Good morning, it's Paul here with Monday's SCVR.

Today's report is now finished.

I'm writing this just past midnight on Sunday evening/Monday morning, because my sleep cycle has gone haywire again, and I know readers like having something to get stuck into first thing. Plus there's been so much interesting press coverage over the weekend, that it's good to comment on it before the deluge of morning RNSs start.


Berkshire Hathaway AGM

This was held on Saturday, as a virtual meeting, rather than physical, due to lockdown. Warren Buffett looking very old now, he's 90 in August. Charlie Munger didn't want to travel to the meeting, which is understandable given the Covid risk at his age.

I've not watched the full report yet, just some summaries online. The key points seem to be;

  • Sold airline stakes, in 4 largest US airlines - saying it was a mistake to have bought them, and the aviation industry has changed due to Covid-19
  • Berkshire now has lots of cash, but can't find a good home for it - clearly suggesting they find equities over-priced now
  • America is unstoppable long term - usual message

I watch CNBC in the afternoons quite a lot at the moment, to keep informed of various peoples' views (there are some excellent commentators & interviewees on it). I like to spread my net wide and absorb lots of views & information, to then process myself. For some weeks, they have been querying where is Warren? He usually talks up US stocks in a crisis, but was strangely quiet this time. That did make me wonder if he was selling things before speaking out? Therefore this news about ditching his airline stakes is not entirely unexpected.

This has triggered a drop in the futures, which were about 35 points down for the Dow before Buffett spoke, and are now (Sunday night) down over 300. In this not at all alarmist article CNN is predicting a Monday morning market crash - or "Monday Massacre". CNN deserves praise for its excellent pun re airline stocks;

So, expect a little buffeting on Monday’s flight.

Phased lifting of restrictions

The weekend press is full of articles about the beginning of lockdown rules being eased in various countries, and of course what might happen next in the UK. Our Government seems to be trying to ride 2 horses at the same…

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