Personal Finance For Newbies

Managing your personal finances involves managing both short- and long-term aspects of your finances. It also refers to an industry that offers products and services to help individuals manage their finances and investments. But, if you’re new to personal finance, all that may not mean much to you. So, let’s explain why personal finance is […] Managing your personal finances involves managing both short- and long-term aspects of your finances. It also refers to an industry that offers products and services to help individuals manage their finances and investments. But, if you’re new to personal finance, all that may not mean much to you. So, let’s explain why personal finance is important, its five areas, and its fundamental principles. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Series in PDF Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2022 hedge fund letters, conferences and more   Why is Personal Finance Important? Financial planning is important for managing your day-to-day needs as well as ensuring your financial security in the future. Generally, people who spend more than they earn or their entire income don’t feel insecure and anxious when their retirement period approaches, but they will feel insecure when they reach retirement. According to a Mind over Money survey by Capital One and The Decision Lab, more than three in four Americans (77%) worry about their financial future. There are a variety of financial concerns, from saving for retirement to paying for a home or education for your child. In terms of financial concerns, Americans are most concerned about not having enough money for retirement (68%), keeping up with the cost of living (56%), and managing debt levels (45%). According to respondents, financial stress impacts all aspects of Americans’ lives, causing fatigue (43%), difficulty concentrating at work (42%), and trouble sleeping (41%). And, about a quarter of respondents (25%) said their relationships were affected by financial stress. The purpose of personal finance planning is to handle your finances effectively and to meet your financial goals while making sure that your future is secure. In personal finance, all aspects of finances are considered, including: Budgeting Debt Estate Planning Insurance Investments Social Security Retirement Risk Management Taxes Wealth Management To live a healthy, happy, and secure life, it is crucial to have basic financial skills. It can make a difference between prosperity or poverty in your life if you understand the fundamentals of budgeting, saving, debt, and investing. What are the Five Areas of Personal Finance? Despite the fact that personal finances cover a wide range of topics, they can all be categorized into five broad categories: income, spending, savings, investing, and protection. After all, developing your financial plan is all about these five things. 1. Income A person’s income refers to the amount of money they receive and use to support themselves and their families. As such, the process of financial planning begins here. There are a variety of income sources, including: Earned income. For most people, this is their primary source of income, aka their day job. People typically rely on this source of income for the majority of their income. Regardless of whether you’re paid hourly or salary, you’re trading your time for money. Business income. You’re a business owner. There are two ways to earn a living: you can make and sell things or you can provide services. Interest income. You earn this income by lending out your money. The money could come from a CD, P2P lending, real estate crowdfunding, fix-and-flip debt deals, or simply a savings account. Dividend income. In this case, it refers to money you receive if you own company shares. Rental income. You own something that you rent out. Renting apartments for monthly payments is probably the most common way to own a rental property. However, you could rent out a room on Airbnb or your vehicle on Turo. Capital gains. The money you earn when you sell an investment, such as stocks, is called capital gains. Royalties/licensing. Someone uses your product, idea, or process. Every time they do, they pay you a small fee. An individual can use each of these sources of income to spend, save, or invest the cash they generate. As such, income can be considered the first step in our personal finance roadmap. 2. Spending Any expense that is related to buying goods and services or anything consumable (e.g., not an investment) can be considered spending. There are two categories of spending: cash (purchased with cash on hand) and credit (purchased with borrowed funds). Typically, spending accounts for a significant portion of most people’s income. According to the U.S. Bureau of Labor Statistics, here are the percentages of what the average American spends each month. Housing — 33.8% Transportation — 16.4% Food — 12.4% Personal insurance and pensions — 11.8% Healthcare — 8.1% Entertainment — 5.3% Cash contributions — 3.6% Apparel and services — 2.6% Education — 1.8% All of these expenses reduce the amount of cash an individual has available for investment and saving. In case of a deficit, an individual has more expenses than income. The key to managing expenses is controlling your discretionary expenses, which are typically easier to control than your income. Overall, for good personal finance management, you need good spending habits. 3. Saving Saving is reserving excess cash for any future investments or consumption. You can save or invest the difference between your income and your spending if you have a surplus. In addition to short-term goals like an emergency fund, savings accounts can also be used to stash away cash for long-term goals like a down payment. The most common types of savings accounts include: Traditional savings accounts. When you think about where to save, you may immediately think of traditional savings accounts. Typically, you can find these accounts at traditional banks and credit unions. High-yield savings accounts. The majority of these can be found at online banks, neobanks, and credit unions. In comparison to regular savings accounts, they offer a higher annual percentage yield. Your money will grow faster with this type of savings account. Money market accounts. A money market account (MMA) combines the features of a savings account and a checking account. They’re available at brick-and-mortar banks, online banks, and credit unions. CD account. Your money stays in the account for a set amount of time with certificates of deposit (CDs). As your money earns interest, you can either withdraw your savings or roll them into another CD when it matures. Due to a time factor, these accounts aren’t like other types of savings accounts. Cash management account. In contrast to other savings accounts, cash management accounts aren’t designed specifically for saving. This type of account lets you hold cash that you may invest in a retirement account or a taxable brokerage account in the future. Specialty savings accounts. Rather than serving as a catch-all for the money you won’t spend, these are designed to help you meet specific savings goals. Sometimes they aren’t intended for savings, but rather for a specific type of person. 4. Investing Investing involves buying assets whose return is expected to be high, with the hope of receiving more money in the future than was initially invested. There’s risk involved with investing, and not all assets produce positive returns. This is where risk and return meet. Investing can take many forms, including: Stocks Bonds Mutual funds Exchange-Traded Funds (ETFs) Retirement Plans, such as 401(k)s and IRAs Annuities Real Estate Private Companies Commodities, like metals or agriculture Art The most complex area of personal finance is investing. So, it’s no surprise that this is where professional advice is most sought. Investments differ greatly in risk and reward, which is why most people seek professional advice. 5. Protection In terms of personal protection, there are a wide variety of products that can be used in order to shield against unexpected and adverse events. Among the most common protection products are: Life Insurance Health Insurance Estate Planning Often, people seek professional advice in this area of personal finance, as it can become quite complex. In order to properly assess an individual’s insurance needs and estate planning needs, a lot of analysis is required. What are the Fundamental Principles of Personal Finance? The Jump$tart Coalition for Personal Financial Literacy is a Washington DC-based organization that promotes teaching personal finance to young people. A long time ago in a galaxy far, far away, Jump$tart Coalition published a list of 12 personal finance principles that anyone can benefit from. Here are a few quick descriptions of each principle: 1. Know Your Take-Home (Net) Pay Consider how much income will be left over after all mandatory deductions before making significant expenditures, such as credit card debt, car loans, or a mortgage. 2. Pay Yourself First Make sure you keep an affordable amount aside every month for long-range goals and unexpected emergencies, rather than paying bills and other obligations every month. 3. Start Saving Young You can increase your savings by both earning interest on savings and saving over a longer period of time. To put it another way, you should begin saving for your future as soon as you can. The more you save, the more interest you’ll earn. 4. Compare Interest Rates Find out what rates are available at different financial services firms, so you can make the most informed decision. The same is true when you take out loans or lines of credit as well. 5. Don’t Borrow What You Can’t Repay You’ll be more likely to be approved for credit if you’re a responsible borrower. With that said, take a look at your total payment obligations and the income you’ll have to cover them before you borrow. 6. Budget Your Money Prepare an annual budget based on your income and expenses. Think of a budget as your roadmap for building your savings and living within your means — as opposed to thinking that budget is a filthy word. 7. Money Doubles By “The Rule of 72″ Divide the interest rate by 72 to find the length of time it will take for your money to double. A 72-year account earning 6% interest, for example, will double in 12 years. 8. High Returns Equal High Risks When you invest in something that has a high return on investment, you’re likely to take on more risk. But, when you diversify your investments, you reduce your investments’ risk. 9. Don’t Expect Something for Nothing Any financial offer that promises free investment returns or a guaranteed return on investment should be avoided. A lot of times, if something sounds too good to be true, it probably is. 10. Map Your Financial Future Prepare a list of both short-term and long-term financial goals. Then create a realistic road map to reach your goals. 11. Your Credit Past Is Your Credit Future You should be aware that credit bureaus maintain credit reports, which record borrowers’ repayment history. If your credit report contains negative information, you may have difficulty borrowing in the future. 12. Stay Insured An illness or accident can wipe you out financially, which is why you should purchase insurance. Every individual should have an insurance plan as part of their financial planning. How to Get Started With Your Personal Finance Education Regardless if you’re in your 20s looking for ways to pay off your student loans or a retiree wanting to stretch your savings, it’s never too late to expand your financial knowledge. Why? Your financial stability will improve and your ability to manage your money will improve. At the same time, the purpose is not to become an expert in this field. Regardless, it’s important to become familiar with a variety of personal finance topics from tax deductions to investing to retirement planning. To help you increase your financial knowledge, here are some suggestions: Read magazines, journals, and online features on financial topics. You can learn a lot about your finances by reading both print and online financial publications. Additionally, they can help you plan for the future by providing insight into long-term financial goals. You can learn how to manage your money by reading books. The right book can give you in-depth information about your finances and provide you with the help you need to adjust the way you perceive and use money. For savvy readers, here are 12 personal finance books you should put on your reading list. Spend time listening to podcasts about finance and money. If you do not have time to read, listening to a podcast is a great option. Additionally, you can cook, exercise, and travel while doing this. Take advantage of financial management tools by downloading them. Newbies may find financial management daunting. You can simplify your finances with the many money tools available today thanks to modern technology, like robo-advisors. Consider taking a financial literacy course. You can ask questions and learn from a teacher while receiving financial instruction in a structured environment. You can find online schools, college courses, and adult education centers that offer these financial programs. Hire a professional to help you plan your finances. A financial plan, in contrast to a budget, sets priorities for achieving long-term goals 10 to 30 years in the future. If you need assistance planning, saving, retiring, or repaying debt, you might consider hiring a professional financial advisor. FAQs How do I make a budget? To begin with, keep track of all of your income and expenses in the coming months. Once you have a complete understanding of your budget, you can make changes accordingly. You can use this information to identify areas where you can save money, cut costs, and eliminate debt. Every once or twice a year, you should revisit your budget. A budget should be updated if income or expenses have significantly changed since last time. Is your emergency fund sufficient? Most experts recommend keeping at least three to six months’ worth of expenses in your emergency fund. However, several factors can affect this, including: Job security and income Your field’s job market Cost of living in your area Your lifestyle The affordability of your health insurance As an example, you should have at least $12,000 to $24,000 in your emergency fund if you spend roughly $4,000 per month on essential living costs. Should I pay off debt or save for retirement? Answering this question requires consideration of your financial situation. But, you might find some inspiration in your budget. If you have the option, start building your retirement savings through your employer’s 401(k) plan. You should then review your budget and find ways to reduce your debt by cutting costs. With the help of a financial planner, you can pay off debt and save for retirement. How can you improve your credit rating? Building your credit is all about paying all your bills on time, every time, over months and years. But, the following things will also help you improve your credit: Check your credit report for errors and correct them Make sure you settle your outstanding balances as soon as possible Ensure that credit utilization is below 30% Limit the number of new credit requests Make sure old accounts are kept open and late payments are resolved Credit rating building is a long-term game, so staying consistent will allow you to reach your goal most effectively Are you ever done saving? In a nutshell, no. Ideally, you should save enough to cover your essentials and periodic expenses, but not unexpected ones. Maintenance on your house and vehicle, vacations, and special gifts all come under this category. Besides regular savings, you should also have enough to pay off credit card debt or replace your car’s tires in case of an emergency. These aren’t true emergencies because you know they’ll happen eventually. Although you can’t always predict when they’ll happen, planning for them is still prudent. Article by John Rampton, Due About The Author John Rampton is an entrepreneur and connector. When he was 23 years old, while attending the University of Utah, he was hurt in a construction accident. His leg was snapped in half. He was told by 13 doctors he would never walk again. Over the next 12 months, he had several surgeries, stem cell injections and learned how to walk again. During this time, he studied and mastered how to make money work for you, not against you. He has since taught thousands through books, courses and written over 5000 articles online about finance, entrepreneurship and productivity. He has been recognized as the Top Online Influencers in the World by Entrepreneur Magazine and Finance Expert by Time. He is the Founder and CEO of Due......»»

Category: blogSource: valuewalkSep 26th, 2022

Back to Camp Kotok!

  I am away this week for my annual sojourn to Maine, a trip I have been making since 2007. Light posting this week, but here is my 2019 write-up for Businessweek. Enjoy!     Talking Rates in the Maine Woods With Economists Over Good Wine Taking place right before the Jackson Hole Economic Symposium,… Read More The post Back to Camp Kotok! appeared first on The Big Picture.   I am away this week for my annual sojourn to Maine, a trip I have been making since 2007. Light posting this week, but here is my 2019 write-up for Businessweek. Enjoy!     Talking Rates in the Maine Woods With Economists Over Good Wine Taking place right before the Jackson Hole Economic Symposium, the gathering is a chance for money managers, traders, and economists to discuss crucial issues without restraint. Businessweek, August 27, 2019   Let’s get this out of the way upfront: There is no such entity as the “Shadow Kansas City Federal Reserve Board.” This isn’t a “The first rule of Fight Club” situation. No one denies that a gathering of money managers, bond traders, and economists has been taking place at Leen’s Lodge in Grand Lake Stream, Maine, for several decades. It’s just that most of the conversations are off the record or governed by the Chatham House Rule, which doesn’t allow identification of speakers without their permission. Many attendees have an affiliation with the Federal Reserve, as current or former employees, but aren’t authorized to speak on the Fed’s behalf. The long weekend in Maine takes place shortly before the Jackson Hole Economic Symposium, an event dating to 1982, held in Wyoming and hosted by the Kansas City Federal Reserve. Hence, the gathering became known in some circles as the “Shadow Kansas City Federal Reserve Board” because of the Fed affiliation of many attendees, more than a few of whom head off to Jackson Hole right after the gathering. The group makes no claim to any official imprimatur. Instead, “Camp Kotok,” as it has become known—after David Kotok, chairman and cofounder of Cumberland Advisors, who began holding the meetings more than 20 years ago—has fishing and drinking and hiking and shooting and smoking of cigars in the pristine wilds of Maine, all of which may be great fun, but it’s hardly the reason to gather each year. The main draw is the opportunity to discuss and debate the big issues of monetary policy, economics, and finance, with a like-minded group of serious policy wonks and high-profile money managers, away from the usual routines of the office. At dinner the dining room represents about $2 trillion in capital, not counting attendees from various governments and central banks from around the world. In the past, discussion topics ranged far and wide; but this year, the focus was all Fed all the time: whether it should cut rates and by how much; if the inverted yield curve is signaling a recession; whether negative bond rates from Japan and Europe would make their way here. Perhaps the most passionate discussions were on the independence of the Federal Reserve in the face of unceasing pressure from President Trump. Almost all attendees related similar anecdotes about presidential pressure on the Federal Reserve. Harry Truman famously called the entire Federal Open Market Committee to lunch at the White House, warning, “If you don’t cut rates, you are doing Stalin’s bidding.” Lyndon Johnson invited Fed Chairman William McChesney Martin to his ranch in Texas. LBJ threw Martin against the wall, saying, “Boys are dying in Vietnam, and Bill Martin doesn’t care.” Ronald Reagan’s chief of staff, Jim Baker, invited Fed Chairman Paul Volcker to the president’s library, adjacent to the Oval Office in the White House. With Reagan sitting next to him, Baker told Volcker, “The president is ordering you not to raise interest rates before the election.” In each of these examples, pressure from the U.S. president was private, personal—and mostly effective. The very concept of a public dispute between a president and his own appointed Fed chair was unthinkable. Not only because it might roil the markets, but simply because adults don’t behave that way. Alas, those were simpler times, decades before presidential tweeting was a thing. Before public bullying and harassment campaigns, there was direct and personal persuasion. The record suggests it was an effective way for presidents to influence monetary policy. Attendees at Camp Kotok repeatedly noted the current approach was not only unseemly but also had not ever been effective. The president calling out his hand-selected FOMC chair to an audience of 60 million-plus Twitter followers doesn’t seem to be having the desired result. At the Jackson Hole gathering, Fed Chairman Jerome Powell’s  speech was a refresher on the history of monetary policy in the post-world war era. The section on current circumstances gave little comfort to a president apparently concerned about a possible recession and its potential effects on his reelection chances. Powell appears to have figured out three important things: 1. In the current era of low rates, low inflation, and modest economic expansion, the Fed’s rate policy is having little to no impact on stimulating the broader economy. Consumers have been buying big-ticket items such as houses and cars, regardless of modest increase in rates we’ve seen the past two years; we are still at historically low and accommodative levels. It’s noteworthy that corporations have been borrowing large sums of capital not to invest and hire, but to buy back their own shares. Lowering rates won’t change that behavior; if anything, it will only encourage more of it. 2. The Fed cannot offset an ill-advised trade war. The economy is having the expected textbook reaction to tariffs, treating them as an unnecessary tax on consumer spending, both here and abroad. If there was any expectation on the part of the occupants of the White House that this would cause the Fed to blink and cut rates, they appear to have been mistaken. “While monetary policy is a powerful tool that works to support consumer spending, business investment, and public confidence, it cannot provide a settled rule book for international trade,” Powell said. 3. Perhaps No. 2 above occurred because of the following: Powell seems to have deduced that Trump can’t fire him—at least, not without causing a constitutional crisis. This last conclusion allows the chairman to focus on protecting his institution from undue pressure from the president. Simply stated, the Fed believes cutting rates is not the panacea the president believes it to be. Therefore the Fed would rather wait to cut rates when it would be much more effective—in a mild recession—than risk an increase in inflation from an even more accommodative stance than we’re in at present. ~~~ To be invited to Camp Kotok, you must check three boxes: First, a group member must nominate you as someone capable of adding to the conversation. Original ideas, thoughtful disagreement, and intelligent variant perspectives are all welcome. Second, you must get the thumbs-up from Kotok. Third, the rules mandate that each attendee brings a case of wine. The group contains some serious oenophiles, and you’d best bring your A-game. Lots of thought goes into the wine selection—along with 20-year-old Scotch whisky, rare tequila, and the occasional brandy. This year I brought two cases of a delightful Spanish albariño from Ramón Bilbao; it was a cheap (so two cases) and unexpected delicious treat. It made a surprisingly good impression in the face of overrepresented—and overpriced—Napa Valley cabernets. Most evenings there is a featured discussion before dinner. Senators, governors, and representatives have made appearances. Every Saturday night there’s robust debate. The topics include currency issues, the latest crises, and economic philosophy. The theme of this year’s Jackson Hole Economic Symposium was Challenges for Monetary Policy. So it was no coincidence that the debate, in Maine this year, ably moderated by Jim Bianco of Bianco Research LLC, was on Modern Monetary Theory, also called MMT. The surprising consensus was that whether it comes from the political Left or Right, MMT is inevitable. Expect future infrastructure projects, Medicare for all, and/or tax cuts to be funded by bonds authorized by Congress, issued by the Treasury, and purchased by the Federal Reserve. The group takeaway was as simple as it was snarky: “Free money! Whatever could possibly go wrong with that?!” One cannot gather 50 economists and their ilk and not expect forecasting to occur. All participants answer 25 questions on where they think various prices and economic indicators will be one year hence. The stock market, unemployment, bond yields, gold, gross domestic product, yen, euro, inflation, oil, and other questions are not only discussed and forecast but gambled upon at $5 per prediction. I usually do pretty well, and this year I won $52. (Ties change the payouts.) Sizable side bets occur, and some people have been known to make rather large and ill-advised wagers under the influence of alcohol. I have done that, too, but thankfully, the rules preclude me from going into details. There is a stable core of about 35 to 40 people, with a few newbies showing up each year to shake things up. Not everyone gets invited back. My slot opened up a dozen years ago when a Chicago currency trader decided to stand up in his canoe, flipping it over, sending everyone and everything on board into the lake. My own tenure almost came to a premature end when I left a wet towel on a radiator to dry; it instead smoldered. Camp Kotok lore is that I almost burned down the cabin, and bank analyst Josh Rosner led a mock prosecution that evening to have me tossed out for my recklessness and negligence. My defense: This was no accident; I was trying to murder Rosner and his snoring bunkmate and fellow bank analyst Christopher Whalen, so the rest of us could get a night’s sleep. That this argument carried the day gives you some sense of the gallows humor of the dismal set who gather—and why I still get an annual invitation. For a few years, electronic media were present in large numbers (including Bloomberg Radio and TV). One Friday evening, on Aug. 5, 2011, a television truck was accidentally still present—it couldn’t exit the narrow parking area because a car with a missing set of keys blocked the way—when Standard & Poor’s unexpectedly downgraded the credit quality of the U.S. It was a television producer’s dream, a huge news event scoop, with a live TV feed and a few dozen tipsy economists happy to chat about it, alcohol-induced buzz be damned. These were the first people to share their views with the world about what the downgrade meant. The consensus that it mattered much less than people feared was borne out by the subsequent course of history. This year the concerns were focused on the many conundrums of monetary policy. The inverted yield curve—when short-term bonds pay a higher yield than the rates paid on longer-term bonds—is worrying, and the main question being debated was whether it was foreshadowing a recession or a sign that interest rates are still too low. Yet the U.S. has the highest rates in the developed world, which is not ideal, in several economists’ view. The risk is a “giant flow of currency to the U.S.” to capture that yield, and an “overvalued dollar that is way too strong.” Negative interest rates were even more worrying to the group. The entire economic system, it was pointed out, is based on positive interest rates. And if rates flip negative in the U.S., as they already have in Germany and Japan, no one knows what will happen.     Photos and videos here ~~~     Source: Talking Rates in the Maine Woods With Economists Over Good Wine Barry Ritholtz Businessweek, August 27, 2019   The post Back to Camp Kotok! appeared first on The Big Picture......»»

