Berkshire Hathaway reduced J.P. Morgan stake in 2nd quarter

13F filings from Berkshire Hathaway

The latest 2nd quarter 13F filings from Berkshire Hathaway show:

  • reduced J.P. Morgan stake by 62%.
  • Exited Goldman Sachs position
  • Southwest air
  • United Airlines
  • Delta Air Lines
  • American Airlines
  • Restaurant Brands International
  • Occidental Petroleum
Other swings in positions show increased stakes in:
  • Store Capital Corp.
  • Kroger
  • Suncor energy
Reduces positions in:
  • Wells Fargo
  • J.P. Morgan
  • SiriusXM
  • PNC Bank
  • M&T Bank
  • Bank of New York Mellon
  • MasterCard
they added new positions in:
  • Gold
  • Barrick Gold

JP Morgan think progress in US-China talks is unlikely

JP Morgan on the upcoming talks between the US and China.

  • We are more sceptical
  • still see risks to our growth outlook for 2H 2019 skewed to the downside
JPM that a deal could be struck at the ministerial level talks in mid-Oct and “activity get a cyclical bounce into year end”. But:
  • “Are either likely? No.”
Based on what we have seen come out of US-China talks so far I find it difficult to disagree with JPM.

Trading Wisdom – Jesse Livermore


Many books have been written by and about Mr. Livermore. He was a fascinating individual who reportedly made $100 million in a single day in the 1929 crash.
Legend has it that during the crash J.P. Morgan personally walked over to the N.Y. Stock exchange to ask Jesse Livermore to stop selling and start buying in order to save the markets.
He was an expert at following the right trend, with the exception of marriage. His wife was married about four times prior to marrying him, and all four husbands killed themselves, as did Jesse eventually. Not quite marriage counselor material, he is nonetheless one of the greatest wells of trading wisdom from which I have quenched my thirst in the past.
I am a much better trader because of Jesse Livermore. Every time I get stuck in a trading rut, I review my notes on his trading philosophies, which I would like to share with you below. (more…)

Wisdom from Worthy Individuals

“I measure what’s going on, and I adapt to it. I try to get my ego out of the way. The market is smarter than I am so I bend.” – Martin Zweig

“To be a money master, you must first be a self-master” – J. P. Morgan

“Our greatest glory is not in never falling, but in rising every time we fall.” – Confucius

“Buy that which is showing strength – sell that which is showing weakness.” – Richard Rhodes

“The rule of survival is not to “buy low, sell high”, but to “buy higher and sell higher.” – Richard Rhodes

“Be patient. Once a trade is put on, allow it time to develop and give it time to create the profits you expected.” – Richard Rhodes

“Be impatient. As always, small loses and quick losses are the best losses.” – Richard Rhodes (more…)

JP Morgan CEO On Why Beauty is a Bad Investment

Well, that’s the last time I ask JP for help.  

A reply from CEO of J.P. Morgan to a pretty girl seeking a rich husband…

A young and pretty lady posted this on a popular forum:

Title: What should I do to marry a rich guy?

I’m going to be honest of what I’m going to say here.

I’m 25 this year. I’m very pretty, have style and good taste. I wish to marry a guy with $500k annual salary or above.

You might say that I’m greedy, but an annual salary of $1M is considered only as middle class in New York. (more…)

Best advice ever given

A young man who worked for the great J.P. Morgan approached Mr. Morgan. Said the young man, “Mr. Morgan, may I have your advice. I own a portfolio of stocks and it’s not doing well, I can’t think, I can’t eat, I can’t sleep. I worry day and night. What do you think I should do?” Morgan with his fierce demeanor eyed the young man and growled, “SELL TO THE SLEEPING POINT.” That may be the best advice ever given regarding investing. The truth — I’ve often used it.

The Greatest Trader Who Ever Lived: Jesse Livermore?

Seventy one years ago, on Thursday, November 28, 1940, Jesse Lauriston Livermore, entered the Sherry Netherland Hotel where he took a seat near the bar and enjoyed a couple of old-fashioned. After an hour Jesse Livermore got up and went in the cloakroom, seated himself on a stool, and then shot himself in the head with a .32 Colt automatic. How could the man who is still regarded by many as the greatest trader who ever lived go out this way by taking his own life? It just doesn’t match the rest of his life.

In his youth Jesse was know as the “Boy Plunger” because he looked younger than his years and he would take big positions when he traded against the bucket shops of his day. The bucket shops let traders bet on a stock price, but no trade was executed, the house covered if you were right. How good was he? He was banned from the bucket shops one by one, it was like getting kicked out of a casino because you beat the house so badly with outsized gains. He went on to trade in stocks and commodities and did very well becoming a millionaire many times. Unfortunately he also went bust many times. He made his biggest money in the market crashes of 1907 and 1929,  it is said that J.P. Morgan himself sent word asking for Jesse to please quit shorting stocks. In 1929 the day of one of the biggest market meltdowns he returned home and his wife was scared that he had lost everything, he surprised her by making the biggest money of his trading career. He ended up with the nickname “The Great Bear of Wall Street” because of his shorting activity.

Here are some of his most insightful quotes from his book  “How to Trade in Stocks”

“All through time, people have basically acted and re-acted the same way in the market as a result of: greed, fear, ignorance, and hope – that is why the numerical formations and patterns recur on a constant basis”

“Successful traders always follow the line of least resistance – follow the trend – the trend is your friend”

“Wall Street never changes, the pockets change, the stocks change, but Wall Street never changes, because hu (more…)

J.P Morgan and Rockefeller

At the time of his death on March 31, 1913 J.P. Morgan had an estate worth $80 million. Compared to his peers of the era, especially Rockefeller, it was not such a large estate. In fact, Rockefeller’s comment at the time [after reading the pages and pages of obituaries, was rather sniffy:], “And to think he wasn’t even a rich man.”

Source: Ahamed: Lords of Finance

Optimism as a Default Setting

We begin with a story from one hundred years ago…

From My Favorite J.P. Morgan Story by Mark Skousen:

In the early days of the Twentieth Century, when J.P. Morgan ruled Wall Street, a visitor came to the City. He was a long-time friend of Morgan, a commodity trader from Chicago. He was what might be called a “perma bear” following the Panic of 1907. No matter how high or low the stock market went, his outlook was pessimistic. Another crash, panic and depression were just around the corner.
This was his first visit to thew world’s greatest city. He arrived at 23 Wall Street, and was ushered into J.P.’s spacious office overlooking the Exchange on one side and George Washington’s statue on the other.
They immediately began talking about the markets, Morgan being bullish as ever, and his commodity friend being as bearish as ever. “J.P.,” he said, “the news overseas doesn’t look too good.”
“A buying opportunity!” responded Morgan. (more…)

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