett, who is worth almost $90 billion, still lives in a relatively modest house about 10 minutes outside downtown Omaha that he bought in 1958.

source: news.abs-cbn.com

Warren Buffett: Beloved American billionaire with humility

NEW YORK -- Legend, icon, guru: Warren Buffett cuts a unique figure in the United States as a billionaire with a long track record of brilliant investing whose renown is softened by folksy midwestern charm.

Donning classic gray suits and colored ties, the 88-year-old "Oracle of Omaha" has managed to cultivate a humble and accessible persona despite his standing as the world's third-richest person.

His following in his home country is cult-like, with thousands of small investors making a pilgrimage each spring for the annual meeting at Berkshire Hathaway, Buffett's company.

The event takes place in Omaha, Nebraska, right in the middle of the United States, in the city where Buffett was born and has always lived.

"He is such a down-to-earth person," said David Kass, a finance professor at the University of Maryland and the author of a blog on Buffett and Berkshire Hathaway.

"He's a hero who's generally popular with the public," said Gregori Volokhine of Meeschaert Financial Services.

NOTHING FANCY

Buffett evinces few of the trappings of the generally loathed "one percent." He has lived in the same house since 1958 in a quiet neighborhood of Omaha. 

His gastronomic tastes are also decidedly humble and include McDonald's chicken McNuggets at least three times a week. He also favors potato chips for snacks, ice cream for dessert and an average of five cans of Coca-Cola per day.

Equally telling, Buffett eschews big-ticket art-collecting and other pursuits emblematic of the high life.

"I don't need fancy clothes," Buffett told CBS in 2013. "I don't need fancy food."

Though raised middle class, Buffett did not have an easy childhood in some ways.

He has described going through a shoplifting phase and was forced to navigate around his abusive mother Leila, who used to berate his sister Doris as "stupid."

In the biography "Giving it all away: The Doris Buffett story," Warren Buffett acknowledges he did not stand up to his mother on Doris' behalf, saying "I never did because I was afraid of becoming the target myself."

Buffett's commitment to philanthropy has further helped insulate him from popular resentment. He has donated billions of dollars to the Bill & Melinda Gates Foundation and has, like Gates, called for the wealthy to pay higher taxes. 

SEPARATING EMOTION FROM INVESTING

Although Buffett makes some public appearances, he guards his privacy and keeps a tight circle of close advisers, including longtime Berkshire Vice Chairman Charlie Munger, who is 95, and shares Buffett's straight-talking tendencies.

His circle of friends include JPMorgan Chase's Jamie Dimon, who praised Buffett's clinical approach to investing.

"He is always guided by the facts and his core principles -- not emotion," Dimon told AFP in an email. "He is grounded in long-held, proven principles, but willing to change and not rigid in his approach."

Buffett is also a savvy communicator.

"He uses very short parables, stories and analogies," Alice Schroeder, author of the Buffett biography "The Snowball," told SeekingAlpha.com in 2010.

"He chooses key words that resonate with people -- that will stick in their hands, like Aesop's Fables," she said. "It enables him to very quickly make a point without having to expend a lot of verbiage."

Born on August 30, 1930 as the middle of three children, Buffett discovered an early taste for business after reading the book "One Thousands Ways to make $1,000."

Buffett had designs on abandoning his studies, an idea vetoed by his father, a businessman and politician who served in Congress. He attended the Wharton School at the University of Pennsylvania as an undergraduate and later received a masters from Columbia University in New York in 1951.

Buffett worked on Wall Street in the 1950s, establishing the Buffett Partnership, which merged in 1965 with Berkshire Hathaway, a textile firm. 

In the half-century since, Buffett has transformed Berkshire into a far-flung conglomerate worth more than $530 billion and known for investments in nuts-and-bolts sectors such as energy, banks, air travel and food.

His holdings include JPMorgan, Coca-Cola, Apple and American Express. 

In general, Buffett's approach is to delegate as much as possible on management questions, while maintaining control of assets.

