Breaking: BRK takes new stake in United Health; sells more AAPL. United Health surges. After hours, AAPL down slightly. Of no consequence. We'll see more tomorrow. Obviously.
Breaking: Trump expresses interest in Intel. Link here.
This is less about an investment / US chip security than about politics. See below.
There is some suggestion that Intel is in much more trouble than "we" know, and Trump doesn't want Intel to fail before the 2028 election. Intel doesn't have to do well compared to the other chip companies; it just has to "thrive," and at least "survive." Everything I've read suggests that Intel is in huge trouble. If Intel were to fail before 2028, one can almost guarantee huge trouble for the GOP in the presidential election.
By the way, everything I've seen with regard to Trump suggests that he is going to show Americans very, very clearly the difference between the GOP and the guy running for mayor in NYC, AOC (taking on Chuck Schumer), Waltz in Minnesota, and Newsom in California. Trump knows how important the mid-terms are. Ohio has 15 congressional districts; 10 are held by the GOP; five by the other guys. California? 9 held by the GOP; the rest, 43, held by the Democrats. Two districts north of San Francisco are held by the GOP and one district south of Legoland is held by the GOP.
By the way, if Trump secures some kind of deal in Ukraine, could Putin-Trump-Zelenskyy share a Nobel Peace Prize. Up to three individuals can share a Nobel Prize.
Quick: if anyone said he/she had United Health on their radar scope vis-a-vis Warren Buffett ... they're lying. LOL.
As of now, there is no publicly available record of any analyst specifically predicting that Warren Buffett or Berkshire Hathaway would acquire a significant stake in UnitedHealth Group (UNH). The recent announcement that Berkshire Hathaway purchased 5 million shares of UnitedHealth, valued at approximately $1.57 billion, took many in the financial community by surprise.
Apple pays 0.45%. UNH pays 3.3%. For every billion dollars, $4.5 million vs $33 million. AAPL has been and is likely to be "dead money"; UNH is so low (historically) it can only go up. Brilliant, brilliant, brilliant move on Warren Buffett's part.
Quick: what state is JD Vance from? What is Intel doing in Ohio?
Intel is heavily invested in Ohio, particularly in Licking County, where they are building two new leading-edge chip factories. This $28 billion project, known as Intel Ohio One, aims to boost domestic semiconductor manufacturing capacity and create a new chipmaking ecosystem. The project is a significant part of Intel's IDM 2.0 strategy and is expected to generate thousands of jobs and attract further investment in the region.None of this is rocket science.
Ohio used to be a swing state. Since Trump, Ohio has been red. This move, if it occurs with Intel, solidifies Ohio for JD Vance.
Now, back to Trump.
A reader sent me this link.
I replied, not ready for prime-time:
In fact that's quite interesting. That's exactly what "companies" in England did during the time of Shakespeare. The East India Company and the West India Company, for example. Shakespeare invested with at least one share in the Virginia Company of London which would be very, very similar to what could become the "Panama Company." Trump is really, really changing the way folks think about monetizing everything -- and really, really moving into government (public) ownership in private companies. Trump is solving intractable problems by thinking outside the box: having Nvidia and AMD pay the tariffs rather than China was incredibly brilliant.DOD owning an interest in MP Materials. Also brilliant.Taking DARPA to the next level.
Immediately following, just as I reached out to Hulu to get an update on a) the PGA tournament; and, b) the market, this breaking news: Trump administration said to be discussing taking a stake in Intel. INTC surges 8 percent on the news.
I wonder if Nancy Pelosi was given that information before it was released to the trading public? Regardless, Chuck Schumer, el al, are going to go nuts.
Immediately after that news, just before the market closes, all indices go green despite a bad start at the day with the PPI release.
Yes, Trump:
- thinking outside the box; and,
- taking DARPA to the next level.
I've thought about this a lot since Trump became president. Trump sees the incredible amount of money he and the US government control and he is looking for ways to leverage those deep pockets. Expanding government involvement with 529s, for example, was also brilliant.
I hope over time, he expands that largess to children born before 2025. Maybe expand it by one year, every year, by one year at both ends. So instead of just 2025 and 2030, next year expand it to babies born 2024 to 2031. At same time, consider raising "ages" in social security (and raising the threshold when income is still subject to SS withholding. Of course that won't happen under Trump, but it's something the Democrats might be willing to do.
I'm trying to think wouldn't it be wonderful if everyone could be a billionaire in the US? Somehow, it seems those protesting have no idea what they are protesting. Why not ask the billionaires to support specific causes rather than "fighting to take back our country." The protestors seem incredibly naive.
