Berkshire Car Loans – Hudson Berkshire Experience Sat, 18 Jun 2022 14:57:17 +0000 en-US hourly 1 Berkshire Car Loans – Hudson Berkshire Experience 32 32 How do new car insurance ratings work? Sat, 18 Jun 2022 10:42:04 +0000

Every car and light commercial vehicle (LCV – like a small van), new or old, falls under a particular insurance group, which dictates – to some extent – how much to insure. The higher the group number, the higher the cost contribution, before the driver, address and other factors are taken into account.

Insurers use these groups to help quantify the risk associated with that particular vehicle. Until 2006 there were 20, but today there are 50, to cope with the range of models offered by certain manufacturers, often dozens in the same range.

How are insurance ratings determined?

Thatcham Research in Berkshire was set up by the insurance industry and tests vehicles and reviews the data which it then passes on to the Association of British Insurers (ABI) Group Rating Panel. There are just over 110,000 different derivatives in Thatcham’s vehicle database, comprising vehicles dating back as far as the early 1930s to today’s latest Polestars and Teslas.

This is used to establish an advisory assurance group score. Thatcham emphasizes that his notes are recommendations only. Individual insurers use the recommendations but consider their own passenger car experience, based on the number of claims they have had. The data is updated weekly as new cars hit the market.

Group ratings currently include, but are under constant review, the cost and time it would take to restore a vehicle to its original condition after an accident, the new vehicle price – reflecting variations in levels of finish (back to those big ranges), the cost of settlement in the event of a total loss, the performance of the vehicle – including its 0-60 mph acceleration time and top speed, and the sophistication of the equipment of standard vehicle security.

The price of parts is also taken into consideration – Thatcham uses a standard list of 23 parts which are considered to be the most commonly damaged panels and components in an accident – and the standard fitment and performance of emergency braking systems Autonomous Braking (AEB), sometimes referred to as city braking by some car manufacturers.

But what decides a band is more complicated than just high value and performance. Sometimes manufacturers place a high-value component – such as a self-contained safety sensor – behind a bumper where it can easily be damaged, even when shunted at low speeds. Although these can be expensive to repair, the safety rating is increased, so the insurance group is lowered. When a car is refurbished or updated, a whole combination of factors, such as acceleration, weight and repair times, affect the group.

David Alder, senior product manager at Thatcham Research says: “Bundling a car is important, but it’s only part of the overall mix of an insurance quote. What the customer pays for insurance is also influenced by who is driving the car, where they live, what their occupation is, their credit rating and many other risk factors.

Some examples of cars and their groups

The current Hyundai i10 is a city car with a small 1.0-litre engine and costs around £13,000 new. Its different versions are grouped in groups 1 to 7. The small SUV Nissan Juke goes from group 11 to 14.

For the Volkswagen Golf range, it’s from 14 to 24. As you might expect, the high performance versions of the family sedans will be more to be insured because they are the most expensive in the range to buy, and the faster.

The Land Rover Discovery range comes in Groups 33 to 45. The Audi Q5 SUV ranges from 23 to 42 and – unsurprisingly here – any Bentley will be rated at the highest level of Group 50.

In addition, Thatcham assigns a letter to each grouping which tells the owner/buyer how they rate the safety of the car. A A means that it meets the security requirements for this group. D means it is not and increases the group by one or two. and E is given when it exceeds the safety requirements for a car of that type and the group rating is reduced.

For example, a 2021 Dacia Duster Prestige TCe is priced at 22D and has a list price of just over £20,000. Of similar size and power, the comparable E example is the DS 4 Bastille + PureTech 2021, which has a list price of just over £25,000 but prices at 19E.

Electric cars introduce different factors into the group grade calculation. They are often heavier, generally accelerate faster and the cost of replacing batteries can be up to 50% of that of the car. They are also generally more expensive than their combustion engine counterparts, all of which affect the calculation. A 1.2-litre petrol-powered Vauxhall Corsa Ultimate Nav automatic is currently £26,075 and Group 17E. An electric Corsa-e Ultimate Nav costs £29,660 and Group 25E.

How can I check a car’s insurance group?

Many new car buying websites, magazines and the specification part of new car brochures will state the insurance group, although it is always best to check the official source as ratings can change. Thatcham has its own group classification search function which will provide the group number and, where applicable, Euro NCAP safety ratings for new and older cars.

For more information on car insurance, visit the Association of British Insurers (ABI) website.

Experts explain where investors should focus their money in a high inflation environment Fri, 17 Jun 2022 18:03:15 +0000

IInflation continued to rise in May, with worse than expected data. On June 10, the Consumer Price Index (CPI) rose 8.6% for the 12-month period ending in May, the largest 12-month increase since the period ending in December 1981.

Live updates: financial trends, financial news and more
Explore: Everything you need to know about the impact of the Fed rate on your personal finances

This comes in a market that has entered bearish territory and where investors are getting more nervous by the day. Today, several experts are sharing their thoughts on where to invest in this highly inflationary and extremely volatile environment.

Gold and Bitcoin

Charlie Morris, CIO of ByteTree Asset Management and founder of, a data platform for digital assets, told GOBankingRates that gold has always provided portfolio protection in inflationary environments, while Bitcoin is internet gold and should imitate that on time.