And homespun charm has not stopped Buffett from wielding the corporate ax when necessary, as with Kraft Heinz, which Buffett acquired with 3G Capital, an investment firm known for severe cost-cutting.

source: news.abs-cbn.com

Taxing the rich, an idea gaining ground in the United States

NEW YORK -- Long out of favor in the United States, the idea of taxing rich individuals and corporations to pay for healthcare or to combat inequality is gaining ground among Democratic politicians.

While the United States reveres free enterprise and is home to the world's largest number of billionaires, such tax proposals have been gaining traction in political circles in recent weeks.

More than one Democratic contender in next year's presidential elections are campaigning on some plan to tax the wealthy.

And they have been encouraged by famous billionaires such as Bill Gates and Warren Buffett, the world's second and third wealthiest people, who worry about America's severe wealth inequality.

Vermont's left-leaning Senator Bernie Sanders was among the first in the recent wave. During his 2016 presidential campaign he called for higher federal income taxes to pay for free college tuition and universal healthcare.

Massachusetts Senator Elizabeth Warren has proposed a two-percent wealth tax starting at $50 million in earnings. New York Senator Kirsten Gillibrand is calling for a levy on financial transactions, and Sanders says inheritances should be taxed up to 77 percent.

With the Democrats now in control of the House of Representatives, the undisputed media star of the freshman class, Alexandria Ocasio-Cortez, is leading the charge: she has proposed a tax of 70 percent on any income over $10 million to help pay for a proposed "Green New Deal" to de-carbonize the US economy and help prevent catastrophic climate change, while offering universal healthcare and guaranteed employment.

This so-called marginal rate of 70 percent is not unprecedented in the United States, but was last at that level 1981. The current top marginal tax rate is 37 percent.

Raising corporate taxes is another Democratic priority, a subject inflamed by the recent controversy over Amazon, which has reported no federal income tax expenses for the past two years. That has stoked debate over highly profitable companies that do not pay into government coffers.

Some Republicans have pushed back, with outspoken and media savvy Ocasio-Cortez drawing the most fire.

Grover Norquist, an anti-tax activist who has long pushed Republican lawmakers to pledge never to raise taxes, warned in January against soaking the rich, saying such taxes "always slip down to hit the rest of us."

But Joseph Thorndike, a historian specializing in US tax policy, said a reversal of the post-war trend of cutting taxes is within sight.

'SOCIAL TENSIONS'

"Something is happening here," he said. "We are beginning to have a discussion about that that we haven't had since the 1960s or even the 50s."

Top marginal tax rates in the United States were very high following World War II, maxing out at 94 percent. They began to fall in the 1960s and were slashed again under President Ronald Reagan in the 1980s.

In late 2017, Donald Trump and the Republican majority in Congress cut corporate and personal income tax rates, despite unanimous Democratic opposition which denounced the tax overhaul as a giveaway to the rich.

Trump, himself a billionaire, has attracted widespread scorn for refusing to disclose his own income tax returns, and accusations that his family maintained its wealth by evading taxes, an accusation he denies.

Why has the debate changed?

Yawning income gaps are one reason, Thorndike said.

"People are willing to tolerate rich people getting richer as long as middle class people are also doing better," he said. "When the middle and laboring class is stagnating, that creates social tensions."

Trump himself may have been catalyst.

While most major changes in US tax policy came in times of crisis -- wars or deep recessions -- Trump's unconventional presidency could mark "a sharp enough break" to bring about change, Thorndike said.

A Morning Consult poll conducted late last month for Politico found 74 percent of voters were generally in favor of higher taxes for the rich, while 73 percent favored this for corporations.

Furthermore, 90 percent believed such tax revenues should go to pay for healthcare or infrastructure.

But this apparent consensus masks significant divergences between Democrats and Republicans, and the tax issue remains very sensitive, analysts say.

The modest changes are sometimes a hard sell for the public while the "anti-rich" rhetoric of some Democrats could alienate certain voters, Thorndike said.

