Following last week’s bloodletting on Wall Street, I was curious to know where the current panic selling stands compared to previous Wall Street panics. A popular tool to track the pulse of Wall Street is the RSI (Relative Strength Index) which is used to indicate technically overbought or oversold conditions.
Conventional wisdom states that an [...]
On Friday 19th September, the SEC imposed a temporary ban on short selling in an elite group of 799 US financial stocks. The SEC also eased stock buy back rules which previously restricted companies ability to buy back shares at the market open and close. The moves were designed to stem the steep decline in [...]
In the past few years Warren Buffett’s Berkshire Hathaway has been plagued by a growing problem which other companies would kill to have, ie the problem of having too much excess cash. It comes from years of accumulating hugely successful businesses which rake in tons of excess cash each year. The growing cash stockpile is truly an embarassment of riches, one which Warren has had to explain every year to his fellow shareholders.