“It is important to note that inflation protection only works if the asset in question is cheap or at fair value. Overvalued assets will never be able to provide inflation protection,” he said. “In 2022, stocks and bonds bubbled up at the same time, and so neither asset class proved to be an effective inflation hedge. Bitcoin was also overvalued, but gold has traded close to fair value. Bitcoin is no longer too expensive,” he added.

He also noted that Gold is stable while Bitcoin is volatile.

“Because they naturally react differently to risky and risky market conditions, it’s hard to imagine them having a bubble at the same time,” he said, adding that they are not in competition, playing different roles, have a global cross-border and cultural appeal, and come together as a hedge against liquid inflation in all weathers.

Precious metals

Derek Izuel, CIO, Shelton Capital Management, told GOBankingRates that precious metal prices are determined by long-term expectations of actual rates of return. “With interest rates rising and Fed sentiment changing since late 2021, expectations for real rates have risen, turning positive for the first time since before the pandemic,” Izuel said. “Gold rises when those expectations are negative, so despite rising inflation, the Fed’s quick reaction is likely to put pressure on precious metals.”

Gold is back, wrote Edward Moya, senior market analyst, The Americas OANDA in a note sent to GOBankingRates. “Gold has resumed its role as a safe haven as financial markets worry about aggressive central bank tightening globally and US economic data slows. Recession fears are growing and this is triggering an exodus of equities and an influx of bullion safe-haven buying,” he added.


Izuel said that with a slowing economy, rapidly rising mortgage rates and an overvalued housing market, real estate is likely to be weak going forward.

He added, however, that “there could be opportunities in counter-cyclical areas of real estate such as multi-family and healthcare-focused commercial buildings.”

Related: 6 Alternative Investments to Consider for Diversification in 2022

On top of that, according to, commercial real estate (CRE) has always been another effective hedge against inflation, as rising property values ​​and rents allow CRE owners to maintain real value. of their properties while generating higher incomes. overtime.

High yield and variable rate bank loans

High-yield bank loans (HYBLs), also known as leveraged loans, are another effective way to protect finances against inflation, noted, adding that the protective nature of these loans stems from the fact that their interest rates are periodically reset to keep pace with prevailing market rates, which are highly correlated to inflation. However, in times of economic difficulty, these can display volatility similar to that of equities.

“As a result, they experience periods of illiquidity, when assets cannot be quickly or easily converted into cash without loss of value. To minimize your exposure to this risk, be sure to invest in HYBLs through a fund-like vehicle with many individual positions,” according to


According to Izuel, the best opportunities will be in international markets, as sector composition and relative valuation favor these stocks during a downturn in economic activity.

“Emerging markets will be strong when the economy recovers, and the removal of COVID restrictions in China could be an early catalyst,” he said, adding, “favoring smaller stocks in the United States – they will lead the recovery and the ride of the FANG stocks are over.

High-quality, dividend-paying commodities and stocks

Austin Graff, portfolio manager at TrueMark Investments, which manages DIVZ, a dividend-based ETF that functions as an inflation hedge, told GOBankingRates that the best inflation hedges in the current environment are commodities. commodities and high-quality dividend-paying stocks.

Graff explained that commodity prices have soared as demand outpaces limited global supply, and Fed Chairman Powell even indicated that he lacks the ability to control commodity prices – therefore, prices are likely to stay higher for longer than many realize.

In terms of high quality dividend payers, “they are a good option because they often have pricing power, allowing earnings, free cash flow and dividends to grow with inflationary price increases”, he added.

“At DIVZ, we are currently focused on investing in high-quality dividend payers that also have income directly linked to rising commodity prices,” he added. “Many of these companies have pledged to return excess cash flow generated by high commodity prices to investors in the form of higher dividends and share buybacks, thereby protecting investors from the effects of inflation. “

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According to Graff, the names that fall into the category of beneficiaries of rising commodity prices would be Devon Energy (DVN), Exxon Mobil (XOM) and Coterra Energy (CTRA).

“We also have great exposure to names in healthcare and consumer staples that have pricing power like Johnson & Johnson (JNJ), UnitedHeatlh Group (UNH), Abbvie (ABBV), Philip Morris ( PM) and Altria Group (MO), ” he added.

More from GOBankingRates

This article originally appeared on Experts share where investors should focus their money in a high inflation environment

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BYD: Should you follow in Buffet’s footsteps? Wed, 15 Jun 2022 15:12:00 +0000

BYD has now become the largest manufacturer of electric vehicles in the world, in addition to having built one of the largest electronics companies in the world. This phenomenal entrepreneurial story at the crossroads of genius and opportunity could not be better described than by Li Lu himself:

“BYD’s story is relatively simple. Wang Chuanfu, Founder and CEO of BYD, who is a really great engineer, started the company with just a loan of $300,000 with no extra money until the IPO. He’s built a company with $8 billion in revenue and 170,000 employees and tens of thousands of engineers, he’s solved a whole bunch of different problems, so the track record is impressive, they’re in the right industry and in the right environment, and they get the right support from the government.