Category: blogSource: TheBigPictureAug 12th, 2022

Transcript: Edwin Conway

   The transcript from this week’s, MiB: Edwin Conway, BlackRock Alternative Investors, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS:… Read More The post Transcript: Edwin Conway appeared first on The Big Picture.    The transcript from this week’s, MiB: Edwin Conway, BlackRock Alternative Investors, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, man, I have an extra special guest. Edwin Conway runs all of alternatives for BlackRocks. His title is Global Head of Alternative Investors and he covers everything from structured credit to real estate hedge funds to you name it. The group runs over $300 billion and he has been a driving force into making this a substantial portion of Blackrock’s $9 trillion in total assets. The opportunity set that exists for alternatives even for a firm like Blackrock that specializes in public markets is potentially huge and Blackrock wants a big piece of it. I found this conversation to be absolutely fascinating and I think you will also. So with no further ado, my conversation with Blackrock’s Head of Alternatives, Edwin Conway. MALE VOICEOVER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. RITHOLTZ: My extra special guest this week is Edwin Conway. He is the Global Head of Blackrock’s Alternative Investors which runs about $300 billion in assets. He is a team of over 1,100 professionals to help him manage those assets. Blackrock’s Global alternatives include businesses that cover real estate infrastructure, hedge funds private equity, and credit. He is a senior managing director for BlackRock. Edwin Conway, welcome to Bloomberg. EDWIN CONWAY, GLOBAL HEAD OF ALTERNATIVE INVESTORS, BLACKROCK: Barry, thank you for having me. RITHOLTZ: So, you’ve been in the financial services industry for a long time. You were at Credit Suisse and Blackstone and now you’re at BlackRock. Tell us what the process was like breaking into the industry? CONWAY: It’s an interesting on, Barry. I grew up in a very small town in the middle of Ireland. And the breakthrough to the industry was one of more coincident as opposed to purpose. I enjoyed the game of rugby for many years and through an introduction while at the University, in University College Dublin in Ireland, had a chance to play rugby at a quite a – quite a decent level and get to know people that were across the industry. It was really through and internship and the suggestion, I’ve given my focus on business and financing things that the financial services sector may be a great place to traverse and get to know. And literally through rugby connections, been part of a good school, I had an opportunity to really understand what the service sector, in many respects, could provide to clients and became absolutely intrigued with it. And what – was it my primary ambition in life to be in the financial services sector? I can definitively say no, but through the circumstance of a game that I love to play and be part of, I was introduced to, through an internship, and actually fell in love with it. RITHOLTZ: Quite interesting. And alternative investments at Blackrock almost seems like a contradiction in terms. Most of us tend to think of Blackrock as the giant $9 trillion public markets firm best known for ETFs and indices. Alternatives seems to be one of the fastest-growing groups within the firm. This was $50 billion just a few years ago, it’s now over 300 billion. How has this become such a fast-growing part of BlackRock? CONWAY: When you look at the various facets which you introduced at the start, Barry, we’ve actually been an alternatives – will be of 30 years now. Now, the scale, as you know, which you can operate on the beta side of business, far surpasses that on the alpha side. For us, throughout the years, this was very much about how can we deliver investment excellence to our clients and performance? Therefore, going an opportunity somewhere else to explore an alpha opportunity in alternatives. And I think being so connected to our clients understanding, that this pivots was absolutely taking place at only 30 years ago but in a very pronounced way today, you know, we continue to invest in this business to support those ambitions. They’re clearly seeing this as the world of going through a tremendous amount of transformation and with some of the challenges, quite frankly, in the traditional asset classes, being able to leverage at BlackRock, the Blackrock muscle to really explore these alpha opportunities across the various alternative asset classes that in our mind wasn’t imperative. And the imperative, really, is from the firm’s perspective and if you look at our purpose, it’s to serve the client. So the need was coming from them. The necessity to have alternatives and their whole portfolio was very – was very much growing in prominence. And it’s taken us 30 years to build this journey and I think, Barry, quite frankly, we’re far from being done. As you look at the industry, the demand is going to continue to grow. So, I think you could expect to see from us a continued investment in the space because we don’t believe you can live without alternatives in today’s world. RITHOLTZ: That’s really – that’s really interesting. So let’s dive a little deeper into the product strategy for alternatives which you are responsible for at BlackRock. Our audiences is filled with potential investors. Tell them a little bit about what that strategy is. CONWAY: So we’re – I think as you mentioned, we’re in excess of 300 billion today and when we started this business, it was less about building a moat around private equity or real estate. I think Larry Fink’s and Rob Kapito’s vision was how do we build a platform to allow us to be relevant to our clients across the various alternative asset classes but also within the – within the confines of what they are permitted to do on a year-by-year basis. So, to always be relevant irrespective of where they are in their journey from respect of liabilities, demand for liquidity, demand for returns, so we took a different approach. I think, Barry, to most, it was around how do we scale into the business across, like you said, real estate equity and debt, infrastructure equity and debt. I mean, we think of that as the real assets platform of our business. Then you take our private equity capabilities both in primary investing, secondary et cetera, and then you have private credits and a very significant hedge fund platforms. So we think all of these have a real role and depending on clients liquidities and risk appetite, our goal was, to over the years, really build in to this to allow ourselves for this challenging needs that our clients have. I think as an industry, right, and over the many years alternatives have been in existence, this is been about return enhancement initially. I think, fundamentally, the changes around the receptivity to the role of alternatives in a client’s portfolio has really changed. So, we’ve watched it, Barry, from this is we’re in the pursuit of a very total return or absolute return type of an objective to now resilience in our portfolio, yield an income. And so things that probably weren’t perceived as valuable in the past because the traditional asset classes were playing a more profound role, alternatives have stepped up in – in many respects in the need to provide more than just total return. So, we’re taking the approach of how do you have a more holistic approach to this? How do we really build a global multi-alternatives capability and try to partner and I think that’s the important work for us. Try to partner with our clients in a way that we can deliver that outperformance but delivered in a way that probably our clients haven’t been used to in this industry before. Because unfortunately, as we know, it has had its challenges with regard to secrecy, transparency, and so many other aspects. We need to help the industry mature. And really that was our ambition. Put our client’s needs first, build around that and really be relevant in all aspects of what we’re doing or trying to accomplish on behalf of the people that they support and represent. RITHOLTZ: So, we’ll talk a little bit about transparency and secrecy and those sorts of things later. But right now, I have to ask what I guess is kind of an obvious question. This growth that you’ve achieved within Blackrock for nonpublic asset allocation within a portfolio, what is this coming at expense of? Are these dollars that are being moved from public assets into private assets or you just competing with other private investors? CONWAY: It’s really both. What – what you are seeing from our clients – if I take a step back, today, the institutional client community and you think about the – the retirement conundrum we’re all facing around the world. It’s such an awful challenge when you think how ill-prepared people are for that eventual stepping back from the workplace and then you know longevity is your friend, but can also be a very, very difficult thing to obviously live with if you’re not prepared for retirement. The typical pension plan today are allocating about 25 percent to 28 percent in alternatives. Predominantly private market. What they’re telling us is that’s increasing quite substantially going forward. But you know, the funding for that alpha pursue for that diversification and that yield is coming from fixed-income assets. It’s coming from equity assets. So there’s a real rebalancing that’s been taking place over the past number of years. And quite frankly, the evolution, and I think the innovation that’s taken place particularly in the past 10 years, alternatives has been really profound. So the days where you just invest in any global funds still exist. But now you can concentrate your efforts on sector exposure, industry exposures, geographic exposures, and I think the – the menu of things our clients can now have access to has just been so greatly enhanced at and the benefit is that but I think in some – in some respects, Barry, the next question is with all of those choices, how do you build the right portfolio for our client’s needs knowing that each one of our client’s needs are different? So, I would say it absolutely coming from the public side. We’re very thankful. Those that had a multiyear journey with us in the public side are now allocating capital to is now the private side to because I do think the – the industry given that change, given that it evolution and given the complexity of these private assets, our clients are looking to, quite frankly, do more with fewer managers because of the complexion of the industry and complexity that comes with it. RITHOLTZ: Quite – quite interesting. (UNKNOWN): And attention RIA’s. 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I think what we’ve all realized is that at times when volatility introduces itself which is frequent even independent of what’s been done from a fiscal and monetary standpoint, that these Alpha speaking strategies on the traditional side still make a lot of sense. And so, as we think about what – what’s happening here, the transition of assets from both passive and active strategies to alternative, it – it’s really to create better balance. It’s not that there’s – there’s a lack of relevance anymore in the public side. It’s just quite frankly the growth of the private asset base has grown so substantially. I moved, Barry, to the U.S. in 1998. And it’s interesting, when you look back at 1998 to today, you start to recognize the equity markets and what was available to invest in. The number of investable opportunities has shrunk by 40 plus percent which that compression is extraordinarily high. But yet you’ve seen, obviously, the equity markets grow in stature and significance and prominence but you’re having more concentration risk with some of the big public entities. The converse is true, though on the – on the private side. There’s this explosion of enterprise and innovation, employment creation, and then I believe opportunities has been real. So, I look at the public side, the investable universe is measured in the thousands and the private side is measured in the millions. RITHOLTZ: Wow. CONWAY: And I think part of the – part of the part of the thing our clients are not struggling with but what we’re really recognizing with – with enterprises staying private for longer, if not forever, and with his growth of the opportunities that open debt and equity in the private market side, you really can’t forgo this opportunity. It has to be part of your going forward concerns and asset allocation. And I think this is why we’re seeing that transformation. And it’s not because equities on fixed income just aren’t relevant anymore. They’re very relevant but they’re relevant now in a total portfolio or a whole portfolio context beside alternatives. RITHOLTZ: So, let’s discuss this opportunity set of alternatives where you guys at Blackrock scene demand what sectors and from what sorts of clients? Is this demand increasing? CONWAY: We’re very fortunate, Barry. Today, there isn’t a single piece of our business within – within Blackrock alternatives that isn’t growing. And quite frankly too, it’s really up to us to deliver on the investment objectives that are set forth for those clients. I think in the back of strong absolute and relative performance, thankfully, our clients look to us to – to help them as – as they think about what they’re doing and as they’re exploring more in the alternatives areas. So, as you know, certainly, the private equity and real estate allocations are quite mature in many of our client’s portfolios but they’ve been around for many decades. I think that the areas where we’re seeing – that’s called an outside demand and opportunity set, just but virtue of the small allocations on a relative basis that exist today is really around infrastructure, Barry, and its around private credits. So, to caveat that, I think all of the areas are certainly growing, and thankfully, for us that’s true. We’re looking at clients who we believe are underinvested, we believe they’re underinvested in those asset classes infrastructure both debt and equity and in private credit. And as you think about why that is, the attributes that they bring to our client is really important and in a world where your correlation and understanding those correlations is important that these are definitely diversifying assets. In a world where you’re seeing trillions of dollars, quite frankly, you’re providing little to no or even there’s negative yield. Those short falls are real and people need yield than need income. These assets tend to provide that. So the diversification, it comes from these assets. The yield can come from these assets and because of the immaturity of the asset classes, independence of the capital is flowing in, we still consider them relatively white space. You’re not crowded out. There’s much room for development in the market and with our client’s portfolios. And to us, that’s exciting because it presents opportunities. So, at the highest level, they’re the areas where I believe are most underdeveloped in our clients. RITHOLTZ: So let’s talk about both of those areas. We’ll talk about structured credit in a few minutes. I think everybody kind of understands what – what that is. What – when you see infrastructure as a sector, how does that show up as an investment are – and obviously, I have infrastructure on the brink because we’re recording this not too long after the giant infrastructure bill has been passed, tell us a little bit about what alternative investments in infrastructure looks like? CONWAY: Yes. It’s really in its infancy and what the underlying investments look like. I think traditionally, you would consider it as – and part of the bill that has just been announced, roads, bridges, airports. Some of these hard assets, some of the core infrastructure investments that have been around for actually some time. The interesting thing is the industry has evolved so much and put the need for infrastructure. It’s so great across both developed and emerging economies. It’s become something that if done the right way, the attributes we just spoke of can really have a very strong effect on our client’s portfolios. So, beyond the core that we just mentioned, well, we’ve seen a tremendous demand as a result of this energy transition. You’re really seeing a spike in activity and the necessity transition industry to cleaner technologies, a movement, not away completely from fossil fuel but integrating new types of clean energy. And as a result, you’ve seen a lot of demand on a global basis for wind and solar. And quite frankly, that’s why even us at BlackRock, albeit, 10-12 years ago, we really established a capability there to help with that transition to think about how do we use these technologies, solar panels, wind farms, to generate clean forms of energy for utilities where in some cases they’re mandated to procure this type of this type of – this type of power. And when you think about pre-contracting with utilities for long duration, that to me spells, Barry, good risk mitigation and management and ability to get access to clean forms of energy that throw off yield that can be very complementary to your traditional asset classes but for very long periods of time. And so, the benefits for us of these – these assets is that they are long in duration, they are yield enhancing, they’re definitely diversifying. And so, for us, where – we’ve got about, let’s call this 280 assets around the world that we’re managing that literally generate this – this clean electricity. I think to give the relevance of how much, I believe today, it’s enough to power the country of Spain. RITHOLTZ: Wow. CONWAY: And that’s really that’s really changing. So you’re seeing governments – so from a policy standpoint, you’re seeing governments really embracing new forms of energy, transitioning out of bunker fuels, for example, you know, burning diesels which really spew omissions into the – into the into the environment. But it’s really around modernizing for the future. So, developed and emerging economies alike, want to retain capital. They want to attract new capital and by having the proper infrastructure to support industry, it’s a really, really important thing. Now, on the back of that too, one things we’ve learned from COVID is that the necessity to really bring e-commerce into how you conduct your business is so important and I think from the theme of digitalization within infrastructure to is a huge part. So, it’s not just the energy transition that you’re seeing, it’s not just roads and bridges, but by allowing businesses to connect to a global consumer, allowing children be educated from home, allowing experiences that expand geographies and boundaries in a digital form is so important not just for commerce but in so many other aspects. And so, you think about cable, fiber optics, if you think about all the other things even outside of power, that enable us to conduct commerce to educate, there are many examples where, Barry, you can build resilience into your portfolio because that need is not measured in years. Actually, the shortfall of capital is measured in the trillions so which means this is – this is a multi-decade opportunity set from our vantage point and one of which our clients should really avail of. RITHOLTZ: Quite interesting. And I mentioned in passing, structured credit, tell us a little bit about what that opportunity looks like. I think of this as a space that is too big for local banks but too small for Wall Street to finance. Is that an oversimplification? What is going on in that space. CONWAY: I probably couldn’t have set it better, Barry. It’s – if we go back to just the even the investable universe, in the tens of thousands of companies, just if we take North America that are private, that have great leadership that really have strategic vision under – at the – in some cases, at the start of their growth lifecycles are even if they maintain, they have a very credible and viable business for the future they still need capital. And you’re absolutely right. With the retreat of the banks from the space to various regulations that have come after the global financial crisis, you’re seeing the asset managers in many respects working behalf of our clients both wealth and institutional becoming the new lenders of choice. And – and when we – when we think about that opportunity set, that is really understanding the client’s desire for risk or something maybe in a lower risk side from middle-market lending or midmarket enterprises where you can support that organization through its growth cycle all the way to some higher-yielding, obviously, with more risk assets on the opportunistic or even the special situations side. But it – it expands many things. And going back of the commentary around the evolution of the space, private credit today and what you can do has changed so profoundly, it expands the liquidity spectrum, it expands the risk spectrum. And the great news is, with the number of companies both here and abroad, the opportunities that is – it’s being enriched every single day. And were certainly seeing, particularly going back to the question are some of these assets coming from the traditional side, the public side. When we think of private credit, you are seeing private credit now been incorporated in fixed-income allocations. This is a – it’s a yelling asset. This is – these are debt instruments, these are structures that we’re creating. We’re trying to flexible and dynamic with these clients. But it really is an area where we think – it really is still at its – at its infancy relevant to where it can potentially be. RITHOLTZ: That’s really quite – quite interesting. (UNKNOWN): It’s Rob Riggle. I’m hosting Season 2 of the iHeart radio podcast, Veterans You Should Know. You may know me as the comedic actor from my work in the Hangover, Stepbrothers or 21 Jump Street. But before Hollywood, I was a United States Marine Corps officer for 23 years. For this Veterans Day, I’ll be sitting down with those who proudly served in the Armed Forces to hear about the lessons they’ve learned, the obstacles they’ve overcome, and the life-changing impact of their service. Through this four-part series, we’ll hear the inspiring journeys of these veterans and how they took those values during their time of service and apply them to transition out of the military and into civilian life. Listen to Veterans You Should Know on the iHeart radio app, Apple Podcast or wherever you get your podcast. RITHOLTZ: Let’s stick with that concept of money rotating away from fixed income. I have to imagine clients are starved for yields. So what are the popular substitutes for this? Is it primarily structured credit? Is it real estate? How do you respond to an institution that says, hey, I’m not getting any sort of realistic coupon on my bonds, I need a substitute? CONWAY: Yes. It’s all of those in many respects. And I think to the role, even around now a time where people have questions around inflation, how do substitute this yield efficiency or certainly make up for that shortfall, how do you think about a world where increasingly seeing inflation, not of the transitory thing it feels certainly quasi-permanent. These are a lot of questions we’re getting. And certainly, real estate is an is important part of how they think about inflation protection, how client think about yield, but quite frankly too, we’ve – we’ve gone through something none of us really had thought about a global pandemic. And as I think about real estate, just how you allocate to the sector, what was very heavily influenced with retail assets, high street, our shopping behaviors and habits have changed. We all occupied offices for obviously many, many years pre the pandemic. The shape of how we operate and how we do that has changed. So, I think some of the underlying investment – investments have changed where you’ve seen heavily weighted towards office space to leisure, travel in the past. Actually, now using a rotation in some respects out of those, just given some of the uncertainties around what the future holds as we come – come through a really difficult time. But the great thing about this sector is between senior living, between student housing, between logistics and so many other parts, there are ways in real estate to capture where there’s – where there’s demand. So still a robust opportunity set and it – and we do think it can absolutely be yield enhancing. We mentioned infrastructure. Even if you think about – and we mention OECD and non-OECD, emerging and developed, when I think about Asia, in particular, just as a subset of the world in which we’re living in, that is a $2.6 trillion alternative market today growing at a 15 percent CAGR. And quite frankly, the old-growth is driven by the large economic growth in the region. So, even from a regional perspective, if we pivot, it houses 57 percent of the world’s population and yet delivers 47 percent of the world’s economic growth. So, think of that and then with regard to infrastructure and goes back to that, this is truly a global phenomenon. So if we just even take that sector, Barry, you’ll realize that the way to maintain that type of growth, to attract capital, to keep capital, it really requires an investment of significant amount of money to be able to sustain that. And when you have 42 million people in a APAC migrating to cities in the year going back to digitalization, that’s an important thing. So, when I say we’re so much at the infancy in infrastructure, I really mean it. It can be water, it can be sewer systems, it can be digital, it can be roads, there’s so much to this. And then even down to the regional perspective, it’s a – it’s a need that doesn’t just exist in the U.S. So, for these assets, this tend to be long in duration. There’s both equity and debt. And on the debt side, quite frankly, very few outside of our insurance clients and their general account are taking advantage of the debt opportunity. And – and as we both know, to finance these projects that are becoming more plentiful every single day, across the world, including like, I said, in APAC in scale, there’s an opportunity in both sides. And I think that’s where the acid mix change happen. It’s recognizing that the attributes of these assets can have a role, the attributes of these assets can potentially replace some of these traditional assets and I think you’re going to see it grow. So, infrastructure to us, it’s really equity and debt. And then on the credit side, like I mentioned, again, too, it’s a very, very big and growing market. And certainly, the biggest area today from our vantage point is middle-market lending from a scale opportunity standpoint. So, we think much more to come in all of those spaces. RITHOLTZ: Really interesting. And let’s just stay with the concept of public versus private. That line is kind of getting blurred and the secondary markets is liquidity coming to, for lack of a better phrase, pre-public equities, tells little bit about that space. Is that an area that is ripe for growth for BlackRock? CONWAY: Yes. We absolutely think it is and you’re absolutely correct. The secondary market is – has grown quite substantial. If you even look at just the private equity secondary market and what will transact this year, I think it will be potentially in excess of 100 billion. And that’s what were clear, not to mention what will be visible and what will be analyzed. And that speaks to me what’s really happening and the innovation that we mentioned earlier. It’s no longer about just primary exposure. It’s secondary exposure. When we see all sort of interest and co-investment opportunities as well, I think the available sources of alpha and the flexibility you can now have, albeit if directed and advised, I believe the right way, Barry, can be very helpful and in the portfolio. So, your pre-IPO, it is a big part of actually what we do and we think about growth equity. There is – it’s a significant amount of capital following that space. Now, from our vantage point, as one of the largest investors in the public equity market and now obviously one of the largest investors and they in the private side, the bridge between – between private to public – there’s a real need. IPOs are not going away. And I think smart, informed capital to help with this journey, this journey is really – is really a necessity and a need. RITHOLTZ: So let’s talk a little bit about this recent restructuring. You are first named Global Head of Blackrock Alternative Investors in April 2019, the entire alternatives business was restructured, tell us a little bit about how that restructuring is going? CONWAY: Continues to go really well, Barry. When you look at the flow of acid from our clients, I think, hopefully, that’s speaks to the performance we’ve been generating. I joined the firm, as you know, albeit, 11 years ago and being very close to the alternative franchise as a critical thing for me and running the institutional platform. To me, when you watched this migration of asset towards alternatives, it was obviously very evident for decades now that this is a critical leg of the stool as our clients are thinking about their portfolios. We’re continuing to innovate. We’re continuing to invest, and thankfully, we’re continuing to deliver strong performance. We’re growing at about high double digits on an annual basis but we’re trying to purposeful too around where that growth is coming from. I think the reality is when you look at the competitive universe, I think the last number I saw, it was about 38,000 alternative asset managers out there today, obviously, coming from hedge funds all the way to private credits and private equity. So, competition is real and I do think the outcomes for our clients are starting to really grow. Unfortunately, some – in some cases, obviously, very good, and in some cases, actually not great. So our focus, Barry, is really much on how can we deliver performance, how can we be a partner? And I think we been rewarded with a trust and the faith our clients have in us because they’re seeing something different, I think, from us. Now, the scale of the business that you mentioned earlier really gives us tentacles into the market that I believe allows us to access what I think is the new alpha which is in many respects, given the heft of competition sourcing and originating new investments is certainly harder but for us, sitting in or having alternative team, sitting in 50 offices around the world, really investing in the markets because that – the market they grew up with and have relationships within, I think this network value that we have is something that’s quite special. And I think in the world that’s becoming increasingly competitive, we’re going to continue to use and harness that network value to pursue opportunities. And thankfully, as a result of the partnership we’ve been pursuing with her clients, like, we’ve – we’re certainly looking for opportunities and investments in our funds. But because of the brand, I think because of the successes, opportunities seeks us as much as we seek opportunity and that has been something that we look at an ongoing basis and feel very privileged to actually have that inbound flow as well. RITHOLTZ: Really quite interesting. There was a quote of yours I found while doing some prep for this conversation that I have to have you expand on. Quote, “The relationship between Blackrock’s alternative capabilities and wealth firms marked a large opportunity for growth in the coming years.” This was back in 2019. So, the first part of the question is, was your expectations correct? Did you – did you see the sort of growth you were hoping for? And more broadly, how large of an opportunity is alternatives, not just for BlackRock but for the entire investment industry? CONWAY: Yes. It’s been very much an institutional opportunity set up until now. And there’s so much to be done, still, to really democratize alternatives and we certainly joke around making alternatives less alternative. Actually, even the nomenclature we use and how we describe it doesn’t kind of make sense anymore. It’s such a core – an important allocation to our clients, Barry, that just calling it alternative seems wrong. Just about the institutional clients. It ranges, I think, as I mentioned on our – some of our more conservative clients which would be pension plans which really have liquidity needs on a monthly basis because of the liabilities they have to think about. At about 25 plus percent in private markets, to endowments, foundations, family offices, going to 50 percent plus. So, it’s a really important part and has been for now many years the institutional client ph communities outcomes. I think the thing that we, as an industry, have to change is alternatives has to be for the many, not for the few. And quite frankly, it’s been for the few. And as we talked about some of the attributes and the important attributes of these asset classes to think that those who have been less fortunate in their careers can’t access, things they can enrich their future retirement outcomes, to me, is a failing. And we have to address that. That comes from regulation changes, it comes from structuring of new products, it comes from education and it comes from this knowledge transmission where clients in the wealth segment can understand the role of alternatives and the context of what can do as they invest in equities and fixed income too. And we think that’s a big shortfall. So, the journey today, just to give you a sense, as we look at her clients in Europe on the wealth side, on average, as you look from what we would call the credited investors all the way through to more ultra-high-net worth individuals, their allocation to alternatives, we believe, stands at around two to three percent of their total portfolio. In the U.S., we believe it stands at three to five. So, most of those intermediaries, we speak to our partners who were more supporting and serving the wealth channel. They have certainly an ambition to help their clients grow that to 20 percent and potentially beyond that. So, when I look at that gap of let’s call it two to three to 20 percent in a market that just given the explosion in wealth around the world, I think the last numbers I saw, this is a $65 trillion market. RITHOLTZ: Wow. CONWAY: That speaks to the shortfall relative to the ambition. And how’s it been going? We have a number of things and capabilities we’ve set up to allow for this market to experience, hopefully, private equity, hedge funds, credit, and an infrastructure in ways they haven’t in the past. We’ve done this in the U.S., we’re doing it now in Europe, but I will say, Barry, this is still very much at the start of the journey. Wealth is a really important part of our future given our business, quite, frankly is 90 plus percent institutional today, but we’re looking to change that by, hopefully, democratizing these asset classes and making it so much more accessible in that of the past. RITHOLTZ: So, we hinted at this before but I’m going to ask the question outright, how significant is interest rates to client’s risk appetites, how much of the current low rate environment are driving people to move chunks of their assets from fixed income to alternatives? CONWAY: It’s really significant, Barry. I think the transition of these portfolios is quite profound, So you – and I think the unfortunate thing in some respects as this transition happens that you’re introducing new variables and new risks. The reason I say it’s unfortunate and that I think as an industry, this goes back to the education around the assets you own, understanding the role, understanding the various outcomes. I think it’s so incredibly important and that this the time where complete transparency is needed. And quite frankly, we’re investing capital that’s not ours. As an industry, we’re investing our client’s assets and they need to know exactly the underlying investments. And in good and bad times, how would those assets behave? So certainly, interest rates are driving a flow of capital away from these traditional assets, fixed-income, and absolutely in towards real estate, infrastructure, private creditors, et cetera, in the pursuit of this – this yield. But I do – I do think one of the things that’s critically important for the institutional channel, not just the wealth which are newer entrants is this transmission of education, of data because that’s how I think you build a better balanced portfolio and that’s a – that’s a real conundrum, I think, that the industry is facing and certainly your clients too. RITHOLTZ: Quite interesting. So let’s talk a little bit about the differences between investing in the private side versus the public markets, the most obvious one has to be the illiquidity. When you buy stocks or bonds, you get a print every microsecond, every tick, but most of these investments are only marked quarterly or annually, what does this illiquidity do when you’re interacting with clients? How do you – how do you discuss this with them in and how do perceive some of the challenges of illiquid investments? CONWAY: Over the – over the past number of decades, I think our clients have largely held too much liquidity in their portfolios. Like, so what we are finding is the ability to take on illiquidity risk. And obviously, in pursuit of that premium above, the traditional markets, I mean, I think the sentiment they are is it an absolute right one. That transition towards private market exposure, we think is an important one just given the return objectives, the majority of our clients’ need but then also again, most importantly now, with geo policy, with uncertainty, with interest rate uncertainty, inflation uncertainty, I mean, the – going back to the resilience point, the characteristics now by introducing these assets into the mix is important. And I think that’s – that point is maybe what I’ll expand on. As were talking to clients, using the Aladdin systems, and as you know, we bought eFront technologies, albeit a couple of years ago, by allowing, I think, great data and technology to help our clients understand these assets and the context of how they should own them relative to other liquidity needs, their risk tolerances, and the return expectations are really trying to use tech and data to provide a better understanding and comprehension of the outcomes. And as we continue to introduce these concepts and these approaches, by the way, that there is, as you know, so used to in the traditional side, it – it gives them more comfort around what they should and can expect. And that, to me, is a really important part of what we’re doing. So, we’ve released recently new technology to the wealth sector because, quite frankly, we mentioned it before, the 60-40 portfolio is a thing of the past. And that introduction of about 20 percent into alternatives, we applaud our partners who are – who are suggesting that to their clients. We think it’s something they have to do. What we’re doing to support that is really bringing thought leadership, education, but also portfolio construction techniques and data to bear in that conversation. And this goes back to – it’s no longer an alternative, right? This is a core allocation so the comprehension of what it is you own, the behavior of the asset in good and bad times is so necessary. And that’s become a very big thing with regard to our activities, Barry, because your clients are looking to understand better when you’re talking about assets that are very complex in their nature. RITHOLTZ: So, 60-40 is now 50-30-20, something along those lines? CONWAY: Yes. RITHOLTZ: Really, really intriguing. So, what are clients really looking for these days? We talked about yield. Are they also looking for downside protection on the equity side or inflation hedges you hinted at? How broad are the demands of clients in the alternative space? CONWAY: Yes. It ranges the gamut. And even – we didn’t speak to even hedge funds, we’ve had differing levels of interest in the hedge fund world for years and I, quite frankly, think some degree of disappointment too, Barry, with regard to the alpha, the returns that were produced relevant to the cost. RITHOLTZ: It’s a tough space to say the very least exactly. CONWAY: Exactly right. But when you start to see volatility introducing itself, you can really see where skill plays a critical factor. So, we are absolutely seeing, in the hedge fund, a resurgence of interest and demand by virtue of those who really have honed in on their scale, who have demonstrated an up-and-down markets and ability to protect and preserve capital, but importantly, in a low uncorrelated way build attractive risk-adjusted returns. We’re starting to see more activity there again too. I think with an alternatives, you’ve really seen a predominant demand coming from privates. These private markets, like a set of growths so extraordinarily fast and the opportunities that is rich, the reality too on the public side which is where our hedge funds operate, they continue to, in large part, do a really good job. The issue with our industry now with these 38,000 managers is how do you distill all the information? How do you think about your needs as a client and pick a manager who can deliver the outcomes? And just to give you a sense, the difference now between a top-performing private equity manager, a top quartile versus the bottom quartile, the difference can be measured in tens of percent. RITHOLTZ: Wow. CONWAY: Whereas if you look at the public equity side, for example, a large cap manager, top quartile versus bottom quartile is measured in hundreds of basis points. So, there is definitely a world that has started where the outcomes our clients will experience can be great as they pursue yield, as they pursue diversification, inflation protection, et cetera. I think the caveat that I would say is outcomes can vary greatly. So manager underwriting and the importance of it now, I think, really is this something to pay attention to because if you do have that bottom performing at the bottom quartile manager, it will affect your outcomes, obviously. And that’s what we collectively have to face. RITHOLTZ: So, let’s talk a little bit about real estate. There are a couple of different areas of investment on the private side. Rent to own was a very large one and we’ve seen some lesser by the flip algo-driven approaches. Tell us what Blackrock is doing in the real estate space and how many different approaches are you bringing to bear on this? CONWAY: Yes, we think it’s both equity and debt. Again, no different to the infrastructure side, these projects need to be financed. But on the – as you think about the sectors in which you can avail of the opportunity, you’ve no doubt heard a lot and I mentioned earlier this demand for logistics facilities. The explosion of shopping online and having, until we obviously have the supply chain disruption, an ability to have nearly immediate satisfaction because the delivery of the good to your home has become so readily available. It’s a very different consumer experience. So the explosion and the need for logistics facilities to support this type of behavior of the consumer is really an area that will continue to be of great interest too. And then you think about the transformation of business and you think about the aging world. Unfortunately, you can look at various economies where our populations are decreasing. And quite frankly, we’re getting older. And so, were you’re thinking of the context of that senior living facilities, it becomes a really important part, not just as part of the healthcare solution that come with it, but also from living as well. So, single-family, multifamily, opportunities continue to be something that the world looks at because there is really the shortfall of available properties for people to live in. And as the communities evolve to support the growing age of the population, tremendous opportunity there too. But we won’t give up on office space. It really isn’t going away. Now, if you even think about our younger generation here in BlackRock, they love being in New York, they love being in London, they love being in Hong Kong. So, the shape and the footprint may change slightly. But the necessity to be in the major financial centers, it still exists. But how we weighed the risks has definitely changed, certainly, for the – for the short-term and medium-term future. But real estate continues to be, Barry, a critical part of how we express our thought around the investment opportunity set. But clients largely do this themselves too. The direct investing from the clients is quite significant because they too see this as still as a rich investment ground, albeit, one that has changed quite a bit as a result of COVID. RITHOLTZ: Well, I’m fascinated by the real estate issue especially having seen some massive construction take place in cities pre-pandemic, look over in Manhattan at Hudson Yards and look at what’s taking place in London, not just the center of London but all – but all around it and I’m forced to admit the future is going to look somewhat different than the past with some hybrid combination of collaborative work in the office and remote work from home when it’s convenient, that sort of suggests that we now have an excess of capacity in office space. Do you see it that way or is this just something that we’re going to grow into and just the nature of working in offices is changing but offices are not going away? CONWAY: Yes. I do think there’s – it’s a very valid point and that in certain cities, you will see access, in others we just don’t, Barry. And quite frankly, as a firm, too, as you know, we have adopted flexibility with our teams that were very fortunate. The technologies in which we created at BlackRock has just become such an amazing enabler, not just to help us as we mention manage the portfolios, help us a better portfolio construction, understand risks, but also to communicate with our clients. I think we’ve all witnessed and experienced a way to have connectivity that allows them to believe that commerce can exist beyond the boundaries of one building. However, I do look at our property portfolios and even the things that we’re doing. Rent collections still being extraordinarily high, occupancy now getting back up to pre-pandemic levels, not in all cities, but in many of the major ones that have reopened. And certainly, the demand for people to just socialize, that the demand for human connectivity is really high. It’s palpable, right? We see it here too. The smiles on people’s faces, they’re back in the office, conversing together, innovating together. When people were feeling unsafe, unquestionably, I think the question marks around the role of office space was really brought to bear. But as were coming through this, as you’ve seen vaccine rates change, as you’ve seen the infection rates fall, as you’ve seen confidence grow, the return to work is really happening and return to work to office work is really happening, albeit, now with degrees of flexibility. So, going back to the – I do believe in certain areas. You’re seeing a surplus. But in many areas you’re absolutely seeing a deficit and the reason I say that, Barry, is we are seeing occupancy in certain building at such a high level. And frankly, the demand for more space being so high, it’s uneven and this goes back to then where do you invest our client’s capital, making sense of those trends, predicting where you will see resilience versus stress and building that into the portfolio of consequences as you – as you better risk manage and mitigate. RITHOLTZ: Very interesting. And so, we are seeing this transition across a lot of different segments of investing, are you seeing any products that were or – or investing styles that was once thought of as primarily institutional that are sort of working their way towards the retail side of things? Meaning going from institutional to accredited to mom-and-pop investors? CONWAY: Well, certainly, in the past, private equity was really an asset class for institutional investors. And I think that’s – that has changed in a very profound way. I mentioned earlier are the regulation has become a more adaptive, but we also have heard, in many respects, in providing this access. And I think the perception of owning and be part of this illiquid investment opportunity set was hard to stomach because many didn’t understand the attributes and what it could bring and I think we’ve been trying to solve for that and what you’re seeing now with – with regulators, understanding that the difference between if we take it quite simply as DD versus DC, the differences between the options you as a participant in a retirement plan are so vastly different that – and I think there’s a broad recognition now that there needs to be more equity with regard to what happens there. And private equity been a really established part of the alternatives marketplace was once, I think, really believed to be an institutional asset class, but albeit now has become much more accessible to wealth. We’ve seen it by structuring activities in Europe working with the regulators. Now, we’re able to provide private equity exposure to clients across the continent and really getting access to what was historically very much an institutional asset class. And I do think the receptivity is extraordinarily high just throughout people’s careers, they have seen wealth been created as a result of engineering a great outcome with great management teams integrate business. And I do believe the receptivity towards private equity is high as an example. In the U.S., too, working with the various intermediaries and being able to wrap now private equity in a ’40 Act fund, for example, is possible. And by being able to deliver that to the many as opposed to the few, we think has been a very good success story. And I think, obviously, appreciated by our clients as well. So, I would look at that were seeing across private equity as well as private credit and quite frankly infrastructure accuracy. You’re seeing now regulation that’s becoming more appreciative of these asset classes, you’re seeing a more – a greater level of openness and willingness to allow for these assets to be part of many people’s experiences across their investment portfolio. And now, with innovation around structures, as an industry, were able to wrap these investments in a way that our clients can really access them. So, think across the board, it probably speaks the innovation that’s happening but I do think that accessibility has changed in a very significant way. But you’ve really seen it happen in private equity first and now that’s expanding across these various other asset classes. RITHOLTZ: Quite intriguing. I know I only have you for a relatively limited period of time, so let’s jump to our favorite questions that we ask all of our guests. Starting with tell us what you’ve been streaming these days. Give us your favorite Netflix or Amazon Prime shows. CONWAY: That is an interesting question, Barry. I don’t a hell of a lot of TV, I got to tell you. I am – I keep busy with three wonderful children and a beautiful wife and between the sports activities. When I do watch TV, I have to tell you I’m addicted to sports and having – I may have mentioned earlier, growing up playing rugby which is not the most common sport in the U.S., I stream nonstop the Six Nations that happens in Europe where Ireland is one of those six nations that compete against each other on an annual basis. Right now, they’re playing a lot of sites that are touring for the southern hemisphere. And to me, the free times I have is either enjoying golf or really enjoying rugby because I think it’s an extraordinary sport. Obviously, very physical, but very enjoyable to watch. And that, that truly is my passion outside of family. RITHOLTZ: Interesting stuff. Tell us a bit about your mentors, who helped to shape your early career? CONWAY: Well, it even goes back to some of the aspects of sports. Playing on a team and being on a field where you’re working together, there’s a strategy involved with that. Now, I used to really appreciate how we approach playing in the All-Ireland League. How we thought about our opponents, how we thought about the structure, how we thought about each individual with on the rugby field and the team having a role. They’re all different but your role. And actually, even starting from an early age, Barry, thinking about, I don’t know, it’s sports but how to build a great team with those various skills, perspective, that can be a really, really powerful combination when done well. And certainly, from an early age, that allowed me to appreciate that – actually, in the work environment, it’s not too different. You surround yourself with just really great people that have high integrity that are empathetic and have a degree of humility that when working together, good things can happen. And I will say, it really started at sports. But I think of today and even in BlackRock, how Larry Fink thinks about the world and I think Larry, truly, is a visionary. And then Rob Kapito who really helps lead the charge across our various businesses. Speaking and conversing with them on a daily basis, getting their perspectives, trying to get inside your head and thinking about the world from their vantage point. To me, it’s a huge thing about my ongoing personal career and development and I really enjoy those moments because I think what you recognize is independent of how much you think you know, there’s so much more to know. And this journey is an ever evolving one where you have to appreciate that you’ll never know everything and you need to be a student every single day. So, I’d probably cite those, Barry, as certainly the two most important mentors in my life today, professionally and personally quite frankly. RITHOLTZ: Really. Very interesting. Let’s talk about what you’re reading these days. Tell us about some of your favorite books and what you’re reading currently? CONWAY: Barry, what I love to read, I love to read history, believe it or not. From a very small country that seems to have exported many, many people, love to understand the history of Ireland. So, there’s so many books. And having three children that have been born in the U.S. and my wife is a New Yorker, trying to help them understand some of their history and what made them what they are. I love delving into Irish history and how the country had moments of greatness and moments of tremendous struggle. Outside of that, I really don’t enjoy science fiction or any of these books. I love reading, you name any paper and any magazine on a daily basis. Unfortunately, I wake at about 4:30, 5 o’clock every day. I spent my first two hours of the day just consuming as much information as possible. I enjoy it. But it’s all – it’s really investment-related magazines, not books. It’s every paper that you could possibly imagine, Barry, and I just – I have a great appreciation for certainly trying to be a student of the world because that’s what we’re operating in an I find it just a very interesting avenue to get an appreciation to for the, not just the opportunities, but the challenges we’re collectively facing as a society but also as a business. RITHOLTZ: I’m with you on that mass consumption of investing-related news. It sounds like you and I have the same a morning routine. Let’s talk about of what sort of advice you would give to a recent college graduate who was interested in a career of alternative investments? CONWAY: Well, the industry has – it’s just gone through such extraordinary growth and the difference, when I’ve started versus today, the career opportunity set has changed so much. And I think I try to remind anyone of our analysts who come into each one of our annual classes, right, as we bring in the new recruits. I think about how talented they are for us, Barry, and how privileged we all are to be in this industry and work for the clients that we do. It’s just such an honor to do that. But I kind of – I try to remind them of that. At the end of the day, whether you’re supporting an institution, that institution is the face of many people in the background and alternatives has really now become such an important part of their experience and we talked about earlier just this challenge of retirement, if we do a good job, these institutions that support the many, they can have, hopefully, a retirement that involves dignity and they can have an ability to do things they so wanted to do as they work so hard over their lives. Getting that that personal connection and allowing for those newbies to understand that that’s the effect that you can have, an alternatives whether it’s private equity, real estate, infrastructure, private credit, hedge funds, all of these now, with the scale at which they’re operating at can allow for a great career. But my advice to them is always don’t forget your career is supporting other people. And that comes directly to how we intersect with wealth channel, it comes indirectly as a result of the institutions. And it’s such a privilege to do that. I didn’t envision when I grew up, as I mentioned, my first job, milking cows and back in a small town in the middle of Ireland that I would be one day leading an alternatives business within BlackRock. I see that as a great privilege. So, for those who are joining afresh, hopefully, try to remind them that it is for all of us and show up with empathy, dignity, compassion, and do the best you can, and hopefully, these people be sure will serve them well. RITHOLTZ: And our final question, what you know about the world of alternative investing today you wish you knew 25 years or so ago when you were first getting started? CONWAY: I think if we had invested much more heavily as an industry in technology, we would not be in the position we are today. And I say that, Barry, from a number of aspects. I mentioned in this shortfall of information our clients are dealing with today. They’re making choices to divest from one asset class to invest in another. To do that and do that effectively, they need great transparency, they needed real-time in many respects, it can’t be just a quarterly line basis. And if we had been better prepared as an industry to provide the technology and the data to help our clients really appreciate what it is they own, how we’re managing the assets on their behalf, I think they would be so much better served. I think we’re very fortunate at this firm to have built a business on the back of technology for albeit 30 plus years and were investing over $1 billion a year in technology as I’m sure you know. But we need to see more of that in the industry. So, the client experience is so important, stop, let’s demystify alternatives. It’s not that alternative. Let’s provide education and data and it’s become so large relative to other asset classes, the need to support, to educate, and transmit information, not data, information, so our client understand it, is at a paramount now. And I think it certainly as an industry, things have to change there. If I knew how big the growth would have been and how prominent these asset classes were becoming, I would oppose so much harder on that front 30 years ago. RITHOLTZ: Thank you, Edwin, for being so generous with your time. We’ve been speaking with Edwin Conway. He is the head of Blackrock Investor Alternatives Group. If you enjoy this conversation, please check out all of our prior discussions. You can find those at iTunes, Spotify, wherever you get your podcast at. We love your comments, feedback and suggestions. Write to us at MIB You can sign up for my daily reads at Check out my weekly column at Follow me on Twitter, @ritholtz. I would be remiss if I did not thank the crack team that helps put these conversations together each week. Mohammed ph is my audio engineer. Paris Wald is my producer, Michael Batnick is my head of research, Atika Valbrun is our project manager. I’m Barry Ritholtz, you’ve been listening to Masters in Business on Bloomberg Radio.   ~~~   The post Transcript: Edwin Conway appeared first on The Big Picture......»»