But Kenneth Scheve, professor of political science at Stanford University, said "there is a set of voters and politicians who are trying to innovate and respond in ways the country has not traditionally responded to."

"For the Democratic primaries in 2020, this is going to be a key feature of the debate," he said.

source: news.abs-cbn.com

The price for lunch with Warren Buffett: $3.3 million

An anonymous bidder has agreed to pay $3,300,100 at auction to have a private lunch with Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc.

The winning bid came near the end of a 5-day online auction on eBay to benefit the Glide Foundation, a San Francisco charity that serves people who are poor, homeless or battling substance abuse.

It was the third highest price in the 19 years Buffett has offered lunch, near the record $3,456,789 bid in both the 2012 and 2016 auctions. This year's auction drew 136 bids from just 6 bidders before ending on Friday night.

The auction helps cover Glide's $20 million annual budget, which goes toward providing roughly 750,000 free meals, shelter, HIV and Hepatitis C tests, job training, and children's day care and after-school programs.

"Glide really takes people who have hit rock bottom and helps bring them back," Buffett said in a statement.

Buffett, 87, has raised $29.6 million for Glide through the 19 auctions.

His first wife Susan, who died in 2004, introduced him to Glide after volunteering there. The Reverend Cecil Williams, 88, Glide's charismatic co-founder, remains a minister at its affiliated church.

"The $3.3 million is an extraordinary gift, not just the money but the fact that Warren Buffett lends his name and reputation and shines a light on the work Glide does," Glide's president, Karen Hanrahan, said by phone. "Demand for our services is skyrocketing, in this city of innovation and wealth."

The winning bidder and up to 7 friends can dine with Buffett at the Smith & Wollensky steak house in Manhattan.

Buffett will discuss anything apart from what he might invest in next.

Ted Weschler, a hedge fund manager, paid a combined $5.25 million to win the 2010 and 2011 auctions, and later joined Berkshire as one of Buffett's investment managers.

Berkshire has more than 90 businesses in the insurance, energy, food and retail, industrial, railroad, real estate and other sectors, and also invests in companies such as Apple Inc, Wells Fargo & Co and Coca-Cola Co.

According to Glide, these bidders have won its auctions:

2000: Pete Budlong, $25,000

2001: Jim Halperin and Scott Tilson, $20,000

2002: Jim Halperin and Scott Tilson, $25,000

2003: David Einhorn, Greenlight Capital, $250,100

2004: Jason Choo, Singapore, $202,100

2005: Anonymous, $351,100

2006: Yongping Duan, California, $620,100

2007: Mohnish Pabrai, Guy Spier, Harina Kapoor, $650,100

2008: Zhao Danyang, Pure Heart Asset Management, China,
$2,110,100

2009: Courtenay Wolfe, Salida Capital, Canada, $1,680,300

2010: Ted Weschler, $2,626,311

2011: Ted Weschler, $2,626,411

2012: Anonymous, $3,456,789

2013: Anonymous, $1,000,100

2014: Andy Chua, Singapore, $2,166,766

2015: Zhu Ye, Dalian Zeus Entertainment Co, China,
$2,345,678

2016: Anonymous, $3,456,789

2017: Anonymous, $2,679,001

2018: Anonymous, $3,300,100

source: news.abs-cbn.com

Apple hits record high but leaves some investors in dust

SAN FRANCISCO - Apple shares cruised to a record-high close Monday, helping catapult the S&P 500 stock index over the $20 trillion mark in what amounts to a victory for plain-vanilla mutual funds over a bevy of hedge fund managers who recently backed away from the iPhone maker.

The largest component of the S&P 500 and a core holding on Wall Street, Apple's stock climbed 0.9 percent to end at $133.29, above its record high close of $133.00 hit on Feb. 23, 2015 and giving it a market value of about $699 billion.

Its increase helped balloon the S&P 500's market capitalization on Monday beyond $20 trillion for the first time.

While mutual funds have largely bet on Apple in recent months, some big names missed out on all or part of its recent acceleration.

