Warren Buffett’s American Express Investment Loses Costco Exclusivity

Berkshire Hathaway owns 14.2% of American Express. Warren Buffett himself owns almost 5% of the entire credit card company. The Berkshire portion consists of 151,610,700 shares. Buffett’s story with American Express began early in his career—1963—and was Buffett’s first big investment in the aftermath of his father’s death.

What happened was this: A businessman named Tino de Angelis took out loans from American Express, Bank Leumi, and a predecessor to Bank of America. He posted barrels of salad oil inventories as collateral to offer the banks a security interest in exchange for the cash they sent his way, and de Angelis cleverly created fictitious salad oil reports to run one of the largest … Read the rest of this article!

People Buying Coca-Cola At $41 Today

Earlier this week, Coca-Cola (KO) reported its fourth quarter results for the end of 2014. Because many analysts were expecting results somewhere in the $0.41 or $0.42 range, the price of the stock has increased to $42.50 after Coca-Cola reported that it made $0.44 per share in profits during the fourth quarter. The sentiment surrounding the stock has witnessed an uptick in popularity following Coca-Cola’s favorable results in light of expectations.

There is a negative context, however, that needs to be kept in mind. Coca-Cola’s fourth quarter results of $0.44 per share is still less than the $0.46 per share that Coca-Cola made in the fourth quarter of 2013, and the results for … Read the rest of this article!