Category: blogSource: TheBigPictureNov 22nd, 2021

Intuit Inc. (NASDAQ:INTU) Q1 2024 Earnings Call Transcript

Intuit Inc. (NASDAQ:INTU) Q1 2024 Earnings Call Transcript November 28, 2023 Intuit Inc. beats earnings expectations. Reported EPS is $2.47, expectations were $1.98. Operator: Good afternoon, my name is Chelsea, and I will be your conference operator. At this time I would like to welcome everyone to Intuit’s First Quarter Fiscal Year 2024 Conference Call. […] Intuit Inc. (NASDAQ:INTU) Q1 2024 Earnings Call Transcript November 28, 2023 Intuit Inc. beats earnings expectations. Reported EPS is $2.47, expectations were $1.98. Operator: Good afternoon, my name is Chelsea, and I will be your conference operator. At this time I would like to welcome everyone to Intuit’s First Quarter Fiscal Year 2024 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period. [Operator Instructions]. With that, I’ll turn the call over to Kim Watkins, Intuit’s Vice President of Investor Relations. Ms. Watkins? Kim Watkins: Thanks, Chelsea. Good afternoon and welcome to Intuit’s first quarter fiscal 2024 conference call. I’m here with Intuit’s CEO, Sasan Goodarzi, and our CFO, Sandeep Aujla. Before we start, I’d like to remind everyone that our remarks will include forward-looking statements. There are a number of factors that could cause Intuit’s results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10-K for fiscal 2023, and our other SEC filings. All of those documents are available on the Investor Relations page of Intuit’s website at We assume no obligation to update any forward-looking statements. Some of the numbers in these remarks are presented on a non-GAAP basis. We’ve reconciled the comparable GAAP and non-GAAP numbers in today’s press release. Unless otherwise noted, all growth rates refer to the current period versus the comparable prior-year period, and the business metrics and associated growth rates refer to worldwide business metrics. A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends. And with that, I will turn the call over to Sasan. Sasan Goodarzi: Thanks, Kim, and thanks to all of you for joining us today. We had a very strong first quarter and have great momentum innovating on our platform across the company. Total revenue grew 15%, driven by Small Business and Self-Employed Group revenue growth of 18% and Consumer Group revenue growth of 25%. This was partially offset by Credit Karma revenue decline of 5%, in line with our expectations for Q1 given the macroeconomic environment. With the strong start to the year, we are reiterating our full year guidance for fiscal year 2024. Consumer Group revenue growth reflects a strong finish to the tax extension season. We remain focused on transforming the assisted consumer and business tax categories with TurboTax Live. Our innovation in tax has accelerated in several areas. First, the Credit Karma platform is leveraging data and AI to deliver personalized experiences and compelling tax offers. Second, is the innovation with TurboTax Live to deliver speed and confidence to prior year assisted customers, particularly with full service, where we can get taxes done in as little as an hour using data, AI and our expert platform at scale. And third, Intuit Assist, our GenAI-powered financial assistance, helping customers in key areas where confidence matters most. For example, understanding their refund or getting answers to their questions as if they’re talking to an expert. We ran many experiments during the extension season, and the learnings give us confidence in our game plan to win this tax season. We believe this is Intuit’s most exciting era yet. Five years ago, we declared our strategy to be an AI-driven expert platform with data and AI core to fueling innovation across our platform. We’re delivering experiences where the hard work is done for you with a gateway to human expertise, powering our customers’ prosperity and accelerating penetration of our $300 billion in TAM. The launch of Intuit Assist is the result of years of investment in data and AI. At the core of our platform is powerful, relevant data. Intuit has incredibly rich longitudinal, transactional and behavioral data for our 100 million customers. We have 500,000 customer and financial attributes per small business and 60,000 financial and tax attributes per consumer on our platform. And with our GenAI operating system, GenOS, we empower Intuit technologists to create breakthrough AI experiences across the platform. This includes utilizing our own powerful financial LLM as well as those from other leaders in GenAI which together unlock new opportunities to serve our customers with accuracy and speed in a cost-efficient way. We are creating a future of done for you, a future where the hard work is done automatically on behalf of our customers with a gateway to human expertise, fueling their financial success. Intuit Assist powered by GenAI is critical to delivering unparalleled benefits for our customers over the next decade. Let me share a few updates on Intuit Assist across our offerings. First, Mailchimp. We’re rolling out two new GenAI experiences, designed to help our customers grow their revenue and save time. These include AI-driven audience segmentation and marketing automation. I’ll share more on those in just a moment. Second, TurboTax. As I shared earlier during the extension season we tested new GenAI experiences to deliver higher confidence for our DIY customers. This includes in-topic accuracy checks and personalized explanations throughout the filing process that help explain a customer’s tax outcome. We’re excited about rolling out these experiences this season. Third, QuickBooks. We are testing GenAI to help customers save time and run their business with complete confidence, including a digital expert that can surface business insights and allow customers to dig deeper or connect them to a human expert. For example, we’re serving our proactive business insights to customers with an actionable business summary. These customers are using the business summary as a launching point to learn, create reports directly using Intuit Assist and take actions to drive their business success. These experiences will be rolled out in the coming months and in the future, we plan to automate these actions and do the work for our customers. Fourth, Credit Karma. We’re testing GenAI to help our customers find the products that are right for them in a highly personalized way. For example, based on our research, prime members spend an average of five hours online comparing credit card benefits. With our members’ credit data and spending history from accounts they choose to link to Credit Karma, we can use GenAI to help members select the right credit card for them optimized based on their personal spending history. This is designed to increase engagement with our members and help them improve their financial health and drive financial success. These experiences will be rolled out in the coming months. We are excited by Intuit Assist’s early progress. It will change our relationship with customers as we move from a transactional workflow platform to a trusted assistant that our customers rely on daily to power their prosperity. We believe Intuit Assist will lead to higher frequency of engagement and monetization across the platform. Let me now highlight progress across two of our five big bets. As a reminder, our five big bets are revolutionize speed to benefit, connect people to experts, unlock smart money decisions, be the center of small business growth and disrupt the small business mid-market. Our fourth big bet is to become the center of small business growth by helping our customers get new customers, get paid fast, manage capital and pay employees with confidence in an omnichannel world. In payments, our innovation continues to drive digitization from creating an estimate to invoicing a customer to getting paid to paying a supplier. Today, easier discovery, auto-enable payments, instant deposit and get paid upfront are all helping drive adoption of our payments offering. Total online payment volume growth was strong in the quarter at 21%. We’re also making good progress digitizing B2B payments to accelerate and automate transactions between small businesses and ultimately improving their cash flow. We made our bill pay offering widely available to customers during the quarter. While it’s early, we are seeing mid-market customers choosing the paid subscription offering at approximately 2x the rate of non mid-market customers, indicating this paid offering is resonating with larger customers. Turning to Mailchimp. We are well on our way to becoming the source of truth for our customers to help them grow and run their business. As I shared earlier, we’re rolling out several features powered by Intuit Assist in time for peak holiday season for many of our customers. Let me highlight two of these impactful benefits designed to help our customers grow their revenue while saving time. First, AI-driven audience segmentation, which allows small businesses to target specific audiences. Many customers don’t use audience segmentation today despite the fact that it can drive up to 60% lift in average order revenue or average order value over 12 months. With Intuit Assist, a customer can use conversational language to more quickly build segments and use them as a part of a marketing campaign. Second, AI-powered marketing automation, which are automated workflows that help small businesses reach their customers in uniquely tailored way. Today, many of our customers don’t use marketing automation because they are time consuming the setup even though they can help them drive higher revenue. With Intuit Assist, Mailchimp creates marketing automation, which can easily be turned on and e-mail content can be generated and edited. Our fifth big bet is to disrupt the small business mid-market representing a TAM of 1.7 million customers, 800,000 of which are already in our franchise, but using a core QBO or desktop product. Online mid-market customer and revenue growth remained strong and we are driving increased adoption of QuickBooks Advanced, payments and payroll, resulting in ARPC expansion as we serve these mid-market customers with a full ecosystem of services. We are proud of our innovation and the impact that we’re making on our customers’ lives. We also continue to make an impact on the communities that we serve. This quarter, we launched Intuit for education, a new financial literacy program to provide Gen Z and Gen Alpha students access to Intuit products and teach some personal and small business finance skills. We also announced the first set of winners of our Coalfield Solar Fund, providing grants in [Seven-Eye] (ph) solar energy projects in coal mining communities to help build a sustainable future. Wrapping up, with our durable AI-driven expert platform strategy and focus on innovating with GenAI across our platform, we are more excited than ever about the opportunity in front of us and our ability to power prosperity for our customers. We are also delighted to be one of the only eight Fortune 500 companies named to Fortune’s inaugural top 50 AI Innovators list. With that, let me now hand it over to Sandeep. Sandeep Aujla: Thank you, Sasan. For the first quarter of fiscal 2024, we delivered very strong results that exceeded the high end of our guidance range across all key metrics, including revenue of $3 billion, up 15%. GAAP operating income of $307 million versus $76 million last year. Non-GAAP operating income of $960 million versus $662 million last year, up 45%, GAAP diluted earnings per share of $0.85 versus $0.14 a year ago and non-GAAP diluted earnings per share of $2.47 versus $1.66 last year, up 49%. I am pleased with our early momentum this fiscal year. Turning to the business segment. Small Business and Self-Employed Group revenue grew 18% during the quarter, driven by online ecosystem, which grew 20%. Our results demonstrate the power of our small business platform and the mission-critical nature of our offerings, which continue to resonate with customers as they look to grow their businesses and improve cash flow in any economic environment. with the goal of being the source of truth for small businesses, our strategic focus within a Small Business and Self-employed group is threefold, grow the core, connect the ecosystem and expand globally. First, we continue to focus on growing the core. QuickBooks Online’s accounting revenue grew 19% in Q1, driven mainly by customer growth, higher effective prices and mix shift. Second, we continue to focus on connecting the ecosystem. Online services revenue grew 20% in Q1, driven primarily by Payroll, Mailchimp, Payments, Capital and Time Tracking. Within Payroll, revenue growth in the quarter reflects an increase in customers adopting the payroll solutions and a mix shift towards higher-end offerings. In Mailchimp, revenue growth was driven by higher effective prices and paying customer growth. And within Payments, revenue growth in the quarter reflects ongoing customer growth as more customers adopt our payments offerings to manage their cash flow as well as an increase in total payment volume per customer. Third, we continue to make progress expanding globally by executing a refreshed international strategy, which includes leading with both QuickBooks Online and Mailchimp in established markets, and leading with Mailchimp in all other markets as we continue to execute on a localized product and lineup approach. On a constant currency basis, total international online ecosystem revenue grew 16%. Desktop ecosystem revenue grew 14% in the first quarter, and QuickBooks Desktop Enterprise revenue grew in the high single digits. We are more than two-thirds of the way through a three-year transition for customers that remain on our license-based desktop offering to a recurring subscription model. In conjunction with our business model transition, we also raised prices across multiple desktop products in October, consistent with our principle to price for value. Looking ahead, we expect continued strong desktop ecosystem to revenue growth this year as we complete the remaining part of the three-year transition. Our focus is to continue innovating across our online ecosystem and to help our desktop customers migrate seamlessly to our online offerings. We continue to expect the online ecosystem to be a growth catalyst longer term. Moving to Credit Karma. Credit Karma delivered revenue of $405 million in Q1, down 5% year-over-year. We saw partners taking a conservative approach to extending credit in both personal loans and credit cards during Q1. We — This performance was consistent with our expectations and a prudent approach to guidance given the uncertain macroeconomic environment. On a product basis, the decline in Q1 was driven primarily by macroeconomic trends across personal loan, auto insurance, home loans and auto loans, partially offset by growth in credit cards and Credit Karma money. Shifting to the consumer and ProTax groups. Consumer Group revenue was $187 million and grew 25% in the quarter and ProTax revenue was $42 million and grew 24%. During the quarter, we saw stronger-than-expected TurboTax return volume from states, both with and without extended tax deadlines and strong performance in share of total returns during extension season. As Sasan shared earlier, we are excited about our innovation across TurboTax. The multiple experiments we ran during the extension season, bolster our confidence in our game plan to win this coming tax season. Now let me briefly touch on our financial principles and capital allocation. Our financial principles guide our decisions that remain our long-term commitment and are unchanged. We finished the quarter with approximately $2.3 billion in cash and investments and $5.9 billion in debt on our balance sheet. In September, we raised $4 billion in secured — sorry, in senior notes to repay the outstanding balance on an unsecured term loan. These notes carry a weighted average coupon of 5.29%, approximately 1 point lower than the term loan rate at the end of Q4. As a reminder, during Q1, we made tax payments of approximately $710 million that were deferred from fiscal 2023 due to the IRS disaster area tax relief. We also repurchased $603 million of stock during the first quarter. Depending on market conditions and other factors, our aim is to be in the market each quarter. And lastly, the Board approved a quarterly dividend of $0.90 per share, payable on January 18, 2024. This represents a 15% increase versus last year. As I stated earlier, I’m pleased with the early momentum we’re seeing in fiscal 2024, highlighting the strength of our platform within the uncertain macroeconomic environment that is consistent with our expectations. We have a proven playbook and a track record of managing for the short and the long term, including controlling discretionary spend to deliver strong results while investing in what is most important for future growth. Our goal remains for Intuit to emerge from this period of macroeconomic uncertainty in an even greater position of strength. Moving on to guidance. We are reaffirming our fiscal 2024 guidance. This includes total company revenue growth of 11% to 12%, GAAP operating income growth of 15% to 18%, non-GAAP operating income growth of 12% to 14%, GAAP earnings per share growth of 11% to 15% and non-GAAP earnings per share growth of 12% to 14%. Our guidance for the second quarter of fiscal 2024 includes revenue growth of 11% to 12%, GAAP earnings per share of $0.62 to $0.68 and non-GAAP earnings per share of $2.25 to $2.31. As a reminder, we are taking a prudent approach with guidance given the continued macroeconomic uncertainty. You can find our full fiscal 2024 and Q2 guidance details in our press release and on our fact sheet. With that, I’ll turn it back over to Sasan. Sasan Goodarzi: All right. Well, thank you, Sandeep. And to wrap it up, we are confident in our AI-driven expert platform strategy and progress across our five big bets and creating a future of done for you with a gateway to human expertise. We believe this will change our relationship with customers, becoming their trusted adviser, leading to higher engagement and monetization. The combination of our assets and our strategy creates a growth flywheel for Intuit to accelerate at penetrating our $300 billion in TAM. With all of that said, let’s now open it up to your questions. Operator: Thank you. [Operator Instructions] Our first question will come from Raimo Lenschow with Barclays. Your line is open. See also 12 Most Undervalued Gold Stocks To Buy According To Hedge Funds and 14 Most Undervalued Industrial Stocks To Buy According To Hedge Funds. Q&A Session Follow Intuit Inc. (NASDAQ:INTU) Follow Intuit Inc. (NASDAQ:INTU) We may use your email to send marketing emails about our services. Click here to read our privacy policy. Raimo Lenschow: Perfect. Thank you. Sasan, on the AI strategy, like obviously, you have like one — it seems like one big platform that is driving it. Like can you — what’s the kind of opportunity to kind of learn from one segment and use it in the other segment? And as part of that also, like are you impacted by the chip shortage? Will that kind of impact the rollout for you? Thank you. Sasan Goodarzi: Yeah. Thank you for your question. And I actually think it’s a really interesting question that you’re asking in terms of how are we learning across platforms. The short answer is we capture best practices and share the insights on a daily basis across our teams. And in fact, I’ll just use our staff as an example. We get weekly slacks with documents that share the best practices, the progress that has been made and how that informs the next week across each of the platforms. And we spend 80% of my staff meeting actually doing product reviews of Intuit Assist. A big large part of it is what the key best practices are, learnings are. And I would tell you that there’s a lot of commonality in themes across our learnings across the platform, which actually is simply putting us in a position to accelerate our pivot and our progress and innovation and the timing of going GA across the platform. To your second question, no, we’re not impacted by the chip shortage. It does not at all impact our launch plans. Raimo Lenschow: Okay. Perfect. Congrats. Thank you. Sasan Goodarzi: Thank you. Operator: Our next question will come from Keith Weiss with Morgan Stanley. Keith Weiss: Excellent. Thank you for taking the question guys, and congratulations on a really solid quarter. Two questions, one for Sasan and one for Sandeep and really digging into what I think were some of the bigger surprises in the quarter, Sasan, in this environment, I think we’re surprised to see strength in a marketing platform like Mailchimp and you called that out as part of the strength in online services. Do you think that’s more of an Intuit sort of independent factor of repackaging, marketing more aggressively distribution? Or is it — the market is better than we expect? And then for Sandeep, operating margins were really strong in the quarter. Any one-time items or pull forward expenses or push out expenses that we should be mindful of in terms of why that type of operating margin performance isn’t going to be reflected in the rest of the year? Thank you. Sasan Goodarzi: Thanks for the question, Keith. I’ll take your first one. What you’re seeing from us in Mailchimp is entirely execution. We’re not getting tailwinds from the macro environment. And as I mentioned, when we closed the acquisition a while back, that our biggest opportunity was to be clear about our product improvements, our lineup and to be able to create one growth platform, develop strength internationally and go to mid-market. And by the way, we’ve made a lot of progress in all of those areas. We still have a lot of work ahead of us, to be clear. But everything that you’re seeing is based on our execution and no macro tailwinds. Sandeep Aujla: And on the margin question, Keith — on the margin question, let me start by reiterating our commitment to having our expenses growth lower than revenue and in essence, delivering our margin expansion and operating leverage, which is something that we hold dearly and our guidance of 40 to 60 bps expansion for the year reflects the discipline that we have as a management team. On the margin for the quarter, I would share that, I won’t get too fixated on the quarterly number. We had some expenses that moved out of the quarter into later parts of the year, including some marketing expenses. And as I shared during the prepared remarks, we are committed to our full year guidance on our operating income. So that’s what I would guide you and the teams towards. Keith Weiss: Excellent. Really nice job guys. Thank you. Sasan Goodarzi: Thank you. Operator: Our next question comes from Siti Panigrahi with Mizuho. Siti Panigrahi: Thanks for taking my question. Sasan, I wanted to ask about the health of small business. Where do you see right now, strength and weakness in this environment? Sasan Goodarzi: Thanks for the question, Siti. As you know, we’ve been in this macro environment for some time now. And the small businesses that we serve are resilient for a couple of reasons. One, they’re on our platform. And by digitizing what they do, which is how they grow customers and managing their cash flow, they are far more resilient and as we’ve shared before, anybody that’s on our platform is nearly 20 points higher in their success rate than those that are not on our platform. So we are part of sort of the health that we’re experiencing on our platform. With that as context, I would just share a couple of data points. One, the number of companies and the number of employees that our small businesses are hiring still remains strong. Two, our total online payments volume grew 21%, which means that our small businesses are continuing to be competitive. and — and serving their consumers. I also remind us, by the way, I think, a year ago or more, that growth was in the 30% plus. And so we have seen an impact, but just our overall platform is very resilient. And then the last thing I would say is that the cash reserves of our small businesses is 90% of where it was this time last year. However, it’s 128% of where it was pre-pandemic. So their cash flow is stronger than several years ago, but 10% down from last year. And then very specifically, as you know, we serve service-based businesses, which is about 70% of the market. We’re not concentrated in any one particular area......»»

Category: topSource: insidermonkeyDec 1st, 2023

Santos Expelled From Congress On Third Try

Santos Expelled From Congress On Third Try The House has finally expelled Rep. George Santos (R-NY) from Congress after two previous attempts failed, amid a laundry list of allegations against him, including campaign finance abuses. "Congressman" George Santos The ouster passed by a vote of 311 to 114, with 105 Republicans joining 206 Democrats in the affirmative.  BREAKING: House votes to expel GOP Rep. George Santos. He has left the Capitol for the last time. — MSNBC (@MSNBC) December 1, 2023 Speaker Johnson announces that Santos has been expelled — Aaron Rupar (@atrupar) December 1, 2023 The ouster follows a November report by the House Ethics Committee, which concluded that the New York congressman "sought to fraudulently exploit every aspect of his House candidacy for his own personal financial profit." Santos, who did not engage in a years-long influence peddling scheme with America's leverage-laden adversaries - only to gain the full protection of uniparty loyalists while walking America into two new proxy wars (Having "Biden" for a last name might have helped), announced that he would not seek reelection following the release of the ethics report. He has separately pleaded not guilty to 23  federal charges, including allegations of COVID-19 unemployment benefits fraud, misusing campaign funds, and lying about his personal finances on House disclosure reports. Prior to the vote, Rep. Tim Burchett said he would vote against expulsion, telling CNN: "We're a bunch of sinners." Rep. Tim Burchett dismisses concerns about Santos's conduct and says he will vote against his expulsion: "We're a bunch of sinners." — Aaron Rupar (@atrupar) December 1, 2023 "George Santos is a liar — in fact, he has admitted to many of them — who has used his position of public trust to personally benefit himself from Day 1,” said Rep. Anthony D'Esposito (R-NY), Santos' arch nemesis within the Republican party.   Tyler Durden Fri, 12/01/2023 - 11:06.....»»

Category: blogSource: zerohedgeDec 1st, 2023

Thursday links: a heckuva business model

Charlie MungerJason Zweig, "More than almost anyone I’ve ever known, Munger also possessed what philosophers call epistemic humility: a profound sense of how little anyone can know and how important it is to open and change your mind." ( Hathaway ($BRK.A) shareholders need to closely contemplate a post-Buffett era. ( more Charlie Munger quotes including 'In my whole life, I have known no wise people who didn’t read all the time — none, zero.' ( Munger's greatest asset may have been a lifelong friendship. ( Charlie Munger manifesto. ( review of “The Missing Billionaires: A Guide to Better Financial Decisions” by Victor Haghani and James White. ( review of Rob Copeland's "The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend." ( managementDFA's push into ETFs has been more successful than even they expected. ( much personal trading is too much for a mutual fund portfolio manager? ( Roundhill MEME ETF ($MEME) will liquidate next month. ( initial unemployment claims continue to bounce along the bottom. ( powered through October. ( on Abnormal ReturnsLongform links: the first rule of compounding. ( the end of the influential The Reformed Broker blog. ( you may have missed in our Wednesday linkfest. ( finance links: desired results. ( you a financial adviser looking for some out-of-the-box thinking? Then check out our weekly e-mail newsletter. ( mediaOn the problem of package theft. ('s hard to spot an inflection point in real-time. ( case against thank-you notes. (»»

Category: blogSource: abnormalreturnsNov 30th, 2023

‘Greedy When Others are Fearful’: Warren Buffett’s New Stock Picks Since 2022 Market Peak

In this piece, we will look at Greedy When Others are Fearful’: Warren Buffett’s new stock picks since 2022 market peak. If you want to see more stocks in this selection, then take a look at Warren Buffett’s 5 New Stock Picks Since 2022 Market Peak. During 2008, amidst the massive financial crisis that shook […] In this piece, we will look at Greedy When Others are Fearful’: Warren Buffett’s new stock picks since 2022 market peak. If you want to see more stocks in this selection, then take a look at Warren Buffett’s 5 New Stock Picks Since 2022 Market Peak. During 2008, amidst the massive financial crisis that shook the global economy, Warren Buffett said something that encapsulates the wisdom of his investment philosophy:  “Be fearful when others are greedy, and be greedy when others are fearful.” Most investors tend to give in to the short-term news cycle in the financial markets. On the other hand, long-term investors like Warren Buffett have a broader vision and they know there’s always a rebound after every dip. Buffett is a value investor who has affirmed his status as one of the most successful hedge fund managers, with a net worth of about $120 billion. He has made his wealth purely by investing in undervalued stocks and never overpaying to take advantage of the discounted valuations. The legendary investor is driven by the investment philosophy that focuses on companies that he believes will keep growing because of their growth and performance. During the third quarter, Buffett added to his existing positions and acquired new ones, with the market edging lower for the better part of the year. Occidental Petroleum Corporation (NYSE:OXY) is one of the companies Buffett turned to as the overall market remained under pressure, oil prices tumbled, and oil prices rallied as the Russia-Ukraine war escalated. As the selloff in the equity market hit double-digit percentage levels in Q3 2022, Buffett bought stakes in Louisiana-Pacific Corp (NYSE:LPX) and Jefferies Financial Group Inc (NYSE:JEF) as fear continued to send shockwaves. Our Methodology We looked at Berkshire Hathaway’s 13F filings and found Buffett’s top picks in 2022. We explained why they stand out. The stocks are ranked by the hedge fund’s stake in them in Q3 2023. The number of hedge funds that owned each stock in Q3 2023 is also given. Warren Buffett’s New Stock Picks Since 2022 Market Peak 10. Jefferies Financial Group Inc. (NYSE:JEF) Berkshire Hathaway’s Equity Stake in Q3 2023: $15.88 Million   Stock Gain since Buffett Investment: 14%   Number of Hedge Fund Holders: 34 The US Federal Reserve’s hiking interest rates triggered an aggressive market sell-off. As fear gripped the market, Buffett saw an opportunity in Jefferies Financial Group Inc. (NYSE:JEF). This financial services company was well poised to benefit from a high-interest rate environment. Jefferies Financial Group Inc. (NYSE:JEF) engages in investment banking capital markets and asset management business. With the market deep in sell-off, Buffett acquired stakes worth $12.79 million in Jefferies Financial Group Inc. (NYSE:JEF) in Q3 2022, taking advantage of the depressed valuations. The investment has gained 14% since Buffett invested, and Berkshire Hathaway exited Q3 2023 with stakes worth $15.88 million. Jefferies Financial Group Inc. (NYSE:JEF) also boasts a 3.44% dividend yield. 9. Markel Group Inc. (NYSE:MKL) Berkshire Hathaway’s Equity Stake in Q3 2023: $233.71 Million   Stock Gain since Buffett Investment: 10%   Number of Hedge Fund Holders: 32 Markel Group Inc. (NYSE:MKL) is a diverse financial holding company that markets and underwrites speciality insurance products. Markel Group Inc. (NYSE:MKL) offers general and professional liability personal line marine and energy insurance compensation products. Markel Group Inc. (NYSE:MKL) has gained nearly 10% since Buffett acquired stakes worth $620 million in the first quarter of 2022. While Berkshire Hathaway has trimmed its exposure to Markel Group Inc. (NYSE:MKL), it has benefited from price swings. It ended Q3 2023 with stakes worth $233.71 million, accounting for 0.07% of the portfolio. In its investor letter for the second quarter of 2023, Polen Global SMID Company Growth Strategy shared its views on Markel Group Inc. (NYSE:MKL): “Markel Group Inc. (NYSE:MKL) is a U.S. headquartered insurance company with three drivers; specialty insurance; public investments; and private companies. The company is often described as a “mini-Berkshire Hathaway” and has done a terrific job for decades underwriting policies and investing the float to produce significant returns, in our belief. The company seeks market leadership in each pursuit, understanding the customer needs and providing quality products and services. We think its valuation is very attractive and expect a mid-teens rate of return over the next five years.” 8. Louisiana-Pacific Corporation (NYSE:LPX) Berkshire Hathaway’s Equity Stake in Q3 2023: $389.37 Million   Stock Gain since Buffett Investment: 8.6%   Number of Hedge Fund Holders: 38 Buffett turned to Louisiana-Pacific Corporation (NYSE:LPX) last year to gain exposure in the industrial sector last year as the overall market remained under pressure. Louisiana-Pacific Corporation (NYSE:LPX), through its subsidiaries, offers building solutions used in new home construction, repair, and re-modelling. Louisiana-Pacific Corporation (NYSE:LPX) has gained about 8.6% since Buffett acquired stakes worth $296.69 million in Q3 2023. In its Q1 2023 investor letter, SouthernSun SMID Cap Strategy expressed its opinion on Louisiana-Pacific Corporation (NYSE:LPX):  “We initiated a position in Louisiana-Pacific Corporation (NYSE:LPX) during the quarter. LPX is a leading producer of oriented strand board (OSB) and siding, primarily in North America. In recent years, management has transformed the business from a focus on producing commodity OSB products into a “building solutions” company producing more value-add OSB products and engineered wood siding. The company is organized into two divisions – siding solutions and OSB…” (Please click here to read the full text) 7. Ally Financial Inc. (NYSE:ALLY) Berkshire Hathaway’s Equity Stake in Q3 2023: $773.72 Million   Stock Gain since Buffett Investment: -42%   Number of Hedge Fund Holders: 43 Buffett turned to Ally Financial Inc. (NYSE:ALLY) early last year to gain exposure in the financial services sector as the overall market remained under pressure. The company provides digital finance products and services to various customers. Buffett acquired stakes worth $389.99 million in Ally Financial Inc. (NYSE:ALLY) in the first quarter of last year and has continued to buy and sell ever since. Through Berkshire Hathaway, the legendary investor held stakes worth $773.72 million as of Q3 2023, accounting for 0.24% of the portfolio. While Ally Financial Inc. (NYSE:ALLY) is down by 42% since Buffett made the first investment, it is a solid play for passive income as it pays a 4.43% dividend yield. In its Q1 2023 investor letter, Silver Beech Capital discussed its views on Ally Financial Inc. (NYSE:ALLY):  “Ally Financial Inc. (NYSE:ALLY) is the largest all-digital bank in the United States, the 22nd largest bank by total assets ($192 billion), the nation’s leading prime auto lender (with 6.5 million consumer customers), and leading auto floorplan lender (with over 23,000 dealer relationships). Most of Ally’s assets are auto loans and finance receivables, but Ally also offers consumer protection insurance through its dealer channels and operates small corporate and mortgage lending businesses. Notably, Ally also offers some of the industry’s most competitive deposit products: Ally was awarded “Best Checking Account”, “Best Saving Account”, and overall “Best Online Bank” by third party reviews and was the first large bank to eliminate overdraft fees. We believe Ally’s intrinsic value is more than 40% greater than its March 31 share price…”(Click here to read the full text) 6. Nu Holdings Ltd. (NYSE:NU) Berkshire Hathaway’s Equity Stake in Q3 2023: $776.61 Million   Stock Gain since Buffett Investment: 160%   Number of Hedge Fund Holders: 50 Nu Holdings Ltd. (NYSE:NU) is a financial services company providing a digital banking platform and financial services. It provides Nu and Ultraviolet cards, and mobile payments for Nu Account customers. It also offers Nu Personal Accounts, a digital account for personal finance. Nu Holdings Ltd. (NYSE:NU) has been one of Buffet’s new stock picks since 2022. The legendary investor acquired stakes worth $435.97 million during Q4 of 2022. The value of the investment has since increased to $776.61 million as of Q3 2023, with Nu Holdings Ltd. (NYSE:NU) rallying by about 160%. Click to continue reading and see Warren Buffett’s 5 New Stock Picks Since 2022 Market Peak. Suggested articles: Billionaire Leon Cooperman’s Long-Term Stock Picks Billionaire Paul Tudor Jones and Insiders Love These 11 Stocks Billionaire Lee Ainslie’s Top 10 Stock Picks Disclosure: None. ‘Greedy When Others are Fearful’: Warren Buffett’s New Stock Picks Since 2022 Market Peak is originally published on Insider Monkey......»»

