Warren Buffett buys $4B stake in JPMorgan


NEIL: ALL RIGHT, TIME TO GET AN UPDATN THAT WARREN BUFFETT PLACING A $4 BILLION BET ON JPMORGAN CHASE AND ADDING TO IT. THAT CERTAINLY HELPING THE STOCK. A PERVASIVE EFFECT ON A LOT OF OTHER FINANCIAL ISSUES ON A DAY WHEN MOST OF THEM WOULD LIKELY BE TAKING A HIT ON THE FACT THAT THERE COULD BE EXPOSURE TO THAT REGION OF THE YEAR. IT GETS OVERWROUGHT AND OVERDONE, BUT CHARLIE GASPARINO ON WHETHER THIS IS A SIGN THAT WARREN BUFFETT9 IS NOT REALLY FOCUSED ON THAT, NOT REALLY FOCUSED ON DEMOCRATS WHO WANT TO CRACK DOWN ON BANKS IN THIS COUNTRY TAKING POWER IN THE HOUSE.>>WELL, FIRST OFF, I DON’T THINK WE CAN — NEIL: THE DEMOCRATS.>>YEAH. AND ONCE YOU HAVE THE SENATE IN REPUBLICAN HANDS, ANYTHING THEY DO WILL BE SORT OF COUNTERACTED. LET’S JUST SAY THEY TRY TO — THEY SAID THEY HAVE INDICTABLE EVIDENCE ON DEUTSCHE BANK WHICH IS A BANK THAT DID BUSINESS WITH DONALD TRUMP AND CLEARLY IS GOING TO BE IN THE CROSSHAIRS OF MAXINE WATERS. SO THEY COULD SEND A REFERRAL TO THE JUSTICE DEPARTMENT, AND THE ATTORNEY GENERAL WHO WORKS FOR TRUMP COULD SAY, OKAY, I’M GOING TO STICK IT IN THIS DRAWER. HER POWER IS GOING TO BE TO INTIMIDATE AND HARASS, AND THAT WILL MAINLY COME FOR THE PRESIDENT RATHER THAN THE BIG BANKS. I THINK WHAT BUFFETT IS SAYING — FIRST OFF, HE LIKES JAMIE DIMON A LOT, LIKES HIM AS A LEADER, LIKES A LOT OF WHAT HE SAYS AS A SORT OF THOUGHT LEADER IN THE BANKING BUSINESS, BUT HE’S ALSO, I THINK, MAKING A BET THAT INTEREST RATES ARE GOING HIGHER. AND IF THAT MAY NOT BE — NEIL: WARREN BUFFETT.>>YEAH. MAY NOT BE GOOD FOR OTHER STOCKS, BUT BANKS GENERALLY DO BETTER PARTICULARLY IN A HIGHER INTEREST RATE ENVIRONMENT, BECAUSE THEY CAN CHARGE PEOPLE MORE. NEIL: THAT’S RIGHT.>>AND THE LAG BETWEEN WHAT THEY CHARGE PEOPLE AND HOW THEY HAVE TO INCREASE RETURNS ON SAVINGS AND CHECKING ACCOUNTS IS WIDE ENOUGH THAT YOU HAVE THIS SPREAD — NEIL: SO THEIR CD RATE INCREASES ARE SLOW, BUT THE ONES ON THEIR LOANS –>>ABSOLUTELY. NEIL: — GIVE YOU THIS CHASM. THAT’S EASY MONEY.>>RIGHT. AND THAT’S, I THINK, WHAT BUFFETT IS BANKING ON AT LEAST IN THE SHORT TERM. AND IF HE THINK– AND HE THINKS JPMORGAN, IF THERE IS A BANKING CRISIS, GUESS WHO BENEFITS FROM THAT? IF THEY LET EVERY BANK GO UNDER, THE ONLY ONE THAT MIGHT HAVE SURVIVED BECAUSE THEY HAD SOME STUFF ON THEIR BALANCE SHEET WAS JPMORGAN. NO BAILOUTS, YOU KNOW, NO AIG BAILOUT WHICH WAS A BACK DOOR BAILOUT FOR ALL THE OTHER FIRMS AND NO DIRECT MONEY. JPMORGAN HAD THE BEST CHANCE OF SURVIVING, AND I THINK THAT’S WHAT HE’S ALSO BETTING. IF THERE’S ONE BANK, THIS IS MY IF BANK. SO HIGHER INTEREST RATES THOUGH, SO YOU KNOW, I MEAN, LISTEN, IF YOU WANT TO KNOW WHY THE MARKETS ARE TRADING OFF — ALTHOUGH THEY’RE ALL OVER THE PLACE TODAY — TRADE IS A BIG DETERMINANT, AND INTEREST RATES. ANYTHING THAT PUSHES INTEREST RATES UP GENERALLY IS BAD FOR STOCKS BECAUSE YOU’LL GO FOR OTHER INVESTMENTS. AND THERE ARE TWO THINGS THAT MIGHT PUSH INTEREST RATES UP, THE FED UNWINDING ITS BALANCE SHEET AND RAISING THE FED FUNDS RATE, BUT ALSO IF THE TAX CUTS DON’T WORK, YOU’RE GOING TO GET HIGHER DEFICITS AND, IN RESPONSE, HIGHER INTEREST RATES BECAUSE PRICES OF BONDS GO DOWN AND INTEREST RATES GO UP. YOU HAVE TO TRACK PEOPLE WHEN YOUR INTEREST RATES GO UP. THAT WILL AFFECT EVERYTHING. THOSE ARE THE SORT OF THINGS THAT PEOPLE ARE WEIGHING RIGHT NOW. WHEN I TALK TO INVESTORS, THAT’S WHAT THEY’RE TELLING ME. NEIL: MENTION GE AND ALL THE CREDIT WORRIES THERE.