The company now owns a large electric car company, a small gasoline car company, a huge battery company and a lithium mine near Tibet. It is also in talks to buy six lithium mines in Africa.

“We have an interesting venture capital type business, and BYD has got into a business that it has never been in before, which is monorails. And they’re selling monorails like you can’t believe (…) And they also sell these big buses, etc. Wang Chuanfu is a combination of Thomas Edison and Jack Welch – something like Edison to solve technical problems, and something like Welch to do what needs to be done. ‘ve never seen anything like it,” Charlie Munger said in 2018.

It all started in 2001 when a Shenzhen-based lithium-ion (“li-ion”) and nickel rechargeable battery maker, BYD (“Build Your Dreams”) enjoyed a huge tailwind due to the boom in the use of mobiles, electric and electronic. devices. The company is already the world’s third largest Li-ion battery manufacturer.

The dramatic rise in demand for li-ion batteries, driven by the mass adoption of cell phones, laptops and other devices, is increasing the company’s revenue and profit. The company makes several acquisitions, including a 15% stake in BYD Auto in 2004 – aimed at using the latter as a platform to develop battery-powered vehicles.

By 2010, BYD was already selling 500,000 vehicles a year and entered into a memorandum of understanding with Daimler, under which the two parties will cooperate in China to develop passenger vehicles powered by electric motors. In the handset component business, management says betting on a vertically integrated model has created a lasting price advantage – a claim backed up by impressive results.

Revenues have jumped in recent years

Just before the start of the pandemic, a third of vehicles sold were new energy vehicles. Similarly, sales of electric buses are progressing thanks to numerous foreign orders.

How have they fared since 2018? Revenue doubled again in the past five years, from $18 billion to $36 billion. This means that over the past fifteen years, revenues have increased thirty-six times. But that epic run has also been accompanied by perpetual margin compression, with BYD’s operating profits trending sideways for several years.

Growth in the electronics sector has slowed, and Chinese electric vehicle producers have been overly dependent on state subsidies, which are being reduced or redirected elsewhere. No one knows how BYD’s sales will fare in an environment without subsidies. There is no visibility on BYD’s real ability to generate cash income, as growth consumes all resources.

From a free cash flow perspective, the last two earnings reports have been impressive, but they have benefited from unusual inventory releases due to the pandemic, which freed up huge amounts of working capital. Other than that, capital expenditure is higher than ever and is expected to eat up all the money for the foreseeable future.

Not for just any investor

Market cap and enterprise value are roughly equal at $130 billion. Apart from all the usual precautions for investing in China, we can say that in the end it remains a story of believers. Much of the appeal is that Berkshire Hathaway still owns one-fifth of the share capital. But this investment is not easy to understand because it is changing so quickly, on such a large scale.

A distinct competitive advantage that needs to be highlighted is BYD’s fully owned and integrated supply chain, from the lithium mines in Tibet to its vast battery manufacturing base. Other automakers depend on external suppliers for batteries and raw materials. BYD’s vertical integration model should deliver the same kind of cost advantage as in its electronics business.

Either way, conservative investors will likely pass on this one. After all, Warren Buffett, Charlie Munger and Li Lu invested when BYD shares were trading at rock bottom valuations. To quote Munger: “It was pounded so hard, it was Graham-like stock. Graham stock in a start-up.”

Reading FC were lucky to sign after Aston Villa transfer decision Sun, 12 Jun 2022 06:00:00 +0000

Reading could try to sign striker Tristan Abldeen-Goodridge after his release from Aston Villa.

The 19-year-old striker has been released by Villa and will soon become a free agent, with the teenager one of eight players leaving the Midlands club on a free transfer this summer.

And now the Royals could be looking to sign him on a free transfer, after he recently played as a trial judge for Reading, making two appearances in Premier League 2 against Fulham and Middlesbrough.

READ MORE: FC transfer state of play read as window opens and pre-season nears for Paul Ince players

Abldeen-Goodridge, who can play in attack or as a winger, played 14 minutes in the 3-1 win over Fulham at the Select Car Leasing Stadium in April, alongside Southampton midfielder Ethan Burnett and former midfielder Tottenham midfielder Michael Craig. He then played the full 90 minutes for Reading against Middlesbrough as a left winger, in a game the Royals lost 2-1.

The teenager, who joined Villa from Wimbledon in July 2019, has played regularly for the Under-18 and Under-23 sides since then, while also featuring in the FA Youth Cup for Aston Villa. But now he will be looking for new pastures and Reading could consider signing the 19-year-old to bolster their attacking options.

Currently, the Berkshire side can only sign free agents or players on loan due to transfer restrictions in place following breaches of the EFL’s profit and sustainability rules. Reading are yet to sign a new signing this summer so far, with Paul Ince only having nine senior players under contract ahead of the new season.

If signed, Abldeen-Goodridge would likely be mainly involved at Under-23 level with Noel Hunt’s side, but with just Lucas Joao, George Puscas and Yakou Meite as senior attacking options, he could be involved at the first-team level, in particular. in pre-season to bolster the numbers.

