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Tag: investing

Investing lessons from Warren Buffett's $9 billion Oncor 'stumble'

Investing lessons from Warren Buffett's $9 billion Oncor 'stumble'

Finance
Berkshire Hathaway recently made investment headlines with its agreement to purchase the power-transmission company Oncor for $ 9 billion in cash, a would-be coup for the legendary billionaire, as it would have chipped away at Berkshire's bloated cash balance (of nearly $ 100 billion).Disappointment, however, came in the form of Sempra Energy, which swooped in with an offer of $ 9.45 billion. This made headlines, some of which characterized the chain of events as a "stumble" by Buffett, even insinuating that the Oracle of Omaha might be losing his deal-making chops.A recent article in Fortune quotes an equity analyst who argues that Berkshire's loss of two large acquisition opportunities this year "calls into question the effectiveness of their gentleman's agreement acquisition strategy,"...
Op-Ed: Why this investing model makes sense for real estate in Asia

Op-Ed: Why this investing model makes sense for real estate in Asia

Finance
A decade ago, the real estate market opportunity in China consisted largely of risky speculative development deals because of a lack of availability of stock.Foreign investors seeking opportunistic returns from the first wave of China funds have been largely disappointed from a toxic combination of delays, cost escalation and implementation problems due to difficulties in enforcing basic contractual law. As a consequence, investor cynicism about China real estate runs high, and so sentiment on Chinese real estate is largely polarized between uber-bulls and perma-bears with not much in between.The reality on the ground today, however, is that the situation is more nuanced and much improved. Particularly in Beijing and Shanghai, occupational markets in the commercial market are buoyant and i...
Do you understand exchange-traded funds? Here are some investing tips

Do you understand exchange-traded funds? Here are some investing tips

Finance
Many analysts are predicting that exchange-traded funds will continue to sweep up assets in 2017. ETFs recorded $ 288.6 billion of inflows in 2016 and closed the year with nearly $ 3 trillion in assets under management.Traded on exchanges just like stocks, these index-tracking investments have attracted investors with their trading flexibility, low costs and tax efficiency. Yet how well do investors actually understand the funds they're buying?As with any investment, advisors and individual investors should be ready to undertake careful due diligence before buying an ETF. One common source of confusion when it comes to these funds is that there are often sizable discrepancies between ETFs whose naming conventions sound very similar yet utilize very different approaches in terms of how they...