Chinese crypto promoter apologizes after postponing Warren Buffett charity lunch

SHANGHAI - Chinese cryptocurrency entrepreneur Justin Sun issued a lengthy public apology on Thursday for the manner in which he promoted his $4.57-million charity lunch with Warren Buffett, raising questions over whether the event will go ahead.

The 29-year-old was scheduled to dine with the American billionaire investor on July 25 in San Francisco after winning an annual auction. He said he hoped the meal would "bridge the gap between institutional and traditional investors and the realm of cryptocurrency and blockchain technology."

He aggressively promoted the lunch on social media only to postpone it earlier this week, saying he had fallen ill with kidney stones.

Such high-profile events are unusual in China's cryptocurrency industry which has been under heavy regulatory scrutiny for the past 2 years. Authorities have warned about speculation risk and banned initial coin offerings, prompting many industry players to keep a low profile.

Amid the publicity surrounding the event, reports in Chinese media suggested Sun's businesses were involved in illegal activities and that he had been barred from foreign travel. Sun denied all allegations.

In Sun's Thursday statement posted on his Weibo microblog account, he said he had been immature and "over-marketed" himself, and that his original good intentions to arrange the lunch with Buffett had resulted in unexpected consequences that led him to neglect his social and public responsibilities.

"This has resulted in a bad influence on the public, and incited the worries of the regulatory bodies which care for me," he said.

He did not specify what prompted the apology, nor did he state when or whether the lunch will be rescheduled.

Sun's company, the Tron Foundation, did not respond to a Reuters request for comment. US investment firm Berkshire Hathaway Inc., which Warren Buffett chairs, did not respond to a request for comment outside regular business hours.

Buffett offered the lunch by auction to raise money for anti-poverty charity Glide, which has said it has received Sun's donation.

Sun said he would actively cooperate with regulatory agencies to discuss his businesses' structure and plans, and that he places great importance on financial stability and curbing risk.

His Weibo post was one of the top trending topics on the microblogging site, attracting over 3,800 comments.

source: news.abs-cbn.com

Billionaire Buffett says women's place is in investing

OMAHA -- Billionaire investor Warren Buffett said Saturday that women ought to have a higher profile in investing.

On the sidelines of the annual shareholders meeting of his Berkshire Hathaway empire in Omaha, Buffett made a surprise appearance at a gathering called Variant Perspectives, organized by a group of women financial professionals aiming to end the imbalance.

"It's long overdue," Buffet said of the goal.

"When someone calls me from the outside with an investment idea, I'm not going to ask what their sex is; it wouldn't make a difference," he added, stressing that: "The stock doesn't know who owns it."

Only 3 percent of investment funds in the United States are owned by women, according to Variant Perspectives.

Laura Rittenhouse, who started her own firm, said it's shocking that, with 60 percent of wealth in the United States in women's hands, they typically could not find a woman to handle their investment funds.

For Danielle Town, investor and founder of the Invested practice, a bi-weekly letter, women are often known to be less reactive and more successful financial managers.

"It's much more difficult to be a professional female investor than a man; but we also know that women's returns are better and yet they are not getting assets management positions," she said.

source: news.abs-cbn.com

Why Warren Buffett is taking his checkbook abroad

NEW YORK - Warren Buffett, in his annual letter to Berkshire Hathaway Inc shareholders last year, called America "the mother lode of opportunity."

This year, his 50th at Berkshire's helm, the world's third-richest person could write something quite different.

When Buffett releases this year's letter on Saturday, he may point to opportunities outside of the United States, after he recently decided to buy a German motorcycle accessories retailer and said he may shop more in that country.

That would mark a significant turn for Berkshire, a conglomerate with more than 80 businesses, giant stock investments and a $360 billion market value.

Buffett did not return a request for comment.

In his letter, eagerly awaited on Wall Street for Buffett's candid thoughts on investing, business and life, the 84-year-old Buffett may detail his vision for Berkshire in the decades to come, including after he is gone.

His comparatively taciturn second-in-command, 91-year-old Charlie Munger, is also expected to express his thoughts.

"Warren Buffett recognizes that global investing is going to be an important part of the future," said Michael Yoshikami, chief executive of Destination Wealth Management in Walnut Creek, California and a longtime Berkshire shareholder.

Buffett's strategy of buying solid companies at low prices has gotten more difficult in the United States. In the first quarter of 2009, when the S&P 500 index was barely one-third of what it is now, stocks on average cost 12.9 times projected full-year earnings.