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]]> Chelsea, Southampton and Liverpool transfer decisions that Reading FC could be interested in Sat, 11 Jun 2022 06:00:00 +0000

The new season will soon be approaching and Reading FC will be scouring the market to see who they can bring in to bolster their squad for another season in the Championship.

With a transfer embargo still in place, the Royals can only bring in free agents or players on loan this summer. As things stand, only nine players are contracted to the club for 2022/23 and beyond, so the main priority this summer will be to increase their numbers to ensure there is competition. for seats.

A number of players will leave the club when their contract ends in June, including Terell Thomas, Brandon Barker, Orjan Nyland, Felipe Araruna, Alen Halilovic and Marc McNulty. John Swift has also left the club after rejecting a new deal to sign for Championship rivals West Brom instead.

READ MORE: Saints say they are in talks with Shane Long over new deal amid Reading FC links

Five players are currently considering extending their stay at Select Car Leasing Stadium, with Josh Laurent, Andy Rinomhota, Tom Holmes, Femi Azeez and Andy Yiadom being offered new deals. Michael Morrison and Junior Hoilett are released, but the club is keeping the door open for them to resume talks to stay in Berkshire.

On Friday, Premier League clubs announced their shortlists and published ahead of the 2022/23 campaign. Many players will be available on free transfers, including some ex-Reading stars. Here’s a list of some of the former royals who might be on the lookout for new clubs this summer that might be of interest.

Danny Drinkwater

The Chelsea midfielder joined the Royals on loan last summer and went on to make 34 appearances in all competitions. His only goal and assist of the season came in the 3-2 win over Swansea City in November.

Drinkwater joined Chelsea from Leicester in 2017 but has only featured 23 times for the first team and his last appearance for the Blues was in the Community Shield loss to Manchester City in 2018. The 32-year-old has had loan spells with Burnley, Aston Villa and Kasimpasa before his switch to Reading.


Stoke City confirmed two weeks ago that Ince would be released when his contract expires on June 30. The 30-year-old spent the second half of last term on loan with Reading, playing 15 times and scoring two goals.

His father Paul, who will remain as Reading manager after a stint as caretaker boss, has previously urged the club to sign the winger this summer.

Shane Long

The Irishman’s career in England began with the Royals in 2005. In six years at the club, Long scored 54 goals in 202 appearances.

His future with current club Southampton remains uncertain after Saints said on Friday talks were underway over a new contract with the 35-year-old.

Sheyi Ojo

The winger was linked with Reading in the past but instead joined Cardiff City for the 2020/21 campaign. Now, the 24-year-old will be available on a free transfer this summer.

Ojo has made 13 appearances for the Liverpool first team but has spent the majority of the past seven years on loan. He already had temporary spells with Wigan, Wolves, Fulham, Reims, Rangers and Cardiff before his move to Millwall last season.

]]> Nigeria’s Indicina raises $3 million to help businesses deliver credit at scale to their customers Mon, 06 Jun 2022 08:06:37 +0000

For years, Africa’s credit infrastructure has lagged behind the rest of the world due to poor bureau credit coverage. According to a World Bank report, only 11% of the African population have their credit information recorded by private credit bureaus. And for those who are banked, only 17% had access to loans.

There is therefore a real need to record credit transactions. And as financial services in Africa continue to digitize, real-time access to credit is becoming increasingly important.

Credit bureau systems in Africa need to be revamped to address these issues, but since this is a difficult issue, infrastructure platforms that provide credit underwriting processes are positioning themselves as options in the market. Indicina, one such platform based in Lagos, Nigeria, announces its $3 million seed round.

Berlin-based pan-European venture capital firm Target Global led the round, adding to its long list of investments in Nigerian startups including Kuda, Kippa and Edukoya. The company’s partner, Ricardo Schäefer, will join Indicina’s board of directors. Greycroft also participated in this round, as did RV Ventures.

As established, access to credit is integral to the adoption of financial services in any region. But while large corporations and high net worth individuals have no problem accessing loans from banks in Nigeria, the retail and SME segments are somewhat neglected on a large scale.

This concern was too big for Yvonne Johnson to ignore while working as an executive at First Bank, one of Nigeria’s largest banks by assets. And as digital banking — which includes lending — began to take off in the country, she told TechCrunch she saw an opportunity to launch Indicina in 2019 to provide credit rails and banking tools. financial analysis to these companies.

So lenders can use Indicina for credit scoring and banking sentiment analysis, access ML-based financial analytics, and improve consumer insights they currently don’t have and reduce lending risk. not guaranteed. Another interesting angle of Indicina’s solution is that lenders who process loan applications manually can use the platform to double or triple their volume without blowing their loan books.

“We never had a balance sheet. There was never any question of offering credit for us. We want to focus on the infrastructure layer and provide good infrastructure to make people feel more comfortable,” said CEO Johnson, who has investment banking experience from Merrill Lynch.

“We want lenders to be better informed about credit decisions so they can get to market faster with their digital product. So we’ve never had a business model that included our balance sheet, which we’ve always worked with. with lenders.

Indicina’s unique approach to solving Africa’s credit problem is why Target Global and Greycroft invested in the company. According to the two companies – as their partners Schäefer and Will Szcxzerbiak said – they backed Indicina because it uses data to solve the problem of loan eligibility previously decided by incomplete credit scores.