Hedge fund manager Dan Loeb's Third Point LLC cut its stake in Apple by 26 percent to 1.9 million shares in the fourth quarter, according to regulatory filings, while George Soros and Carl Icahn also shed their Apple shares last year.

In contrast, the number of mutual funds reporting they became Apple shareholders in recent quarterly filings has jumped by 187 percent to 287, while the number of mutual funds liquidating their Apple holdings dropped by 26 percent to 151, according to Morningstar.

Among the big names who backed the stock, Warren Buffett's Berkshire Hathaway last August said it had increased its stake in Apple by 55 percent to 15 million shares, now worth $2 billion. David Einhorn's hedge fund Greenlight Capital in January said it still likes Apple.

Apple has climbed 50 percent from lows in the first half of last year and is up 15 percent so far in 2017. It was still short of its all-time intraday high of $134.54, set on April 28, 2015.

Monday's gain came after Goldman Sachs analyst Simona Jankowski raised her price target for Apple to $150. She said she is more confident that an upcoming 10th anniversary iPhone will feature augmented-reality technology, which could help boost demand in a saturated smartphone market.

Many investors are betting that Apple will mark the iPhone's 10th anniversary with a dramatically improved model. They also believe that strong sales of the iPhone 6S two years ago have left a larger-than-normal base of customers ready to upgrade.

The Cupertino, California company reported strong December-quarter results on Jan. 31, and although it gave a cautious outlook for the current quarter, Wall Street expects revenue to grow this year after sinking nearly 8 percent in fiscal 2016.

In 1998, when the S&P 500 closed above $10 trillion for the first time, Apple accounted for just under 0.06 percent of the index. It now accounts for about 3.5 percent of the S&P 500, according to S&P Dow Jones Indices.

The 721 days that have passed since Apple's previous record-high close represent the largest gap between such milestones since the iPhone's launch in 2007.

source: news.abs-cbn.com

Billionaire Warren Buffett invests in 3 big US airlines

NEW YORK - Billionaire investor Warren Buffett has taken stakes in three large US airlines, in a $1.3 billion bet that marks a sharp U-turn of his antagonistic views on the sector.

Buffett's Berkshire Hathaway Inc. invested $797 million in American Airlines, $249 million in Delta Air Lines and $237 million in United Continental Holdings, according to a regulatory filing reviewed Monday by AFP.

Berkshire Hathaway also took a stake in Southwest Airlines, CNBC television network reported Monday.

The financial guru was known for his dislike of the airline industry after his disastrous bet on preferred shares of US Airways in 1989, calling the sector a "death trap."

The surprise Berkshire news pushed airline shares sharply higher in after-market trades. American Airlines jumped 3.5 percent, Delta was up 2.9 percent and United Continental, parent of United Airlines, gained 2.6 percent.

Buffett, the head of the massive Berkshire Hathaway conglomerate, is the world's third wealthiest person.

source: www.abs-cbnnews.com

US billionaire Buffett challenges Trump to reveal tax returns

WASHINGTON - US billionaire Warren Buffett challenged Donald Trump Monday to release his tax returns, a feat which the Republican presidential candidate has so far resisted.

Trump has said he won't release the documents because he is under audit, which Buffett -- one of the world's richest men -- suggested is a weak excuse.

"Now I've got news for him, I'm under audit too," Buffett said, speaking at a Hillary Clinton rally in Nebraska. "You're only afraid if you got something to be afraid about."

"He's afraid because of you," Buffett told the attendees.

Buffett suggested he and Trump meet "any place, any time" before election day to publicly go over their tax records together.

The business magnate also sharply criticized Trump for a recent dispute with the parents of a slain Muslim American soldier.

Pakistani immigrant Khizr Khan galvanized the Democratic National Convention with a tribute to his dead son in which he rebuked the Republican nominee for having "sacrificed nothing" for the country.

In an interview aired on ABC Sunday, Trump insisted he had, in fact, made "a lot of sacrifices" for the United States.

Buffett declared otherwise: "Donald Trump and I haven't sacrificed anything," he said, referencing Trump's remark.