At the end of 2014, that multiple had reached 17.4, above the long-term average of 14.8 times earnings, meaning it costs more to get the same financial pop.

By contrast, the rest of the world's growth has been sluggish. Germany is expected to grow just 1.3 percent this year, while the U.S. economy may expand 3.6 percent, according to the International Monetary Fund.

Though Buffett said this week the falling euro was not his primary driver for buying in Europe, it was a factor. The currency has slid about 20 percent against the U.S. dollar since May.

DOLLARS FOR DOUGHNUTS

In the last year, Berkshire has announced several purchases worth or estimated at a couple of billion dollars each.

These have included Procter & Gamble Co's Duracell battery unit, the Van Tuyl auto retailer, and SNC-Lavalin Group Inc's AltaLink energy transmission unit in Canada.

Buffett also kicked in $3 billion toward Burger King's purchase of Canadian doughnut chain Tim Hortons, which created Restaurant Brands International Inc.

Burger King is run by Brazil's 3G Capital, which shares ownership with Berkshire of ketchup maker HJ Heinz Co.

Berkshire ended September with $62 billion in cash, well above the $20 billion cash cushion Buffett likes. That leaves more than $40 billion to go shopping.

That means Buffett needs big purchases, which he calls "elephants," to soak up significant amounts of money. He has said he would team up again with a partner such as 3G Capital.

"There may be opportunities overseas that he would certainly consider," said Cathy Seifert, an analyst with S&P Capital IQ.

But even if Berkshire spreads its wings geographically, Seifert said, it will not turn its back on a good U.S. purchase.

"I definitely would not rule out the U.S.," she said.

source: www.abs-cbnnews.com

Who are the 10 richest billionaires in America?

MANILA, Philippines - Who's the richest man in America, with a net worth of $81 billion?

Forbes magazine released its list of 400 wealthiest Americans, with Microsoft co-founder Bill Gates still on top.

Gates added $9 billion to his net worth this year to reach $81 billion, as the value of his Microsoft shares and investments grew.

Warren Buffet, CEO of Berkshire Hathaway, reported a net worth of $67 billion. He's been the second richest man on the list since 2001.

Oracle co-founder Larry Ellison is the third richest man with a net worth of $50 billion.

Charles Koch, CEO of Koch Industries, and his brother David Koch, executive vice president of Koch Industries, were both ranked 4th on the list with $42 billion.

Several members of the Walton family, who own retail giant Wal-Mart, are in the top 10 richest list.

Christy Walton is the richest woman in America, with a net worth of $38 billion. She was married to John Walton, and inherited her wealth when he died in 2005.

Jim Walton, the youngest child of Wal-Mart founder Sam Walton, has a net worth of $36 billion. He is also the chairman and CEO of the Arvest Bank Group.

Michael Bloomberg, former New York mayor and founder of Bloomberg LP, ranked 8th on the list with a net worth of $35 billion.

Another Wal-Mart heiress Alice Walton ranked 9th on the list with a net worth of $34.9 billion.

S. Robson Walton, chairman of the Wal-Mart stores, ranked 10th with a net worth of $34.8 billion. He is the eldest son of Sam Walton.

Here's the list according to Forbes:

1. Bill Gates - $81 billion
2. Warren Buffett - $67 billion
3. Larry Ellison - $50 billion
4. Charles Koch - $42 billion
4. David Koch - $42 billion
6. Christy Walton & family - $38 billion
7. Jim Walton - $36 billion
8. Michael Bloomberg - $35 billion
9. Alice Walton - $34.9 billion
10 S. Robson Walton - $34.8 billion

Facebook founder Mark Zuckerberg, 30, is not just the 11th richest man in America, but also the youngest billionaire on the list. He has a net worth of $34 billion.

On the other hand, the oldest person on Forbes' list of richest Americans is David Rockefeller Sr., who is 99 years old. The philanthropist has a net worth of $3 billion, which is enough for him to be ranked 201 on the list.

Forbes said the 400 wealthiest Americans on its list this year are worth an estimated $2.29 trillion, which is $270 billion more than a year ago.

Forbes said their combined net worth is "the same as the gross domestic product of Brazil, a country of 200 million people."

source: www.abs-cbnnews.com

What are the daily habits of billionaires?

MANILA, Philippines – The world’s richest and most successful people also get 24 hours a day, but what do they do in those hours that define their success?

ANC’s financial advisor Salve Duplito said the world’s richest man, Microsoft’s Bill Gates, uses most of his hours reading the Wall St. Journal, New York Times and the Economist.

