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Buffett Touts Benefits Of Buybacks In His Shareholder Letter

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OMAHA, Nebraska — Stock buyback critics, according to billionaire Warren Buffett, are “either an economic illiterate or a silver-tongued demagogue” or both, and all investors benefit from them as long as they are done at the right prices.

Buffett used a portion of his annual letter to Berkshire Hathaway shareholders on Saturday to tout the benefits of share repurchases, which have riled up Wall Street critics like Sens. Elizabeth Warren and Bernie Sanders as many other Democrats. The federal government even imposed a 1% tax on buybacks this year after they surpassed $1 trillion in 2022.

“When you are told that all share repurchases are harmful to shareholders or the country, or especially beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive),” Buffett, a long-time Democrat, wrote.

According to investor Cole Smead, Washington D.C. should take note of Buffett’s position on stock buybacks.

“Any politician, regardless of party affiliation, should stand up and take notice of a statement like that,” said Smead of Seattle-based Smead Capital Management.

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Buffett, in typical self-deprecating fashion,

Buffett, in typical self-deprecating fashion, claimed that Berkshire’s remarkable record of doubling the returns of the S&P 500 over the last 58 years with him at the helm is the result of “about a dozen truly good decisions – that would be about one every five years.”

He mentioned a few in his letter, but he kept his message — which has long been one of the most widely read business documents — remarkably brief this year, at just over eight pages. He also dedicated an entire page to a tribute to his 99-year-old business partner Charlie Munger.

“I think investors, whether Berkshire investors or just Berkshire students, look to him for more, and I think they may come away wanting more,” CFRA Research analyst Cathy Seifert said.

Buffett emphasized how much Berkshire benefits from dividends from large investments in its portfolio, such as Coca-Cola and American Express, even though he refuses to pay a dividend at the Omaha, Nebraska-based conglomerate he leads because he believes he can generate a higher return for shareholders by investing that cash. Last year, Coke paid Berkshire $704 million in dividends, and American Express paid $302 million, helping to increase the value of those stakes to $25 billion for Coke and $22 billion for American Express. In the 1990s, Berkshire paid $1.3 billion for each investment.

Buffett said the key lesson for investors is that “it takes just a few winners to work wonders. And, yes, starting early and living into your 90s helps.”

Berkshire Hathaway reported a sharp drop in fourth-quarter profit to $18.2 billion from $39.6 billion a year earlier as the paper value of its investments fell.

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Berkshire Hathaway reported a sharp drop in fourth-quarter profit

As a result, the value of Berkshire’s sizable stock portfolio distorted those bottom-line figures once more. Because operating earnings exclude derivatives and investments, Buffett believes they are a better measure of Berkshire’s performance. However, Berkshire’s operating earnings fell to $6.7 billion, or $4,584.46 per Class A share, from $7.3 billion, or $4,904.23 per Class A share, the previous year.

This is significantly lower than what Wall Street predicted. FactSet polled three analysts, who predicted Berkshire would report operating earnings per Class A share of $5,305.83 on average.

Analysts said the results were still strong overall, but higher claims costs continued to hurt Geico’s results, while BNSF’s railroad traffic slowed and rising interest rates hurt several of Berkshire’s housing-related businesses, such as its nationwide network of Realtors and its Clayton Homes manufacturing housing unit.

Berkshire’s performance tends to track the performance of the U.S. economy because so many of its dozens of manufacturing, utility, and retail businesses do. The conglomerate is a barometer of the economy in many ways.

Berkshire continues to invest in whole companies and stocks whenever Buffett sees an opportunity. According to Edward Jones analyst Jim Shanahan, he was particularly aggressive last year, making a net investment of approximately $53 billion. Much of that was invested in Occidental Petroleum and Chevron stock and Alleghany Corp. insurance, which was purchased for $11.6 billion last fall.

Despite all of that spending, Berkshire Hathaway’s cash reserves increased to $128.6 billion at the end of the year, up from $109 billion at the end of the third quarter. Berkshire Hathaway’s businesses generate so much cash that it accumulates faster than Buffett can invest.

Berkshire increased its stake in the Pilot Flying J network of 750 truck stops to 80% at the start of this year, up from 38.6% in 2017, which will help this year’s earnings.

SOURCE – (AP)

 

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Blake Lively Accuses Justin Baldoni of Sexual Harassment

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Blake Lively has launched a legal battle against Justin Baldoni

In an 80-page complaint, Blake Lively accuses Justin Baldoni of sexual harassment and launching a smear campaign against her after she declined his approaches.Baldoni’s lawyer Bryan Freedman has denied Lively’s allegations, calling them “false, outrageous.