Fintech partners with credit bureaus and open financial platforms. Johnson, who launched Indicina with CTO Jacob Ayokunle and chief data scientist Carlos del Carpio, said the platform has more than 120 customers, including banks, non-bank lenders and fintechs. Some include Polaris Bank, LipaLater, VFD, Zilla, and CreditDirect. According to information on Indicina’s website, it has helped this clientele process over ₦3 billion (~$5 million) in loans from 10,000 bank statements and disbursed over ₦700 million ( ~$1.17 million).

The company’s revenue comes from API calls made by its customers when analyzing financial documents. The company will launch a B2C offer in the coming weeks to diversify offers and sources of income. While Indicina has already analyzed bank statements in real time for lenders to make informed decisions, it’s a safe bet that consumers would also need this information. The easiest way to describe it is with a credit and financial management platform like Credit Karma.

“We worked with the lenders; now we want to involve consumers. So they see what the lender would see if they were going to apply for a loan,” said Johnson, who is also an angel investor, having backed Flutterwave, Eden and Thndr, on the call.


Picture credits: Index

Present in Nigeria and Kenya, this new financing will enable Indicina to begin expanding into other African markets. “It will also allow the company to strengthen its key product offerings, build more products for consumer credit referral, and strengthen its infrastructure,” the company’s statement said.

Johnson stressed the importance of using the funding to scale to the next iteration of Indicina’s machine learning and dataset during the call. “It’s the heart of what we do,” said the founder, who leads the company with team members on 4 continents. The funding will allow Indicina to deepen product development in this area by hiring more data scientists and machine learning engineers.

3 cheap stocks that help you retire early Sat, 04 Jun 2022 12:11:00 +0000

IIt is certainly possible for investors to become so obsessed with the relative price of a stock that they lose sight of the prospects of the underlying company. On the other hand, a strong company is an even better investment when you can hook into its stock at a below-average price.

Against that background, here’s a closer look at three companies with excellent long-term growth prospects, as well as stocks that are now too cheap for future retirees to ignore.

1. General dollar

It seems hard to imagine a retailer beating walmart at its own game. The world’s biggest big-box name faces a unique problem: it can’t build stores everywhere.

Image source: Getty Images.

Walk in General dollar (NYSE:DG), which succeeds by doing what Walmart won’t or can’t: establish smaller stores in small communities where it’s not worth building a giant store. According to the most recent review of its reach, about three-quarters of Dollar General’s more than 18,000 stores are in cities with fewer than 20,000 people – markets that Walmart might not find large enough to warrant the expansion. establishment of a showcase.

Yet somehow, this collection of smaller stores and small markets still means that 75% of the country’s population lives within five miles of a Dollar General. In an environment where time is scarce and gas prices can stay perpetually high, driving several miles and then browsing through a sprawling Walmart store to buy just a few items becomes less appealing.

This idea is confirmed in the tax data of Dollar General. While same-store sales fell 2.8% last year due to the muted impact of the pandemic, this is a contraction of 2.8% from the huge improvement in 16.3% of same-store revenue in 2020. Additionally, same-store sales growth reached 4.2% in the first quarter of this year, prompting the discounter to raise its revenue growth forecast. revenues for 2022 at a range between 10% and 10.5%. Its same-store sales outlook fell from 2.5% to a range between 3% and 3.5%.

Inflation or not, these smaller, more convenient stores are a hit with consumers. That’s why the company plans to open more than 1,000 this year alone, many of which expand Dollar General’s reach outside of the United States. You can buy the stock when it is priced at less than 20 times projected earnings this year and less than 18 times expected net income next year.

2.Ford engine

It may be an iconic name, but Ford Motor Company (NYSE:F) is also considered a has-been by a group of investors. Combustion engines are a thing of the past. Electric vehicles (EVs) are the future, which favors names like Nio and of course, You’re here.

Before you put Ford aside for good, though, you might want to take a closer look at how well it’s suited to the inevitable future of mobility. Ford is aiming for 40-50% of its sales to be electric vehicles by 2030, and with $30 billion in funding earmarked for this effort, that goal doesn’t seem out of reach.

There will certainly be enough EV business to go around, even if Tesla maintains its current lead in the market. The US Energy Information Administration estimates that there will be 672 million electric vehicles on the world’s roads by 2050, up from just over 10 million today.

The company is also off to a good start on this front. April sales of Ford-branded electric vehicles rose 139% year-over-year on strong demand for the Mustang Mach-E – which replaced Tesla’s Model 3 as consumer reports preferred EV this year – and its electric vehicle sales growth accelerated to 222% in May, further boosted by demand for the all-electric F-150 Lightning which saw its first consumer deliveries last month. They still make up a relatively small share of Ford’s total revenue, but they seem to be the electric vehicles that many consumers have been waiting for.

Ford shares are priced at just 7.1 times expected earnings this year and 6.4 times estimated net income next year.

3. Goldman Sachs

Finally, add investment banking Goldman Sachs (NYSE:GS) to your list of cheap stocks that could help you retire even earlier than planned. Priced at less than nine times 2022 forecast earnings, there is plenty of room for this ticker’s valuation to rise.