The 58-year-old Gates also reads at least 100 emails per day.

His net worth is estimated at $76 billion, according to Forbes.

Carlos Slim, the second richest man in the world, wakes up early every day to drive himself to work.

The Mexican business magnate also personally makes daily phone calls to his associates.

His net worth is valued at $72 billion.

Zara’s Amancio Ortega, meanwhile, goes to the same coffee shop everyday, wears simple clothes, and eats lunch with his employees in the company canteen.

Like Slim, American billionaire Warren Buffett also drives himself to work everyday, and at 83 years old, he still arrives at his desk like clockwork at 8:30 a.m.

Duplito, citing Thomas Corley’s book Rich Habits: The Daily Success Habits of Wealthy Individuals, said although the wealthy come from widely different backgrounds, studies show that they have common habits that separate them from those living in poverty.

Among these habits are waking up early, reading, and writing down goals.

According to Corley’s study, 44% of the wealthy wakes up 3 hours before work while only 3% of the poor do so.

Reading is also a habit of the wealthy with 86% of them reading reams of information on a daily basis compared to only 26% of the poor.

Most wealthy and successful individuals spend their reading time of at least 30 minutes or more each day for education and career.

Wealthy people are also more goal-oriented, studies show, with 81% of them maintaining a to-do list compared to only 19% of the poor.

Eighty percent of the wealthy and successful are also focused on achieving a single goal compared to 12% of the poor.

Corley’s study also showed that most wealthy people avoid watching reality TV compared to 78% of the poor that do.

Duplito noted that this is an indication that “the huge divide between the haves and the have-nots is not money, but the mindset.”

“Mindset is also the one thing that can help a poor person get out of poverty. If a person knows how not to live poor even when he doesn’t have cash, eventually success and wealth will be well within his reach,” she added.

source: www.abs-cbnnews.com

Thinking of investing in stocks? Here are some tips

MANILA, Philippines – To be a successful stock trader, you must first get into the mindset that you won’t simply get rich through trading stocks, a financial analyst said.

Andrew Stotz, the president of CFA Society Thailand, said there is a good reason why most of the world’s 500 richest people listed by Forbes are not stock traders.

“What you find is that the people who get rich in this world get rich from building successful businesses. That’s where real wealth is generated. It doesn’t come from the stock market,” he told ANC’s “On The Money.”

Stotz cited American billionaire Warren Buffet, who ranks high among the world’s billionaires, as a business owner “who only uses the stock market as a place to buy and sell.”

Investing in the stock market, Stotz said, is about protecting your wealth while also trying to get a decent return.

“If you can go into investing by realizing ‘I’m not getting rich from this,’ now you have the right mindset to invest. If you go in thinking I’m going to get rich from this, that doesn’t happen,” he said.

According to Stotz, the 5 major factors that determine return are inflation, dividends, growth in book value, possibility share price dilution, and the “dream factor.”




“Take any stock and let’s say last year people were willing to pay 10 in price for one in earnings. A year later they’re willing to pay 15 in price for one in earnings. What has changed? That inflation in the PE or other metrics is what I call the ‘dream factor,’” Stotz explained.

He warned, however, that when price-to-earnings ratio gets higher than 15 times, then the stock trader should realize that the “dream factor” can turn into a nightmare.

“The amazing thing about the stock market is that it’s so complex, you can never develop a rule. There is no rule that consistently works so you have to be aware of shifting sands,” he said.

“When investing in stocks, we ought to rely less on predicting the future. Know where we are today and where the market has been in the past. Predicting the future gives you a false sense of security,” he added.

source: www.abs-cbnnews.com

Which billionaire made $37-M a day in 2013?

MANILA, Philippines - Which billionaire made the biggest financial gain in 2013?

According to Wealth-X's calculations, American business magnate and investor Warren Buffet made $37 million (around P1.64 billion) a day in 2013.

In 2013, Buffett's net worth grew by $12.3 billion to $59.1 billion, making him number 1 on Wealth-X's list of billionaires who made the biggest financial gains this year.

Microsoft chairman Bill Gates ranked second on the list, with an $11.5 billion increase in his net worth to $72.6 billion as of end 2013.

On third spot is American casino mogul Sheldon Adelson, whose net worth jumped by $11.4 billion to $35.4 billion.

Fourth place is Amazon.com founder Jeff Bezos with an $11.3 billion increase in his net worth to $34.4 billion, followed by Facebook founder Mark Zuckerberg with a $10.5 billion increase in his net worth to $19.1 billion.