"How in the world can you stand up to a couple of parents who have lost a son and talk about sacrificing because you were building a bunch of buildings?"

Buffett is one of several extremely wealthy Americans to back Clinton for president, including billionaire and independent former mayor of New York Michael Bloomberg and Dallas Mavericks owner Mark Cuban.

source: www.abs-cbnnews.com

Amazon's Bezos passes Buffett, becomes 3rd-richest person: Forbes

NEW YORK - Jeff Bezos, the founder and chief executive of Amazon.com Inc., has become the world's third-richest person as of the market close for the first time, Forbes magazine said, passing Warren Buffett, the chairman and chief executive of Berkshire Hathaway Inc.

Bezos' fortune was $65.3 billion as of 4:30 p.m. EDT on Thursday, compared with Buffett's $64.9 billion.

Microsoft Corp. co-founder Bill Gates remained the world's richest person, at $77.7 billion, while Spain's Amancio Ortega, who founded the Zara clothing chain's owner Inditex SA, was second at $72.7 billion. Facebook Inc. co-founder and chief executive Mark Zuckerberg was fifth, at $54 billion.

Bezos, 52, owns close to 18 percent of Amazon. Its stock has risen by roughly 50 percent since early February, as the world's largest online retailer continued to upend retailing as more people took to the Web rather than the mall to shop.

Amazon's share price rose further in after-hours trading, after the Seattle-based company reported better-than-expected second-quarter results.

Buffett, 85, owns close to 18 percent of Berkshire, but his donation this month of $2.86 billion of Berkshire stock to the Bill & Melinda Gates Foundation and four family charities led to his drop to fourth place. He has donated more than $24.3 billion to the Gates Foundation and family charities since 2006.

Berkshire is based in Omaha, Nebraska, and has roughly 90 business units including Geico car insurance, the BNSF railroad and Dairy Queen ice cream.

In June, Buffett called Bezos a "classic example" of how a business owner could thrive, by having focused at Amazon on how to "delight" customers, and keep them coming back, rather than simply process their orders.

source: www.abs-cbnnews.com

Facebook's Mark Zuckerberg is now world's 4th richest man

Facebook Founder Mark Zuckerberg is now the fourth richest person in the world, shoving Amazon CEO Jeff Bezos aside.

According to Bloomberg, the 31-year old is sitting on a fortune worth $50 billion by close of trading Tuesday.

Meanwhile, Microsoft Founder and philanthropist Bill Gates remains the world's richest person with a net worth of $78.7 billion.

Zara fashionista Amancio Ortega of Spain is number two with $69.3 billion.

While Wall Street wizard Warren Buffett is third with $59.6 billion.

-Mornings @ ANC, February 4, 2016

source: www.abs-cbnnews.com

Facebook's CEO and wife to give 99 pct of shares to charity

SAN FRANCISCO (Reuters) - Mark Zuckerberg will put 99 percent of his Facebook Inc shares, currently worth about $45 billion, into a new philanthropy project focusing on human potential and equality, he and his wife said Tuesday in a letter to their newborn daughter.

The plan, which was posted on the Facebook founder and chief executive officer's page, attracted more than 570,000 "likes," including from singer Shakira, former California Governor Arnold Schwarzenegger and Melinda Gates, wife of Microsoft founder Bill Gates. The Gates and other high-profile billionaires such as Warren Buffett have set up foundations of their own to dedicate their massive fortunes to philanthropic endeavors.

Zuckerberg, 31, who will control the new initiative jointly with his wife, Priscilla Chan, while remaining in charge of the world's largest online social network, said he would sell or give up to $1 billion in shares in each of the next three years.

Zuckerberg will keep a controlling stake in Facebook, valued at $303 billion as of Tuesday's close, for what the company called the "foreseeable future." According to Facebook's most recent proxy statement, Zuckerberg owned 4 million Class A shares and 422.3 million Class B shares, which have 10 times the voting power of A shares. Combined he held 54 percent of the voting power of the company's shares.