Yes, those profits in question are expected to be about a third lower than net income in 2021, when the company’s investment banking business was booming. Consulting firm EY reports that last year’s IPO market hit a record 2,388 deals to raise a record $453 billion for companies seeking public funding. And those numbers don’t include the record $5.8 trillion mergers and acquisitions, according to Refinitiv, that were completed last year.

Both are incredibly hard acts to track, so the market doesn’t even come close to following suit. In fact, Goldman’s projected net income for 2023 is expected to be only a hair’s breadth above its projected earnings per share of $38.25 for 2021. Rising interest rates to fight inflation may even stifle growth. economy and this expected earnings growth, perhaps without actually taming inflation while it does (which also doesn’t exactly work in favor of the investment banking industry).

Take a step back and look at the big picture. Although the name Goldman Sachs no longer turns heads like it once did, it is still considered by most to be Wall Street royalty thanks to its ability to weather even the toughest of times. Long-term investors should also be aware that COO John Waldron recently made a point of explaining how Goldman is seeking to diversify its operations to less depend on highly cyclical capital market activity. There is no reason to believe that the incumbent company will not be able to achieve this goal.

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James Brumley has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Goldman Sachs, Nio Inc. and Tesla. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Riskier Warren Buffett Stocks That Could Beat the Dow Jones Thu, 02 Jun 2022 13:53:00 +0000

Warren Buffett and company Berkshire Hathaway (BRK.A -0.80%)(BRK.B -0.63%) have a long track record of beating broader market indices such as the Dow Jones Industrial Average. Between 1965 and 2020, Berkshire stock has had an average annual return of around 20%, while the Dow has had an average annual return of around 7.75% between 1921 and 2019.

Much of this is due to Buffett and Berkshire’s more than $350 billion stock portfolio. While some actions like Apple and Bank of America make up a huge percentage of the portfolio and are likely the ones that Buffett and Berkshire consider safer, there are other smaller picks in the portfolio that Buffett and Berkshire may deem riskier but also have much more upside potential. Here are three riskier Buffett stocks that can beat the Dow over the long term.

Image source: The Motley Fool.

1. Citigroup

As a shareholder, I was delighted to see Buffett and Berkshire take ownership of shares of Citigroup (VS -1.03%) in the first quarter of this year. The bank has struggled for years to generate the same kind of return as its big bank counterparts, leading many to believe it is a value trap. Citigroup has repeatedly traded below its tangible book value (TBV), or net worth, over the past decade. But it’s the first time Berkshire has bought shares since 2001, according to documents filed by the Securities and Exchange Commission.

In my opinion, it looks like this time may indeed be different with CEO Jane Fraser, who took the reins of the bank about a year ago, planning major strategic changes, including the sale of most banking divisions. international banking, doubling areas of strength, and finally investing what is needed to resolve regulatory issues.

The big risk here is that the transformation could still be a multi-year journey and investors will run out of patience so there is very little room for error and this is a stock that could continue to be a value trap. . But trading just 67% off its TBV, the stock has around 47% upside just to get back to TBV, which wouldn’t even be considered good valuation in today’s banking industry.

Citigroup’s investment banking unit, large US deposit market share, and extremely global presence are some characteristics that would be hard to replicate. The bank also has a dividend yield of around 3.8%, which will compensate investors well while they wait for the transformation plan to materialize.

2. Allied Financial

The big digital bank and car lender Allied Financial (ALLY 0.05%) is another stock that Berkshire picked up earlier this year that has many of the attributes of a classic Buffett stock. Not only is Ally trading at a cheap valuation, but it’s also returning a fair amount of capital to shareholders. Although it generated strong returns in 2021 and guided lower but still impressive returns going forward, Ally only trades at around 116% TBV and 5.6x earnings at term.

Ally faces some big risks. There could be a recession in the near future that would result in consumers not repaying their loans at higher rates than management currently anticipates. There are also concerns about what will happen to used car prices, which have been high, although Ally’s management team expects prices to eventually come down. Higher interest rates could also increase Ally’s deposit costs and reduce margins, although the bank has significantly increased its retail deposit base in recent years.

Still, if Ally can ride out some of these near-term headwinds and still generate good returns, the stock will likely be repriced. Ally is also returning a lot of capital to shareholders and plans to execute a $2 billion share buyback plan this year alone.

3. Nu Holdings

Berkshire has clearly been interested in Latin America’s growing financial sector, and with good reason given the huge potential. Last year, Berkshire invested in the Brazilian challenger bank Nu Holdings (NAKED 9.03%), which has made tremendous strides with its frictionless, low-fee banking experience. Nu has acquired nearly 60 million customers with an industry-leading low customer acquisition cost. Nu currently has 33% of Brazil’s adult population and has provided millions of its customers with their first bank account or credit card. Nu is also growing in Mexico and Colombia.