>>EVERYBODY MENTIONS GE. YOU KNOW, LISTEN — NEIL: TALK ABOUT EXPOSURE, A LOT OF PEOPLE EXPOSED.>>BUFFETT IS ONE OF THE BEST GUYS WHEN YOU ASK HIM, LIKE, WHEN DOES HE MAKE HIS INVESTMENTS, WHEN EVERYBODY ELSE IS OUT AND HE PICKS THE BOTTOM. HE DIDN’T TO THAT WITH JPMORGAN, BUT HE’S BEEN KNOWN TO DO THAT. WHAT’S INTERESTING IS THAT HE’S NOT IN GE RIGHT NOW. I MEAN, YOU WOULD THINK AT $8 A SHARE — NEIL: REMEMBER WHEN HE AND JACK WELCH WERE TIGHT –>>RIGHT. NEIL: BOB WRIGHT, OF COURSE, THE FORMER VICE PRESIDENT OF NBC UNIVERSAL, HE WAS WEIGHING IN YESTERDAY. I WANT YOU TO REACT TO THIS. YOU AND JACK WELCH AND AND A TEAM THAT WAS CONSIDERED LIKE A WHARTON DREAM TEAM, WHAT HAPPENED?>>SOMEHOW OR OTHER WE LOST OUR — I SAY “OUR,” BECAUSE I NEVER CAN QUITE GET PAST IT. JUST LOST OUR BEARING IN DEALING WITH THE BALANCE SHEET. AND THOSE INSURANCE RELIABILITIES SHOULD HAVE BEEN DEALT WITH. NEIL: YOU KNOW, AND THEN HE WENT AFTER JEFF IMMELT WHICH WAS THE MORE SEXY QUOTE. I DON’T MEAN TO SECOND GUESS YOU GUYS, BUT IT WAS INTERESTING –>>WHAT’D HE SAY? NEIL: WELL, WOULD HAVE, SHOULD HAVE, COULD HAVE. NOW I’M WONDERING THE THAT’S THE CASE. IT DOESN’T DO ANY GOOD POINTING FINGERS, BUT I DO WONDER ABOUT WHAT HAPPENED TO GE.>>WELL, I FIND IT INTERESTING THAT BUFFETT’S NOT BUYING AT THE LOW, JUST FROM MY STANDPOINT. BECAUSE HE’S USUALLY THE GUY WHEN EVERYBODY ELSE IS SCARED — NEIL: THAT’S RIGHT.>>– HE’S IN. HE MUST NOT LIKE WHAT’S STILL ON THE BALANCE SHEET AND WHAT THESE GUYS HAVE TO DO. YOU KNOW, I WAS TALKING WITH BOB BEFORE, BEFORE HE WENT ON, AND I SAID, BOB, WHY DON’T THEY — I SAID, THIS IS ON THE TABLE — BREAK IT UP INTO THREE SEPARATELY-TRADED COMPANIES. SELL OFF THE EXTRANEOUS STUFF, HEALTH CARE, AVIATION AND POWERING RIGHT? HE SAID IT’S NOT THAT EASY. THEY’VE GOT $30 BILLION IN PENSION FUND LIABILITIES. THEY NEED SOME OF THAT CASH FLOW TO PAY THAT OFF. I MEAN, IF YOU — IT’S NOT LIKE THE OLD DAYS, YOU CAN JUST WALK AWAY. NEIL: RIGHT.>>SOMEONE CAN GO AFTER THEM. THEY CAN BE SUED, THEY CAN BE PROSECUTED. SO THIS IS HARDER THAN YOU THINK. NEIL: IS THAT RIGHT?>>THAT’S WHAT BOB SAID — NEIL: I HAD NO IDEA.>>AND HERE’S THE INTERESTING THING, I DON’T KNOW WHY BUFFETT ISN’T IN THERE AT EIGHT. IT’S GOT TO BE — THE SUM OF ITS PARTS ARE WORTH MORE THAN EIGHT. NEIL: REMEMBER WHEN IT GOT TO 20, GOT BELOW 20 –>>RIGHT. 17. I REMEMBER EVERYBODY WAS LIKE, IT’S GOT TO BE WORTH MORE THAN 17. THE FACT THAT BUFFETT’S NOT IN THERE — NEIL: THAT’S WHERE HE IS CONCENTRATING THE HIS FINANCIAL, BIG PURCHASES.>>LOOK WHAT HAPPENED DURING THE FINANCIAL CRISIS WHEN HE KNEW — AND HE ACTUALLY KNEW THAT AIG WAS GOING TO BACK DOOR BAILOUT EVERYBODY, YOU KNOW? WHEN AIG WAS BAILED OUT, YOU ESSENTIALLY HAD ALL THE TOXIC DEBT ON THE BALANCE SHEETS OF THE BANKS ESSENTIALLY BAILED OUT. THAT’S WHAT HAPPENED. BECAUSE THEY INSURED THAT DEBT. NEIL: THAT’S RIGHT.>>HE WENT IN AND BOUGHT GOLDMAN SACHS. REMEMBER THAT. HE KNEW THAT PEOPLE WERE SO SCARED, HE WAS GOING TO BUY THE PREMIER INVESTMENT BANK THAT WAS GUARANTEED TO SURVIVE.