Blake Lively has filed a lawsuit against Justin Baldoni, charging the actor-director of inappropriate behavior and defamation related to their 2024 film, It Ends With Us. What was once thought to be a public relations campaign to promote the picture turned out to be a complaint.

Lively accuses sexual harassment, including unwanted kissing and sexual comments, throughout the filming. She further claims that Baldoni tried to tarnish her reputation after she declined his approaches.

Baldoni and his production firm, Wayfarer Studios, deny any charges regarding Blake Lively’s nude images or accusations.

Lively’s complaint targets not only director Justin Baldoni, but also key officials in his production firm and people accused of spreading false information about her.

This includes the film’s principal producer, Jamey Heath, Wayfarer co-owner Steve Sarowitz, and a number of others. Baldoni’s lawyer, Bryan Freedman, angrily disputes Lively’s charges, calling them “false, outrageous, and intentionally salacious,” according to Entertainment Weekly.

Baldoni created a toxic workplace

According to Freedman, the actress even neglected to appear on site and made disturbances throughout filming, resulting in the picture’s dismal performance, including “threatening not to show up to set, threatening not to promote the film, ultimately leading to its demise during release.”

The Gossip Girl star’s complaint claims that Justin Baldoni, producer Jamey Heath, and Wayfarer Studios “created a toxic workplace, ignored harassment complaints, and failed to protect the cast and crew.”

The dossier also claims that Baldoni recruited a public relations agency to create a revenge campaign before potential allegations were public.

According to the complaint copy received by People, Baldoni included sexually graphic and naked sequences, including those for an underage character, without Blake Lively’s agreement.

This contained a lengthy “virginity loss scene and an orgasm scene” that did not appear in the original work.

Blake Lively Nude

Baldoni allegedly asked intrusive questions regarding Lively’s intimate sexual encounters with her spouse, including questions about Blake Lively nude images, which she considered invasive and refused to address.

According to the lawsuit, while filming, Baldoni improvised physical intimacy with no previous discussion or choreography. This contained kissing sequences and a slow dance sequence.

According to People, one instance detailed in the complaint states that Baldoni “discreetly bit and sucked on Ms. Lively’s lower lip during a scene in which he improvised numerous kisses on each take.” He eventually “insisted” on shooting “over and over again.”
intrusive behaviours

Baldoni and producer Jamey Heath “repeatedly entered Lively’s trailer uninvited while she was undressed or breastfeeding her child.”

Baldoni and Heath put pressure on Lively to imitate full nudity during a birth scene, despite the fact that there was no prior agreement in the screenplay or contract.

Producer Jamey Heath allegedly showed Lively and her assistant a disturbing video of his wife giving birth without their consent.

Degrading remarks

Baldoni allegedly criticized Lively’s age and weight after giving birth, even phoning her trainer to encourage her to lose weight quickly.

He “often” described ladies in the office as “sexy”. To address the hostile work environment, a list of 30 protections was implemented.
Smear Campaign.

Prior to the film’s release, Baldoni allegedly orchestrated a smear campaign against Lively, afraid she might come out about her experiences.

Lively believes that her legal action would “pull back the curtain on these sinister retaliatory tactics” and protect others who report mistreatment.

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MGK and Megan Fox Love Hate Relationship

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MGK and Megan Fox Love Hate Relationship
MGK and Megan Fox

MGK and Megan Fox have been in the news for years because of their turbulent relationship. Their four-year romance has been filled with drama, heartache, and passion. The attention is now more focused than ever after their recent breakup caused a stir.

Let’s examine this famous pair’s highs, lows, and potential future developments.

Allegations of a romance between MGK and Megan Fox began in 2020 when they met while filming the movie Midnight in the Switchgrass. What started as a short-lived romance quickly grew more intense, and the two often publicly displayed their love in bold ways.

When they announced their engagement in January 2022, MGK presented them with a unique two-stone ring “symbolic of their souls’ union.”

But this supposedly idyllic partnership wasn’t at all easy. Reports of heated fights, problems with trust, and emotional ups and downs started to surface behind closed doors. The couple’s tremendously passionate yet erratic relationship often made headlines during their time together.

MGK and Megan Fox Breakup

The Thanksgiving weekend in 2024 was a turning point. According to reports, Megan broke up with MGK after finding “upsetting material” on his phone.

This information led to sentiments of betrayal, which have been the main cause of their breakup. According to those close to her, the actress frequently felt disrespected and upset by MGK’s actions.