The risk here is that the Latin American market can be challenging, given high levels of inflation and volatile economic conditions. Additionally, Nu is not yet profitable and will likely face stiff competition. But the company is increasing its earnings significantly and after the huge sell-off in growth stocks this year, investors have the rare opportunity to buy Nu shares at a much cheaper valuation than when Buffett or Berkshire entered. Nu is a leading digital disruptor in one of the fastest growing banking regions in the world.

Investment Analyst Updates for May 31 (ARLP, ARMK, ASGN, ATCO, BBD, BCKIY, BGRY, BIOVF, BITF, BKNG) Tue, 31 May 2022 22:28:19 +0000

Investment analyst updates for Tuesday, May 31:

Alliance Resource Partners (NASDAQ:ARLP) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have a target price of $22.00 on the stock. According to Zacks, “ALLIANCE RESOURCES is a diversified producer and distributor of coal to major US utilities and industrial users. They currently operate mining complexes in Illinois, Indiana, Kentucky and Maryland. Some of their mining complexes are underground and one of them has both surface and underground mines. They produce a diverse range of steam coals with varying sulfur and heat contents, enabling them to meet the wide range of specifications demanded by their customers. “

Aramark (NYSE:ARMK) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “ARAMARK Holdings Corporation provides catering, facilities management, uniforms and career apparel services to healthcare facilities, universities, school districts, stadiums and businesses. It mainly operates in three segments: North America Catering and Support Services, International Catering and Support Services and Uniforms and Career Apparel segment. The Company’s FSS North America and FSS International segment provides catering, refreshments, specialized dietary and support services, including facility maintenance and housekeeping. The Uniforms segment offers the rental, sale, cleaning, servicing and delivery of custom uniforms and career apparel and other textile items. It mainly operates in North America, the United Kingdom, Germany, Chile and Ireland. ARAMARK Holdings Corporation is headquartered in Philadelphia, Pennsylvania. “

ASGN (NYSE:ASGN) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have a price target of $107.00 on the stock. According to Zacks, “ASGN Incorporated provides IT and professional services in technology, digital, creative, engineering and life sciences to the commercial and government sectors. Operating through its Apex, Oxford and ECS segments, ASGN helps enterprises and government organizations develop, implement and operate critical IT and business solutions through its integrated offering of IT and professional recruitment solutions. ”

Atlas (NYSE: ATCO) was upgraded by analysts at Zacks Investment Research from a strong sell rating to a hold rating. According to Zacks, “Atlas Corp. is an asset manager that owns and operates the companies in which it invests. The Company’s wholly owned subsidiaries include Seaspan and APR. Seaspan is a container ship owner/operator while APR is in mobile power solutions as a lessor and operator. Atlas Corp., formerly known as Seaspan Corporation, is based in HONG KONG, China. “

Bradesco Bank (NYSE:BBD) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have a target price of $4.75 on the stock. According to Zacks, “Banco Bradesco’s main activities are the provision of banking and insurance services such as private and industrial loans, credit cards, mortgages, 24-hour banking services, health and life insurance , leasing, pension fund management and services for stock market investors.”

Babcock International Group (OTCMKTS: BCKIY) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Babcock International Group PLC provides engineering support services to the defense, energy, emergency services, transportation and education sectors. The Company’s operating segment includes Marine and Technology, Defense and Security, Support Services and International. The Marine and Technology segment provides engineering support services to the Royal Navy. The Defense and Security segment provides the UK Armed Forces with technical training and asset management. The Support Services segment manages assets, delivers programs and teaches vital skills for civilian governments and blue-chip commercial organizations. The Mission Critical Services business is a provider of helicopter and fixed-wing emergency services and crew change services to oil and gas operators primarily in Europe and Australia. Babcock International Group PLC is headquartered in London, UK. “

Berkshire Gray (NASDAQ:BGRY) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Berkshire Gray Inc. is a pure-play robotics company. It offers fully integrated, AI-powered software and hardware solutions to automate warehouses and logistics processing centers. Berkshire Gray Inc., formerly known as Revolution Acceleration Acquisition Corp, is based in WASHINGTON. “

Swedish Orphan Biovitrum AB (publ) (OTCMKTS: BIOVF) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Swedish Orphan Biovitrum is a biotechnology company. It develops, manufactures and sells drugs for hemophilia, autoimmune diseases, metabolic diseases and cancer supportive care. The Company’s product portfolio consists of the core products segment which offers pharmaceutical products in the area of ​​inflammation and in the therapeutic area of ​​genetics and metabolism; Partner Products segment which offers pharmaceutical products in hematology, oncology and emergency medicine, and ReFacto Manufacturing segment. The company mainly operates in Sweden, Denmark, Finland, Norway, United Kingdom and France. Swedish Orphan Biovitrum is based in Solna, Sweden. “

Bitfarms (NASDAQ:BITF) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Bitfarms Ltd. is a bitcoin mining company. It provides vertically integrated mining operations with on-site engineering repairs, proprietary data analytics, and company-owned electrical engineering and installation services to deliver operational performance and uptime. Bitfarms Ltd. is based in TORONTO, Ontario. “

