Warren Buffett Annual Meeting 2020 Overview & Weekly Market Moments

Warren Buffett Annual Meeting 2020 Overview & Weekly Market Moments and Market Overview

So being the beginning of May, this means a lot of companies just shared their quarterly earnings.

The Grandfather of Investing parts his Wisdom
Microsoft is squaring up to zoom
How tesla lost $14 Billion In 7 words
Boeing shows why cash is king

On May 2nd, I saw the annual Berkshire Hathaway shareholders meeting. Buffet addressed the Virus! And essentially compared it to the 2008 financial crisis, where the train fell off the tracks, however this time we just pulled the train off the tracks and put it on the side! Basically saying that we are in a position where there are just too many unknowns.

As always Buffet advised the average investor to buy index funds that hold S&P 500. This has been something Buffet has said for years.

One of the other major things that came up on the call was that Berkshire Bailed out of all their Airline stocks! That $6.5 billion spread across 4 airlines in the US. He did mention that it has got nothing to do with how the companies are run, but more so around the social impact of the pandemic!

https://www.youtube.com/watch?v=69rm13iUUgE

Satya Nadella, of Microsoft revealed extremely strong quarterly earnings. Due to the success, they are gaining from their cloud business, which is helping to overpower the Corona related loss from their Physical sales of laptops and tablets. Where lots of companies are feeling the pain of the Corona Virus, Mircosoft managed to pull in $11 billion profit … which is an increase of 22% compared to the same quarter last year!

One of the reasons for Microsoft's great success this quarter has come about by going toe to toe with another company that has had a great couple of months. This other company is of course Zoom, while everyone is jumping onto ZOOM video calls with their family and friends every week to do pub quizzes and play games like codenames and cards against humanity… behind the scenes in the corporate world, Microsoft decided they had a piece of software that could go head to head with this increasingly popular space due to remote working becoming a must for 95% of companies around the world. Microsoft’s workplace tool, Teams, has been referred to before as the less sexy version of Slack, but when your daily users jump 70% from March to April, I don't think Microsoft really cares.
Another company that hit the headlines was Tesla, now this was for more than one reason! Tesla made a surprise profit! , making it a 3rd consecutive quarter of profitability. The main surprising factor here is that with their key production houses in shanghai and the Bay area, have been closed down, however thanks to cutting costs and the increase in sales, they were still profitable, but don't forget that this time last year Tesla reported a loss of $702 Million and the profit this quarter was only $16Million.

The tipping point… it all went belly up when Elon followed suit of the almighty Donald Trump and got his thumbs dirty on the Tweetosphere! Where 7 little words ended up costing Tesla $14 billion, simply because Elon decided to Tweet “Tesla stock price too high IMO”

So now we move on to Boeing, one of the largest suppliers of planes in the world, however, if you thought the airlines had it bad, Boeing probably has it worse. Boeing’s delivery of planes reduced 66% compared to the same quarter last year. From 149 to just 50! But this makes sense as all the airlines are going through a complete demise as no one is flying! However, with both of these major issues, Boeing’s investors were expecting news to be a lot worse than the reported $4.7Billion loss. Boeing, is sitting on a $15.5Billion cash pile and a $9.6Billion credit line. Which will keep them running along smoothly until the markets pick back up?

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DISCLAIMER: Sai Ganesh, is not a financial/investment advisor, broker, or dealer. He is solely sharing his personal experience and opinions; therefore, all strategies, tips, suggestions, and recommendations shared are solely for entertainment purposes. Always remember there are financial risks associated with investing, and Sai Ganesh’s results are not typical; therefore, do not act or refrain from acting based on any information conveyed in this video, webpage, and/or external hyperlinks. For investment advice please seek the counsel of a financial/investment advisor(s), and conduct your own due diligence.