Category: topSource: insidermonkeyNov 30th, 2023

Former Amazon, Meta, and JPMorgan employees on the moment they knew they had to leave their dream job to save their mental health

7 employees told Insider how burnout, stress, and long hours led them to quit their jobs — and none of them regret it. A former Meta experienced panic attacks and a global head of communications landed in the ER — all due to stress and burnout.Getty Images Insider spoke to people who quit companies like Meta and McKinsey and what they do now. No one regretted leaving and one even said he wished he left his $120K finance job sooner. "I hope my story shows people that company loyalty doesn't pay," said another. Many are walking away from their high-paying jobs — and have zero regrets. Insider spoke to seven people who left behind coveted roles at major companies in tech, finance, consulting, and fashion.From combatting work-induced burnout to chasing long-held dreams, these former corporate employees reveal why they don't miss their old lives. They now have new pursuits and want to share valuable lessons with those considering career shifts.Navdeep Singh quit his job at Amazon after 2 months because of work anxiety Navdeep Singh (Navi) quit his job at Amazon after two months because of work anxiety.Navdeep (Navi) SinghNavdeep Singh is a former Amazon software engineer who experienced anxiety because of the pressure at work. He said deadlines at Amazon were aggressive and that he felt he wasn't allowed to ask questions.Singh told Insider that he felt almost paralyzed: he couldn't ask questions because he was expected to solve problems by himself, and he was afraid that he would make a mistake. "During this time, my team hired more new grads, and I couldn't help but compare myself to them and think I was the worst one among them."Singh eventually quit Amazon after two months and he started feeling better. "I just wish I had known sooner that what happened while I was at Amazon didn't define me or my capabilities."Read more: I quit Amazon after 2 months. The job was as stressful as I'd read about.Xaviera Ho quit her dream job at JPMorgan Xaviera Ho spent years working towards her dream job at JPMorgan. Two years after landing her dream job as an investment analyst, Ho quit. She said there's no such thing as work-life balance or work-life integration.Xaviera Ho, 29, left her dream job at JP Morgan after realizing that banking wasn't for her.Xaviera Ho"Because I was so involved with the markets and making trades, I had to be on top of the financial market news. I also had to be constantly available to respond to senior bankers and clients, even after hours and on weekends." Ho also said working in a large organization like JPMorgan, whose headquarters are located in the US, can feel like being a cog in the wheel at times. "Many initiatives or positive changes that you want to implement can get lost in a web of bureaucracy. I realized that I prefer to have the autonomy to start projects. I wanted to be closer to the key decision makers."Read more: I spent years working toward my dream job at JPMorgan in Singapore. But 2 years after I got it, I quit — here's why.Vivian Tu quit her cushy $656K job to teach people about financial literacyVivian Tu says leaving Wall Street was one of the best decisions she's ever made.Vivian TuVivian Tu is a former trader at JPMorgan who also worked in sales and marketing at BuzzFeed. She told Insider that leaving Wall Street was one of the best decisions she has ever made — it allowed her to figure out that she's good at — and can get paid to do — so many other things. Leaving also gave her the experience and skills to start her content creation journey, launching a channel called "Your Rich BFF." "I consider myself lucky in my career because I have no regrets, which is rare. That said, I hope my story of job hopping can show people that company loyalty is no longer the norm, and frankly — it doesn't pay. "Read more: I made around $100K at JPMorgan and $656K at BuzzFeed. Here's my full salary breakdown and why I recommend job-hopping.Angelina Lu quit her elitist consultant job at McKinsey & Company for a job at a startup Angelina Lu is a former business analyst at McKinsey & Company who now gives consulting and career advice on social media.Lu says the McKinsey workload was extremely demanding. "We averaged workdays of 12 to 15 hours. On Mondays, I'd typically wake up at 4 a.m. or 5 a.m. before getting to the airport to catch the earliest flight to meet my client. I'd use the flight to catch up on work, get ready for the day, or nap to get more rest," she told Insider.Lu ultimately made the decision to leave because she wanted to explore and grow in other aspects of her career, but she said leaving McKinsey came with its tradeoffs. Not only did she take a pay cut, she also forfeited the opportunity to pursue an advanced degree sponsored by McKinsey. Lu now works as a product manager at a tech startup and loves seeing the impact she makes.Read more: I'm a former McKinsey consultant. Here's what my job really looked like beyond the prestige and glamour.Eric Yu quit his $370K software engineer job at Meta because he experienced panic attacks due to work pressureEric Yu was a software engineer at Meta and experienced panic attacks due to work pressure.Eric Yu knew Meta wasn't right for him.Eric Yu"In November 2019, I experienced my first panic attack while I was working from home. It was around 4 p.m., and my left pinky went completely numb. At first, I ignored it, but it got worse: An hour in, my ears were ringing, and my heart was beating really fast."Yu told Insider that he knows it sounds crazy to leave a $370,000 job, and staying at Meta for the rest of his life would have ensured financial security, but he knew it wasn't right for him. Now, Yu and his fiancée have started house hacking, a lower-cost way of getting into real estate. Read more: I quit my $370K job at Meta after having panic attacks and hitting the lowest point of my life. I just knew the job wasn't right for me.Elizabeth Rosenberg quit her agency job after a trip to the emergency room due to intense work stressElizabeth Rosenberg was the global head of communications for a large ad agency. She worked 60-plus hours a week, as PR is a demanding "always on" role that thrives in high-stress situations and can very easily lead to burnout, she told Insider.One day, she experienced intense stress at work, which brought on a severe migraine that sent her to the emergency room. She knew she had to make changes and ultimately quit her agency job.Rosenberg told Insider that no job on earth is worth putting your mental and physical health at risk — and that while there isn't a one-size-fits-all answer for burnout and stress, self-awareness is the starting point of change."Everything from setting boundaries around your health and not apologizing for it to speaking up to your supervisor before you get to your breaking point will help you," she said. "We shouldn't have to prove we're good at our jobs by the number of hours we put in or how much we can push ourselves to the breaking point."Read more: I was a 35-year-old global head of communications who landed in the hospital from extreme stress and burnout. It was the push I needed to finally leave agency life and put my wellness first.Vincent Chan quit his $120K finance job and made more money with YouTube videos Vincent Chan used to work in finance after being sold the dream that working in finance is very sexy. But in his role, he saw that every new person was trying to outwork the other person at his company. "Once one person started building that kind of workplace culture, another person would follow suit because they didn't want to be left behind. Everyone was trying to impress their respective bosses to try to get a raise or get that promotion." Eventually, Chan quit his job and primarily focused on content creation. He has a presence on platforms like YouTube, TikTok, and Instagram and manages a finance newsletter. "I wish I didn't drink the corporate America Kool-Aid so much in college," he told Insider. His biggest advice for people who want to quit is to brush up on personal finance skills. "If you have the safety net, you have more options."Read more: I quit my $120K finance job and make more money with YouTube videos. I wish I never drank the corporate America Kool-Aid and chased my own dreams sooner.Julia Fernsby quit her dream fashion job in New York Julia FernsbyJulia FernsbyJulia Fernsby moved to New York City from Ireland right after college to work. However, her dream fashion job was not what she envisioned, and the city felt overwhelming and unfriendly.She said she felt very judged at work, and her co-workers reminded her of Regina George in 'Mean Girls.' "I was a bit heavier than other girls. I wasn't tall, didn't wear makeup, and had a funny accent. I tried to fit in with my clothing, but I wasn't financially stable and couldn't afford extravagant shopping. I wore similar clothes but in worse-quality material. I couldn't afford a good hairdresser."Fernsby's journey serves as a reminder — sometimes, it's the detours in life that lead us to where we're meant to be.Read more: I moved to NYC right after college to work in fashion — but people were unfriendly and my dream turned into a nightmareKenny Williams left 3 jobs in one yearLanez Media Group LLCKenny Williams resigned from three jobs in less than a year. He said knowing when and how to pivot is an important lesson he's learned in his career."I resigned from the next job, after only two weeks. It was incredibly hard to leave a full-time job with benefits in such a short amount of time. My toxic ideas about professionalism made me feel uncomfortable at the mere thought. But I knew that if I stayed, I'd be miserable."Williams told Insider that he doesn't consider how other people feel about upholding old standards of professionalism. "Thanks to Gen Z, standards of professionalism are changing for the better and they've given me the courage to be a part of that movement." Read more: I left 3 jobs in 1 year because I didn't want to waste my time being miserable — and I thank Gen Z for setting this new standardRead the original article on Business Insider.....»»

Category: dealsSource: nytNov 29th, 2023

Personal finance links: desired results

Wednesdays are all about personal finance here at Abnormal Returns. You can check out last week’s links including a look at the... PodcastsChristine Benz and Jeff Ptak talk with Tiffany Aliche, author of the new book "Made Whole: The Practical Guide to Reaching Your Financial Goals." ( Benz and Jeff Ptak talk with Mike Moran, managing director and pension strategist for Goldman Sachs ($GS) about the state of retirement preparedness. ( As EverLessons learned from Morgan Housel's new book "Same As Ever: Timeless Lesson on Wealth, Greed and Happiness." ( Q&A with Morgan Housel author of the new book, "Same as Ever: A Guide To What Never Changes." ( insights from Morgan Housel's new book "Same As Ever: Timeless Lesson on Wealth, Greed and Happiness." ( upHigh house prices, and locked in low mortgage rates, make splitting up harder. ( more conflict in a divorce, the more expensive it is going to be. ( alternatives to a fixed retirement withdrawal rates. ( makes up the three-legged stool of retirement. ( planning is difficult because there are so many things decisions to make. ( one cares more about your retirement than you. ( is going to take care of you? ( you invest is more important than how. ( your early years as an investor influence risk taking over your lifetime. ( to maintain a minimalist portfolio. ( financeAre you focusing your efforts in the wrong place? ( balance in life is the exception, not the rule. ( the present and future is always imperfect. ('s only so many life goals you can achieve. Choose wisely. ( we fight about when we fight about money. ( is the difference between traditional and reverse budgeting? ( you know about year-end charitable giving. ('t look to outside parties for your happiness. (»»

Category: blogSource: abnormalreturnsNov 29th, 2023

12 Very High Yield Dividend Stocks With Upside Potential

In this article, we discuss 12 very high yield dividend stocks with upside potential. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read 5 Very High Yield Dividend Stocks With Upside Potential.  Many investors are drawn to dividend investing for various reasons, but among […] In this article, we discuss 12 very high yield dividend stocks with upside potential. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read 5 Very High Yield Dividend Stocks With Upside Potential.  Many investors are drawn to dividend investing for various reasons, but among them, dividend yield stands out as a top favorite. High-yield dividend stocks offer a reliable stream of income, making them attractive for investors seeking regular cash flow. Additionally, high dividend yields can indicate financial strength and stability in a company, as firms typically need consistent earnings to sustain such payouts. Historical analysis also shows that high-dividend stocks have shown stronger performance than the overall market. According to a report by Newton Investment Management, over the span of 1940 to 2021, stocks exhibiting high dividend yields often showcased a trend of outperforming the broader market during periods characterized by high inflation. This year, dividend stocks have taken a back seat as technology stocks, driven by the expanding realm of artificial intelligence, have captured investors’ focus. Bloomberg Intelligence notes a relatively low influx of just $786 million into dividend ETFs, marking the smallest flow since 2006. Despite this, analysts hold an optimistic view of dividend growth stocks. These stocks typically offer investors a consistent and increasing stream of income over time. The appeal lies in their ability to provide shareholders with a reliable source of growing dividends, making them an attractive option despite the recent surge in interest toward tech-related investments. Kirsten Cabacungan, an investment strategist at Merrill and Bank of America Private Bank, advises investors to consider both price gains and dividend income for their overall return. Dividend-paying stocks hold additional benefits as their regular income can offset losses during market dips, providing balance in a portfolio. Moreover, in times of low interest rates, these stocks might offer higher income compared to Treasury bonds, CDs, or corporate bonds. Here are some comments from the analyst: “Companies that have consistently increased their dividends tend to be more stable, higher quality businesses, which historically have weathered downturns and are more likely to have the ability to pay dividends consistently.” Cabacungan suggests that if your aim is to generate consistent income, focusing on stocks with higher-than-average dividend yields over an extended period could be beneficial. However, for investors seeking growth without an immediate need for income, she recommends considering stocks known for consistently increasing dividends as their cash flows and profits grow. This approach aligns with a more growth-oriented strategy, allowing investors to benefit from companies that demonstrate a track record of boosting dividends over time. Verizon Communications Inc. (NYSE:VZ), Altria Group, Inc. (NYSE:MO), and Pfizer Inc. (NYSE:PFE) are some of the best dividend stocks that offer high dividend yields but have also raised their payouts consistently for years. In this article, we will further take a look at high-dividend stocks with upside potential. A close-up of a bespoke stock ticker board displaying fluctuating markets. Our Methodology: For this list, we screened for dividend stocks with yields higher than 8% as of November 28. Then, we narrowed down the choices by finding stocks with an upside potential of over 8% according to analyst predictions. Finally, we selected companies with the most hedge fund investors holding stakes in them, using Insider Monkey’s Q3 2023 database. 12. Nordic American Tankers Limited (NYSE:NAT) Number of Hedge Fund Holders: 15     Upside Potential as of November 28: 22.3% Nordic American Tankers Limited (NYSE:NAT) is a company operating in the transportation sector, specifically in the niche of crude oil transportation and shipping. The company has a 28-year run of paying regular dividends to shareholders and it currently offers a quarterly dividend of $0.15 per share. With a dividend yield of 10.93%, as of November 28, NAT is one of the best dividend stocks on our list. Verizon Communications Inc. (NYSE:VZ), Altria Group, Inc. (NYSE:MO), and Pfizer Inc. (NYSE:PFE) are some other best dividend stocks with high dividend yields. At the end of Q3 2023, 15 hedge funds tracked by Insider Monkey reported having stakes in Nordic American Tankers Limited (NYSE:NAT), compared with 16 in the previous quarter. The consolidated value of these stakes is over $50.5 million. 11. Hercules Capital, Inc. (NYSE:HTGC) Number of Hedge Fund Holders: 15     Upside Potential as of November 28: 11.09% Hercules Capital, Inc. (NYSE:HTGC) is a specialty finance company, based in California. The company focuses on providing financing solutions to venture capital-backed companies at various stages of their growth. In the third quarter of 2023, the company reported a total investment income of $116.7 million, which showed a 38.5% growth from the same period last year. It ended the quarter with over $4.1 billion in assets under management, up 19.4% from the prior year period. Hercules Capital, Inc. (NYSE:HTGC), one of the best dividend stocks on our list, offers a quarterly dividend of $0.40 per share. The company has been rewarding shareholders with growing dividends for the past five years. As of November 28, the stock has a dividend yield of 10.26%. The number of hedge funds tracked by Insider Monkey owning stakes in Hercules Capital, Inc. (NYSE:HTGC) grew to 15 in Q3 2023, from 12 in the previous quarter. The consolidated value of these stakes is over $47 million. 10. British American Tobacco p.l.c. (NYSE:BTI) Number of Hedge Fund Holders: 17     Upside Potential as of November 28: 9.84% British American Tobacco p.l.c. (NYSE:BTI) is one of the world’s largest multinational tobacco companies, engaged in the manufacturing, distribution, and sale of tobacco and nicotine products. The company has been making uninterrupted dividend payments to shareholders for the past 25 years. It currently offers a quarterly dividend of $0.7006 per share for a dividend yield of 8.89%, as recorded on November 28. As of the close of Q3 2023, 17 hedge funds in Insider Monkey’s database reported owning stakes in British American Tobacco p.l.c. (NYSE:BTI), compared with 22 a quarter earlier. These stakes have a total value of roughly $330 million. Orbis Investment Management owned over 6.7 million BTI shares, becoming the company’s leading stakeholder in Q3. 9. Medical Properties Trust, Inc. (NYSE:MPW) Number of Hedge Fund Holders: 18     Upside Potential as of November 28: 39.21% Medical Properties Trust, Inc. (NYSE:MPW) is an American real estate investment trust company that primarily focuses on investing in and owning healthcare-related real estate. In the third quarter of 2023, the company posted an FFO of $0.38, which beat analysts’ consensus by $0.02. It ended the quarter with over $340 million available in cash and cash equivalents and its total assets for the period amounted to over $19 billion. Medical Properties Trust, Inc. (NYSE:MPW) has been paying regular dividends to shareholders since 2005. The company currently pays a quarterly dividend of $0.15 per share and has a dividend yield of 12.45%, as of November 28. At the end of September 2023, 18 hedge funds tracked by Insider Monkey held investments in Medical Properties Trust, Inc. (NYSE:MPW), down from 20 in the preceding quarter. The stakes owned by these funds have a total value of nearly $150 million. 8. Nu Skin Enterprises, Inc. (NYSE:NUS) Number of Hedge Fund Holders: 19     Upside Potential as of November 28: 28.9% Nu Skin Enterprises, Inc. (NYSE:NUS) operates as a global direct-selling company focused on personal care and wellness products. On November 1, the company announced a quarterly dividend of $0.39 per share, which was in line with its previous dividend. Overall, the company holds a 22-year streak of consistent dividend growth, which makes NUS one of the best dividend stocks on our list. The stock’s dividend yield on November 28 came in at 9.36%. In the third quarter of 2023, Nu Skin Enterprises, Inc. (NYSE:NUS) remained committed to its shareholder return, as the company distributed approximately $19.5 million among investors through dividends. The company’s cash position also remained strong with over $233.3 million available in cash and cash equivalents. As of the end of the September quarter of 2023, 19 hedge funds in Insider Monkey’s database owned stakes in Nu Skin Enterprises, Inc. (NYSE:NUS), up from 18 in the previous quarter. The total value of these stakes is over $93.3 million. Among these hedge funds, Marshall Wace LLP was the company’s leading stakeholder in Q3. 7. NextEra Energy Partners, LP (NYSE:NEP) Number of Hedge Fund Holders: 19     Upside Potential as of November 28: 72.4% NextEra Energy Partners, LP (NYSE:NEP) is a renewable energy company that operates as a subsidiary of NextEra Energy, Inc., a leading clean energy company in the US. The company holds a very strong dividend growth streak as it has raised its payouts every quarter since 2015. It currently offers a quarterly dividend of $0.8675 per share and has a dividend yield of 14.96%, as of November 28. NextEra Energy Partners, LP (NYSE:NEP) was a part of 19 hedge fund portfolios at the end of Q3 2023, compared with 23 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of roughly $191 million. 6. Medifast, Inc. (NYSE:MED) Number of Hedge Fund Holders: 20     Upside Potential as of November 28: 14.69% Medifast, Inc. (NYSE:MED) is a company specializing in the development, manufacturing, and distribution of weight management and health products. In the third quarter of 2023, the company posted an EPS of $2.12, which surpassed analysts’ estimates by $1.06. Its revenue for the quarter came in at $236 million and its net income stood at $23.1 million. During the quarter, it returned $18 million to shareholders through dividends, which makes MED one of the best dividend stocks on our list. Medifast, Inc. (NYSE:MED) has been raising its dividends for eight consecutive years and it currently offers a quarterly dividend of $1.65 per share. As of November 28, the stock has a dividend yield of 10.16%. In addition to MED, analysts are also paying attention to Verizon Communications Inc. (NYSE:VZ), Altria Group, Inc. (NYSE:MO), and Pfizer Inc. (NYSE:PFE). At the end of Q3 2023, 20 hedge funds owned stakes in Medifast, Inc. (NYSE:MED), up from 18 in the previous quarter, as per Insider Monkey’s database. Their collective stake value is more than $56 million. Ken Griffin’s Citadel Investment Group was the largest stakeholder of the company in Q3. Click to continue reading and see 5 Very High Yield Dividend Stocks With Upside Potential.  Suggested articles: 13 Best Nancy Pelosi Stocks To Buy Now 11 Best Infrastructure Stocks to Buy Now 11 Best Stocks to Buy for Good Returns Disclosure. None. 12 Very High Yield Dividend Stocks With Upside Potential is originally published on Insider Monkey......»»

Category: topSource: insidermonkeyNov 28th, 2023

She bought a house without using a realtor. Did you?

The vast majority of Americans use a realtor to buy a home — but Diem Nguyen went it alone. It might have saved her a little cash, but it can be risky. About 12% of homebuyers in 2023 did not use a real-estate agent.xavierarnau/Getty ImagesDiem Nguyen recently bought a home near San Francisco without using a real-estate broker.She is in the minority: More than 85% of American homebuyers this year used an agent.Buying without a realtor might save you a little cash, but it can be risky for inexperienced buyers.In October, Diem Nguyen bought a home in the San Francisco Bay Area for $1.6 million — without a realtor.The 36-year-old tech worker used Aalto, a home-buying and selling website that looks at first glance like Zillow or Redfin. House hunters can browse on-the-market and off-market homes in certain parts of California, see market data, and even submit offers.The best part: Buyers get up to 1.5% of the purchase price as cash back — for Nguyen, $24,000 — to cover their closing costs, buy down their interest rate, or increase their offer price, according to Aalto's website.Because Nguyen had bought a home in the same area in 2021, as well as other investment properties in the Midwest, she and her partner decided they didn't need the additional hand-holding a broker provides."We didn't need a lot of guidance with bidding or the discovery process this time," Nguyen told Business Insider.But Nguyen is in the minority. About 88% of homebuyers this year used a real-estate agent, Zillow found. Most buyers use a realtor because it's relatively risk-free. First, there's no cost to them: Sellers tend to pay 4% to 6% of the purchase price to their broker, who splits the commission with the buyer's agent. Second, new or inexperienced buyers may benefit from the guidance a veteran realtor can offer, from referrals to mortgage lenders to help discerning whether an asking price is outrageously high or suspiciously low.If nothing else, working with an expert can quell the anxiety that comes along with buying a home.But now a slate of class-action lawsuits against the country's biggest professional organization for real-estate agents and several brokerages — accusing them of conspiring to keep home prices, and their own commissions, high — might alter how, and how much, agents are paid. The suits could also result in more buyers and sellers opting to forgo a broker for their transactions.Here's the story of one person who did it, and a summary of the pros, cons, and risks.Have you bought a home without a real-estate agent? Email reporter Jordan Pandy at with your story.Buying a home without a realtor has pros and consNguyen said she felt confident navigating Northern California's housing market because she had done it once before."We're very comfortable with the Bay Area," she said. "We have friends who own houses in the Bay, too, so we know roughly what to expect."The cash back Aalto offered was another incentive for Nguyen to forge ahead without a broker. (Aalto does have a team of real-estate agents working behind the scenes, but they are salaried rather than paid by commission. Aalto makes money by charging sellers a fee of 1% of the purchase price of their home.)Buyers passing up a realtor sometimes do so because they believe they'll pay less for the home, according to a blog post from lender Rocket Mortgage. The sellers, they believe, will save money on the commissions they'd otherwise pay to the agents, and either come down during negotiations over the price of the home or pass that savings onto buyers in other ways.But as real-estate and personal-finance experts Ilyce Glink and Samuel J. Tamkin wrote in the Washington Post in 2020, buyers working without a broker may overpay, buy the wrong home, glean incorrect information when relying solely on Googling, or skip an inspection.Real-estate agents do more than just find a home on Zillow, Glink and Tamkin said in the Sarasota Herald-Tribune: They can help answer questions about the market and paint a fuller picture of the property you plan to buy.For Nguyen, choosing to buy without broker representation ended well for her, but it might not for everyone. She prefers newer homes, which tend to come with fewer maintenance issues and costs."If I am really into a unique older home, I might look for a good traditional agent who would be able to give us way more advice," Nguyen said. "I think it depends on the buyer."Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 28th, 2023

How to make your money work for you over the next decade

Nine investors and financial planners share their best investing and personal finance tips for the 2020s. Liam Eisenberg for Business InsiderUnlike the 2010s, expect higher interest rates, persistent inflation, and tight job markets in the 2020s.Experts say diversification, mid-cap stocks, and bonds offer opportunities in these conditions.Quality companies with strong management teams and competitive advantages will likely outperform.Few strategists expect the next decade to look anything like the pre-pandemic economy.The recovery from the financial crisis was defined by near-zero interest rates, minimal inflation, excess labor, and efficient global trade.By contrast, the economy of the 2020s will likely be defined by higher rates, persistent inflation, and a tight jobs market, said Peter Bates, the global select equity strategy portfolio manager at T. Rowe Price.Business Insider spoke with nine professional investors, strategists, and financial planners to hear how the next decade will differ from the last 10 years — and how people can make the most of it, both through investing and by better managing their personal finances.A new market regime requires a strategy switchIn all likelihood, the next decade will look nothing like the 2010s, said Damanick Dantes, a global markets portfolio strategist at Global X. Investors will have to contend with tight financial conditions for years instead of low interest rates and quantitative easing (QE)."We're definitely entering a new regime," Dantes said. He added: "You're not going to get the same returns that you got out of a Covid situation or what you got when rates were artificially suppressed for a very long time, QE-driven era. Now we're entering a tighter era where rates were structurally higher than normal. So a higher base rate means that your expected returns would be lower than what you've been accustomed to."But even in a tougher backdrop, Dantes sees opportunities for investors. International equities have stable dividends and enticing valuations that could help them outperform in the next few years, the strategist said. He's also bullish on infrastructure stocks as the US invests heavily in that area and as companies move their supply chains back home to reduce political risk.This economic environment reminds fund manager Matt McLennan of the late 1960s and early '70s. Back then, low interest rates gave way to rampant inflation that was only extinguished by drastic, valuation-crushing rate hikes. International stocks topped their US counterparts back then, McLennan said, adding that defensive, safe-haven assets like gold also excelled."If there is a regime shift, then what has worked could be quite different from what does work," McLennan said.Quality companies at a reasonable price will outperformMcLennan is positioning for a new backdrop through the First Eagle Global Fund (SGENX), which he runs with co-manager Kimball Brooker. The fund has outperformed 89% of its peers in the last 15 years, according to Morningstar, rising an average of 9.3% per year in that span.The two stick to their investing strategy, which centers around finding leading companies with sizable profit margins, strong management teams, and tangible competitive advantages."Our focus is to find businesses that are stable and cash-flow generative that become available at a reasonable price," McLennan told Business Insider at First Eagle Investments' 2024 outlook conference. "And we're willing to commit capital to that business for the next decade or next couple of years, depending on the situation."While McLennan doesn't make market calls, he's keeping a close eye on long-term shifts in the market backdrop. The 32-year market veteran, formerly of Goldman Sachs Asset Management, expects interest rates to stay higher for longer instead of returning to pre-pandemic levels. That means the growth stocks that dominated for years may come back to earth in the mid-2020s."If we're in a window where the cost of capital is normalizing higher, then I just would say that it makes sense, to me, to pay attention to valuation in your investing," McLennan said. "The biggest victims of an increase in the cost of capital are the longest-duration growth stories."Don't dismiss mid caps in the mid-2020sNicola Stafford, who runs the Fidelity Mid-Cap Stock Fund (FMCSX), is also preparing her portfolio for stickier inflation and persistently high interest rates."That era seems to be over," Stafford said of the low-interest-rate backdrop. "It's a complete shift from my 20 years of investing."Stafford focuses on mid-cap companies since they have more room for growth than large caps and are often more resilient than small caps due to their proven management teams."They're a little more off the radar," Stafford said of mid caps. "I think it's just kind of an interesting hunting ground for growth, for compounding over time and for really developing an edge versus the market, which is the basis of active management."Instead of chasing the next quarter, Stafford said she spends most of her time thinking about the long-term earnings power of a company."By long-term, I mean three to five years out," Stafford said. "The market's not thinking about what's happening in three years — they're thinking about what's happening in three months."There's plenty of hype about innovation in the healthcare and technology sectors, Stafford said, but she thinks it's justified. Although she didn't cite individual names she's bullish on, the second-largest holding in her fund is managed care firm Molina Healthcare (MOH).Bates, the T. Rowe Price portfolio manager, also likes healthcare companies due to their solid long-term demand prospects. He also recommends that investors diversify away from growth stocks that thrived under low rates and instead broaden out to value-oriented names.Examples of popular exchange-traded funds (ETFs) tied to value and healthcare stocks include the Vanguard Value ETF (VTV), the iShares Russell 1000 Value ETF (IWD), the Health Care Select Sector SPDR Fund (XLV), and the iShares Global Healthcare ETF (IXJ).Pricey US stocks make diversification a top priorityVarious valuation measures show that US stocks are richly valued. The Shiller Cyclically Adjusted Price-to-Earnings (CAPE) ratio is 30.7, which is around levels seen during the height of the dot-com bubble.Over the long-term, high valuations typically lead to poor returns. Valuations explain 80% of a stock's returns over a decade, according to Bank of America.Cole Smead, who co-manages the Smead Value Fund (SMVLX) that's beaten 98% of similar funds over the last 10 years, says there's a high chance the S&P 500 delivers negative returns over the next decade.There are two valuation metrics he points to: the percentage of household assets that are held in equities being near all-time highs, and the equity risk premium, or ERP, which is the expected excess return of the S&P 500 over risk-free Treasuries. Right now, the ERP is barely positive, while the long-term average is about 3%, according to Comerica Wealth Management.Phillip Colmar, a global strategist at MRB Partners, also believes returns for the S&P 500 over the long-term will be lackluster given higher valuations. Over the next 10 years, his firm sees US stocks having a compound annual growth rate of around 1%, while non-US stocks will grow at around 4% per year.All that said, US stocks have vastly outperformed the rest of the world over the last several years, and US stocks have tended to trade at higher valuations.Smead sees energy in stocks in Canada also outperforming in the coming decade, as well as European banks.Colmar likes European financials stocks, too. He thinks the euro — and by extension European banks — will benefit from weakness in the Canadian housing market and the Canadian dollar."When the house prices go down, households end up having to repair their balance sheets, like they did in the United States, then you end up with very weak growth, you end up with a backlash on the financial system, and so financial stocks become your short opportunity," Colmar said. He said having exposure to European financials stocks is one way to benefit from that downside without taking on the risk of shorting Canadian financials stocks.Colmar also recommends euro-area stocks as a whole (ex-UK), given that valuations there are low relative to the US. The iShares MSCI Eurozone ETF (EZU) and the iShares MSCI Europe Financials ETF (EUFN) are two ways to gain exposure to the above trades.All that said, US stocks have vastly outperformed the rest of the world over the last several years, and US stocks have tended to trade at higher valuations.Look under the surface in the USWhile some believe the broad US stock indexes will underperform, there are still opportunities within the market.Bob Doll, the chief investment officer at Crossmark Global Investments and the former chief US equity strategist at BlackRock, thinks that growth-oriented areas of the market are where investors will find the best returns."Typically, the ones who produce more earnings growth over a 10-year period outperform, and I don't know why that wouldn't be the case again — which takes me to technology, the higher growth end of healthcare and consumer discretionary," Doll said.Meanwhile, Smead believes capital will flow into two industries he thinks are widely seen as outdated and unloved: banking and energy. Both have underperformed over the last decade. Since November 2013, the Energy Select Sector SPDR Fund (XLE) is down 4%, while the SPDR S&P Bank ETF (KBE) is up just 25% over that time."Those are those old fuddy-duddy industries, you know, the ones that should be replaced by fintech and renewable energy," Smead said. "I think we're finding out really quickly that renewable energy is finding a crucifixion in stock markets, and I don't think fintech has changed the banking world in the slightest."Bonds offer opportunitiesOutside of stocks, Dantes of Global X said fixed income is intriguing after a massive multi-year selloff in Treasuries that followed a decade-long bull market. Yields are the highest they've been since before the financial crisis, and Dantes is confident that bond returns will beat cash."You definitely want to be actively involved in the market, knowing that you're not entering an early-cycle environment that's after a recession when you get the really juicy returns," Dantes said of fixed income. "You're still in a late-cycle environment."Dantes said other ways to earn income include the covered call options trading strategy or master limited partnerships (MLPs), which are companies with tax advantages that are often either tied to commodities or real estate.As rates remain high, stay invested and prioritize paying down debtRegardless of what happens in markets and the economy in the next decade, investors should follow time-tested strategies like dollar-cost averaging and taking advantage of 401(k) matching at work, said Michael Sheldon, the chief investment officer at RDM Financial Group.Dollar-cost averaging means investing smaller chunks of money periodically instead of attempting to time the market. Those who dollar-cost average in a 401(k) plan enjoy tax benefits and also often receive additional contributions from their employer through a matching program."Markets are going to have their ups and downs over time, but we also know, importantly, that equity markets over the decades have proven to be the best way for investors to create wealth in financial markets," said Sheldon, who's also a Certified Financial Planner (CFP).Investing early and often is especially vital since Sheldon said there's a serious chance that the US won't be able to fully fund programs like Social Security in the next decade."Given the uncertainty of where Social Security is, that just means that younger adults — unfortunately — need to save as much as they can for future retirement," Sheldon said.However, investing and saving shouldn't preclude people from paying down debt, Sheldon said — especially in an era of higher-for-longer interest rates. Borrowing costs on everything from credit cards to cars to houses will likely be elevated in the next decade, so Sheldon advises reducing debt as soon as possible, starting with whatever has the highest interest rate.Invest with taxes in mindChris Chen, the founder of Insight Financial Strategists and a CFP, believes investors with a long-term horizon should consider direct indexing. This means instead of buying an index fund like the SPDR S&P 500 ETF Trust (SPY), one buys the stocks that make it up individually.The main advantage of doing this is to reduce the tax burden of gains the portfolio makes, Chen said. One can lock in positive returns of individual stocks without paying taxes on the gains by selling other individual stocks that happen to be down at the time. Investors can then immediately buy back the stocks they sold at a gain, and can do the same for the down stocks after a 30-day waiting period. This process can then be repeated as desired.Another long-term tax strategy Chen recommended is investing in more growth-oriented assets through a Roth IRA, which is taxed upfront. Meanwhile, one can invest in more stable assets like bonds through a traditional IRA, where gains are taxed upon withdrawal.This is because growth-oriented assets will tend to deliver higher returns over the long-term than bonds will, making it more advantageous to let them grow tax-free in a Roth IRA and avoid future taxes on substantial returns. Bonds will tend to produce less impressive returns, so it's better to have them taxed on the back end.This makes most sense if you're able to fill both accounts on a yearly basis. The maximum yearly contribution in 2024 for both traditional and Roth IRAs is $7,000. For people over the age of 50, it's $8,000.Read the original article on Business Insider.....»»

