Buffett Grabs Stake in Suncor; The Golden Age of Parachutes; Foreign Investors Scrambling for the Exit in India

Eagle Eye Opener

Buffett Grabs Stake in Suncor (YahooFinance)

As stated in its Q213 SEC filing, Warren Buffett’s Berkshire Hathaway purchased a 17.8 million-share stake in Calgary, Canada-based Suncor. The value of those shares was assessed at $524 million at the end of Q2. In addition to now possessing a chunk of Canada’s biggest oil and gas producer, Buffett also finds himself the owner of a brand new, political hot-seat. That’s because Suncor also produces oil from tar sands, and environmentalists claim that the process by which oil is taken from the sands causes as much as 17 percent more emissions than other oil production methods. However, as an investor, there really isn’t a more “green” investor to follow than Buffett — in the sense of profits — as Berkshire Hathaway was valued at $89 billion at the end of Q2.

The Golden Age of Parachutes (Bloomberg)

If you’ve followed the recent performance of BlackBerry Ltd, then you know the company’s performance has been nothing to write home about. So it should come as no surprise that management is forming a committee to investigate selling the company. And that appears to be just fine with current CEO, Thorsten Heins. For if the company is sold, and Heins is ousted from his position, the new golden parachute approved by shareholders in July would pay him $55.6 million. If Heins is terminated without the company changing hands, he’ll have to somehow find solace with a mere $22 million. As investors, all we can do is shrug out shoulders — and short BlackBerry shares if no buyer is found so we can comfort ourselves with profits, just like Heins.

Exclusive  The World’s Top Global Cities Today and Tomorrow

Foreign Investors Scrambling for the Exit in India (Reuters)

India’s rupee hit a record low on Friday, despite the country’s efforts to restrict its citizens from foreign investment. Unfortunately, those efforts to stem outflows of capital from the country backfired when these moves were perceived as the beginning of outright capital controls in the country. India’s economic growth is already at a decade low, and the perception that the government may be growing desperate is gaining strength, especially after last month’s extraordinary action by the Reserve Bank of India to drain cash from the system and raise short-term interest rates. Like the efforts mentioned above, the cash drain didn’t work either. So as India’s deficit grows, and foreign investors are staying away in droves, you’d be wise to follow suit.

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

Economic Data Lowers Stocks (Bloomberg) Continued concern over when the Federal Reserve will reduce its stimulus combined with bond yield-raising economic data to give U.S. stocks their biggest one-day drop since June. “With weaker earnings, higher interest rates and geopolitical concerns, risk assets like stocks don’t do well in that type of environment,” Jim Russell, the

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE