“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” — Upton Sinclair On the commute home from work, a man suddenly has a brilliant flash of insight and comes up
In the CNBC video recorded today and shown below, American Express CEO Ken Chenault comments on credit conditions at American Express as well as broader issues associated with consumer spending. As we have noted in the past, economic recovery will ultimately depend on the extent to which consumers are willing and able to spend. Read this article for more information and a link to the video.
In a recent interview, American Express Chairman Ken Chenault offers his views on the overall economy, his company’s recent repayment of TARP funds, and proposed consumer protection regulations currently under discussion in Washington. View the video in this post.
Berkshire Hathaway will release quarterly earnings for Q1 2009 on Friday, May 8 after the close of trading. Earlier this week, I provided some commentary on the earnings preview that Warren Buffett presented at the Berkshire Hathaway annual meeting last weekend. Buffett indicated that Berkshire Hathaway’s book value declined by approximately 6% during the quarter. Based on Berkshire’s shareholders’ equity as of 12/31/2008, a 6% decline would amount to approximately $6.6 billion. Berkshire’s equity holdings have recovered significantly in Q2 to date, largely offsetting the declines that will be reported for Q1.
Warren Buffett has a long standing reputation for not making stock recommendations, particularly in cases where Berkshire holds positions. I believe that this long standing policy has been in place primarily for two reasons, each of which have been very important to his success and reputation over time. Did Buffett recently tip his hand with recommendations for Wells Fargo and American Express? Read this post for more on this.