I am quoted in the Washington Post on the Procter & Gamble proxy fight.
“It’s at least a temporary victory for Procter & Gamble, assuming the vote is not reversed,” said David Kass, a finance professor at the University of Maryland. “For the time being, it keeps Nelson Peltz off the board and permits P&G to proceed with its own plan to turn the company around.”
I am quoted in the Washington Post on Puerto Rico bonds.
“The average investor on the street will be unaffected,” said David Kass, a professor of finance at the University of Maryland. “If a small investor did invest in a municipal bond mutual fund, Puerto Rico would represent no more than 1 or 2 percent. This will have an infinitesimal impact on an investor investing in municipal bond funds.”
I am quoted in TheStreet on the proposed tax cut implications for Warren Buffett.
The combination of a reduction on taxes on future earnings, which will add billions of dollars to after-tax income, and Berkshire’s deferred tax liability on its $65 billion of unrealized capital gains at end of second quarter would be substantially reduced, resulting in an increase of at least 10% to 15% in Berkshire’s price per share, said David Kass, a finance professor at the University of Maryland’s Smith School of Business in College Park.
“This would then result in a proportional increase of at least $7 to $10 billion in Buffett’s wealth,” he said. “It is important to note, that Warren Buffett, who has approximately 99% of his wealth invested in Berkshire Hathaway, plans to donate all of his shares in Berkshire to charity, primarily the Bill and Melinda Gates Foundation.”
I am quoted in Kiplinger’s “8 Best Buffett Stocks for Retirement”.
(1) Apple (AAPL):
David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business who studies Buffett and is a Berkshire shareholder, notes that customer devotion to Apple products and services almost serve as an annuity. “Apple may be viewed as a ‘subscription model’ with a loyal customer base very likely to purchase future products and services,” Kass says.
(2) Bank of America (BAC):
“This is a very well run bank that should benefit as interest rates rise in the near future,” says Kass.
(3) Berkshire Hathaway (BRK.A)
“I would recommend Berkshire Hathaway as the best retirement stock of all,” Kass says. “Its stock represents ownership of over 90 companies across numerous industries along with a diversified portfolio of stocks.” True, Buffett and partner Charlie Munger are getting up there in age –87 and 93, respectively – but the company boasts what Kass calls a superior management team. No successor has been named publicly, but Todd Combs and Ted Weschler are Buffett’s chief stock-picking lieutenants. Each already manages more than $10 billion worth of Berkshire’s investments. Either Combs or Weschler (or possibly both) are thought to be behind the lucrative move into Apple stock.
(4) Kraft Heinz (KHC)
“Warren Buffett considers 3G Capital to be the best operating managers in the world,” says Kass. “They are likely in the future to partner with Berkshire in the acquisition of other food companies.”
Warren Buffett was interviewed on CNBC on October 3, 2017 from 8:00 – 9:00 a.m.
The highlights include:
(1) Berkshire Hathaway is buying 38.6% of Pilot Flying J (truck stops) and will own 80% in a few years.
(2) Stocks are fairly valued at current interest rates.
(3) A tax cut is likely this year which is why Berkshire is realizing losses on stocks this year, but not realizing gains. A tax cut will increase corporate profits and, therefore, stock prices over time. This will benefit the 1,000,000 shareholders of Berkshire.
(4) Warren Buffett has confidence in Tim Sloan, CEO of Wells Fargo.
(5) Bank of America is well run by its CEO, Brian Moynihan.
(Note: This blog post has been published by ValueWalk.)