Zuckerberg said he plans to remain CEO of Facebook for "many, many years to come."

Zuckerberg's new project, the Chan Zuckerberg Initiative, is not his first in the world of philanthropy. When he was 26, he signed the Giving Pledge, which invites the world's wealthiest individuals and families to commit to giving more than half of their wealth to philanthropy or charitable causes over their lifetime or in their will.

"Mark and Priscilla are breaking the mold with this breathtaking commitment," Buffett said on Facebook. "A combination of brains, passion and resources on this scale will change the lives of millions. On behalf of future generations, I thank them."

Melinda Gates chimed in, "The first word that comes to mind is: Wow. The example you're setting today is an inspiration to us and the world."

Buffett himself pledged shares of his Berkshire Hathaway Inc company that were then worth $31 billion to Gates' foundation in 2006, and at the time ranked as the largest single gift.

A YOUNG PHILANTHROPIST

Zuckerberg is relatively young to commit so much of his wealth. Microsoft Corp co-founder Gates was 45 in 2000, the year he and his wife founded the Bill and Melinda Gates Foundation. Buffett was 76 in 2006 when he committed to give away all of his Berkshire Hathaway stock to philanthropic organizations.

About $350 billion is given away each year in the United States by charities, said Stacy Palmer, editor of the Chronicle of Philanthropy. She said Zuckerberg and his wife's announcement was remarkable not just because of the size of the donation, but because of their ages.

"Our lists of the top donors are usually dominated by people in their 70s or 80s," she said. "This is a message to other young people who are deciding what to do with their great wealth."

In welcoming the birth of his first child on his Facebook page, Zuckerberg posted a photo of himself, his wife and their daughter, Maxima, nicknamed Max, along with a post entitled "A letter to our daughter." (http://on.fb.me/1MVnGOj)

In the 2,220-word letter, Zuckerberg and Chan, a pediatrician, touched on issues including health, education, Internet access and learning before announcing the Chan Zuckerberg Initiative, which aims to "advance human potential and promote equality."

They plan to give away 99 percent of their Facebook shares over their lifetimes to advance the initiative, which was formed as a limited liability company. It will begin by focusing on curing disease, Internet connectivity, community building and personalized learning - the idea that technology can help students learn at different paces.

Maxima Chan Zuckerberg was born early last week - though Facebook did not specify her birth date - and weighed 7 lbs 8 ounces (3.4 kg) at birth. Last month, Zuckerberg announced he would take two months of paternity leave after the birth.

Chan and Zuckerberg have so far committed $1.6 billion to their philanthropy. They have given several donations this year, including to public schools, initiatives to bring better wireless Internet access and to San Francisco General Hospital, where Chan works as a pediatrician.

Zuckerberg and Chan said they will share more details when they return from their maternity and paternity leaves.

Zuckerberg has started his leave, a Facebook representative said, and will be available if "absolutely needed." Sheryl Sandberg, chief operating officer, and Mike Schroepfer, chief technology officer, will run the company in Zuckerberg's absence.

(Reporting by Yasmeen Abutaleb in San Francisco; Additional reporting by Abhirup Roy in Bengaluru; Writing by Bernard Orr; Editing by Stephen R. Trousdale, Bill Rigby, Lisa Shumaker and Leslie Adler)

source: www.abs-cbnnews.com

Why Warren Buffett is impressed with these kids

Miroslav Bergen thought he would be "terrified" at meeting Warren Buffett, but he was wrong.

Miro, 14, was one of the winners of "Grow Your Own Business Challenge," a nationwide contest related to the animated "Secret Millionaires Club," which teaches children about finance and where Buffett voices his own character.

"He's a nice, down-to-earth person," said Miro, who lives in Short Hills, New Jersey. "I entered this competition not really as an entrepreneur because I wasn't experienced in business. But I had an idea. Now business people are giving me advice."

The contest, in its fourth year, attracted entries from more than 4,000 boys and girls ages 7 to 14. The top entrants flew to Omaha, Nebraska to be judged and show Buffett their ideas.