Category: personnelSource: nytNov 28th, 2023

The Most Vegan and Vegetarian-Friendly Cities of 2023

An estimated 15.5 million American adults identify as vegetarian or vegan, and many more have been consciously trying to reduce their meat consumption – whether through observing “meatless Mondays” or just making animal protein a smaller part of their daily diet – and patronizing restaurants with plant-forward menus. (These are the most popular plant-based protein […] The post The Most Vegan and Vegetarian-Friendly Cities of 2023 appeared first on 24/7 Wall St.. An estimated 15.5 million American adults identify as vegetarian or vegan, and many more have been consciously trying to reduce their meat consumption – whether through observing “meatless Mondays” or just making animal protein a smaller part of their daily diet – and patronizing restaurants with plant-forward menus. (These are the most popular plant-based protein sources in America.) As an illustration of how far the trend has gone, one of the most highly rated restaurants in America, Eleven Madison Park in New York City – holder of a coveted three-star rating from the Guide Michelin – went 100% plant-based, using no animal products at all for its elegant multi-course menus, priced from $195 to $365 per person. Of course there’s no need to go to fancy restaurants for vegetarian or vegan fare. Restaurants specializing in Asian cuisines are often easy for the vegan or vegetarian to navigate. Food sites and social media platforms regularly feature meatless recipes. Smoothie shops cater to the animal-product-adverse. Farmers markets – great sources of fresh fruit and vegetables – have proliferated around the country (the USDA reports that there were 1,755 in 1994, growing to 8,771 in 2019).  Of course some places do a better job with this than others. To compile a list of 2023’s best cities for vegans and vegetarians, 24/7 Tempo reviewed a study on the subject published by WalletHub, a personal finance company. The site drew on a variety of governmental and non-governmental sources – including the U.S. Census Bureau, the USDA Organic INTEGRITY Database, Feeding America,, and GrubHub – to rank the 100 largest U.S. cities on 17 differently weighted metrics across three categories. The categories considered were: affordability (including the cost of groceries for vegetarians and the availability of affordable highly rated restaurants offering vegan and vegetarian options); diversity, accessibility, and quality (share of restaurants serving vegan and vegetarian fare, farmers markets, vegetarian cooking classes, etc.); and vegetarian lifestyle (availability of appropriate festivals and meetup opportunities, vegetable and fruit consumption, and ranking on GrubHub’s list of cities most likely to order vegetarian or vegan).  Perhaps not surprisingly, famously health-conscious (and trend-conscious) California is well-represented on the list, with eight of the 40 cities listed. Other Western states are present, too, with Oregon, Washington, Colorado, Nevada, and Idaho each appearing once and Arizona, putting in six appearances. (Click here to see every state’s vegan obsession ranked.) Here is the list of 2023’s best cities for vegans and vegetarians. 40. Riverside, California > Affordability:58/100 > Diversity, accessibility, and quality:22/100 > Vegetarian lifestyle: 72/100 > Overall score:45.18 39. Fresno, California > Affordability:62/100 > Diversity, accessibility, and quality:30/100 > Vegetarian lifestyle: 96/100 > Overall score:45.43 38. San Antonio, Texas > Affordability:17/100 > Diversity, accessibility, and quality:46/100 > Vegetarian lifestyle: 90/100 > Overall score:45.59 37. Chandler, Arizona > Affordability:50/100 > Diversity, accessibility, and quality:32/100 > Vegetarian lifestyle: 63/100 > Overall score:45.68 36. Gilbert, Arizona > Affordability:43/100 > Diversity, accessibility, and quality:38/100 > Vegetarian lifestyle: 62/100 > Overall score:45.79 35. Mesa, Arizona > Affordability:32/100 > Diversity, accessibility, and quality:35/100 > Vegetarian lifestyle: 73/100 > Overall score:46.53 34. Boise, Idaho > Affordability:37/100 > Diversity, accessibility, and quality:25/100 > Vegetarian lifestyle: 68/100 > Overall score:47.04 33. Plano, Texas > Affordability:31/100 > Diversity, accessibility, and quality:55/100 > Vegetarian lifestyle: 54/100 > Overall score:47.38 32. New York, New York > Affordability:79/100 > Diversity, accessibility, and quality:8/100 > Vegetarian lifestyle: 33/100 > Overall score:47.47   31. Tucson, Arizona > Affordability:42/100 > Diversity, accessibility, and quality:21/100 > Vegetarian lifestyle: 95/100 > Overall score:47.53 30. Bakersfield, California > Affordability:36/100 > Diversity, accessibility, and quality:37/100 > Vegetarian lifestyle: 96/100 > Overall score:47.54   29. Cincinnati, Ohio > Affordability:30/100 > Diversity, accessibility, and quality:28/100 > Vegetarian lifestyle: 75/100 > Overall score:47.63 28. Sacramento, California > Affordability:53/100 > Diversity, accessibility, and quality:23/100 > Vegetarian lifestyle: 53/100 > Overall score:47.66 27. Birmingham, Alabama > Affordability:35/100 > Diversity, accessibility, and quality:24/100 > Vegetarian lifestyle: 84/100 > Overall score:47.71   26. Madison, Wisconsin > Affordability:76/100 > Diversity, accessibility, and quality:20/100 > Vegetarian lifestyle: 7/100 > Overall score:48 25. Dallas, Texas > Affordability:27/100 > Diversity, accessibility, and quality:33/100 > Vegetarian lifestyle: 24/100 > Overall score:48.02   24. Houston, Texas > Affordability:7/100 > Diversity, accessibility, and quality:53/100 > Vegetarian lifestyle: 35/100 > Overall score:48.51 23. Lubbock, Texas > Affordability:16/100 > Diversity, accessibility, and quality:71/100 > Vegetarian lifestyle:96/100 > Overall score:48.78 22. Scottsdale, Arizona > Affordability:43/100 > Diversity, accessibility, and quality:12/100 > Vegetarian lifestyle:36/100 > Overall score:48.97   21. Denver, Colorado > Affordability:45/100 > Diversity, accessibility, and quality:10/100 > Vegetarian lifestyle:61/100 > Overall score:49.76 20. St. Louis, Missouri > Affordability:55/100 > Diversity, accessibility, and quality:19/100 > Vegetarian lifestyle:67/100 > Overall score:49.78   19. Atlanta, Georgia > Affordability:41/100 > Diversity, accessibility, and quality:18/100 > Vegetarian lifestyle:19/100 > Overall score:50.15 18. Irving, Texas > Affordability:14/100 > Diversity, accessibility, and quality:64/100 > Vegetarian lifestyle:52/100 > Overall score:50.74 17. Washington, D.C. > Affordability:88/100 > Diversity, accessibility, and quality:9/100 > Vegetarian lifestyle:6/100 > Overall score:51.15   16. Fort Wayne, Indiana > Affordability:3/100 > Diversity, accessibility, and quality:81/100 > Vegetarian lifestyle:66/100 > Overall score:51.21 15. Louisville/Jefferson County, Kentucky > Affordability:24/100 > Diversity, accessibility, and quality:39/100 > Vegetarian lifestyle:57/100 > Overall score:52.06   14. Chicago, Illinois > Affordability:21/100 > Diversity, accessibility, and quality:26/100 > Vegetarian lifestyle:17/100 > Overall score:52.14 13. Las Vegas, Nevada > Affordability:18/100 > Diversity, accessibility, and quality:17/100 > Vegetarian lifestyle:31/100 > Overall score:52.36 12. Tampa, Florida > Affordability:61/100 > Diversity, accessibility, and quality:7/100 > Vegetarian lifestyle:10/100 > Overall score:53.05   11. Lexington-Fayette, Kentucky > Affordability:20/100 > Diversity, accessibility, and quality:59/100 > Vegetarian lifestyle:45/100 > Overall score:53.63 10. Oakland, California > Affordability:97/100 > Diversity, accessibility, and quality:16/100 > Vegetarian lifestyle:9/100 > Overall score:53.71   9. Austin, Texas > Affordability:9/100 > Diversity, accessibility, and quality:14/100 > Vegetarian lifestyle:41/100 > Overall score:53.78 8. Miami, Florida > Affordability:87/100 > Diversity, accessibility, and quality:2/100 > Vegetarian lifestyle:49/100 > Overall score:54.8 7. Seattle, Washington > Affordability:86/100 > Diversity, accessibility, and quality:4/100 > Vegetarian lifestyle:4/100 > Overall score:56.01   6. San Francisco, California > Affordability:99/100 > Diversity, accessibility, and quality:1/100 > Vegetarian lifestyle:1/100 > Overall score:56.25 5. Phoenix, Arizona > Affordability:10/100 > Diversity, accessibility, and quality:11/100 > Vegetarian lifestyle:78/100 > Overall score:56.43   4. San Diego, California > Affordability:25/100 > Diversity, accessibility, and quality:5/100 > Vegetarian lifestyle:27/100 > Overall score:57.45 3. Orlando, Florida > Affordability:40/100 > Diversity, accessibility, and quality:3/100 > Vegetarian lifestyle:13/100 > Overall score:59.16 2. Los Angeles, California > Affordability:13/100 > Diversity, accessibility, and quality:15/100 > Vegetarian lifestyle:5/100 > Overall score:61.24   1. Portland, Oregon > Affordability:29/100 > Diversity, accessibility, and quality:6/100 > Vegetarian lifestyle:8/100 > Overall score:61.38 Sponsored: Tips for Investing A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit. The post The Most Vegan and Vegetarian-Friendly Cities of 2023 appeared first on 24/7 Wall St.......»»

Category: blogSource: 247wallstNov 27th, 2023

12 Best Value Stocks To Buy According To Warren Buffett

In this piece, we will take a look at the 12 best value stocks to buy according to Warren Buffett. If you want to skip our overview of Mr. Buffet and how value investing is an integral part of his financial journey then take a look at 5 Best Value Stocks To Buy According To […] In this piece, we will take a look at the 12 best value stocks to buy according to Warren Buffett. If you want to skip our overview of Mr. Buffet and how value investing is an integral part of his financial journey then take a look at 5 Best Value Stocks To Buy According To Warren Buffett. For most people, investing often appears to be a black box. This was even truer before the current computing era that has placed copious amounts of financial and non financial information at everyone’s fingertips. Buying a stock came with a variety of risks, and to mitigate these, a deeper understanding of the fundamentals was needed to avoid hefty losses. After all, there is no stop gap to a share price which can rapidly drop and erase all principal in the blink of an eye. Yet, the finance industry is among the few that can truly transform an individual from rags to riches. The American Dream, for most parts, revolves around a stable source of income and a house – and as alluring and indispensable as this is, it is unlikely to make most people into overnight millionaires. With the financial sector, a couple of bets can transform anyone’s life in ways previously thought unimaginable. One of the biggest ways through which anyone can profit from the stock market is through share price appreciation. Just like there is no downward stop gap to how low stock can go, there’s no upper bar, either. For instance, consider two stocks that everyone knows, Meta Platforms, Inc. (NASDAQ:META) and NVIDIA Corporation (NASDAQ:NVDA). Meta’s shares have more than doubled this year, as they opened 2023 at $124 and are now currently trading at $341. For the average retail investor with a total savings of $2,000, even if half of these had been invested into Meta at the start of 2023, it would have doubled for a generous return. For the more established folks, investing $10,000 in the shares would definitely have made investing worth its while. Similarly, NVIDIA’s shares have more than tripled this year, so our hypothetical retail investor could have made more money than their savings by simply investing half of the savings in a single stock. At the heart of making money through share price appreciation is an approach called value investing. For the uninitiated, it involves determining the fair value of a stock and then checking the market price to see whether it’s lower or higher. If the market price is lower, then a buying decision is made based on a metric called the margin of safety. Since a value investing decision bases its buying decision on the assumption that the market value will match the fair value at some point in the future, the lower the market price, the higher the margin of safety is. Warren Buffett is one of the strictest adherents of value investing, as is evident by his firm’s investment portfolio. When compared to most of the hotshot hedge funds in the market, Berkshire Hathaway buys shares and then forgets about them – most of the time. Its most successful stock picks have delivered spectacular returns simply through long term share price appreciation. For instance, we took a look at Warren Buffett’s 12 Longest Held Stocks and discovered that his three longest held shares are those of Express Company (NYSE:AXP), The Coca-Cola Company (NYSE:KO), and Moody’s Corporation (NYSE:MCO), and his first major purchases were more than two decades back – or when most of Gen Z wasn’t born. Now, Berkshire’s investment portfolio is worth $313 billion and Mr. Buffett is a centi-billionaire, in a simple and effective demonstration of the potential of value investing. Today, we’ll look at some of Warren Buffett’s top value stock picks and some notable names are T-Mobile US, Inc. (NASDAQ:TMUS), Bank of America Corporation (NYSE:BAC), and Citigroup Inc. (NYSE:C). Our Methodology To compile our list of Warren Buffett’s best value stocks, we first ranked his firm’s latest stock picks by their price to trailing earnings ratio. Then, the top 20 with the lowest P/E ratios were ranked by the number of hedge fund investors that had bought them as of Q3 2023 out of which the top stocks were chosen as the best value stocks that Warren Buffett is buying. Best Value Stocks To Buy According To Warren Buffett 12. HP Inc. (NYSE:HPQ) Berkshire Hathaway’s Q3 2023 Investment Value: $2.6 billion Latest P/E Ratio: 12.3 Number of Q3 2023 Hedge Fund Investors: 44 HP Inc. (NYSE:HPQ) is the personal computing business division of HP, one of Silicon Valley’s oldest technology companies. Its shares dropped in late November after the firm’s third quarter earnings report outlined that personal computing sales dropped during the quarter. By the end of September 2023, 44 out of the 910 hedge funds profiled by Insider Monkey had held a stake in HP Inc. (NYSE:HPQ). Warren Buffett’s Berkshire Hathaway owns the biggest stake among these which is worth $2.6 billion. Along with Bank of America Corporation (NYSE:BAC), T-Mobile US, Inc. (NASDAQ:TMUS), and Citigroup Inc. (NYSE:C), HP Inc. (NYSE:HPQ) is a value stock that Warren Buffett and hedge funds are piling into. 11. The Liberty SiriusXM Group (NASDAQ:LSXMA) Berkshire Hathaway’s Q3 2023 Investment Value: $1.1 billion Latest P/E Ratio: 10.29 Number of Q3 2023 Hedge Fund Investors: 48 The Liberty SiriusXM Group (NASDAQ:LSXMA) is a media and entertainment company that operates radio stations and podcasts. Its shares are rated Strong Buy on average and analysts have set an average share price target of $36.21. As of Q3 2023 end, 48 out of the 910 hedge funds polled by Insider Monkey were the firm’s investors. The Liberty SiriusXM Group (NASDAQ:LSXMA) ‘s largest investor in our database is Warren Buffett’s Berkshire Hathaway as it owns $1.1 billion worth of shares. 10. Capital One Financial Corporation (NYSE:COF) Berkshire Hathaway’s Q3 2023 Investment Value: $1.2 billion Latest P/E Ratio: 8 Number of Q3 2023 Hedge Fund Investors: 49 Capital One Financial Corporation (NYSE:COF) is a banking, loan, and credit services provider. The firm is facing a lot of heat from customers these days, who allege in a lawsuit that it misled them about the interest rate for savings accounts which led to significantly lower interest payouts than would be possible. During this year’s third quarter, 49 out of the 910 hedge funds profiled by Insider Monkey had bought and owned Capital One Financial Corporation (NYSE:COF)’s shares. Natixis Global Asset Management’s Harris Associates was the firm’s biggest shareholder due to its $1.8 billion stake. 9. Lennar Corporation (NYSE:LEN) Berkshire Hathaway’s Q3 2023 Investment Value: $1.5 million Latest P/E Ratio: 9.45 Number of Q3 2023 Hedge Fund Investors: 63 Lennar Corporation (NYSE:LEN) is a home building company that is one of the largest of its kind in the U.S. 2023 has been a tumultuous year for the company, as while it performed well during the first year due to margins accumulated during the COVID era, right now high mortgages are taking a bite out of home demand. Insider Monkey scoured through 910 hedge funds for their September quarter of 2023 shareholdings and found that 63 were the firm’s shareholders. Lennar Corporation (NYSE:LEN)’s largest investor among these is Edgar Wachenheim’s Greenhaven Associates through its $1 billion investment. 8. D.R. Horton, Inc. (NYSE:DHI) Berkshire Hathaway’s Q3 2023 Investment Value: $641 million Latest P/E Ratio: 9.19 Number of Q3 2023 Hedge Fund Investors: 64 D.R. Horton, Inc. (NYSE:DHI) is another home building company and one that serves the needs of more than a hundred markets. The firm has done well on the financial front as of late since it has beaten analyst EPS estimates in all four of its latest quarters. By the end of this year’s third quarter, 64 out of the 910 hedge funds surveyed by Insider Monkey had invested in D.R. Horton, Inc. (NYSE:DHI). Warren Buffett’s Berkshire Hathaway owned the biggest stake among these which was worth $641 million and came via 5.9 million shares. 7. Chevron Corporation (NYSE:CVX) Berkshire Hathaway’s Q3 2023 Investment Value: $18.5 billion Latest P/E Ratio: 10.71 Number of Q3 2023 Hedge Fund Investors: 72 Chevron Corporation (NYSE:CVX) is a petro giant with a global production base. The firm was in a bit of trouble in Australia in November 2023 after an LNG production line shut down. However, Chevron Corporation (NYSE:CVX) resolved the problem which it claimed was due to an electrical failure. During this 2023’s September quarter, 72 out of the 910 hedge funds part of Insider Monkey’s database were the firm’s shareholders. Chevron Corporation (NYSE:CVX)’s largest investor is Warren Buffett’s Berkshire Hathaway due to its $18.5 billion stake. 6. Charter Communications, Inc. (NASDAQ:CHTR) Berkshire Hathaway’s Q3 2023 Investment Value: $1.6 billion Latest P/E Ratio: 13.23 Number of Q3 2023 Hedge Fund Investors: 73 Charter Communications, Inc. (NASDAQ:CHTR) is a broadband and communications company headquartered in Stamford, Connecticut. Its shares are rated Buy on average and analysts have set an average share price target of $471. 73 out of the 910 hedge funds profiled by Insider Monkey had bought Charter Communications, Inc. (NASDAQ:CHTR)’s shares in Q3 2023. Along with T-Mobile US, Inc. (NASDAQ:TMUS), Bank of America Corporation (NYSE:BAC), and Citigroup Inc. (NYSE:C), it is a Warren Buffett value stock to buy according to hedge funds.   Click here to continue reading and check out 5 Best Value Stocks To Buy According To Warren Buffett.   Suggested articles: Billionaire Leon Cooperman’s Long-Term Stock Picks 15 Best Income Stocks To Invest In Philippe Laffont Stock Portfolio: 10 Top Stock Picks Disclosure: None. 12 Best Value Stocks To Buy According To Warren Buffett is originally published on Insider Monkey......»»

Category: topSource: insidermonkeyNov 27th, 2023

13 Cheap Value Stocks To Buy According To Warren Buffett

In this piece, we will take a look at the 13 cheap value stocks to buy according to Warren Buffett. If you want to skip our introduction to the most successful investor of our age and recent stock market indicators, then take a look at the 5 Cheap Value Stocks To Buy According To Warren […] In this piece, we will take a look at the 13 cheap value stocks to buy according to Warren Buffett. If you want to skip our introduction to the most successful investor of our age and recent stock market indicators, then take a look at the 5 Cheap Value Stocks To Buy According To Warren Buffett. Warren Buffett is one of the richest people in the world, and the only finance professional who is part of the coveted centi-billionaire club. Billionaires with a net worth greater than $100 billion are typically industry tycoons who have amassed their wealth by building big businesses that target fashion, technology, electric vehicles, social media, retail, or other lucrative industries. On the flip side, the finance and investing world is typically dominated by either big banks such as JPMorgan Chase & Co. (NYSE:JPM) and The Goldman Sachs Group, Inc. (NYSE:GS), or hedge funds such as Ken Fisher’s Fisher Investments or Ken Griffin’s Citadel Group. Since big banks were formed years ago, their founders are now dead and therefore cannot benefit from a centi-billionaire status through their shareholdings. Similarly, while big hedge fund bosses see their firms rake in billions of dollars each year, their profits cannot scale to the level of say Apple, Inc. (NASDAQ:AAPL), and the structure of most hedge funds, even those that are publicly traded, prevents behemoth valuations to make their owners ultra, ultra rich. If you’re interested in knowing how much money hedge funds make, you can check out 20 Highest Paid Hedge Fund Managers of All Time. Warren Buffet, therefore, is an outlier. This is because his firm, Berkshire Hathaway, is not structured like a hedge fund. Instead, Berkshire is an investment holding company that dabbles in both public and private businesses. Its investment strategy, which sees Berkshire either outright buy most businesses or selectively take large stakes in mostly dividend paying firms, allows its revenue to match big tech giants more instead of hedge funds. This is because by buying businesses, Berkshire is entitled to a slice of their profits, and no matter how many big bets Ken Griffin makes on the stock market, revenue from a well oiled large business like the ones Mr. Buffett invests in is likely to surpass a hedge funds income from fund fee and returns. Digging deeper, Berkshire’s income statement for the third quarter of this year shows that during the quarter, the firm raked in a cool $93.2 billion in revenue. Within these sales figures, a mere $4 billion came from interest, dividends, and other financial activities. Instead, the majority of Berkshire Hathaway’s third quarter revenue came from its insurance business and its freight, utility, and energy operations. Yet, despite the fact that Mr. Buffett’s firm earns most of its money through business activities rather than making trades like hedge funds, he is still thought to be the greatest investor of our time. Considering this, one might wonder, what makes Warren Buffett the Oracle of Omaha? The answer is quite simple really. Mr. Buffet has somehow nearly perfected the art of picking out a select few companies that are able to post remarkable share price growth and pay dividends out of the thousands that trade on the stock market. To see how the Oracle thinks differently, consider the shares of The Coca-Cola Company (NYSE:KO). Warren Buffett bought the shares in 1998, and what else was happening back then? It was the dot com era when most people were buying attractive technology stocks. But the Oracle was buying the shares of a sugary beverage firm, and while the bubble popped, Mr. Buffett became one of the richest people in the world. At the heart of his investing approach is what is dubbed Value Investing. Simply put, this involves an investor determining the fair value of a stock and then comparing it to the market price to see if it’s higher. If it is, then a buying decision is made based on the potential of the share price falling. Since the fair value of these stocks is higher than the market value, they often have low P/E ratios as well. Today, we’ll take a look at some cheap value stocks to buy according to Warren Buffett. Some top picks are Liberty Latin America Ltd. (NASDAQ:LILA), Sirius XM Holdings Inc. (NASDAQ:SIRI), and StoneCo Ltd. (NASDAQ:STNE). 16 Billionaires Who Live Like Regular People Our Methodology To compile our list of the cheap value stocks to buy according to Warren Buffett, we first ranked all of his firm’s third quarter stock holdings by their price to trailing earnings ratio. Then, the top 30 stocks were ranked by their share price to pick out Warren Buffett’s best cheap value stock buys.  Cheap Value Stocks To Buy According To Warren Buffett 13. Occidental Petroleum Corporation (NYSE:OXY) Berkshire Hathaway’s Q3 2023 Investment Value: $14.5 billion Latest P/E Ratio: 13.12 Latest Share Price: $60.16 Occidental Petroleum Corporation (NYSE:OXY) is an American oil and gas exploration and production firm headquartered in Houston, Texas. The firm’s third quarter of 2023 earnings report saw it beat analyst EPS estimates of $1 by posting $1.18 for the metric on the back of higher output. As of Q3 2023 end, 75 out of the 910 hedge funds profiled by Insider Monkey had bought and owned Occidental Petroleum Corporation (NYSE:OXY)’s shares. The firm’s biggest shareholder in our database is Warren Buffett’s Berkshire Hathaway as it owns $14.5 billion worth of shares. Along with Sirius XM Holdings Inc. (NASDAQ:SIRI), Liberty Latin America Ltd. (NASDAQ:LILA), and StoneCo Ltd. (NASDAQ:STNE), Occidental Petroleum Corporation (NYSE:OXY) is a top cheap stock that Warren Buffett is piling into. 12. The Coca-Cola Company (NYSE:KO) Berkshire Hathaway’s Q3 2023 Investment Value: $22.3 billion Latest P/E Ratio: 23.65 Latest Share Price: $58.57 The Coca-Cola Company (NYSE:KO) is a carbonated beverage company that is one of the largest of its kind in the world. It’s also one of Warren Buffett’s oldest stock picks, as he made his firm major purchase in 1998. During September 2023, 57 out of the 910 hedge funds surveyed by Insider Monkey had invested in the company. Warren Buffett’s Berkshire Hathaway is its largest shareholder through its $22.3 billion investment. 11. Citigroup Inc. (NYSE:C) Berkshire Hathaway’s Q3 2023 Investment Value: $2.27 billion Latest P/E Ratio: 7.15 Latest Share Price: $45.23 Citigroup Inc. (NYSE:C) is an American bank headquartered in New York City. Media reports suggest that the bank is interested in expanding its presence in the private credit market, to follow other giants such as Barclays and Wells Fargo. After sifting through 910 hedge fund holdings for their shareholdings during this year’s third quarter, Insider Monkey discovered that 79 were Citigroup Inc. (NYSE:C)’s shareholders. Out of these, the biggest investor was Berkshire Hathaway since it owned $2.2 billion worth of shares. 10. The Kroger Co. (NYSE:KR) Berkshire Hathaway’s Q3 2023 Investment Value: $2.23 billion Latest P/E Ratio: 19.56 Latest Share Price: $44.18 The Kroger Co. (NYSE:KR) is an American grocery retailer headquartered in Cincinnati, Ohio. The firm has beaten analyst EPS estimates in all four of its latest quarters and the shares are rated Buy on average with an average share price target of $50.16. Insider Monkey dug through 910 hedge fund portfolios for 2023’s September quarter to find out that 41 had bought the retailer’s shares. The Kroger Co. (NYSE:KR)’s largest hedge fund stakeholder is Warren Buffett’s Berkshire Hathaway due to its $2.2 billion stake. 9. Jefferies Financial Group Inc. (NYSE:JEF) Berkshire Hathaway’s Q3 2023 Investment Value: $15.8 million Latest P/E Ratio: 24.93 Latest Share Price: $35.04 Jefferies Financial Group Inc. (NYSE:JEF) is an investment banking and asset management company headquartered in New York City. Like Citigroup, it is also targeting the private credit industry and raised $2.1 billion for this in November 2023. During September 2023, 34 out of the 910 hedge funds polled by Insider Monkey had bought and owned Jefferies Financial Group Inc. (NYSE:JEF)’s shares. Out of these, the biggest investor was Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC as it owned 5.4 million shares that are worth $198 million. 8. The Kraft Heinz Company (NASDAQ:KHC) Berkshire Hathaway’s Q3 2023 Investment Value: $10.9 billion Latest P/E Ratio: 14.33 Latest Share Price: $34.94 The Kraft Heinz Company (NASDAQ:KHC) is a well known food brand that was set up in 1869. The firm’s investors were in for some great news in November 2023 after Bernstein upgraded its share price target to $40 and also upgraded the rating to Outperform from Perform. For their shareholdings during this year’s third quarter, 40 out of the 910 hedge funds surveyed by Insider Monkey had held a stake in the firm. The Kraft Heinz Company (NASDAQ:KHC)’s largest hedge fund shareholder is Warren Buffett’s Berkshire Hathaway due to its $10.9 billion investment. 7. Bank of America Corporation (NYSE:BAC) Berkshire Hathaway’s Q3 2023 Investment Value: $28.2 billion Latest P/E Ratio: 8.3 Latest Share Price: $29.73 Bank of America Corporation (NYSE:BAC) is one of the biggest banks in America which is headquartered in Charlotte, North Carolina. The firm was out with some good news for its investors like Warren Buffett in November when it increased its dividend to 24 cents. For their September quarter of 2023 investments, 88 out of the 910 hedge funds tracked by Insider Monkey were Bank of America Corporation (NYSE:BAC)’s investors. Berkshire Hathaway owned the biggest stake among these which was worth $28.2 billion. 6. HP Inc. (NYSE:HPQ) Berkshire Hathaway’s Q3 2023 Investment Value: $2.6 billion Latest P/E Ratio: 12.3 Latest Share Price: $28.64 HP Inc. (NYSE:HPQ) is a personal computing products and services provider headquartered in Palo Alto, California. The firm’s third quarter of 2023 revenue dropped by 6.5% to $13.2 billion as the slowdown in the personal computing market continued. 44 out of the 910 hedge funds part of Insider Monkey’s Q3 2023 database had bought and owned the firm’s shares. HP Inc. (NYSE:HPQ)’s largest hedge fund investor is Warren Buffett’s Berkshire Hathaway courtesy of its $2.6 billion stake. Liberty Latin America Ltd. (NASDAQ:LILA), HP Inc. (NYSE:HPQ), Sirius XM Holdings Inc. (NASDAQ:SIRI), and StoneCo Ltd. (NASDAQ:STNE) are some cheap value stocks in Warren Buffett’s portfolio.   Click here to continue reading and check out 5 Cheap Value Stocks To Buy According To Warren Buffett.   Suggested articles: Jim Cramer’s Top 10 Stock Picks for 2023 Warren Buffett and Wall Street Analysts Love These Stocks 15 Stocks Billionaire David Einhorn Just Bought and Sold Disclosure: None. 13 Cheap Value Stocks To Buy According To Warren Buffett is originally published on Insider Monkey......»»