The top 10 includes Japanese Softbank founder Masayoshi Son; Google founder Sergey Brin and Larry Page; Galaxy Entertainment Group Ltd. founder Lui Che-Woo and prominent investor Carl Icahn.

Wealth-X said the individuals on the top 10 list collectively gained $101.8 billion in 2013, an average gain of $10.2 billion each.

On average, the top 10 made $29 million per day in 2013, and increased their wealth by 41.6%.

source: www.abs-cbnnews.com

Who is the richest American with $72-B?

NEW YORK - The richest 400 Americans are significantly richer in 2013 than they were last year and younger Americans are accumulating wealth at a faster clip than their baby boomer counterparts, according to two reports released Monday.

The annual Forbes 400 wealthiest Americans list showed that total wealth climbed 19 percent in the last year to $2.02 trillion, up from $1.7 trillion, with an average net worth per individual of $5 billion, up from $ 4.2 billion in 2012. It now takes $1.3 billion in assets just to get on the list.

Atop the list for another year was Bill Gates, who at 57 has a net worth of $72 billion. He was followed by Warren Buffett, who despite giving away about $1 billion last year, was the biggest gainer, adding $12.5 billion to bring his fortune to $58.5 billion.

The average age was 66, according to Forbes senior editor Kerry Dolan. Only 32 of those selected were 48 or younger, fitting them into Generation X or Generation Y, while the rest of the list were baby boomers. Many of the younger billionaires are household names who made their fortunes in the tech industry - Facebook's Mark Zuckerberg (20), Computer maker Michael Dell (25), Yahoo's Jerry Yang (327), Tesla Motor's Elon Musk (61) and Google's Larry Page and Sergey Brin (13 and 14).

"It takes a long time to build up a company that's worth billions of dollars - unless you've inherited it," said Dolan.

GENERATION GAP

A separate survey also released on Monday shed new light on the youngest generation of millionaires. The Fidelity Millionaire Outlook shows that rich Gen X and Gen Yers are earning more money and amassing more assets than baby boomer millionaires. Salaries average $677,000 for those 48 and younger compared to $198,000 for those older, and total average assets are $5.7 versus $5.2 million.

"I think the game has changed," said Brian Dombkowski, chief investment officer of Sand Hill Global Advisors, a Palo Alto, California firm managing $1.25 billion in client assets. "Young entrepreneurs today made their money by building a better mousetrap, and they have been rewarded by the market for it. We have seen significantly more wealth creation than we did in earlier generations."

Fidelity surveyed 542 households with more than $1 million in investable assets May 2013, and for the first time in the six-year history of the report, there was enough of a demographic spread to break out information comparing generations. About 86 percent of the sample were baby boomers (born before 1965) and 14 percent were in Generation X and Generation Y (born after 1965).

The total number of U.S. households with $1 million or more in assets, not including a primary residence, was estimated at 9 million in 2012, according to Spectrem Group, a Chicago, Illinois-based research firm that tracks affluence, up from 8.6 million in 2011.

Younger millionaires are spending more aggressively than baby boomers in many categories, according to Bob Oros, executive vice president of Fidelity Institutional Wealth Services.

Nearly 90 percent reported taking annual foreign vacations, compared to just 56 percent of baby boomers. Two-thirds said they owned vacation homes and had country club memberships, versus 21 percent and 15 percent among the older cohort. And 38 percent reported flying first class, while only 5 percent of baby boomers did that.

Younger millionaires also give generously - an average of $54,000 in donations to charity each year. Boomers only average $12,000.

Adviser Dombkowski, who works with many clients who have made money in the tech sector, said these entrepreneurs often come to him and ask: once their families are taken care of, what can they give away? "Schools are a big part of it, but it's varied," he said.

source: www.abs-cbnnews.com

Warren Buffett maps out hopes for Berkshire without him

OMAHA, Neb. - Warren Buffett on Saturday gave the most extensive comments to date about the future of Berkshire Hathaway Inc after he is gone, saying he still expects the conglomerate to be a partner of choice for distressed companies.

Buffett, 82, also defended his plan to install his son, Howard, who has little investing experience, as nonexecutive chairman, saying the younger man's role would be to ensure that Berkshire had the right CEO in place.

During the financial crisis and its immediate aftermath, Berkshire helped prop up a number of companies, among them blue-chips such as General Electric and Goldman Sachs . Buffett's investments were viewed by many shareholders as a seal of approval from one of the world's most respected businessmen.

