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Archive for February, 2008

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Buffett on Muni Bonds, Stocks

Tuesday, February 12th, 2008

dividend_investing.gifWarren Buffett appeared on CNBC this morning (with another market legend: former Vanguard CEO John Bogle) to discuss his offer to re-insure bonds from troubled bond insurance companies such as MBIA and Ambac. His offer would cover around $800 billion of municipal bonds but would not include any portfolios of exotic instruments such as CDOs, etc.

Buffett on Stocks

Buffett was also asked about his opinion on current stock valuations. While he did mention that he believes stocks are priced in the general range of fair value, another comment he made concerned me. Buffett stated that corporate profits have been strong for some time, and both he and Bogle agreed that this could not last - bottom line: both believe a reversion to the mean in corporate profits is imminent. If the market has not already factored this into stock prices, the stock market could have further to fall moving forward.

Posted in Stock Market News, The Stock Market | No Comments »

Microsoft Corp and Yahoo to Merge?

Friday, February 1st, 2008

my1.gifAccording to the Wall Street Journal, large cap bellwether Microsoft Corp. (NASDAQ: MSFT) has offered to buy search engine Yahoo Inc. (NASDAQ: YHOO) for around $45 billion. The proposed deal, a 60% premium to yesterday’s closing price, works out to around $31 / share.

Competing with Google

Undoubtedly, the move is a play to gain traction in the search engine space and compete, according to Microsoft, in a market “increasingly dominated by one player”. Come to think of it, I wonder if there are any opportunities for competition in the PC operating system or web browser space? Those seem to be markets dominated by one player as well…hmm. Seriously though, the deal probably makes sense and could ultimately give Google a run for its money if it goes through.

Posted in Large Cap Stocks | No Comments »

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