Category: topSource: insidermonkeyNov 27th, 2023

Climate Action 30: Top global leaders addressing the climate crisis in 2023

Climate Action 30 spotlights global activists, academics, founders, executives, and nonprofit and public sector leaders tackling the climate crisis. Máximo Tuja for Business Insider30 of the top global leaders working toward climate solutions in 2023In a year of record-breaking climate disasters, shifting ESG priorities, and news about a looming environmental tipping point, the need for climate action has never been more urgent.Luckily, there are leaders up for the challenge of taking on big climate goals with the aim of making tangible progress for current and future generations. Business Insider's second-annual Climate Action 30 list highlights 30 of these top global leaders working to address the climate crisis through collectivism, community, and accountability. The list is more than just a page of accomplishments — it's a call to action. We gave each honoree the platform to tell our readers about their fight to curb the climate crisis, as well as the specific actions they think our readers can take to do the same. While this list is far from definitive, a team of Business Insider reporters and editors selected honorees based on recommendations from relevant sources, insights from our One Planet council, and submissions from our readers. Categories — and each group’s honorees — are listed alphabetically.This year, we've matched each honoree with a category — academics and scientists; activists and influencers; corporate executives; entrepreneurs; and nonprofit, public sector, and government leaders — to serve as a climate-action "lens" to help us understand the various meanings of the word "impact" and what it can look like across sectors. The academics and scientists we've featured are at the forefront of uncovering and advancing some of the world's most significant climate discoveries. The activists and influencers are using their voices and creative actions to build momentum in their communities. Our corporate leaders are featured for their influence over the products and services that can trigger industry-wide shifts.And our nonprofit, public sector, and government leaders are championing bold, community-driven change.Together, the list showcases an eclectic mix of dedicated climate leaders — whether they're on the front lines, in the boardroom, at the policy table, or in the classroom. Climate Action 30 goes beyond recognizing the crisis — it empowers people to be part of the solution. It's a testament to how the power of leadership and hope can create historic change.  document.documentElement.classList.add("gi-static-graphic"); if (document.querySelector(".gi-static-graphic")) { const sizes = { reg: { viewport: [320, 390, 600, 960, 1260], imgSize: [280, 350, 570, 555, 640], }, noRR: { viewport: [320, 390, 600, 960], imgSize: [280, 350, 570, 640], }, es: { viewport: [320, 390, 600, 960], imgSize: [280, 350, 480, 640], }, breakout: { viewport: [320, 390, 600, 960], imgSize: [280, 350, 560, 890], }, }; const figureElements = [...document.querySelectorAll(".gi-static")]; const scale = clamp(1, window.devicePixelRatio, 3); const lazyloader = new IntersectionObserver(lazyLoadCb, { rootMargin: "0px 0px 300px 0px", }); figureElements.forEach((figure) => { const imageIds = JSON.parse(figure.getAttribute("data-image-ids")); const embedType = figure.dataset.embedType; const pictureElement = figure.firstElementChild; imageIds.forEach((image, i) => { pictureElement.insertAdjacentHTML( "afterbegin", ` ` ); }); const lazyloadTargets = [...pictureElement.children]; lazyloadTargets.forEach((lzTarget) => { lazyloader.observe(lzTarget); }); }); } function clamp(min, input, max) { return Math.max(min, Math.min(input, max)); } function lazyLoadCb(entries, observer) { entries.forEach((entry) => { if ( (entry.isIntersecting && !== || (entry.isIntersecting && !== ) { if ( === "SOURCE") { =; } if ( === "IMG") { =; } observer.unobserve(; } }); } Abdulla Al Mandous, President, World Meteorological Organization; Director general, United Arab Emirates National Center of MeteorologyVidhyaa Chandramohan for Business InsiderAbdulla Al Mandous is a meteorologist and the president of the World Meteorological Organization, a UN agency dedicated to weather, climate, and water resources.Mandous, who holds a Ph.D. in meteorology from the University of Belgrade in Serbia, has worked for the WMO for 30 years. He joined after completing a degree in meteorology — "I became a meteorologist by luck," he said — as a principal delegate from the United Arab Emirates. Over that time, he's seen the WMO's mission change. When Mandous started his career, he said that the WMO's central focus was monitoring and forecasting weather events. Today, it puts a lot more effort into research on the climate crisis."We have a big network," Mandous told Business Insider, citing the WMO's numerous weather stations, data centers, and radar networks. "This should be used for the climate." One of Mandous' goals is to turn the Early Warnings for All initiative — a project that provides warning systems for communities at risk of extreme weather events — into reality. He said that he hoped to secure funding at the upcoming COP28 conference to "close the gap of monitoring" in countries in the Global South."We have a lot of missing gaps in the countries, especially in Africa and small islands, and we want to initiate alarm systems that will warn those countries for that," Mandous said. .gi-static-img { max-width: 100%; }  Andrew Baker, Professor, University of MiamiT.J. Levonien, University of MiamiAndrew Baker, a marine biologist at the University of Miami, researches coral reefs and the climate crisis. He has been fascinated by the ocean since he was young and "never grew out of that," he told Business Insider. His defining moment came during his Ph.D. research on coral-algal symbiosis — the relationship between coral and their symbiotic algae that powers reef growth — when the 1997-1998 El Niño event triggered coral bleaching. Bleaching happens when coral release their algal symbionts after being exposed to warmer temperatures. "It turned out that some algal symbionts were very resistant to high temperature. They didn't get bleached from the coral, and the coral survived," Baker said. The observation put his work at the center of understanding how coral reefs respond to the climate crisis. Baker continued his work and grew his team over the next 2 ½ decades. This year, he said, they released a first-of-its-kind paper showing how algal symbionts' thermal tolerance can impact a whole reef system. Healthy reefs are full of biodiversity and underpin fisheries, drug discovery, and tourism. Baker's research is an important step toward helping to increase coral reefs' resilience. Reefs also act as coastline protection and mitigate flooding. Today, Baker leads an interdisciplinary project to design climate-resilient hybrid reefs that combine artificial structures with coral. The coral will be engineered to handle warmer temperatures for both ecosystem restoration and coastline protection, as reefs also help absorb waves, mitigate flooding, and prevent erosion.  .gi-static-img { max-width: 100%; }  Asmeret Asefaw Berhe, Director, Office of Science, US Department of EnergyOak Ridge National LaboratoryThroughout her career, Asmeret Asefaw Berhe has been driven by her fascination with the world beneath our feet."That thin layer of soil that covers the land surface represents the difference between life and lifelessness in the earth system because pretty much all terrestrial life has to depend on soil," Berhe told Business Insider.Berhe is a biogeochemist, a political ecologist, and the director of the US Office of Science. She has a Ph.D. in biogeochemistry from the University of California, Berkeley. Before taking the role at the Office of Science, she was a professor of soil biogeochemistry at the University of California, Merced. One of the biggest achievements of her career, she said, has been raising awareness about the importance of soil, especially as a climate-crisis solution."It really controls the fluxes of these greenhouse gasses from land to the atmosphere," Berhe said. She added that the soil ecosystem was "being degraded in a major and unprecedented way."In her role as director at the Office of Science, the largest supporter of basic research in the physical sciences in the US, one of Berhe's top priorities has been equity."The work that the public is funding has to be inclusive, accessible to everyone," Berhe said. She cited the office's launch of the Urban Integrated Field Labs as a key example. The program pairs scientists with local communities in inner cities and promotes research on adapting urban environments to the climate crisis."To me, we can't address the climate crisis if we cannot approach this issue with a perspective that's grounded in environmental justice," Berhe said. "And we cannot really pursue true environmental justice if we're not addressing these issues of inequity and lack of representation in STEM that we keep having decade after decade." .gi-static-img { max-width: 100%; }   Sigrid Heuer, Consultant, Cambridge Discovery LimitedLina M. HeuerSigrid Heuer is a research scientist who has worked in Europe, Africa, Asia, and Australia on genetic diversity and molecular breeding to develop resilient crops and mitigate the effects of the climate crisis on food security. Heuer, who holds a Ph.D. in molecular plant biology, was part of the team that developed flood-tolerant rice for India and Bangladesh, which would give farmers respite from short-term flooding. Today, she's known for her work on heat-tolerance mechanisms for breeding temperature-resilient crops such as wheat and beans.Many countries are now facing long droughts followed by massive floods, Heuer said. "You need management solutions for that; you need water management and a plan on how to deal with climate change, but crop resilience can have a massive impact on that." Heat-tolerant plants could prevent significant yield losses due to climate change, she added. Heuer noted that there's a lack of women in leadership positions in science and applied research, and she hopes to inspire more women to enter the field. "The other part of impact is training the next generation of scientists," she said. Heuer has taught students from across the world, many of whom have joined international research groups, she said. Two former students described their field work as "life-changing," she added.The scientist has now moved into consulting and plans to work with philanthropic foundations to channel capital into climate-resilience projects across the world. .gi-static-img { max-width: 100%; }  Ermias Kebreab, Professor and associate dean, University of California, DavisGregory Urquiaga from UC DavisErmias Kebreab is a professor and associate dean at the University of California, Davis' agriculture and environment department, where he researches methane reduction in livestock through a food-justice lens.Methane has accounted for 30% of the rise in global temperatures since the Industrial Revolution; it stays in the atmosphere for less time than CO2, but is 80 times more potent over a 20-year period. Agriculture — cows, other ruminant animals, and rice paddies — is responsible for a third of methane emissions. By finding new ways to feed livestock to reduce or eliminate methane, Kebreab, who has a Ph.D. in ecological modeling, wants to help create more sustainable food systems without harming economic development or the health of low-income countries.He coauthored a study in 2019 that introduced seaweed as a feed additive for dairy cows; it reduced enteric methane emissions by over 50%. The same year, he contributed to the Intergovernmental Panel on Climate Change update on how to measure livestock and manure methane emissions. More recently, he worked on the UN Food and Agriculture Organization's overview of methane emissions in livestock and rice paddies. Today, Kebreab is focused on a $70 million project exploring the use of gene-editing technology to edit a cow's gut microbes, which produce methane during digestion, to reduce methane production. "This could be a game changer if it works. Obviously, it's a high-risk, high-reward kind of activity," he told Business Insider.  .gi-static-img { max-width: 100%; }  Imogen Napper, Research fellow, University of PlymouthJamie MitchellImogen Napper is a marine scientist and National Geographic Explorer who has investigated various ways plastic gets into the environment.Napper's journey began when she was 8 years old and her school released balloons into the air. She wondered where they went and whether they'd end up in the ocean. This curiosity characterizes her research, she told Business Insider. Napper is driven by providing scientific answers to those kinds of questions in an effort to create change. "It's giving evidence to consumers, industry, and government about what's happening. From that evidence, we can make more informed decisions," she said.Her Ph.D. research helped kick-start an international conversation about microbeads in cosmetics, which were ultimately banned in several countries. Napper went on to investigate biodegradable plastic bags and the pollution created by washing laundry. While research had been done to measure the number of fibers that come off clothes during a wash, hers was the first to break it down by different polymer types. Her research found that a single wash of polyester clothing can shed up to 700,000 plastic fibers.She's now exploring how the lessons from studying ocean pollution can be applied to space, which is becoming increasingly littered with old satellites. Napper has also worked on various National Geographic expeditions. .gi-static-img { max-width: 100%; }  Nouhad Awwad, Campaigner, Ummah for Earth; Global outreach coordinator, Greenpeace MENARoland SalemFor Nouhad Awwad, faith and environmental values are intertwined. People often view the environment as "something created for their benefit, rather than something that's their duty to preserve," she said. But Awwad believes protecting nature is a core part of her Islamic values.She works for Ummah for Earth, an alliance of 22 organizations that empowers Muslim communities to tackle the climate crisis. Awwad told Business Insider that talking to people through their faith values could be an effective way to spread awareness and mobilize climate action.Alongside her campaigning for Ummah for Earth, Awwad is a global outreach coordinator at Greenpeace MENA, which stands for the Middle East and North Africa. She's passionate about coordinating climate action in the Middle East. "I felt that this is something very underrepresented in my community," Awwad said.Awwad started Lebanon's chapter of the Arab Youth Climate Movement in 2015. She said that socioeconomic factors in Lebanon could make engaging with environmental issues an "elite thing" for young people. Awwad added that a lack of funding and resources had made youth climate action in the Global South trickier.She created a free training program on solar-panel installation in Arabic, as resources on renewable energy are difficult to access in the language. She said about 2,000 young people applied for the program, and many of the trainees started their own solar-roof-garden initiatives. .gi-static-img { max-width: 100%; }   Isaias Hernandez, Environmental media creator, Queer Brown VeganRachel FallerIsaias Hernandez is an environmental and social-justice content creator.Driven by the disparities in access to clean air and green spaces in different areas of Los Angeles and fueled by his teenage asthma diagnosis, Hernandez is committed to change at the intersection of environment, social justice, and equity."I had to realize, how do we make a green space green but also equitable through an economic lens?" he told Business Insider. In 2019, Hernandez founded the media platform Queer Brown Vegan to educate others on that intersectionality. He does this through people-led storytelling, which he felt was different from the content that existed at that time.In response to the 2020 wildfires on the Pacific coast, Hernandez created what he dubbed a "climate-emotion scale" to help people process and discuss eco-anxiety. It gained traction online, and Hernandez said that Gen Z is "redefining the curriculum" with new climate and mental-health resources. The creator was also featured on the digital cover of Vogue with Billie Eilish and spoke at the Harvard Chan C-Change Youth Summit as part of the Climate Creators 2023 Program. Now, Hernandez wants to help young people find work at sustainable companies. He recently published a series of interviews with businesses to showcase their environmental and social credentials. .gi-static-img { max-width: 100%; }  Tara Houska, Environmental and Indigenous rights advocate; attorney; founder, Giniw CollectiveNedahness GreeneTara Houska is a tribal lawyer and environmental and Indigenous rights activist from Couchiching First Nation.Houska interned in the first Obama administration and then worked for a law firm in Washington, DC, that lobbies for tribal rights to basic infrastructure needs like schools and hospitals and environmental-justice issues.She attended her first protest, against Keystone XL, in 2014 and is now known for boots-on-the-ground activism to protect Indigenous land and water. In 2016, Houska spent six months camping and protesting on the front lines of the Dakota Access pipeline resistance at Standing Rock. In 2021, she was arrested for trespassing while taking part in a direct action against the Line 3 oil pipeline. She recently participated in a direct-action protest against the Mountain Valley pipeline, where she was arrested after locking herself to construction equipment. Houska also served as a Native American affairs advisor to Bernie Sanders in 2016 and founded an Indigenous women activist group called Giniw Collective in 2018."Native folks are the first and worst impacted by the climate crisis. We're the folks who are still deeply in relationship with nature. The extractive-industry projects tend to really disparately impact our people," she told Business Insider. Houska is now set on shifting the narrative around climate-crisis solutions and repairing the relationship humans have with nature. .gi-static-img { max-width: 100%; }   Cheryl Johnson, Executive director, People for Community RecoveryTaylor Glascock for Business InsiderFor Cheryl Johnson, pollution is personal. She's a lifelong resident of Altgeld Gardens in Chicago, a neighborhood surrounded by one of the largest concentrations of hazardous-waste sites in the US. She's also the daughter of Hazel Johnson, who is considered the mother of environmental justice. "Keeping her legacy alive is a huge passion of mine," Johnson told Business Insider.Johnson serves as the executive director of People for Community Recovery, a nonprofit her mother founded to improve the quality of life for communities affected by pollution.Under her leadership, PCR has prevented hundreds of units in Altgeld Gardens from being torn down, led a program to remove harmful chemicals from residential homes, and stopped another landfill from being constructed in the community.Poorer communities, Johnson said, are more likely to experience the "devastating" impacts of the climate crisis because they don't have the necessary resources to respond. "People are not even aware to be prepared," Johnson said. "We need an environmental-remediation workforce to be able to prepare, to intervene, and to respond to issues that are related to our climate condition."This is the work of everybody. It has come to the point where business, industry, community, government, academic institutions sit at the table and look at how we can create precautionary principles to protect public health from any type of natural or manmade catastrophe." .gi-static-img { max-width: 100%; }    Adam McKay, Film directorCaroline McCredie/Stringer/Getty ImagesRarely do movies about climate change become blockbusters. Adam McKay's "Don't Look Up" changed the game. The satirical comedy about a comet hurtling toward Earth — and our collective inaction — is a metaphor for the climate crisis. It smashed Netflix's record for viewing hours within the first 28 days of its release and continues to hold second place. It received four Academy Award nominations.McKay said many movie studios passed on making it because of the ending. Ultimately, the planet gets destroyed. "My argument was always twofold. We need to show that there isn't always a happy ending, because with the way climate change is headed, that is not a guarantee," McKay told Business Insider. "And people want this. People are tired of the old story tropes of everything ending up great."Movies like "Don't Look Up" are a powerful way to influence the public's view of the climate crisis and call out politicians, wealthy executives, and the media for downplaying its severity, McKay said. Stars like Leonardo DiCaprio, Jennifer Lawrence, and Meryl Streep certainly help.Despite the success, McKay said some of the response made him realize there is a lot more work to do. He has personally given $4 million to the Climate Emergency Fund, which supports a network of activist groups in the US. He said that throughout history, disruptive protests have led to major societal change. He also felt disillusioned by Washington politicians and big environmental nonprofits. In June, one of those activist groups disrupted an event featuring Sen. Joe Manchin of West Virginia, who became a millionaire from his family's coal business and carved out concessions for fossil fuels in the Inflation Reduction Act, a major climate law. "I told my wife that this is the best money we've ever given," McKay said. Earlier this year, McKay founded Yellow Dot Studios, a nonprofit that makes short videos and commercials about the climate crisis. The launch was inspired by a spoof Chevron ad that went viral last year, made by McKay and some colleagues now at Yellow Dot."My wife and I will be continuing to give as much as we possibly can, as well as our time and support, to these activists," McKay said. "I really think that's the way it's going to work — a constructive populist movement." .gi-static-img { max-width: 100%; }  The youth plaintiffs in Held v. Montana, a first-of-its-kind climate lawsuitThe Montana Plaintiffs with Plaintiff Olivia, in the center.Robin Loznak/Courtesy of Our Children's TrustOlivia Vesovich was only 11 the first time the thought of a changing climate terrified her. Her sixth-grade class in Missoula, Montana, was learning about the ice and snow in the state's Glacier National Park."My teacher told us that my generation's children are going to be the last generation to see the snow and the glaciers," Vesovich, pictured above in a green dress, said. "And I was like, 'No glaciers at Glacier National Park — how can this be?'"Vesovich, now 20, would go on to face what she called "climate despair." That's part of what led her to join 15 other young people in a lawsuit against Montana, Held v. Montana, which accused the state of depriving them of the clean environment they're entitled to under Montana's constitution. In August, a judge ruled that by allowing fossil-fuel development, the state was violating the young people's rights.The legal action by the young plaintiffs, only one of whom was old enough to vote when the trial began, marked the first constitutional case on climate change to go to trial in the US. Montana has said it plans to appeal. Nonetheless, Vesovich said she's excited about the outcome of the trial because it could provide a blueprint for other cases. While only a handful of states have the constitutional guarantees Montana does, Vesovich said the ruling gave her hope that leaders would be forced to listen to those most at risk from a changing climate. Already, the law firm that led the Montana suit has filed a motion in Hawaii on behalf of a group of 14 youth activists. The group sued the Hawaii Department of Transportation last year over greenhouse-gas emissions related to transportation. It's one more sign for Vesovich of the impact the Montana win has had."They can't not listen," she said. "They can't look away." .gi-static-img { max-width: 100%; }  Ayisha Siddiqa, Youth climate advisor to the UN Secretary-GeneralPamela EAAyisha Siddiqa is a human-rights and environmental activist. Growing up in Pakistan, Siddiqa saw the effects of pollution firsthand when members of her family and community became ill from unsafe drinking water, and she learned that conflict and war are linked to resource demand.Later, Siddiqa asked herself: "What is the most pertinent issue for me, which cause would I need to answer to my children for in the future? For me, that is the environmental cause." In 2020, she cofounded the youth-activist coalition Polluters Out and helped launch an activist training course called Fossil Free University. More recently, Siddiqa together with other activists successfully lobbied for the Loss and Damage Fund at COP27 to support the countries that are harmed the most by the effects of the climate crisis and to force fossil-fuel lobbyists to identify themselves when registering for COP28. Siddiqa currently serves as a youth climate advisor to the UN secretary-general. She's also on the steering committee of the Youth Climate Justice Fund, which aims to be the largest youth-led regranter in the climate space — meaning it secures grants to issue them to others. Looking ahead, she wants to continue her legislative work and help protect the planet for future generations. The urgency of the situation is what keeps Siddiqa going. "There's nothing more to lose, and nothing more left at risk," she said.  .gi-static-img { max-width: 100%; }  Esther An, Chief sustainability officer, City Developments LimitedCDLEsther An is the chief sustainability officer at City Developments Limited, or CDL, a real-estate company in Singapore. CDL was Southeast Asia's first real-estate conglomerate to sign the World Green Building Council's Net Zero Carbon Buildings Commitment in February 2021. Under An's leadership, the company has committed to offsetting new developments by 2030 and getting all its buildings to net-zero carbon emissions by 2050."I see my role as a catalyst," An told Business Insider. She said that construction sites were big polluters when she started her career. She played a pivotal role in creating CDL's corporate character and setting up its sustainability portfolio. "I think establishing the ethos of conserving as we construct is very fundamental," she said.An has championed sustainability reporting and ESG-disclosure practices within her field. She published the first sustainability report using Global Reporting Initiative, or GRI, standards in Singapore in 2008 and it remains an important part of her approach. "If you don't measure, you can't manage," An said.She's also passionate about education and empowerment. She said she was particularly proud of the CDL Green Gallery at the Singapore Botanic Gardens Heritage Museum, which hosts exhibitions about the climate crisis and sustainable living. An said that the gallery is "net zero" and runs on solar power. .gi-static-img { max-width: 100%; }  Lisa P. Jackson, Vice president, Environment, Policy and Social Initiatives, AppleAppleLisa P. Jackson has always been driven by her desire to protect people and the planet. "Devastating storms like Katrina that destroyed the home I grew up in have shown us the consequences of inaction," she told Business Insider. Jackson, who has a background in chemical engineering, had a two-decade career in public service before joining the corporate world. She served under President Barack Obama as the administrator of the Environment Protection Agency, where she led the EPA's response to the Deepwater Horizon oil spill, took action on air and water quality, and made environmental justice a key priority. She joined Apple in 2013. "My entire career has been motivated by the mission to protect people's health and the environment was a great motivator for me. Joining Apple was an opportunity to continue my life's work to drive climate progress forward globally," she said. Apple has helped suppliers improve sustainability for over a decade, and its facilities have run on 100% renewable energy since 2018, Jackson said. While Apple has faced criticism for its frequent product launches, which encourage consumers to upgrade their devices regularly, the company plans to make every product carbon neutral by the end of the decade and eliminate plastic packaging by 2025.Jackson also leads Apple's more than $200 million global Racial Equity and Justice Initiative to expand opportunities for Black, Hispanic, Latinx, and Indigenous communities. .gi-static-img { max-width: 100%; }  Nicole Systrom, Chief impact officer, Galvanize Climate SolutionsLuci ValentineIn her role as chief impact officer at Galvanize Climate Solutions, a climate-focused global investment firm, Nicole Systrom leads a team of experts across science and technology, policy, and markets.Systrom supports investors to make "as much climate impact as possible," she said. Galvanize has three strategies — a venture strategy, a public-equity strategy, and a real-estate strategy — all focused on decarbonization in different ways, she said."I hope they'll become a model for other investors to follow in the future," Systrom said.Systrom said that climate technology needed capital to close the "financing gap." In September, Galvanize announced the final close of its Innovation + Expansion Fund at over $1 billion, which is one of the largest climate venture funds raised to date. Systrom described the fund as "pretty remarkable.""We need all different parts of the investment ecosystem, all different asset classes, all types of investors, really activated towards climate transition. I think there's a role for every type of investor to play," Systrom said.Systrom also serves on the steering committee of a group called the Venture Climate Alliance, which formed in April. It's seeking to shape a net-zero standard for the venture industry and "try to drive consensus around the role venture capitalists should be playing," she said. .gi-static-img { max-width: 100%; }  Kathleen Talbot, Chief sustainability officer and vice president of operations, ReformationReformationReformation began as a vintage boutique in Los Angeles in 2009 but soon became known for making simple, sexy dresses worn by celebrities including Rihanna and Taylor Swift. Kathleen Talbot joined the company in 2014, about a year after Reformation launched its website and started selling clothes worldwide."At that time, I don't think many people even associated the clothes in their closet with climate change," Talbot said. "So it was fun to try and set the standard in what was still a very niche market."Since then, Talbot has helped Reformation become a leader in sustainable fashion and transparency. The company says more than 70% of its materials are recycled or "regenerative," meaning they are made from animal- and plant-based fibers grown on farms using practices that address climate change. Less than 2% of the material it uses are synthetic fabrics made from petrochemicals, such as nylon. Reformation aims to use as little new material as possible and reduce waste in order to become "climate positive" by 2025, which involves removing more greenhouse-gas emissions from the atmosphere than the company produces. About a third of its carbon footprint comes from the virgin materials it uses, including cashmere, silk, and viscose. Reformation's road map calls for using more recycled wool and eliminating silk, as well as buying carbon offsets that remove carbon from the atmosphere as opposed to avoiding emissions.  "The fashion industry is throwing away almost the same amount of materials we are generating every year," Talbot said. "If we just connect those dots and circulate these raw materials, we can eliminate waste and emissions."In March 2022, Reformation launched RefRecycling so customers can drop off their old clothes at retail locations. And shoppers won't find racks and racks of clothing at its stores. Reformation releases limited collections every week, and only makes more if the sales demand it, to limit waste. About 16% of its sales come from vintage, rental, or resale.It's a different model than fast fashion, which emits about 10% of greenhouse gasses globally and makes 40 billion garments every year that are never sold.Reformation is also getting into politics. It's one of a handful of brands that has endorsed legislation in New York state and Congress that would require more transparency in fashion supply chains. .gi-static-img { max-width: 100%; }  Etosha Cave, Cofounder and CSO, TwelveTwelveEtosha Cave started Twelve in 2015 while she was a grad student at Stanford University, along with her fellow graduate students Kendra Kuhl and Nicholas Flanders.Cave, who holds a Ph.D. in mechanical engineering, and Kuhl developed a carbon-transformation technology that can take carbon dioxide from the air and turn it into products including shoes, clothes, and electronics. The technology can even make a sustainable aviation fuel, called E-Jet, according to Cave."Carbon is such a ubiquitous molecule — it's used in so many things," Cave told Business Insider. "If we can provide this air-based carbon, instead of fossil-based carbon, we can start to shift away from fossil fuels."Twelve is collaborating with major partners such as Microsoft, Alaska Airlines, and the US Air Force to advance the development of its sustainable E-Jet fuel. "For every gallon of sustainable aviation fuel we can make, we're displacing a gallon of fossil fuels," Cave said.The shift from grad school to running a startup has had its challenges, but for Cave, this is a "golden era" for climate tech. She cited the Inflation Reduction Act as an example of a "unique alignment of policy and technology and public opinion.""This is kind of an all-hands-on-deck moment," she said. "We need lots of people and lots of technologies working toward reducing our CO2 emissions." .gi-static-img { max-width: 100%; }  Pablo Ribeiro Dias, Cofounder and CTO, SolarCycleMarcio Pimenta for Business InsiderSome 2 billion solar panels are installed around the world. That number is rapidly rising as countries expand renewable energy. But those panels don't last forever, and Pablo Ribeiro Dias wants to make sure they don't end up in a landfill. So he cofounded SolarCycle, a Texas-based startup that reclaims old solar panels so they can be turned into new ones. The company has raised $37 million so far and expects to process about 1 million panels a year at a new recycling and manufacturing plant. SolarCycle's customers include some of the largest renewable-energy companies including Ørsted and Sunrun."If we can use the same resources for longer, that means less resources are extracted from the Earth," Dias, who has two Ph.D.s and pioneered research on new ways to recycle solar panels, said. "That is one way for us to live sustainably."Dias said he learned the value of materials from a young age growing up in Brazil, where throwaway culture isn't as prevalent as in the US. Dias researched e-waste recycling technology for cellphones and other electronics, which paved the way for his work on solar panels. SolarCycle says its technology can reclaim more than 95% of all the valuable materials in solar panels, including aluminum, glass, copper, silver, and silicon. These materials are sold back into the solar value chain. The hope is that by scaling a circular system, the demand for mining new metals in countries like Mexico, China, and Democratic Republic of Congo will drop. Plastics are a trickier material, Dias said, because the plastic used in solar panels is similar to rubber tires. Right now, it's not feasible to recycle that. The next stage for SolarCycle is opening a second recycling plant in Phoenix and establishing a research and development center. "We're in a great position to build a real circular economy, not just a fairy-tale one," Dias said. .gi-static-img { max-width: 100%; }    Amanda Hall, Founder and CEO, Summit NanotechMecoh Bain for Business InsiderWhen Amanda Hall founded Summit Nanotech in 2018, it was an all-or-nothing moment."One day, I woke up, had a bit of an existential crisis, said I want to leave the future better for my kids than it is today, and started this company," she told Business Insider.After 20 years as a geophysicist in the oil, gas, and mining industry, Hall spotted a gap in the market for lithium extraction.Lithium is used to make batteries in laptops, cellphones, and electric cars. It's crucial to the clean-energy transition. However, traditional lithium-extraction methods require vast amounts of land and water. Hall wanted to find a more sustainable way to meet the growing demand for the metal.Summit Nanotech employs a method called direct lithium extraction, which uses less land and produces less waste than traditional extraction methods, Hall told BI, adding that there's a common misconception that cleantech is costly. In reality, she said, the reductions in energy use, water use, and waste management result in "a cheaper process that's also cleaner and more efficient."The company opened a facility in Chile to scale up its direct-lithium-extraction technology following a pilot program in 2022. For Hall, it was important to have "boots on the ground" and establish good relationships with Indigenous communities in Chile, she said.Hall also worked with the Chilean government to introduce new standards for lithium extraction in the country. The legislation, announced in April, implements higher standards for things such as water and energy preservation. .gi-static-img { max-width: 100%; }  Luke Haverhals, Founder and CEO, NFWBrett Rhoades for NFWMost of the materials used by major fashion brands pose a problem for the environment: They're made from fossil fuels. NFW, an alternative-materials manufacturer led by its founder, Luke Haverhals, is working to solve this problem by making plant-based leather, rubber, and yarn that are free from animals, petrochemicals, and plastics. There are many startups in this "next-gen" materials space. Part of what sets NFW apart, Haverhals said, is: "You have to perform cost competitively and be able to scale not just to millions but billions of square feet of materials in order to be relevant." Haverhals says NFW is set up to scale. The company has raised $160 million so far and its plant-based leather is already used in Stella McCartney handbags, Allbirds sneakers, and Bellroy wallets. BMW's venture-capital unit invested in NFW in July and said the startup's alternative leather was the only one in that market that's scalable, durable, and cost-competitive while having a low carbon footprint.Haverhals grew up on a farm in Iowa and taught chemistry at Bradley University and the US Naval Academy before founding NFW in 2015. NFW's approach, he told Business Insider, involves taking the byproducts of what farmers grow at a massive scale, such as rice husks, coconut fiber, and cork, and feeding them into machines that already make textiles."NFW isn't remaking textile mills or car-manufacturing facilities," Haverhals said. "We want to bring our technology into those factories."NFW has tested its material "recipes" on machines at its commercial factory in Peoria, Illinois, The next step is to prove the technology can work on a larger scale. The startup needs to raise tens of millions of dollars to fund the next phase of development, which Haverhals acknowledged would be challenging. He said investors were wary of material innovation after another startup earlier this year paused production of its mushroom-based leather.Haverhals remains a firm believer that NFW has an edge over the competition for all the reasons BMW cited in its endorsement."Impact is scale; scale is impact," Haverhals said. "And if we don't want to use synthetic materials, then we need to grow the future." .gi-static-img { max-width: 100%; }  David Kirtley, Founder and CEO, Helion EnergyMadison Kirkman/Madison Kirkman PhotographyScientists have tried for decades to harness the power of nuclear fusion, the same process that powers the sun and the stars. Fusion could provide nearly limitless energy without greenhouse-gas emissions or long-lived radioactive waste. Some experts have predicted fusion won't be a viable power source for decades. But David Kirtley and his team at Helion Energy are confident the timeline is much closer.  In May, Microsoft agreed to buy 50 megawatts of electricity, or enough to power about 40,000 homes, from a fusion power plant being developed by Helion. The startup's plant is expected to come online by 2028. In October, Helion announced plans to build a 500-megawatt power plant at a steel plant owned by Nucor, America's biggest steel supplier and recycler. The companies said the operation could start as early as 2030.These fusion facilities would mark the dawn of a new era of energy. Kirtley, a nuclear and aerospace engineer, wasn't always convinced that humans could harness fusion for electricity during his lifetime. At one point, he left the field and worked on advanced rockets instead. But as fusion systems became smaller and more energy efficient through modern electronics and fiber optics, Kirtley saw a path forward. He helped build those fusion systems at MSNW, a research company backed by NASA and the US Department of Energy. That work was spun off into Helion in 2013. All six of Helion's fusion prototypes have set records for their energy output and the temperature at which they operate, recently exceeding 100 million degrees Celsius — an ideal threshold for a power plant. The seventh prototype, expected to be completed this year, is set to be the first to convert fusion energy into electricity, Kirtley said. He told Business Insider that his work can be traced back to a childhood experience in Bermuda, when his father was stationed there while serving in the Navy. Kirtley could see the space shuttle launch from Cape Canaveral. "I just felt the majesty of what people and technology can do," Kirtley said. "As I grew older, I also reflected on the disparities in Bermuda, and how our standard of living is directly tied to access to electricity. So I got into college thinking, 'Man, we need to solve these energy problems.'" .gi-static-img { max-width: 100%; }  Sandeep Nijhawan, Cofounder and CEO, ElectraElectraSandeep Nijhawan is an entrepreneur and investor who's currently focused on creating more sustainable steelmaking processes. The industry is responsible for up to 10% of annual global greenhouse-gas emissions. Electra, founded in 2020, has developed a way to purify iron ore otherwise deemed too contaminated to use for steelmaking, Nijhawan said. This adds to the sector's circularity and reduces the need to mine for high-grade materials, he said. Traditionally, iron ore is smelted at high temperatures and converted to steel. Electra's technology uses cooler temperatures to refine iron ore, making it more compatible with intermittent renewable energy, Nijhawan said. Electra is left with the extracted impurities, often minerals and iron plates. The latter can be made into steel using electric furnaces. The company has raised $85 million from investors, including Bill Gates' Breakthrough Energy Ventures. Nijhawan said Electra plans to produce iron for green steel at a pilot scale by the end of the year.Nijhawan described Electra as a continuation of his previous venture, Staq Energy, an energy-storage company he launched in 2016 to accelerate the adoption of renewables. "Instead of storing renewable energy in the form of chemical storage, we're using it to produce clean iron, which is the key constraint to decarbonize steel," he said. The founder has always had the "entrepreneurial bug," he said, but he was inspired to focus on solutions to the climate crisis after a conversation with his children where he promised them he would try to make a positive impact on the environment. .gi-static-img { max-width: 100%; }  Kimiko Hirata, Executive director, Climate IntegrateTakao OchiKimiko Hirata's work as an activist has led to the cancellation of 17 planned coal power plants in Japan.After the Fukushima nuclear accident in 2011, the Japanese government shut down many of its nuclear-power facilities and turned to coal power to provide the country's energy instead. At the time, Hirata, who holds a Ph.D. in social sciences from Waseda University, worked on environmental policy at the Japanese nonprofit Kiko Network. She knew that the expansion of coal power would lead to an increase in greenhouse-gas emissions and said she was wary that there were "no voices on the ground" to fight the decision.Hirata told Business Insider that she felt nongovernmental organizations and civil society in Japan were too small to stop the government and big industry and that public awareness of the climate impact of coal power was low. "The government advertised that the latest coal power is clean, so people believed that this is clean and there's no harm," she said. For instance, the Japanese government has promoted ammonia cofiring, where ammonia is blended with coal, as "clean" despite warnings that the method does little to affect overall greenhouse-gas emissions.Hirata wanted to change that, so she started to make connections at the community level."I tried several different approaches to get the support, talking about air pollution, or economic impacts, or climate change," Hirata said. She said it was "trial and error" at first. Gradually, the campaign was picked up by local people, and the media started to cover the story, which Hirata said was a "game changer."Hirata said that while she "planted the seeds" for the campaign, "the success was made by local people's voice and power." Today, Hirata runs Climate Integrate, a think tank, because she wants to increase climate expertise in Japan. She's also running a new campaign based around shareholder activism, a type of activism that targets fossil-fuel financers. .gi-static-img { max-width: 100%; }  Mia Mottley, Prime minister, Barbados Caribbean GovernmentJOEL SAGET/Getty ImagesMia Mottley became Barbados' first woman prime minister in 2018. The politician and lawyer broke political glass ceilings earlier in her career, as the leader of the Barbados Labour Party and as attorney general. Mottley has made a name for herself by calling out wealthy nations, and the global financial system as a whole, for failing to support poorer countries. She spearheaded the Bridgetown Initiative, a climate-action plan named after Barbados' capital city, which aims to restructure finance for disaster-stricken nations. She believes tackling the climate crisis through the global economic system will help to "make meaningful progress."Barbados is one of the Caribbean countries most vulnerable to more powerful hurricanes and rising sea levels, which lead to other issues such as flooding and coastal erosion. The politician has long called for more collaboration between public and private investors."Let's take hotels that are on beaches," Mottley told the World Economic Forum. "If coastal erosion is bad, their revenue is going to be compromised."She worked with the International Monetary Fund and creditors to give Barbados more flexibility with debt payments after a natural disaster. The country also struck a deal with The Nature Conservancy to redirect part of its sovereign debt service toward ocean conservation. .gi-static-img { max-width: 100%; }   Rep. Samuel Onuigbo, Former member of Nigeria's House of RepresentativesMaryam Turaki for InsiderIn the small Nigerian village where Samuel Onuigbo grew up, he and his neighbors would draw drinking water from six springs, and there were gullies where he and his friends from primary school would go to pick snails and chase rabbits. When Onuigbo returned to his village after finishing his college studies and a year of national service, he discovered that five of the springs had run dry and erosion had made many of the gullies in which he had once played too dangerous for people to enter. Those experiences made Onuigbo realize how much the climate crisis was hurting his country. As a member of the House of Representatives of Nigeria, Onuigbo sponsored a climate bill that was signed into law in 2021. The law requires the government to draw up plans on how to deal with the climate crisis and establish a carbon budget. The law also set up funding for dealing with emerging climate hazards and required many businesses to meet annual emissions-reduction targets. Onuigbo said before the law was passed, government directors in various agencies often tried to tackle the problem piecemeal. "They preferred working in silos, not reporting to anybody, not being coordinated. And that, for me, is absolutely unproductive," he said. Now, Onuigbo said, the president appoints people to oversee these efforts. That means there's greater accountability. Beyond the legal framework, Onuigbo, who left the Nigerian House of Representatives in June after eight years, said the bill helped bring everyday Nigerians' attention to the effects of the climate crisis on the country. "You are getting conversations on climate change from different angles within the nation," he said. Onuigbo is currently a board member and the chairman of the committee on security, special interventions, and climate change of the North East Development Commission.  .gi-static-img { max-width: 100%; }  Matt Petersen, President and CEO, Los Angeles Cleantech IncubatorLACIMatt Petersen has been an environmental leader for three decades. The Modesto, California, native spent the first part of his career advocating for nuclear demilitarization and pioneering the green-building movement before becoming Los Angeles' first chief sustainability officer in 2013. He also created Climate Mayors, a coalition of 250 US mayors fighting the climate crisis.For the past six years, Petersen has led the Los Angeles Cleantech Incubator, or LACI, a nonprofit that helps startups scale their low-carbon transportation and energy technologies in communities exposed to high levels of pollution. Petersen has expanded LACI's work beyond just a startup incubator. The nonprofit launched the Transportation Electrification Partnership in May 2018, which pools public and private money and invests it in pilot programs aimed at cleaning up LA's busy ports, freeways, and local communities. The goal is to drive down greenhouse-gas emissions and air pollution from heavy-duty shipping trucks and personal cars by 2028, when LA is hosting the Olympic and Paralympic Games. LACI startups are testing electric-vehicle car-sharing at public-housing developments in East LA and a zero-emissions delivery zone in Santa Monica. The nonprofit has also assembled funding for electric-truck charging stations at the Port of LA and Long Beach, where some 40% of the country's shipping containers arrive before dirty diesel-engine trucks drive the goods around the region. LACI is expanding its work into clean energy, releasing a road map in October focused on electrifying buildings and deploying smaller renewable-energy systems powered by solar, battery storage, and other technologies. LACI also has a workforce development program that trains about 300 people each year, including an all-female course on EV charging maintenance, Petersen said.Petersen told Business Insider that he wants the green economy to be inclusive of all races, classes, and genders. Petersen worked with Habitat for Humanity, helping to rebuild New Orleans after Hurricane Katrina, and he saw the barriers families faced to live in affordable, energy-efficient homes that didn't leave them with high utility bills and poor indoor-air quality. Petersen said he's also had many female mentors who instilled the importance of empowering women in the workforce.  "Changing the composition of our startups to be more diverse was important to me so LACI better represents the economy and the population of Los Angeles," Petersen said. .gi-static-img { max-width: 100%; }  Maisa Rojas, Chile's environment ministerGobierno de ChileIn 2022, world leaders gathered in Egypt for the UN's annual climate summit. One of the most important outcomes of that event was the creation of a "loss and damage" fund — effectively a pot of money that poor, climate-vulnerable countries can tap into to pay for the damage caused by the climate crisis. Wealthy powers such as the US and European Union, which are historically responsible for the greenhouse-gas emissions warming the planet, are expected to contribute. Maisa Rojas, Chile's environment minister, led those negotiations with Jennifer Morgan, Germany's special envoy for the climate crisis.Rojas told Business Insider it was an incredible privilege to have been asked by Egyptian officials to handle the talks. But at the outset, there was no guarantee of success. It wasn't clear whether loss and damage would be on the agenda at all, given the decades of opposition from rich countries. After that hurdle, days of negotiations ensued over what a deal would look like. "The momentum was there," Rojas said, adding that a coalition of small island states and developing countries known as the Group of 77 and China was united in the cause. "Very late in the negotiations, the EU decided to say yes to a fund, and then we'd sort out the details afterward. That was a very exciting moment."A year later, those details are starting to take shape in a proposal that could be adopted during the UN climate summit in Dubai, which starts in November. Many issues remain contentious, such as which countries are eligible for the funds, which have to contribute money, and how much. A UN-commissioned report said that based on recent climate-fueled disasters, the future costs of loss and damage could be as much as $150 billion to $300 billion by 2030 based."In a way, we are admitting that we as humanity have failed to address climate change," Rojas said. "Now there are irreversible losses that need to be addressed. This fund can help the most vulnerable and the most affected."Rojas, who holds a Ph.D. in atmospheric physics, also wants to ensure the most vulnerable populations in Chile benefit from the green transformation the country is undergoing, she said. Rojas took office in March 2022 under President Gabriel Boric and is responsible for implementing a new climate law that requires Chile to become carbon-neutral by 2050.Before holding political office, Rojas was the director of the Center for Climate and Resilience Research at the Universidad de Chile and a lead author on the Intergovernmental Panel on Climate Change reports. .gi-static-img { max-width: 100%; }  Patricio Sepúlveda, Head of public debt management office, Chile Ministry of FinancePaula FaríasChile is known as a trailblazer in the sustainable-bond market. As of this year, the country has $43.5 billion in public debt — more than a third of its total debt — tied to achieving its climate and social goals.The architect of the program is Patricio Sepúlveda. His office developed financial frameworks that paved the way for Chile in 2019 to become the first country in the Americas to issue a green bond, creating a model for other countries in the region. The bond funds projects to electrify public transportation, expand renewable energy, and make buildings more energy efficient. "We need to have more sustainable growth," Sepúlveda told Business Insider. "We can grow our economy without forgetting about protecting the environment." Since then, Sepúlveda has expanded Chile's bond program for sustainable development. In 2022, Chile became the first country in the world to issue a sustainability-linked bond, or SLB. Unlike green or social bonds that are tied to specific projects, SLBs are attached to achieving longer-term targets. If those targets aren't met, Chile will face financial penalties.Chile aims to peak its greenhouse-gas emissions by 2025 and achieve net-zero emissions by midcentury. That goal is enshrined in the country's climate law published last year. Chile also wants 60% of its electricity to come from renewable energy by 2032 — compared to 27% in 2021. On the issue of gender equality, the country is pushing for women to represent 40% of corporate board directors by 2031. Women currently only make up about 13% of board positions.Sepúlveda said SLBs are a powerful way to ensure Chile continues making progress toward its sustainability goals, regardless of who's in charge politically. He added that the next goal is to incorporate biodiversity goals into Chile's SLBs, because protecting forests and oceans is key to solving climate change. .gi-static-img { max-width: 100%; }  Jiqiu "JQ" Yuan, Vice president of engineering, National Institute of Building SciencesNational Institute of Building SciencesJQ Yuan works toward making buildings, infrastructure, and communities resilient against natural disasters.With more frequent extreme weather events predicted as a result of the climate crisis, Yuan said that it's vital that we're "building for life." "Sometimes it's not easy to sell that concept because when you have a building better and stronger, it always comes with a cost," Yuan said. But, he said, investing in resilience now could have a huge payoff in the future.Yuan, who has a Ph.D. in structural engineering from the University of Kansas, led a study that found for every dollar spent by federal agencies on natural-hazard mitigation, $6 was saved. The study also found that adopting the latest building-code requirements saved $11 for every $1 invested. "The return on investment is huge," Yuan said. For Yuan, incentivizing the private sector to invest in provisions to mitigate against natural disasters is hugely important. He recently coauthored a road map outlining how to create "mutual benefit" for both the private sector and society when responding to extreme weather. Yuan is also working on the National Institute of Building Sciences' Lifeline Infrastructure Hub, which aims to create public-private partnerships at the community level to aid in disaster recovery.Current building codes, Yuan said, are based on what has happened in the past and take the climate crisis into account. He said we needed to bring together the current science with engineering and "design for the future climate-change conditions." .gi-static-img { max-width: 100%; }  CreditsSeries Editor: Lily KatzmanEditors: Stephanie Hallett, Josée Rose, Michael CogleyReporters: Catherine Boudreau, Tim Paradis, Tasmin Lockwood, Freya GrahamCopy Editors: Jonann Brady, Kevin Kaplan, Nick Siwek, Jonas DominguezProduction: Isabella SayeghDesign and Development: Máximo Tuja, Alyssa Powell, Rebecca ZisserPhoto Editor: Isabel Fernandez-Pujol Audience: Hannah Williams, Victoria Gracie .gi-credits { font-size: 1rem; Read the original article on Business Insider.....»»