Short-seller Doug Kass, invited by Buffett to Berkshire's annual meeting on Saturday to offer contrarian points of view, asked whether a successor would have the same heft. Buffett said it would not matter.

"Berkshire is the 800 number when there is really some panic in the markets, and people really need significant capital," Buffett said.

"If you come to a day when the Dow has fallen 1,000 points a day for a few days and the tide has gone out and you find some naked swimmers, those naked swimmers ... will call Berkshire," he added.

Whoever ultimately takes over Berkshire will run a conglomerate that employs more than 280,000 people in dozens of businesses worldwide, covering everything from ice cream to insurance and retail to railroads.

Kass later asked what qualified Howard Buffett, a 58-year-old farmer and philanthropist, to step in as Berkshire's non-executive chairman when his father is gone. The elder Buffett insisted his son was ideal for the task at hand.

"He has no illusions at all of running the business. He won't get paid for running the business," Warren Buffett said. "He'll only have to think about whether the board ... needs to change the CEO."

As in the past, Buffett talked about his successor as CEO without actually identifying him. Speculation usually focuses on a small group of top Berkshire executives, among them insurance boss Ajit Jain and railroad leader Matt Rose.

One long-time Buffett-watcher said the legendary investor seemed to handle the pressure from Kass and others well.

"Buffett hasn't broken much new ground, but he's handled Doug's question well ... and, as always, reinforced the Berkshire culture every chance he's had," said Jeff Matthews, founder of hedge fund Ram Partners LP and a Buffett biographer.


ECONOMIC INDICATOR

Berkshire's breadth means that its performance is seen as a barometer for the broader economy. On Saturday, Buffett said he still stands by the actions taken by the U.S. Federal Reserve to stimulate the economy, even as he cautioned that the program could be "very inflationary."

"This is like watching a good movie, and I do not know the end," he said. "We have benefited significantly, and the country has benefited significantly, by what the Fed has done."

Buffett also endorsed the last four years of deficit spending by President Barack Obama's administration, saying it is a problem to get off that program but much less of a problem than if the government had followed a strict austerity program instead.

"We are seeing some recovery in housing prices which has psychological effects," he said. "(By the next annual meeting) I think we will have moved forward ... I don't think there will be a surge of any sort, but I don't think we will stall."

Earlier Saturday, one of Buffett's top lieutenants said things were picking up but could improve further.

"It feels like a 2 percent economy. If we want to see GDP click up to 3.5 percent, 4 percent, you need to see more consumption," said Rose, CEO of the railroad Burlington Northern, in an interview.

Rose said Burlington Northern was seeing "across the board" increases in demand to ship things like concrete, roofing tiles and cars.

NO TWITTER, THANK YOU
Buffett may be optimistic about the economy, but he is decidedly more cautious about technology. Earlier this week he joined Twitter, taking the handle @WarrenBuffett - but insisted he only knew enough about it to press a button when told to.

On Saturday he said he disagreed with the recent guidance from the U.S. Securities & Exchange Commission that lets companies release material information on Twitter. Some see that as a threat to Berkshire's press release service, Business Wire.

"The key to disclosure is accuracy and simultaneity ... I do not want it, if I am buying Wells Fargo, to keep hitting up their web page and hoping I'm not 10 seconds behind someone else for some important announcement," he said.

He also stuck by one of Berkshire's more controversial investments, its recent acquisition of a number of newspapers. The annual meeting crowd applauded when CNBC anchor Andrew Ross Sorkin asked a critical question about the stable of papers.

"It's not going to move the needle in Berkshire ... we are buying the papers at very, very low prices with (regard to) current earnings," Buffett said, adding that he expected to meet or beat a 10 percent rate of return, after-tax.

Yet as much as investors want to hear about Berkshire's growth potential and the state of the economy, some also attend the meeting just for a good laugh.

The meeting opened, as it does every year, with a video montage. This year's included a duet between Buffett and singer Jon Bon Jovi and a take-off on the TV series "Breaking Bad."

Some of the best comedy, though, usually comes in the verbal sparring between Buffett and Vice Chairman Charlie Munger over the course of the day. The two are close - they shared an oversize box of peanut brittle during the meeting - but Munger's acerbic tongue pops out from time to time.

"I come to see Charlie Munger needle Warren Buffett - only he can," said Sherman Silber, a doctor and shareholder.

source: www.abs-cbnnews.com