Reservation (NASDAQ:BKNG) was upgraded by analysts at Zacks Investment Research from a hold rating to a strong buy rating. They currently have a target price of $2,606.00 on the stock. According to Zacks, “Booking Holdings is enjoying a substantial improvement in its booking trends. In addition, the solid growth of national reservations contributes well. In addition, the company is experiencing strong momentum in international regions, which is positive. In addition, the strong growth in rental cars, air ticket units and booked nights is another positive element. In addition, the strong momentum of agency, merchant, advertising and other businesses is contributing well. The ongoing vaccination campaign and the lifting of travel restrictions in many parts of the world remain major tailwinds. In addition, the strengthening of alternative accommodation activities and flight capacities is a major asset. Notably, the stock has outperformed its industry since the start of the year. However, uncertainties related to the ongoing coronavirus pandemic remain a concern. »

Benitec Biopharma (NASDAQ:BNTC) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has a price target of $1.25 on the stock. According to Zacks, “Benitec Biopharma Limited is a biotechnology company that has developed a patented gene silencing technology delivered by gene therapy called DNA-directed RNA interference. The company develops ddRNAi-based therapies for chronic and life-threatening human diseases, including hepatitis C and B, drug-resistant lung cancer and wet age-related macular degeneration. Benitec Biopharma Limited is based in Sydney, Australia. “

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Bill Schmick: The Wealth Effect Works Both Ways | Company Thu, 26 May 2022 17:02:00 +0000

Viral epidemic-meat shortages

The National Retail Federation identified that 47% of consumers surveyed in April were reducing their meat consumption or choosing cheaper alternatives such as chicken, pork or fish to cut costs due to inflation.

Economists know that consumers spend more when their wealth increases, even if their income stays the same. However, if wealth decreases, the reverse happens.

The concept, known as the wealth effect, has driven the economy for more than a decade as savers’ 401(k) and other retirement accounts have grown year on year. At the same time, real estate values ​​have also increased. Of course, most of the time these gains are just paper profits, unless you sell your house or take money out of your wallets.

Nevertheless, there is a behavioral element to this concept. People tend to spend more when stocks and house prices continue to rise, as they feel wealthier and become more optimistic. This is one of the reasons why consumer spending in the United States continues to remain robust – until recently.

The Federal Reserve Bank, in its past efforts to control inflation, has focused on suppressing the supply of credit in financial markets. They did this by raising interest rates and slowing bond purchases. However, this time around the Fed is also targeting the demand side of the economic equation. In this case, reducing demand would require reversing some of the wealth accumulated over the past ten years or more.

During the COVID-19 pandemic, stock portfolios and house prices have soared, thanks to the huge government monetary and fiscal stimulus that has taken place. The highest-earning people in the United States, who were working from home, splurged on home renovations, new cars, durable goods and all kinds of electronics. Billions of dollars in stimulus checks and unemployment benefits inflated consumer spending for those earning less.

As a result, all income groups have increased their spending at much faster rates than before the pandemic. The most recent government retail sales survey for April 2022 indicated that retail sales outpaced inflation for a fourth consecutive month. And as inflation climbs, high earners, who already make up a large share of overall consumption, seem willing to keep spending, at least for now.

These retail sales data don’t tell the whole story. Low- and even middle-income households are already reducing their spending. Demand decreases because the wealth effect seems to work in the opposite direction. According to a survey by brokerage firm Jeffries conducted in April 2022, nearly 60% of US consumers said they have reduced the number of items they typically buy. In each category, low- and middle-income consumers reduced significantly more than those in high-income groups.

Additionally, the National Retail Federation identified that 47% of consumers surveyed last month (April 2022) were also switching to cheaper products and alternatives. I have already highlighted this trend in previous columns. Consumers are reducing their meat consumption or choosing cheaper alternatives such as chicken, pork or fish. Private label supermarket sales are also booming.

But inflation is not the only variable that impacts consumers. Interest rates also play their role. Mortgage rates are the most obvious victims of a rising interest rate environment. Borrowing costs have jumped for 30-year mortgages, from below 3% last year to 5.25% today. April 2022 new home sales fell 16.6% from March and well below forecasts, the slowest pace since April 2020. Existing home sales have also fallen over the past three months. according to the National Association of Realtors.

Auto leases and loans and credit cards are also big areas where higher rates hit the consumer. Most credit cards and auto loans are charged at the prime rate, which in turn is closely tied to the federal funds rate. Consumers can expect these rates to rise, as the Federal Reserve plans to raise the federal funds rate at least twice more in the next two months.

The big question for most economists is when the combination of higher inflation, falling stock markets and a possible slowdown in the housing market will begin to reverse the wealth effect at levels highest income.

So far this year, many investors have suffered a 20-30% decline in their portfolios and retirement savings. People already have to rethink their retirement date accordingly. Inflation and supply shortages are holding back renovation and housing plans, although higher interest rates are expected to soon push house prices down. As a result, many Americans are starting to feel less affluent than they were a year ago.

The Fed is counting on all of the above to shift the psychology of consumers from spending like drunken sailors to something a little more subdued (but not enough to make them swear off completely). Tinkering with the wealth effect can have unpredictable reactions. How far is too far when trying to reduce demand? It’s a fine line, and the Fed’s tools to accomplish this feat are far from perfect. If they are wrong, the economy will likely suffer. Hope they do well.