Category: dealsSource: nytNov 27th, 2023

Bona Vacantia! King Charles Siphoning Dead Brits" Assets Meant For Charity Via Medieval Law

Bona Vacantia! King Charles Siphoning Dead Brits' Assets Meant For Charity Via Medieval Law Britain's King Charles has been siphoning tens of millions of dollars intended for charity, thanks to a medieval law called "bona vacantia," (vacant goods) which transfers the assets of those who died in a particular region without a will or known next of kin to the duchy. With said funds, Charles has been upgrading a commercial property empire managed by his hereditary estate. Jimmy Savile and Charles Over the past 10 years, over $75 million in funds have reportedly been collected, despite pledges that the proceeds from such transfers would be donated to charity (of which only 15% has been directed), The Guardian reports. Financial assets known as bona vacantia, owned by people who died without a will or known next of kin, are collected by the duchy. Over the last 10 years, it has collected more than £60m in the funds. It has long claimed that, after deducting costs, bona vacantia revenues are donated to charities. However, only a small percentage of these revenues is being given to charity. Internal duchy documents seen by the Guardian reveal how funds are secretly being used to finance the renovation of properties that are owned by the king and rented out for profit. The rule kicks in if someone whose last known address was in a territory known in the middle ages as Lancashire county palatine, and ruled by a duke. Today, this includes Lancashire and parts of Mereyside, Greater Manchest, Cheshire and Cumbria, per the report. A leaked internal duchy policy from 2020 was used by officials to invoke bona vacantia in order to apply funds to the king's profit-generating portfolio. The policy, codenamed "SA9," acknowledges that there may be an 'incidential' benefit to the privy purse - aka the king's personal income. Properties identified in other leaked documents as eligible for use of the funds include town houses, holiday lets, rural cottages, agricultural buildings, a former petrol station and barns, including one used to facilitate pheasant and partridge shoots in Yorkshire. Upgrades include new roofs, double-glazing windows, boiler installations and replacements of doors and lintels. One document references the renovation of an old farmhouse in Yorkshire, helping transform it into a high-end residential let. Another upgrade is helping turn a farm building into commercial offices. -The Guardian As The Guardian further notes, the refurbishments have made rental properties more profitable, which indirectly benefits the king who receives tens of millions in annual duchy profits - income which Buckingham Palace says is "private." Lancaster Castle. The Duchy of Lancaster came under Charles’s ownership after the death of his mother, Queen Elizabeth II. Photograph: Andrew Hopkins/Alamy The Duchy of Cornwall - which has been passed on to Prince William, operates under the same system - neither of which pays corporation tax or capital gains tax despite generating over $1.6 billion over the last 6 decades. Charles visits Jimmy Savile's Highlands rape cottage in 1999 According to the report, dozens of people saw money transferred to the king's hereditary estate after they died in the north-west, in places including Preston, Manchester, Burnley, Blackburn, Liverpool, Ulverston and Oldham. Several of the deceased had been living in rundown properties or social housing, which several of their surviving friends called "disgusting" , "shocking" , and "not ethical." Prince Charles and... no, no... that's Charles' brother Andrew with a different notorious pedophile bestie he had no idea about... While Buckingham Palace has declined to comment to the Guardian, a spokesperson of unknown gender for the Duchy of Lancaster indicated that following the death of Queen Elizabeth II, Charles endorsed the continuation of a policy of using bona vacantia money on "the restoration and repair of qualifying buildings in order to protect and preserve them for future generations." Throughout England and Wales, those who die without making a will and have no identifiable relatives have their assets transferred to the Treasury, which typically spends the funds on public services. Under a custom which began in the medieval period, however, two hereditary estates, or duchies, belonging to the royal family, are permitted to collect bona vacantia funds from people who die in the aforementioned regions. They also collect leftover corporate assets when businesses are dissolved. One is the Duchy of Cornwall, which generates profits for whoever is the heir to the throne. Charles used to closely manage the duchy, but last year it passed to his son, Prince William. It collects bona vacantia funds from deceased Cornish residents. The other is the Duchy of Lancaster, inherited by Charles from his mother, Queen Elizabeth II, when she died last year. Both duchies are professionally run real estate empires that manage swaths of farmland, hotels, castles, offices, warehouses, shops and urban property, including some of London’s prime luxury real estate. Neither duchy pays corporation tax or capital gains tax, giving them a significant commercial advantage. They have become huge cash cows for the royals, generating the equivalent of more than £1.2bn in profits over the last 60 years. -The Guardian Both duchies have claimed over the years that they distribute funds 'net of costs' to charities, however just 15% of the £61m collected in the last decade have made it to help those in need - and in fact, a large and growing portion of bona vacantia funds for the last several years have been dedicated towards the renovation of properties rented out on a commercial basis - a practice which accelerated starting in May 2020, when SA9 was introduced to bless the process. Jimmy Savile speaks while Charles writes According to the actual policy of bona vacantia, such funds are allowed to be used for the "public good" in order to repair, restore, preserve and protect duchy properties when they're designated a "heritage asset."  Using a much broader definition, duchy-owned properties qualify for the funds if they fit within a further seven categories, including buildings located in a conservation area, a site of special scientific interest or area of outstanding natural beauty (AONB), which cover large swaths of rural England. Duchy properties are also eligible for the funding if they are deemed by officials to be of “local historical importance”. A Guardian analysis suggests the 2020 policy gave the duchy licence to spend bona vacantia on roughly half of its property portfolio. -The Guardian "The primary intention of the expenditure must be the preservation and protection of the fabric of the property and any benefit to the privy purse [the king’s private income] is incidental to that purpose," reads SA9, which also indicates that "The authority for the use of special costs in this connection is found in a royal sign manual dated February 1987 as supplemented by a further [royal sign manual] dated October 2019." Such 'royal sign manuals' are reportedly references to the personal signature of the monarch - which at the time was Queen Elizabeth II. Acording to the Duchy of Lancaster spokesperson, Charles rubber-stamped the queen's prior approval. "The king reaffirmed that money from bona vacantia should not benefit the privy purse, but should be used primarily to support local communities, protect the sustainability and biodiversity of the land and preserve public and historic properties across the Duchy of Lancaster estates," they said, genderlessly. "This includes the restoration and repair of qualifying buildings in order to protect and preserve them for future generations." Charles and pal Jimmy Savile share a laugh... Meanwhile, try not paying for your TV license in the UK... The whole country lives between wallet inspections — (@FalconryFinance) November 24, 2023   Tyler Durden Mon, 11/27/2023 - 05:45.....»»

Category: smallbizSource: nytNov 27th, 2023

20 Countries with Best Retirement Systems

This article takes a look at the 20 countries with the best retirement systems. If you wish to skip our detailed analysis of the challenges in global retirement and how to navigate them, you may go to 5 Countries with the Best Retirement Systems. Demographic Shifts and the Old-Age Dependency Challenge in Global Retirement The […] This article takes a look at the 20 countries with the best retirement systems. If you wish to skip our detailed analysis of the challenges in global retirement and how to navigate them, you may go to 5 Countries with the Best Retirement Systems. Demographic Shifts and the Old-Age Dependency Challenge in Global Retirement The global retirement landscape is facing unprecedented challenges. One primary stressor challenging retirement systems across the world today is the profound demographic shift. Japan, for instance, is already grappling with a significant demographic imbalance. Per BBC reports, more than 1 in 10 people in Japan are 80 or older, comprising 29.1% of the population. Europe is closely following suit, with more than one-fifth (22.1%) of the population aged 65 or above. Moreover, the number of people aged 65 or older are expected to reach 1.6 billion in 2050, as reported by the World Economic Forum. Declining birth rates are further adding to the complexity of demographic alterations, with overall birth rates declining from an average of 5 births per woman in 1950 to a mere 2.3 births in 2021. These shifts have been having far-reaching consequences, especially for pay-as-you-go pension systems that are heavily reliant on the contributions made by the working population. Given the global demographic situation, the rising old-age dependency ratio across countries is only poised to intensify, further challenging the retirement funding systems of many countries across the globe. “Retirement income systems around the world are under pressure like never before.” -David Knox, Senior Partner at Mercer International Inc. (NASDAQ:MERC) Besides the demographic situation, viability of retirement systems across the world is also at stake due to inflation. Known as the “wild card” in retirement planning, inflation has been known to threaten the financial security of individuals no matter how good their plans may be. 62% of retirees consider it as the number one threat to their investments, notes the GRI Index 2023. Even though inflation has been easing in many parts of the world, many individuals are still worried about the impact it has on their retirement plans. Despite being worried, a Bank of America Corporation (NYSE:BAC) report reveals that only 31% of employees are prioritizing retirement savings over their short-term financial needs today, compared to 45% in 2022. On Navigating Global Retirement Challenges To address these retirement system challenges, many countries have started taking stringent measures. For instance, the Netherlands has been adjusting its retirement age and stressing employer-paid defined contribution plans over defined benefit pensions. In effect since July 2023, the reform addresses challenges posed by low interest rates, an aging population, and evolving employment patterns, and seeks to align the pension system with the dynamic needs of both employers and employees. However, some countries, like France, are facing backlash and protests for similar measures such as changing the retirement age. In addition, Italy has approved a “Pact for the Third Age”, highlighting health and social reforms for seniors. While other countries are actively reforming their pension systems, the USA has received a C+ for its retirement structure in a ranking out of 47 countries, conducted by Mercer International Inc. (NASDAQ:MERC). The grade signifies that the United States of America has a retirement system with “good features”. However, it also possesses some major risks that need to be addressed to ensure its sustainability. It is no secret that the Social Security system of the US is uncertain, as highlighted in their 2023 Annual Report. According to the report, the system will be able to pay funds in full only until the year 2033. Therefore, retirees in the USA must not solely rely on these funds for their retirement years. Instead, they should actively focus on building their retirement savings. You may explore our articles on topics such as ‘I am 50 and have no retirement savings,’ ‘Best places to retire on social security,’ and ‘Places to retire on $1,000 a month‘ to kick-start your journey towards a comfortable yet affordable retirement. For those looking to keep their retirement income safe, some of the safest places to put your retirement funds are savings options with guaranteed growth. Low-risk investments are a good option as well. Individuals can keep their money in a savings account that is insured by the Federal Deposit Insurance Corporation (FDIC), stash money in a fixed annuity, explore US treasury securities, or even take advantage of employer-sponsored plans. Embarking on savings today and prioritizing maximum contributions towards retirement is a recipe for earning an A-grade in your retirement plan. Pixabay/Public Domain Methodology To analyze which countries have the best retirement systems, we have used the Natixis Global Retirement Index 2023 and the Mercer CFA Institute Global Pension Index 2023 by Mercer International Inc. (NASDAQ:MERC). The Global Retirement Index (GRI) is a multi-dimensional index developed by Natixis Investment Managers and CoreData Research to examine the factors driving retirement security. Retirement security is pivotal for the effectiveness of retirement systems as it directly influences the well-being and financial stability of retirees. Meanwhile, The MCGPI benchmarks retirement income systems around the world. A C+ grade is awarded to a retirement system whose index value is between 60-65, B is awarded to systems with an index value between 65-75, B+ to 75-80, and A to systems whose index value is more than 80. Adopting a consensus methodology, we identified countries that consistently ranked high in both indices and calculated their average rankings based on their rankings on these indices. The resulting list is organized in descending order, with countries ranked based on their average rankings. These averaged rankings provide an aggregated representation of performance across various factors (health, material well-being, quality of life, finances; as well as adequacy, sustainability, and integrity of retirement systems) crucial for assessing the quality of its retirement system. Here are the top countries with the best retirement systems: 20. Japan Average Ranking: 27 Natixis Global Retirement Index Rank: 24th  Mercer CFA Institute Global Pension Index Rank: 30th Japan’s retirement system comprises a flat-rate basic pension scheme and an earnings-related plan, alongside voluntary private pension plan options. Scoring an index value of 56.3, Mercer ranks the retirement system as a “C”, having some good aspects in the system, as well as major risks that need to be resolved. A combination of a public pension system, voluntary private plans, and a cultural emphasis on financial discipline, will help improve the country’s retirement system. Meanwhile, the GRI Index has revealed that the country has slipped by two places to 24th, owing to its poor performance in the Finances sub-index. Japan has the largest number of adults over the age of 65, making up almost 30% of the population. Since there are more elderly people and fewer working people to support them, it’s hampering the retirement security of its pension system. 19. Austria Average Ranking: 25.5 Natixis Global Retirement Index Rank: 11th Mercer CFA Institute Global Pension Index Rank: 40th Austria ranks 40th in the Mercer Index, scoring an index value of 52.5 in 2023. Its retirement income system comprises a Defined Benefit (DB) public pension scheme which is complemented by an income-tested top-up designed for low-income pensioners, along with voluntary private pension plans. Similar to Japan, its retirement system is ranked a “C”.  Nevertheless, Austria is one country with the best retirement system because it is claimed that their pensions are some of the most “generous” in the world. With regard to the GRI Index, Austria has an improved position, jumping from 71% in 2022 to 75% in 2023. The country has improved in its Material Well-being sub-index from 69% to 72%, marked by a downward trend in unemployment of working-age people and those above 50. The score improvement can also be attributed to a slight gain in the quality of life index, thanks to improvements in air quality, and biodiversity. 18. France Average Ranking: 24 Natixis Global Retirement Index Rank: 23rd   Mercer CFA Institute Global Pension Index Rank: 25th According to the Mercer Index, France has an overall index value of 61.7 in 2023, dropping from 62 in 2022. Its retirement system rank is C+, implying that the system has some good features but also major risks/shortcomings that need to be addressed. The retirement system of the country comprises of earnings-related public pension with a minimum pension and a supplementary retirement pension scheme for private-sector workers (known as AGIRC-ARRCO) and also includes occupational plans. The country boasts one of the lowest qualifying ages for a state pension in European countries and spends heavily on its retirement system. Some improvements that the country’s retirement system needs are increasing labor force participation at older ages and increasing regulatory requirements for the private pension system. Meanwhile, France jumped up one spot to 23rd in the GRI Index rank due to a strong performance in its health sub-index. 17. United States of America Average Ranking: 21 Natixis Global Retirement Index Rank: 20th Mercer CFA Institute Global Pension Index Rank: 22nd The United States of America ranks 22nd out of 47 countries in the Mercer Global Pension Index Rank with an index value of 63. Its retirement system has been graded as a “C+,” indicating that the system has some plus points but also comes with its fair share of flaws. Some improvements that the system needs include raising the minimum pension for low-income pensioners, reducing pre-retirement leakage, and improving the vesting of benefits for all plan members. Meanwhile, the USA has slipped two places in the GRI index to the 20th spot, owing to a deteriorating performance in the health, quality of life, material well-being, and old-age dependency sub-indices. Life expectancy in the country has also taken a hit, inflation and government debt have worsened, and happiness scores also decreased slightly; adversely impacting retirement security. 16. Belgium Average Ranking: 27.5 Natixis Global Retirement Index Rank: 19th Mercer CFA Institute Global Pension Index Rank: 16th Belgium is one of the countries with the best retirement systems, with a “B” ranking allotted to it by the Mercer Index. The retirement income system of the country includes public, occupational, and private pension schemes. A “B” ranking signifies that the retirement system of the country has a sound structure, but there are some areas of improvement. In Belgium’s case, the improvements that can be made include increasing labor force participation at older ages, and greater flexibility in terms of pension design, to name a few. The Natixis GRI rank has seen Belgium jump up by one spot to 19th rank, performing well in almost all sub-indices except Health. 15. Singapore Average Ranking: 16.5 Natixis Global Retirement Index Rank: 26th Mercer CFA Institute Global Pension Index Rank: 7th Singapore’s retirement system is ranked a “B+”, coming at 7th with an index value of 76.3 in the Mercer Index. The improvement in the system can be attributed to its increased level of pension coverage, making it one of the best retirement systems in Asia. The foundation of Singapore’s retirement income system lies in the Central Provident Fund (CPF), a scheme that includes all employed residents of Singapore. Within the CPF framework, certain benefits are accessible for withdrawal at any time, such as for designated housing and medical expenses, while other benefits are set aside to ensure financial security during retirement. Moreover, Singapore ranks 26th in the Natixis GRI Index. The country has experienced a drop in the finance sub-index due to a decrease in old-age dependency, bank nonperforming loans, inflation, and interest rates. 14. Germany Average Ranking: 14 Natixis Global Retirement Index Rank: 9th Mercer CFA Institute Global Pension Index Rank: 19th Germany’s retirement income structure comprises an earnings-related pay-as-you-go system, relying on the accumulation of pension points throughout an individual’s career. Additionally, there is a means-tested safety net designed to support low-income pensioners, and many prominent employers offer supplementary pension plans as part of the overall system. Mercer CFA Global Pension Index Rank classified its retirement system as a “B”, signifying some areas of improvement such as increasing the level of funded contributions in private pension plans, increasing coverage of employees, and increasing minimum pension for low-income pensioners. The GRI Index notes the country moving up two spots to the 9th rank, showing improvements in inflation, interest rates, and overall economy. It has also been spending heavily on health expenditure, thereby improving retirement security. 13. United Kingdom Average Ranking: 13 Natixis Global Retirement Index Rank: 16th Mercer CFA Institute Global Pension Index Rank: 10th The United Kingdom retirement system comprises three main pension types, namely: state pension, workplace pensions, and personal pensions. Mercer Index ranks the UK at 10th position, with an index value of 63. Some improvements needed in its retirement system include raising the minimum pension for low-income pensioners, reducing pre-retirement leakage, and improving the vesting of benefits for plan members. Meanwhile, the GRI index notes the country climbing up three spots to 16th rank, primarily due to a strong performance of the Finances in Retirement sub-index. 12. New Zealand Average Ranking: 12.5 Natixis Global Retirement Index Rank: 8th Mercer CFA Institute Global Pension Index Rank: 17th New Zealand ranks as one of the countries with the best retirement systems, largely because its system is highly effective in preventing elderly poverty. The retirement income system comprises a universal public pension, the KiwiSaver DC retirement scheme, and alternative occupational schemes. The NZ Super is paid from age 65, and individuals don’t have to stop working to receive it. Mercer Pension Index ranks it 17th with an index value of 68.3, while the Natixis GRI Index notes an improvement in all sub-indices, ranking it at 8th position. 11. Canada Average Ranking: 12 Natixis Global Retirement Index Rank: 12th Mercer CFA Institute Global Pension Index Rank: 12th Canada is known to have one of the best pension systems in the world owing to its diversification of income sources. The retirement income system comprises good basic national benefits (OAS), means-tested income supplement (GIS), and public pension plans (CPP and QPP), all adjusted for inflation. Noteworthy enhancements encompass reducing government debt as a percentage of GDP and implementing a universal minimum access age for pension products. According to the GRI Index, the country stands in 12th position with improvements in quality of life, material well-being, and finances in retirement sub-indices. 10. Sweden Average Ranking: 11.5 Natixis Global Retirement Index Rank: 14th Mercer CFA Institute Global Pension Index Rank: 9th Another country that has one of the best retirement systems is Sweden, owing to its strong economic foundation and multi-pillar pension system. This system comprises a national public pension from the state, an occupational pension from employer, and any savings or assets that you may have; providing retirees with a combination of benefits. According to Mercer, essential improvements entail raising the state pension age and reintroducing tax incentives for individual contributions, among other measures. 9. Israel Average Ranking: 10.5 Natixis Global Retirement Index Rank: 17th Mercer CFA Institute Global Pension Index Rank: 4th Israel’s pension system ranks 4th in the world as per the Mercer Index, with an index value of 80.8. The system includes a universal state pension with an income-tested supplement and private pensions with compulsory employer and employee contributions. The GRI index notes the country slipping by one spot to 17th rank, with a slip in the health sub-index. 8. Finland Average Ranking: 9.5 Natixis Global Retirement Index Rank: 13th Mercer CFA Institute Global Pension Index Rank: 6th Finland’s retirement system is deemed to be one of the most transparent and reliable in the world. Its system consists of a basic state pension, which is income-tested, and a range of statutory earnings-related schemes. Mercer ranks it at the 6th spot with an index value of 76.6. Meanwhile, the country has either held its place or improved in all four sub-indices (health, material well-being, finances in retirement, and quality of life) measured in the GRI index. 7. Ireland Average Ranking: 8.5 Natixis Global Retirement Index Rank: 4th Mercer CFA Institute Global Pension Index Rank: 13th Ireland’s retirement system has received a B grade from Mercer, ranking it at 13th position with an index value of 70.2. Ireland is a European country with one of the best retirement systems. Their pension system comprises a pay-as-you-go program and is based on both public and private pension programs. The GRI Index ranks it at 4th position, experiencing gains in material well-being and finances in retirement sub-indices. 6. Denmark Average Ranking: 6.5 Natixis Global Retirement Index Rank: 10th Mercer CFA Institute Global Pension Index Rank: 3rd Owing to its comprehensive welfare programs and emphasis on equality, Denmark is deemed to have one of the best social security systems in the world. Their retirement income system is close to the one recommended by the World Bank. It consists of a public basic pension scheme and a means-tested supplementary pension benefit. It also comprises a fully funded DC (Defined contributions) scheme providing lifelong pensions and a mandatory occupational DC scheme. Mercer Index ranks it at the 3rd spot with an index value of 81.3. Meanwhile, the Natixis Retirement Index ranks it at 10th place, staying in the top 10 countries in their index. Improvement in interest rates and governance has improved its Finance sub-index, and there have been improvements in Quality of Life as well. Click to continue reading and see the 5 Countries with Best Retirement Systems. Suggested Articles: 18 Best Places to Retire in North Carolina 12 European Countries with the Best Quality of Life 20 Countries With the Most American Expats Disclosure: none. 20 Countries with Best Retirement Systems is originally published on Insider Monkey......»»