"You're looking at the future and it's a pretty good looking future," Buffett, chairman of Berkshire Hathaway Inc and the world's third-richest person according to Forbes magazine, said in an interview.

Bergen won for "Beyond the Books," a website that lets people work together to create online courses and study guides, in a "Wikipedia of education." People would pay to advertise, or pay a monthly fee to have ads removed.

Bryn Hansen, 11, and Emily Harkins, 12, of Omaha, won the team contest for "Keep Track Sticky Back," sealable plastic pouches costing $7.99 to $66.99 that have sticky backs so they can be attached to nearly anything.

"This competition has taught us a lot, not just business skills but also cost-evaluation, problem-solving skills, and business etiquette, and how to interact with other people," said Emily, who was on "cloud nine" after winning.

Winners each got $5,000, and said they plan to invest it toward their businesses. Bryn and Emily may also seek a patent.

Buffett gave each finalist 10 Class B shares of Berkshire -if they vote to reelect him next year as chairman.

Many entries were pure online concepts. That is a change from when Buffett would buy Coca-Cola six-packs at his grandfather's grocery store for 25 cents, and then sell bottles for a nickel each.

"They've had the benefit of the Internet," Buffett said, "and that's reflective of the products they've come up with. They are leagues ahead of where I was at the same age."

Still, Buffett remains a role model. "He has a ton of inspirational quotes to believe in yourself, to save money, and maybe someday grow up to be someone like him," Bryn said.

The Fairholme Foundation sponsors the contest. By Kids for Kids Co oversees it. Genius Brands International Inc created "Secret Millionaires Club."

source: www.abs-cbnnews.com

Who is still the richest man in the world, according to Forbes?

Bill Gates stands atop Forbes magazine's annual list of the world's richest people, as Facebook Inc's Mark Zuckerberg joined the top 20 and basketball star Michael Jordan plowed new air by making the list for the first time.

Gates' net worth rose to $79.2 billion from $76 billion a year earlier, putting the Microsoft Corp co-founder at the top for the 16th year in the last 21, Forbes said on Monday.

Mexico telecommunications mogul Carlos Slim Helu ranked second, worth $77.1 billion, while Berkshire Hathaway Inc chief Warren Buffett was third, at $72.7 billion.

Amancio Ortega, the Spanish founder of Inditex SA, which includes clothing retailer Zara, was fourth at $64.5 billion, while Oracle Corp Chairman Larry Ellison was fifth at $54.3 billion.

Buffett's fortune grew $14.5 billion from a year earlier, more than anyone's else, despite his having donated $2.8 billion to several charities last July.

Aliko Dangote, a Nigerian who became Africa's richest man through cement manufacturing and commodities such as flour and sugar, was the biggest loser, falling $10.3 billion to $14.7 billion.

Forbes identified a record 1,826 billionaires, up from 1,645 last year, worth a combined $7.05 trillion.

Of the record 197 women, the highest-ranked was Wal-Mart Stores Inc heiress Christy Walton, who was eighth at $41.7 billion.

France's Liliane Bettencourt, who got much of her wealth from cosmetics company L'Oreal SA, was 10th at $40.1 billion.

Zuckerberg, 30, rose to 16th place from 21st last year, as his net worth grew to $33.4 billion.

The youngest billionaires were Evan Spiegel, 24, and Bobby Murphy, 25, who co-founded mobile messaging app Snapchat, and are each worth $1.5 billion.

Meanwhile, Jordan ranked 1,741st with a $1 billion net worth. The 52-year-old is majority owner of the Charlotte Hornets basketball team, but is better known for his Hall of Fame playing days with the Chicago Bulls and endorsement contract with Nike Inc, which makes Air Jordan shoes.

Jordan's business manager did not immediately respond to a request for comment.

The United States had the most billionaires, with 536, followed by China at 213, Germany at 103 and India at 90.

Russia, which has struggled with currency and oil market turmoil, saw its collection of billionaires fall to 88 from 111, Forbes said.

source: www.abs-cbnnews.com