56 thoughts on “Warren Buffett buys $4B stake in JPMorgan”

  1. Buffet thinks there's value in JP Morgan at over $100/share?

    I don't see the value out there. I have doubts this was a good trade.

  2. MadMaxWaters – Never mind her own actions of benefit to One Union; Lets look at Trump; FucThatSHit – I am sick of the left pointing out the right, and not acting in the right or with the rights of others in mind – theLAB

  3. That's just Warrens way of trying to help the bank out is my understanding through research on the matter that the fed is trying to help them to along with the whole big banks group by rolling back on regulations so that they can once again play with the peoples money this is nothing more than giving a friend a loan by Warren

  4. Well of course he did. JP Morgan will probably get more billions in taxpayer bailouts, allowing this billionaire to make even more money on the backs of the law abiding taxpaying Americans he despises.

  5. The problem is, the bigger and richer these dirty bastards are, the more they steal from the taxpayer. Buffet has never produced a thing. He has never employed anyone except for a few accountants and attorneys and his old bag wife, and he plays a zero sum game. For him to win, someone else needs to lose. Then when he's old enough and rich enough, and his money is protected from taxation, he becomes a filthy liberal.
    He can't lose with his investment, because his stock will be the big beneficiary of the next taxpayer bailout.

  6. Citibank took hundred of millions from the taxpayers and promptly laid off 75,000 Americans, closed a lot of banks, and then took your money to Latin America and bought dozens of banks.

  7. I wish all citizens would simultaneously cancel all their credit cards and with drawl all their cash from the banks. These banksters get filthy rich while enslaving everyone else

  8. Wherever that bitch gets a stake, the board becomes hyper corrupt, the company becomes cheap af, and layoffs are endless.

  9. Here is why- FICO scores for everyone about to reset UP. The banks will be giving loans to MILLIONS of immigrants and people with student debt. Yes, things are getting rough, but people will always have desire to buy. Will juice the loans and banks will have blowout earnings next year.

  10. JP Morgan sells more gold than it actually has, they’re involved in spoofing, misled investors and got them to invest in overinflated companies during dot com bubble….. you name it, they’ve done it all.

  11. 村長目下 アップル株で赤字拡大中 いわんこっちゃない
    高値づかみ然り
    見る眼無し (ーー;)

  12. Why the fuck FOX news take Warren Buffett stock picks and turn it into a left vs right issue… there’s a world out there beyond a politically divided country for Christ sake.

  13. He is a holder on the Iraqi dinar and that bank is going to be one of the main banks doing the exchange it’s all starting to connect #rv

  14. Warren is so hard to be decoded. Say anything you want to say. Warren is deceiving you hahahaha trying to be smart now huh?

  15. Think he's gambling on another bailout thanks to Jamie Dimon. Rinse and repeat on the back of the taxpayer. Now is the time to get into silver and gold. JP Morgan is the biggest holder of silver. These banksters don't want people owning physical silver or gold because it's out of their reach for tracking and taxation. Own physical silver and gold. All fiat throughout history has failed! Silver and gold have never gone to zero!

  16. The banking system is in trouble again how drastic the damage is yet unknown. Keep an eye on form 4 sec filing. It should slowly draw a picture

  17. Smells a bit fishy to me, reminds me of 2008 when they tried to lend each other money before year end reports, J.P. Morgan might be in trouble.

  18. Buffett now has $86bn invested in Banking. His JPM stake is only .75% of BRK's market cap. But his banking investments represent over 16% of BRK's market cap. Definitely not insignificant.

  19. JPM is a $350 billion enterprise and buffett bought just a little over 1 percent stake in the company from a cash reserve of over $100 billion and people are talking about JPM collapsing etc etc.Truth is he knows more than us and he has seen more than us and all he has invested is less than one quarter profit of Berkshire and for his size he would be more than happy for the millions in dividends and medium single digit percentage share price appreciation.truth is he never in a hurry.

  20. Why Warren Buffett loves banking so much? And Apple even more. For further information feel free and take a look @t

  21. WARREN BUFFET IS THE WORLDS FOREMOST HUMAN SCUM. FRAUD, CRIMINAL, MCDONALDS EATING HUMAN GARBAGE. LIAR. DOGECOIN TO THE MOON YOU FRAUD SCUM BUFFET

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