Is Berkshire Hathaway Still a Buy? | Where the Money Is - 10/21/13 | The Motley Fool | Summary and Q&A

TL;DR

JP Morgan faces a massive $13 billion fine, Berkshire Hathaway is still a good investment, and US petroleum production is booming.

Key Insights

• 🌥️ JP Morgan's $13 billion fine is the largest in US history and is tied to its acquisition of Bear Stearns in 2008.
• 👋 Berkshire Hathaway is still considered a good investment despite being fairly valued.
• 🥺 US petroleum production has surged in recent years, making the country a net exporter and leading to a more stable global oil market.
• 😘 Low overhead and no debt can lead to eternal happiness for individuals and businesses alike.
• 🥺 Watching the stock market can lead to unnecessary stress, as volatility often does not significantly impact long-term returns.
• ⌛ Cash has optionality and can provide a sense of security in uncertain times.
• 💥 It is important to focus on the positive aspects of the economy, such as the oil boom, rather than solely focusing on negative news.
• 💦 US citizens are better prepared for retirement than in the past, although there is still work to be done.
• 👶 The concept of retirement is relatively new, and senior citizens are financially better off today than they were in the past.

Transcript

JP Morgan empties the piggy bank and it's Brookshire hathway still a buy you're in the right place folks because this is where the money is welcome to the show folks I Am David Hansen joined once again by Morgan Hassel thanks for being here thanks for having back we are going to start off as we always do with the headlines the first one is from The... Read More

Questions & Answers

Q: Why is JP Morgan facing a $13 billion fine?

JP Morgan is facing the fine for its acquisition of Bear Stearns in 2008. While this acquisition was beneficial for the economy at the time, the fine is attached to the mortgage-backed securities that Bear Stearns sold to Fannie Mae and Freddie Mac.

Q: Is Berkshire Hathaway still a good investment?

Despite being fairly valued, Berkshire Hathaway is still considered a good investment due to its diverse range of high-quality businesses. It is seen as a "supercharged Index Fund" and is expected to continue earning solid returns.

Q: Why has US petroleum production surged in recent years?

US petroleum production has increased due to advancements in shale drilling technology. This has led to the country becoming a net exporter of petroleum products and has made the global oil market more stable.

Q: How has increased US petroleum production impacted the economy?

Increased US petroleum production has led to a decline in the trade deficit and has made the world oil market more stable. It has also resulted in lower gasoline prices for consumers.

Summary & Key Takeaways

• JP Morgan has agreed to pay a $13 billion fine, the largest in US history, for its acquisition of Bear Stearns in 2008. However, some argue that JP Morgan buying Bear Stearns was beneficial for the economy at the time.

• Berkshire Hathaway, led by Warren Buffett, is seen as a good investment despite being fairly valued. It is considered a "supercharged Index Fund" with a diverse set of high-quality businesses.

• US petroleum production has surged in recent years, with the country now outproducing Saudi Arabia. This has led to a more stable global oil market and a decline in the trade deficit.