💰🤷♂️ Buffett's Cash Reserve + Is Inflation Accelerating?
Happy Sunday,
Last Sunday I told you about a productivity system where you would do sets of 52 minutes of work, followed by a 17 minute break.
I am happy to report that I tried this system over the last week - and the results were stellar. I got more done than I usually do - by a lot! One thing that also helped was that I discovered a website called Focusmate, essentially a website where you start a coworking session with someone via webcam. You schedule a time you want to do a 25, 50, or 75 minute session and then you are paired with a stranger as an accountability partner.
Honestly it sounds like it wouldn’t work, but having someone on video that is helping you stay accountable just works, it must be psychological. I think this is a great website for those that live at home.
I hope you are having the best weekend,
— Humphrey, Tim, Rickie
Market Report
Buffett Says ‘Eye-Popping’ Results Unlikely With Record Cash
Warren Buffett's Berkshire Hathaway reported a record cash pile of $167.6 billion in the fourth quarter due to challenges in finding attractive investment deals, leading to a reliance on share repurchases, with $9.2 billion spent in the year.
Buffett on Charlie Munger’s Passing: “In the physical world, great buildings are linked to their architect while those who had poured the concrete or installed the windows are soon forgotten. Berkshire has become a great company. Though I have long been in charge of the construction crew; Charlie should forever be credited with being the architect.”
Fed-Favored Inflation Gauge Seen Rising Most in a Year
Core PCE, the Federal Reserve's preferred inflation metric, is expected to have increased by 0.4% in January, marking a notable rise and potentially taking the annualized inflation metrics above the Fed's 2% target.
This anticipated increase by analysts would be the most significant in a year, and is expected to support the Fed's cautious stance on interest rates.
In the coming weeks, there’ll be multiple data updates on U.S. GDP, durable goods orders, and consumer sentiment, alongside international inflation data and a G20 meeting, all of which could impact markets.
Bond Markets Are Flooded With Deals to Fund M&A
Investor demand for corporate bonds has surged this year, enabling significant financing for mergers and acquisitions (M&A), with approximately $50 billion in bonds sold in recent weeks.
This resurgence is fueled by investors seeking high-yielding debt amidst expectations of lower future interest rates, prompting companies like AbbVie and Cisco to capitalize on favorable market conditions.