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Tag: investing

A billionaire hedge-fund manager and the Fed chair runner-up are investing in a new cryptocurrency

A billionaire hedge-fund manager and the Fed chair runner-up are investing in a new cryptocurrency

Finance
Billionaire Stanley Druckenmiller and Federal Reserve chair runner-up Kevin Warsh have invested in a cryptocurrency project called Basis, along with many other investors, the company said Wednesday.Bain Capital Ventures said it led the $ 133 million private placement, which was the private equity firm's first purchase of cryptocurrency tokens. Other investors included Alphabet's GV venture capital arm and Andreessen Horowitz.Formerly known as Basecoin, Basis is developing a cryptocurrency whose supply is controlled by an algorithm rather than a central bank. In contrast, bitcoin and most major cryptocurrencies have a fixed supply. Changes in demand can then send prices in wild swings.Basis' developers say such volatility has prevented mainstream adoption of cryptocurrencies and they want t...
China looked at investing in SoftBank's $100 billion tech fund

China looked at investing in SoftBank's $100 billion tech fund

Finance
The Chinese government had talks about possibly financing the world's most ambitious investment project, SoftBank's $ 100 billion bet on the future of technology known as the Vision Fund.China's largest sovereign wealth fund, the China Investment Corporation, last year spoke with the Vision Fund about making an investment, according to five people with knowledge of or briefed on the conversations. A contribution from CIC, which has $ 800 billion to invest, would have been very politically controversial, but it would also supply the Vision Fund, led by CEO Masayoshi Son, with a steady spring of capital for future versions of SoftBank's project.Sources differ on how serious the talks became, but a contribution has yet to materialize, leading many to believe that the chance of an investment ...
Buffett has one big investing lesson in this year's annual letter: Never borrow money to buy stocks

Buffett has one big investing lesson in this year's annual letter: Never borrow money to buy stocks

Finance
Warren Buffett believes investors should avoid using borrowed money to outperform.The Oracle of Omaha explained the perils of using debt and leverage in his 2017 annual letter to Berkshire Hathaway shareholders released on Saturday."Berkshire, itself, provides some vivid examples of how price randomness in the short term can obscure long-term growth in value. For the last 53 years, the company has built value by reinvesting its earnings and letting compound interest work its magic. Year by year, we have moved forward. Yet Berkshire shares have suffered four truly major dips," he wrote.The investor shared the data which revealed Berkshire Hathaway's stock declined by a range of 37 percent to 59 percent multiple times over the last five decades."This table offers the strongest argument I can...
Should I follow Warren Buffett's 90/10 investing strategy?

Should I follow Warren Buffett's 90/10 investing strategy?

Finance
I'm in my early 50s, have more than $ 1 million in retirement savings and plan to retire around age 60. I've heard about Warren Buffett's strategy of keeping 90% of one's assets in stocks and 10% in bonds and like the idea of investing my savings that way to earn higher returns. I know my accounts would take a hit if stock prices fall, but I believe I could survive a market downturn. Do you think this is a good strategy for retirees and near retirees?—C.P. Anyone who's followed the strategy of putting 90% of their money in stocks and 10% in bonds that Warren Buffett mentioned in his 2013 letter to Berkshire Hathaway shareholders — would have done very well in recent years. After all, since that missive was released in March 2014, stocks have returned nearly 60%, while the broad taxable bo
Investing with borrowed money is tempting but a roll of the dice for most

Investing with borrowed money is tempting but a roll of the dice for most

Finance
In a 1991 speech at the University of Notre Dame, Warren Buffett offered a few of what are now regarded as some of his wisest words: "I've seen more people fail because of liquor and leverage — leverage being borrowed money."The Berkshire Hathaway CEO told the campus audience they could make a lot of money without other people's money if they were smart.Still, the temptation now to use historically low-interest money from mortgages, personal credit lines and 401(k) plans to invest in the stock market is great, especially as the Dow is reaching historic heights at more than 26,000 — a milestone unfathomable in 2009, during the Great Recession.Professional traders have used leveraged money from brokers and lenders to invest in exchange-traded funds and other stocks for decades, but this tact