Tuesday's Headlines: Warren Buffett's Thoughts on the Market Drop

Tuesday's Headlines: Warren Buffett's Thoughts on the Market Drop

1. Warren Buffett, the chairman and CEO of Berkshire Hathaway, released his annual letter to shareholders on Saturday alongside the company's fourth-quarter 2019 earnings report. The company posted net earnings of $29.2 billion in the year, up from a loss of $25.4 billion a year earlier, and although the company made no major acquisitions in 2019, it did buy back a record $2.2 billion of its stock last quarter. On a slightly morbid note, Buffett, who is 89, told shareholders that Berkshire is “100% prepared” for his death, albeit with his usual grace and humor. For the key takeaways from Buffett’s letter, read here

2. Shares in Intuit fell nearly 4% on Monday despite an earnings beat and the announced acquisition of Credit Karma for $7.1 billion. The cloud accounting software firm reported adjusted earnings of $1.16 per share on top of revenue of $1.7 billion, showing year on year growth of more than 13%. Intuit has beaten EPS and revenue estimates for 2 years straight now, while the Credit Karma acquisition is expected to be worth nearly $1 billion in sales per year. Read here for the complete report

3. Stocks fell sharply on Monday as the number of coronavirus cases outside China surged, with the Dow closing down 3.56%. Stocks such as Apple, Wynn Resorts and United Airlines led the way for the markets decline, with each down roughly 5%. Legendary investor Warren Buffett said the coronavirus spread has softened up the U.S. economy, but noted growth is still healthy, stating: “Business is down but it’s down from a very good level.” With many companies still to announce earnings this week, it will be interesting to see how guidance is affected by the deadly virus. Get the full story here.

JamieJamie

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