Category: topSource: insidermonkeyNov 26th, 2023

Trump court cases: A list of all current and pending legal cases on the ex-president"s docket

Numerous court cases are open against Trump, including the ongoing fraud trial in New York. Here's a list of his legal issues. Former President Donald Trump is facing legal battles across the country.Drew Angerer/Getty Images Trump and his businesses are tangled in an array of state and federal investigations and lawsuits. He's fighting to keep the Trump Organization alive in an ongoing New York fraud trial. His troubles in criminal and civil cases are heating up along with his 2024 presidential campaign. The lawsuits and prosecutions involving Donald Trump are piling up. The ex-president — who is the front-runner for the 2024 Republican presidential nomination — now is indicted in four separate prosecutions, the first former Oval Office occupant to ever be charged. He faces 91 criminal counts overall.In Atlanta, he and 18 co-defendants were charged in a sprawling RICO case for trying to overturn the election results in Georgia. The Justice Department brought a separate case against him in Washington, DC, for his election challenges. In Florida, the Justice Department brought 37 counts against him for his handling of classified documents after leaving the White House. And in New York, he stands charged with 34 felony counts of falsifying business records.Meanwhile, Trump is set to face a second defamation trial brought by E. Jean Carroll — the magazine writer who won a civil trial against Trump for sexual assault and defamation this past May.And he faces a grab bag of additional lawsuits that could financially harm him and his international real-estate and golf resort empire.Keep up to date on the latest of Trump's legal travails with this guide to the ever-evolving Trump docket.Indictments against TrumpFulton County Georgia District Attorney Fani Willis investigated Trump's interference in the 2020 election.AP Photo/Ben Gray, FileThe Georgia RICO caseThe parties: Fulton County District Attorney Fani Willis, Trump, and his Republican associates The issues: In August, Willis brought a sprawling RICO case against Trump and 18 co-defendants, accusing them of forming an enterprise to illegally try to keep him in power despite losing the 2020 election.The indictment brings charges over campaigns from Trump, Rudy Giuliani, Mark Meadows, and other top Trump allies to pressure state officials to overturn the election results. It also brings charges against state Republican officials who acted as false electors and submitted fake documents to Congress.What's next: The case is the most complicated one pending against Trump and will likely be the last to go to trial. With 19 defendants overall — many of them lawyers — there are numerous legal issues to sort out. (Three of those lawyers, Sidney Powell, Jenna Ellis, and Kenneth Chesebro, have pleaded guilty, making things a little easier.) But with a potential 20-year sentence on RICO charges and no prospect of a preemptive pardon, the case is Trump's biggest legal threat.Trump has been investigated for his role in the January 6, 2021 attack on the Capitol.Jon Cherry/Getty ImagesThe Justice Department's investigation into 2020 election interferenceThe parties: Justice Department Special Counsel Jack Smith brought an indictment against Trump in Washington, DC federal court. The case is being overseen by US District Judge Tanya Chutkan, an appointee of former President Barack Obama, who has overseen numerous criminal trials of January 6 rioters.The issues: The indictment alleges Trump and a group of yet-unindicted co-conspirators conspired to stop Congress from doing its duty to certify now-President Joe Biden's electoral victory in the 2020 election and rob Americans of their lawful votes.Smith's indictment includes few details that weren't already uncovered by reporters and from the congressional investigation into the pro-Trump riot at the Capitol on January 6, 2021. The congressional committee recommended bringing charges against Trump that largely line up with the indictment Smith ultimately brought.Like Willis's indictment, the case includes the false elector scheme. In addition to Georgia, the indictment includes activity in Michigan, Pennsylvania, Arizona, and other states where Trump lost and tried to overturn the results.What's next: A trial has been scheduled for March 4, which would make it the first of Trump's criminal cases to go to trial.People walking outside Mar-a-Lago in March 2017Darren SamuelsohnThe Justice Department's investigation into classified documentsThe parties: Smith brought an indictment against Trump and his aide Waltine Nauta in a Florida federal court in June. He later slapped Trump with a superseding indictment that added Mar-a-Lago property manager Carlos De Oliveira as a co-defendant. They've all pleaded not guilty in the case, which is expected to go to trial in mid-2024.The issues: Early in 2022, Trump turned over 15 boxes of documents — including some marked as classified and "top secret" — to the National Archives. But federal investigators scrutinizing the former president's handling of records reportedly grew suspicious that Trump or people close to him still retained some key records. The FBI seized about a dozen boxes of additional documents during a raid of Mar-a-Lago last summer.The Mar-a-Lago case and a separate January 6 investigation are both being overseen by special prosecutor Jack Smith, whom US Attorney General Merrick Garland appointed in November. Smith's team has been collecting evidence that would help support a case that Trump knowingly retained the records sought by the government, and obstructed efforts to return them.According to the indictment — which brings 37 criminal counts against Trump — Trump violated the Espionage Act 31 times by illegally holding on to sensitive national-security documents, conspiring to obstruct justice, lying to law enforcement, and violating three different statutes related to withholding and concealing government records.Nauta and De Oliviera, often at Trump's direction, helped hide documents, the indictment says. Nauta also lied to law enforcement about his actions, according to prosecutors.What's next: US District Judge Aileen Cannon, a Trump appointee who previously made rulings sympathetic to him, is presiding over the case. She set a trial for May, but because the case involves complicated legal issues related to classified documents and presidential powers, it may be delayed until after the 2024 election.Former President Donald Trump, left. adult film star Stormy Daniels, center. Manhattan District Attorney Alvin Bragg, right.Alex Brandon/AP, left. Markus Schreiber/AP, center. Eduardo Munoz Alvarez/AP, right.The Manhattan DA's indictment over the hush-money settlement to Stormy DanielsThe parties: District Attorney Alvin L. Bragg and Donald Trump.The issues: Bragg's office investigated whether Trump violated campaign finance laws in connection to hush money payments made to Stormy Daniels before the 2016 election. A grand jury voted to bring criminal charges against Trump in the case.Michael Cohen, Trump's former fixer and personal lawyer, is a key witness. He has testified under oath that he made the payments to Daniels at Trump's direction, and pleaded guilty to federal campaign finance violations in connection with the payments in 2018. What's next: Trump was arrested in Manhattan criminal court on April 4 and was arraigned. He is facing 34 felony counts of falsifying business records.The judge scheduled a trial to begin on March 25, 2024, but it may be pushed back because of its proximity to the Washington, DC-based election interference case.Trump with his former CFO Allen Weisselberg at Trump Tower.Evan Vucci/APThe Trump Organization Payroll Case The Parties: The Trump Organization was found guilty of 17 tax fraud counts on December 6, 2022 in a speedy, slam-dunk conviction in New York state court.The Issues: A four-woman, eight-man, mostly working-class jury held Trump's real estate and golf resort business criminally liable for a 2005-2018 tax-dodge scheme admittedly run by the company's two top financial executives.The two, former CFO Allen Weisselberg and top payroll executive Jeffrey McConney, helped themselves and a half-dozen other company execs cheat on their income taxes by paying them in part with pricey perks and benefits — including free use of luxury cars and apartments — that were never reported to tax authorities.What's next: Potential repercussions include a heightened hesitancy among banks to lend to a company with felony status and an energized Trump probe in the Manhattan district attorney's office. Government corruption watchdogs also have renewed reason to urge the federal government to cease doing business with the former president.Civil lawsuits against TrumpThe front page of the lawsuit filed by New York Attorney General Letitia James accusing former President Donald Trump, his family and his business of a decade of padding his net worth to secure hundreds of millions of dollars in bank loans and tax breaks.Jon Elswick/APThe NY AG's civil case against the Trump family and Trump OrganizationThe parties: New York Attorney General Letitia James has sued Trump, his family, and the Trump Organization.The issues: James says she has uncovered a decadelong pattern of financial wrongdoing at Trump's multibillion-dollar real-estate and golf resort empire.She alleges Trump inflated the values of his properties by billions of dollars in financial filings used to secure hundreds of millions of dollars in bank loans. She also alleges he low-balled his properties' worth for tax breaks. Trump has derided the AG's efforts as a politically motivated witch hunt.The 220-page lawsuit arose from a three-year investigation and seeks multiple, corporation-crippling demands that will be decided by a Manhattan judge in October.James wants the company to pay back the $250 million Trump allegedly pocketed through misleading banks. She also seeks to ban Trump and his eldest sons — Donald Trump Jr. and Eric Trump, who have all served as Trump Organization executives — from ever running a company in New York state again.Perhaps most extremely, her lawsuit seeks to pull the Trump Organization's New York papers of incorporation. That charter lets Trump draw revenue from his New York properties, including the lucrative commercial rents at his Manhattan skyscrapers. These measures would run Trump's corporate headquarters out of New York and could put the Trump Organization out of business entirely. What's next: The trial began in October and featured testimony from Donald Trump himself, as well as his three eldest children and a parade of Trump Organization executives and accountants. It's scheduled to continue until December 15, when Trump's team will finish presenting their defense.Before the trial, New York Supreme Court Justice Arthur Engoron issued a summary judgment opinion largely siding with the attorney general's lawsuit. But his "corporate death penalty" order, which would effectively dissolve the Trump Organization, has been put on hold as the Trumps appeal his decision.Trump speaking to supporters ahead of the Capitol riot.BRENDAN SMIALOWSKI/AFP via Getty ImagesThe disqualification lawsuitsThe Parties: Voters and advocacy groups in several states have filed lawsuits seeking to keep Donald Trump off the ballot in 2024. A case in Colorado brought by the watchdog group Citizens for Responsibility and Ethics in Washington (CREW) has been litigated most extensively so far.The Issues: Section 3 of the 14th Amendment of the US Constitution, passed shortly after the Civil War, forbids "an officer of the United States" from being "engaged in insurrection or rebellion" against the country.Advocacy groups argue Trump incited the January 6, 2021, insurrection at the US Capitol and should be ineligible from holding office again. Trump's lawyers say he was engaged in free speech and has no relationship with the far-right rioters who stormed Congress to support him.In a 102-page opinion issued in November, a Colorado state judge found that CREW sufficiently "established that Trump engaged in an insurrection on January 6, 2021 through incitement, and that the First Amendment does not protect Trump's speech." But, the judge ruled, Trump wasn't "an officer of the United States" in the way the 14th Amendment is meant to be understood, and so Trump can remain on the ballot.What's next: CREW is appealing the case. It'll almost certainly end up in front of the US Supreme Court.Supporters of then-President Donald Trump protest inside the US Capitol.Brent Stirton/Getty ImagesLawsuits alleging 'incitement' on January 6The Parties: House Democrats and two Capitol police officers accused Trump of inciting the violent mob on January 6.The Issues: Trump's lawyers have argued that his time as president grants him immunity that shields him from civil liability in connection with his January 6 address at the Ellipse, where he urged supporters to "fight like hell."A federal judge rejected Trump's bid to dismiss the civil lawsuits, ruling that his rhetoric on January 6 was "akin to telling an excited mob that corn-dealers starve the poor in front of the corn-dealer's home."US District Judge Amit Mehta said Trump later displayed a tacit agreement with the mob minutes after rioters breached the Capitol when he sent a tweet admonishing then-Vice President Mike Pence for lacking the "courage to do what should have been done to protect our Country."What's Next: Trump has appealed Mehta's ruling to the US Court of Appeals for the DC Circuit. His lawyers have argued that the immunity afforded to the former president cannot be "undercut if the presidential act in question is unpopular among the judiciary." The Justice Department says Trump's actions aren't covered by presidential immunity. The appeals court heard oral arguments in December but hasn't yet issued a decision. Advice columnist E. Jean Carroll is suing Trump for rape and defamation.Seth Wenig/APE. Jean Carroll's rape and defamation case against TrumpThe Parties: Advice columnist E. Jean Carroll is suing Trump for defamation, battery, and emotional distress in federal court in Manhattan.  The Issues: Carroll filed two lawsuits against Trump.Both lawsuits allege Trump defamed her after she publicly accused him of raping her in a Bergdorf-Goodman dressing room in Manhattan in the mid-90s. Trump responded to Carroll's rape claim by saying it was untrue and that she was "not my type." Trump also denied ever meeting Carroll, despite a photo to the contrary.The first lawsuit was filed in 2019, while Trump was in office, and has been tangled up over legal questions of whether Trump disparaged Carroll as part of his presidential duties, which would make him immune to the lawsuit.After Trump made more disparaging remarks about Carroll last fall, she filed a second defamation lawsuit against him. That lawsuit also included a rape allegation following the passage of a New York law that gave sexual assault accusers a new window to file civil cases regardless of when the alleged incident occurred.The second lawsuit went to trial in April. A jury found Trump liable for sexual abuse and defamation and awarded Carroll $5 million.What's next: After Trump lost the trial, he repeated the same insults against Carroll. Carroll added new defamation claims to her first lawsuit. In July, the Justice Department dropped its argument that Trump disparaged Carroll as part of his presidential duties, paving the way for a second trial to be held in January. Donald Trump, right, sits with his children, from left, Eric Trump, Donald Trump Jr., and Ivanka Trump during a groundbreaking ceremony for the Trump International Hotel in Washington.Evan Vucci/APThe 'multi-level marketing' pyramid scheme caseThe Parties: Lead plaintiff Catherine McKoy and three others sued Trump, his business, and his three eldest children, Donald Trump Jr., Eric Trump, and Ivanka Trump, in 2018 in federal court in Manhattan.The Issues: Donald Trump is accused of promoting a scam multi-level marketing scheme on "The Celebrity Apprentice." The lawsuit alleges Trump pocketed $8.8 million from the scheme — but that they lost thousands of dollars. Trump's side has complained that the lawsuit is a politically motivated attack. What's Next: The case is scheduled to go to trial in January 2024.Michael Cohen, Trump's former attorney, has claimed Trump sent him to prison to silence him.Chip Somodevilla/Getty ImagesMichael Cohen's 'imprisonment' caseThe Parties: Michael Cohen sued Donald Trump, former Attorney General Bill Barr, and more than a dozen federal prison officials and employees, in federal court in Manhattan in 2021.The Issues: The president's former personal attorney is seeking $20 million in damages relating to the time he spent in prison for financial crimes and lying to Congress about Trump's dealings in Congress. Cohen claimed he had been moved to home confinement for three months in the spring of 2020 due to the pandemic but was then vindictively thrown into solitary confinement when he refused to stop speaking to the press and writing a tell-all book about his former boss. A judge ordered him released after 16 days.What's Next: The case was dismissed in November, but Cohen filed an appeal.Singer Eddy Grant sued Trump for copyright infringement.Andrew Winning/ReutersThe Electric Avenue copyright caseThe Parties: Eddy Grant, the composer/performer behind the 80s disco-reggae mega-hit "Electric Avenue," sued Donald Trump and his campaign in federal court in Manhattan in 2020.The Issues: Grant is seeking $300,000 for copyright infringement. He claims Trump made unauthorized use of the 1983 dance floor staple during the 2020 campaign. About 40 seconds of the song played in the background of a Biden-bashing animation that Trump posted to his Twitter account. The animation was viewed 13 million times before being taken down a month later. Trump has countered that the animation was political satire and so is exempt from copyright infringement claims. He's also said that the campaign merely reposted the animation and that he has no idea where it came from.Trump was deposed last year, but it's unclear where or when exactly. Lawyers for Trump and Grant have agreed to a strict gag order in the case and have repeatedly declined to comment. What's Next: The case is slowly winding its way toward trial; an April 24 deadline has been set for the sides to exchange evidence.Lawsuits brought by Trump Donald Trump's niece Mary Trump.MSNBCDonald Trump v. Mary Trump and the New York TimesThe Parties: The former president countersued his niece Mary Trump — and the New York Times — in 2021 in New York state court.The Issues: Mary Trump, the Times, and three of its reporters "maliciously conspired" against him, Trump alleged, by collaborating with the Times on its expose of and breaching the confidentiality of the family's 2001 settlement of the estate of Mary Trump's grandfather, Fred Trump Sr.What's Next: A judge tossed the claims against the New York Times and its reporters but hasn't yet ruled on Mary Trump's motion to dismiss the case.A judge called Trump's lawsuit against Hillary Clinton "frivolous."Photo by: Mike Smith/NBC/NBCU Photo Bank via Getty ImagesDonald Trump v. Hillary ClintonThe Parties: Trump sued Hillary Clinton, her campaign, the Democratic National Committee, and prominent Democrats, including former DNC chair Debbie Wasserman Schultz and former Clinton campaign chair John Podesta in a federal court in southern Florida in March 2022.The Issues: Trump alleged that Clinton and her campaign staff conspired to harm his 2016 run for president by promoting a "contrived Trump-Russia link." A judge tossed the massive lawsuit in September, calling it "a two-hundred-page political manifesto" in which Trump detailed "his grievances against those that have opposed him." He ordered Trump and his attorney to pay nearly $1 million in sanctions in January.What's Next: Trump promised to appeal the dismissal, but it's unlikely he'll be successful given the sanctions he's faced in this case.Camila DeChalus and C. Ryan Barber contributed to a previous version of this story.Read the original article on Business Insider.....»»

Category: worldSource: nytNov 26th, 2023

11 Best Halal Dividend Stocks To Buy

In this article, we discuss 11 best halal dividend stocks to buy. You can skip our detailed analysis of dividend stocks and their previous performance, and go directly to read 5 Best Halal Dividend Stocks To Buy.  Halal stocks refer to shares of companies that comply with Shariah law. These stocks are from companies that […] In this article, we discuss 11 best halal dividend stocks to buy. You can skip our detailed analysis of dividend stocks and their previous performance, and go directly to read 5 Best Halal Dividend Stocks To Buy.  Halal stocks refer to shares of companies that comply with Shariah law. These stocks are from companies that operate in line with Shariah guidelines, meaning they avoid industries like alcohol, gambling, tobacco, and non-Islamic finance. Additionally, they maintain ethical business practices, ensuring their sources of income align with Islamic principles. The S&P High Yield Dividend Aristocrats Shariah Index monitors how certain Shariah-compliant companies, selected from the S&P 1500 Composite, perform in the market. These companies are specifically chosen because they’ve consistently increased their dividend payments for a period of 20 years or longer. This index tracks the performance of long-standing dividend-growing companies that adhere to Shariah principles within the broader market context of the S&P 1500 Composite. The index is down by 0.78% this year so far and its 5-year return came in at 6.98%. Dividend-growing stocks have historically been popular among investors because they provide a regular income stream for them. As these companies increase their dividends over time, investors benefit from higher payouts. Companies that consistently pay increasing dividends usually have a strong financial foundation. They must not only turn a profit but also generate more cash than they require for their operations. A report conducted by Middlefield Capital Corporation found that dividend growers have shown remarkable performance compared to the broader market over the past three decades. This success isn’t just chance—it’s attributed to the fact that these companies are dedicated to managing their resources and investments with a disciplined approach. The same report also mentioned that chasing high yields without considering the underlying factors can be risky for investors. While a high dividend yield might seem attractive at first glance, it’s essential to look beyond the numbers. Sometimes, stocks offering the highest yields might actually carry greater risk or have unsustainable dividend payments. The way inflation affects fixed-income and income portfolios differs significantly. A high-quality company that consistently pays dividends has the potential to increase its income over time, acting as a safeguard against the negative effects of inflation. Research from Ned Davis shows that S&P 500 companies have raised their dividends by 9.70% in the past year, surpassing even the relatively high recent inflation rates. Over the last fifty years, the S&P 500® Index’s dividend payments have grown at an average rate of 6%, which notably exceeds the historical inflation rate in the US. Exxon Mobil Corporation (NYSE:XOM), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX) have a longstanding history of consistently increasing their dividend payouts, making them favored options among investors. Alongside their dividend track records, these companies also adhere to Shariah principles in their investments, appealing to investors seeking Shariah-compliant opportunities. In this article, we will further take a look at some of the best halal stocks that pay dividends. Photo by Vitaly Taranov on Unsplash Our Methodology: To compile this list, we chose the top 11 stocks from the S&P High Yield Dividend Aristocrats Shariah Index. These specific companies are known for consistently providing substantial dividends to their shareholders and demonstrating robust financial stability. We ranked these holdings based on the number of hedge funds that had invested in them by the end of Q3 2023, using data from Insider Monkey’s database. This ranking method helps identify stocks that attract interest from hedge funds, providing insight into investor sentiment and confidence in these particular companies. 11. Kimberly-Clark Corporation (NYSE:KMB) Number of Hedge Fund Holders: 31 Kimberly-Clark Corporation (NYSE:KMB) is an American multinational corporation that is engaged in the manufacturing and marketing of personal care and consumer tissue products. In the third quarter of 2023, the company posted revenue of $5.2 billion, which showed a 2% growth from the same period last year. Its operating cash flow for the first nine months came in at $2.3 billion and it returned $1.3 billion to shareholders through dividends and share repurchases. Kimberly-Clark Corporation (NYSE:KMB) currently pays a quarterly dividend of $1.18 per share and has a dividend yield of 3.86%, as of November 25. It is one of the best halal stocks on our list as the company has been growing its dividends for 51 consecutive years. At the end of Q3 2023, 31 hedge funds tracked by Insider Monkey reported having stakes in Kimberly-Clark Corporation (NYSE:KMB), compared with 38 in the preceding quarter. The consolidated value of these stakes is over $790.4 million. 10. General Dynamics Corporation (NYSE:GD) Number of Hedge Fund Holders: 39 General Dynamics Corporation (NYSE:GD) is a Virginia-based global aerospace and defense company. It also offers a wide array of IT services, including cloud computing, data analytics, and enterprise IT solutions. The company offers a quarterly dividend of $1.32 per share and has been raising its dividends for 26 years consistently. As of November 25, the stock has a dividend yield of 2.13%. General Dynamics Corporation (NYSE:GD) generated $10.6 billion in revenues in the third quarter of 2023, which saw a 6% growth from the same period last year. The company’s operating cash flow for the quarter came in at $1.3 billion. It is one of the best halal stocks on our list as the company returned $363 million to shareholders through dividends during the quarter. As of the end of Q3 2023, 39 hedge funds in Insider Monkey’s database reported having stakes in General Dynamics Corporation (NYSE:GD), down from 46 in the previous quarter. The collective value of these stakes is over $7 billion. 9. Air Products and Chemicals, Inc. (NYSE:APD) Number of Hedge Fund Holders: 43 Air Products and Chemicals, Inc. (NYSE:APD) is a global industrial gases company that provides atmospheric gases, process and specialty gases, performance materials, equipment, and services. The company’s dividend growth streak currently stands at 41 years, which makes ADP one of the best halal stocks to buy. It currently pays a quarterly dividend of $1.75 per share and has a dividend yield of 2.55%, as of November 25. The number of hedge funds tracked by Insider Monkey owning stakes in Air Products and Chemicals, Inc. (NYSE:APD) stood at 43 in Q3 2023, which remained unchanged from the previous quarter. The total value of these stakes is over $952.3 million. With nearly 1 million shares, Citadel Investment Group was the company’s leading stakeholder in Q3. 8. 3M Company (NYSE:MMM) Number of Hedge Fund Holders: 54 3M Company (NYSE:MMM) is a diversified multinational corporation operating in various industries. They specialize in the development, manufacturing, and marketing of a wide array of products and solutions across different sectors. In the third quarter of 2023, 3M Company (NYSE:MMM) reported revenue of $8.31 billion, which beat analysts’ estimates by $280 million. The company generated $1.9 billion in free cash flow during the quarter and returned $828 million to shareholders through dividends. This shows that the company’s cash generation is strong enough to fulfill its shareholder obligation. 3M Company (NYSE:MMM), one of the best halal stocks on our list, currently pays a quarterly dividend of $1.50 per share. The company holds a 65-year streak of consistent dividend growth. As of November 25, the stock has a dividend yield of 6.25%. The number of hedge funds tracked by Insider Monkey owning stakes in 3M Company (NYSE:MMM) grew to 54 in Q3 2023, from 49 in the preceding quarter. The consolidated value of these stakes is over $818.6 million. 7. The Coca-Cola Company (NYSE:KO) Number of Hedge Fund Holders: 57 The Coca-Cola Company (NYSE:KO) is a Georgia-based multinational beverage company. In the third quarter of 2023, the company’s revenue showed an 8% year-over-year growth at $12 billion. In the first nine months of the year, the company generated nearly $9 billion in operating cash flow and its free cash flow for the period came in at $7.9 billion. The Coca-Cola Company (NYSE:KO) has been rewarding shareholders with growing dividends for the past 61 years, which makes KO one of the best halal stocks on our list that pay dividends. The company offers a per-share dividend of $0.46 every quarter and its dividend yield on November 25 came in at 3.14%. The Coca-Cola Company (NYSE:KO) was a part of 57 hedge fund portfolios at the end of Q3 2023, according to Insider Monkey’s database. The total value of stakes owned by these hedge funds is over $25 billion. Among these hedge funds, Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3. 6. Target Corporation (NYSE:TGT) Number of Hedge Fund Holders: 58 Target Corporation (NYSE:TGT) is an American retail company that operates a chain of retail stores offering a wide range of products. The company’s stores are designed to cater to various customer segments, offering both essential items and trendy products. Target Corporation (NYSE:TGT) has been raising its dividends for 52 consecutive years and currently pays a quarterly dividend of $1.10 per share. The stock’s dividend yield on November 25 came in at 3.35%. During its most recent quarter, the company returned over $507 million through dividends to shareholders. In the third quarter of 2023, Target Corporation (NYSE:TGT) posted revenue of $25.4 billion, which fell by 4.2% from the same period last year. However, the revenue surpassed analysts’ estimates by $160 million. Through the first three quarters of the year, the company generated over $5.3 billion in operating cash flow. Target Corporation (NYSE:TGT) was a popular buy among hedge funds during the third quarter of 2023, as the company ended the quarter with 58 hedge fund positions, up from 45 in the preceding quarter, according to Insider Monkey’s database. The total value of stakes owned by these hedge funds is over $1.3 billion. With over 2.8 million shares, Diamond Hill Capital was the company’s leading stakeholder in Q3.   Click to continue reading and see 5 Best Halal Dividend Stocks To Buy.    Suggested articles: 15 Stocks Billionaire David Einhorn Just Bought and Sold Jim Cramer’s Top 10 Stock Picks for 2023 13 Stocks Insiders are Buying Now Disclosure. None. 11 Best Halal Dividend Stocks To Buy is originally published on Insider Monkey......»»

Category: topSource: insidermonkeyNov 26th, 2023

The latest workplace request from Gen Z: legal services

Young workers increasingly want legal services as a workplace benefit, in part because they're worried about their finances. Many young workers say they want legal services as a workplace benefit.Visual Generation/Getty ImagesMore young workers say they want legal help as a workplace benefit, a survey from MetLife showed.The desire comes as more Gen Zers are stressed about their finances.About one-third of Gen Zers chose a legal benefit because they expected to use it within a year.You're a Gen Zer early in your career: You want an interesting job, ample work-life balance, and, oh yeah, a lawyer.The newest slice of the labor force has growing interest in legal help because they're worried about everything from rental agreements to traffic tickets, according to an employee-benefit study from MetLife.Among Gen Z workers MetLife surveyed, 84% said they were keen on signing up for legal services offered by their employer, up from 76% a year earlier. And some four in 10 Gen Zers say legal bennies are a "must have."Many workers — but particularly younger ones — want peace of mind, Ingrid Tolentino, CEO of MetLife Legal Plans, told Business Insider. "Legal issues are financial issues," she said. "The minute you're navigating the legal system and you have a legal matter, the first thing people think about is can I afford it."Four in 10 Gen Zers choose a legal plan to try and save money, according to MetLife research.Affordability is, no surprise, a big deal for the many Gen Zers who feel pinched financially. Nearly four in 10 work side hustles to pull in extra cash. And they're more likely to feel insecure about their finances than older groups, according to Financial headaches like student debt among 20-something workers are driving demand for employer benefits around personal finance, BI previously reported.Of course, worries about hits to the wallet extend beyond Gen Z. Among workers of all ages, demand for access to legal services as a workplace benefit has more than doubled since before the pandemic, MetLife found.But young workers, especially, have had ample reason to want a legal assist, Tolentino said. She noted demand for help went up as young workers, who are often renters, left cities during the pandemic and had to try and get out of leases. And canceled vacations and postponed weddings often meant trying to get out of contracts, she said.Just over one-third of Gen Z workers who chose a legal benefit at work said it was because they expected to tap into it within a year, according to MetLife.It's not just about getting out of traffic tickets. There is a growing number of Gen Zers caring for aging parents or grandparents, Tolentino said. Some 6% of adult caregivers are from Gen Z, according to a 2020 report from AARP and the National Alliance for Caregiving. That figure is expected to grow.Already, some legal offerings span reproductive needs to adoption to real estate planning. Tolentino expects the legal help employers offer will, in the coming years, continue to wrap in more services like offering advice related to a worker's side hustle."A lot of employees have an Etsy shop or some other shop," she said. They're making everything from candles to greeting cards to sweaters, and they want some protection there."Typically the cost of a legal benefit works out to about $18 a month for a worker, Tolentino said. Surveyors for MetLife interviewed nearly 2,900 adult workers in the US in late 2022 and early 2023.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 24th, 2023