Charles Schwab Eliminates Trading Fees for U.S. Stocks

Earlier, it was announced that Charles Schwab is dropping all fees for its domestic brokerage trades executed through its online and app portal (that previously cost $4.95 per trade and before that, $8.95 per trade). Schwab indicated that the move was in response to apps and fintech startups like RobinHood that granted investors free trades. In its press release, Schwab called this move “an inevitability” due to the competitive pressures that it was facing.

From the business side, the price of Schwab stock fell 6% (and its peers ETrade and Ameritrade) fell much further for the obvious reason that cash-cow trading fees are being siphoned out of the industry’s business model. 

In 2018, … Read the rest of this article!

My Hunch? Warren Buffett Is Buying More Exxon Stock Right Now

On Wednesday, Warren Buffett appeared on CNBC’s Squawk Box, and on that day, the prices of most American stocks were down a token amount in the 2-3% range (but enough to propel commentators into action). As you’d imagine, Warren Buffett got asked the obligatory question: “What, if anything, are you buying or selling?”

Buffett framed his response by noting that the appeal of buying companies grows for him as prices decline, and he did treat the modest selloff as an opportunity to buy. When pressed further, he provided a hint that he was buying a company that is a household name, and would not specify whether he was adding to an existing … Read the rest of this article!