Megan is expecting the couple’s first child, which heightens the strain. According to sources, co-parenting negotiations are underway as the actress concentrates on her pregnancy. Despite the breakup, Megan is committed to providing a healthy environment for their pregnant child.

Meanwhile, MGK isn’t prepared to give up. Insiders claim that the 34-year-old artist is trying to regain Megan’s affection. He attempts to demonstrate his willingness to change with cryptic social media statements and public apologies.

According to a person close to the couple, MGK is extremely sorry for the problems that caused them to part ways. Megan, though, seems less likely to make amends. According to friends, she is tired of the drama and is concentrating on her own and her kids’ welfare.

Is the separation, however, truly irreversible? Although some say it’s final, others counter that their relationship’s sporadic nature offers room for future reunion.

MGK’s ex-girlfriend

The split’s more strange side story revolves around MGK’s ex-girlfriend Amia Miley’s previous accusations. On a recent podcast, she made startling allegations regarding MGK’s intimate behaviour during their past relationship. Even though it has nothing to do with his recent split from Megan, the article has raised more questions about MGK’s private life.

The musician hasn’t been doing well lately in terms of public opinion. Numerous admirers have characterized his acts as immature and untrustworthy, and they have voiced dismay. On the other hand, Megan has received a ton of support and recognition for her fortitude during this trying period.

Despite the heartache, Megan isn’t dealing with this alone. According to reports, she has received support from her ex-husband, Brian Austin Green, and his fiancée, Sharna Burgess. Sharna, Megan’s soon-to-be stepmother, has been consoling throughout the breakup.

For Megan, this odd bond has turned into a benefit. It demonstrates her capacity to preserve wholesome relationships for the benefit of her children. Megan is devoted to her son’s happiness, having three sons: Noah, Bodhi, and Journey.

It isn’t easy to foresee what will happen to Megan and MGK. Reconciliations have occurred when no one expected them to, and their connection has always been erratic. But according to many close to Megan, this time feels different.

MGK is having a difficult time

Megan appears to be concentrating on her pregnancy and mental health at the moment, and MGK is having a difficult time winning back her trust. One thing is certain: MGK and Megan Fox will continue to be tabloid favourites for the foreseeable future, regardless of whether they can reconcile or go their separate ways.

MGK and Megan Fox’s relationship reminds us that love can occasionally have a price, no matter how intense. Their experience also reminds us of a partnership’s value of open communication, respect, and trust.

It’s simple for spectators and fans to become enmeshed in the drama. Fundamentally, however, this is a very human tale of two individuals attempting to do what is best for themselves and their families while overcoming personal obstacles.

MGK and Megan Fox still haven’t written the next chapter. How this story ends—through co-parenting, reconciliation, or a complete break—will only become clear with time.

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Megan Fox Says She’s Done with Machine Gun Kelly

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Megan Fox says she's is focusing on herself and her family.

Pregnant Megan Fox, despite her pregnancy with Machine Gun Kelly’s child, claims she will never live with the singer again. She stated that she would like things to remain platonic between the two.

Megan announced her pregnancy on November 12, only days before the couple divorced over Thanksgiving. She already has three children, Noah, 11, Bodhi, 9, and Journey, 7, with her ex-husband Brian Austin Green.

Megan Fox and Kelly have a long history of on-and-off dating, and suspicion immediately circulated that their current breakup was temporary.

However, a source close to Fox said that she is ready to break the cycle as she prepares to give birth to her next child.

According to a source for Us Weekly, Megan Fox is currently focusing on herself and her family. “She’s been working a lot this year, so she’s looking forward to spending time with her kids.”

Showing that she is serious about ending her chapter with Machine Gun Kelly, the insider revealed that the two “haven’t been in contact this last week,” further demonstrating that “things are not looking great between them right now.”

“She hopes that with them taking time apart right now, they will be able to have a healthy co-parenting relationship,” the insider said of Fox’s “table environment” for her baby.

Despite their no-contact condition, the source stated that Fox was “trying to focus on being positive” and looked forward to co-parenting with her ex. “No matter how she feels about MGK, she has a lot of love for him and is excited that they are going to become parents,” they told me.

“MGK is really letting Megan lead the way right now and is giving her space.”

Megan, who has stated that she believes she helped shape the rapper-turned-rocker into the person he is, has been relying on her ex-husband’s fiancée, Sharna Burgess, as she navigates the difficult breakup.

‘Sharna understands how tough it is to be pregnant and has been supporting Megan,’ a source told DailyMail.com last week.

‘She truly cares and feels for her. Breakups are terrible enough on their own, but being pregnant makes them worse.

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