Would Warren Buffet Buy Alibaba? | Where the Money Is - 09/22/2014 | The Motley Fool

TL;DR

US existing home sales drop, but housing market staying steady. Bonds in bubble territory with Tiger's warning. Would Warren Buffett invest in Alibaba or Apple?

Transcript

headlines and the important question would Warren Buffett buy Alibaba because this is where the money is hi fools welcome to Monday's financials edition of where the money is I'm financial analyst Michael Douglas and I'm here with senior banking specialist John Maxfield John how's it going it's going great thanks as is the weather good in Portland ... Read More

Key Insights

• 🧑‍🏭 US existing home sales decline due to economic factors influencing supply and demand.
• 👁️‍🗨️ Tiger Robertson warns of a bond bubble attributed to excessive government bond buying.
• 🥹 Warren Buffett's investment principles focus on buying great companies at reasonable prices for long-term holds.
• ✋ Evaluation of whether Warren Buffett would invest in high-valuation companies like Alibaba and Apple.
• ✋ Apple's success with iPhone 6 reflected in record sales, but high stock price may deter value investors.

Questions & Answers

Q: Why did US existing home sales fall in August?

US existing home sales dropped due to lower year-over-year figures and underwater homeowners affecting the supply side.

Q: Why does Tiger Robertson warn about a bond bubble?

Tiger Robertson fears the bond bubble will have negative consequences due to governments artificially propping up bond prices.

Q: Would Warren Buffett invest in Alibaba based on its current market valuation?

Warren Buffett might hesitate due to the high purchase price, conflicting with his strategy of buying great companies at reasonable prices.

Q: Does Apple's success with the iPhone 6 warrant Warren Buffett's interest?

While Apple's success is notable, its historically high stock price may deter Buffett, as he looks for undervalued investments.

Summary & Key Takeaways

• US existing home sales fell 1.8% in August, marking a downturn in the market.

• Tiger Robertson foresees a bond bubble ending badly due to government intervention.

• Evaluation of whether Warren Buffett would invest in Alibaba or Apple based on high valuations.