Convenience store powerhouse Alimentation Couche-Tard continued along its consolidation path Continue reading
Investing genius Jeffrey Ubben and his team at ValueAct Capital Management L.P. were in the news on Monday with a report (form 13F) that fund or funds affiliated with the company had taken a roughly 2% stake in Wall Street giant and James Gorman-led financial services powerhouse Morgan Stanley.
What seemed to take many on the Street by surprise was that ValueAct was not seeking a seat on Morgan Stanley’s Board nor did it seek to criticize the actions of C.E.O Gorman. On the contrary, it would appear ValueAct thinks Gorman is running the firm quite well, and believes investors are not giving the company the credit it deserves.
In particular, ValueAct highlighted Morgan Stanley’s shift to asset-light and relatively lower risk businesses like wealth and investment management and investment banking advisory, which now account for about 80% of company profits.
Time will tell if this “passive” approach will pay off.
It may be time for fixed income investors to expand their universe and look at Jamaica government paper for a yield boost:
Apparently Warren Buffett’s Berkshire Hathaway Inc. is sitting on a record pile of cash; USD$72.7B as at June 30, 2016. This record-breaking kitty has everyone in the investment world guessing where (in addition to when and if) Warren will go “hunting”. Will the “Oracle of Omaha” look to scoop up another major industrial player like he most recently did with Precision Castparts Corp., or seek to expand his insurance operations like he did with the much smaller purchase of Medical Liability Mutual Insurance Company.
Sometimes “simple” businesses can be the most attractive (and profitable) to own for the long haul. Continue reading
An interesting bit of news concerning railroad operator Canadian Pacific Railway Ltd. and Pershing Square Capital Management LP: