Archive for Theron Mohamed

Billionaire investor Seth Klarman lambasts the Fed for distorting markets – and says Tesla’s stock has surged ‘seemingly beyond all reason’

Seth Klarman
Seth Klarman, president and CEO of the The Baupost Group

  • Billionaire investor Seth Klarman warns stimulus and interest rates are masking market risks.
  • The Baupost chief compared investors to "frogs in water that is slowly being heated to a boil."
  • Klarman added that Tesla stock has surged "seemingly beyond all reason."
  • Visit Business Insider's homepage for more stories.

A billionaire investor heralded as "the next Warren Buffett" blasted the Federal Reserve and Treasury in a private letter this week, accusing the duo of disrupting the stock market and putting investors at risk.

Seth Klarman told clients of his Baupost hedge fund that investors are behaving as if risks have "simply vanished" due to rock-bottom interest rates and wave after wave of government stimulus, the Financial Times reported.

Federal interventions to buttress growth and reduce unemployment have also made it tricky to assess the economic health of the country, Klarman said.

"Trying to figure out if the economy is in recession is like trying to assess if you had a fever after you just took a large dose of aspirin," he said, according to the Financial Times.

"But as with frogs in water that is slowly being heated to a boil, investors are being conditioned not to recognize the danger," he added.

Read more: 'I have seen this movie before': Legendary investor Jim Rogers unloads on the bubbles he says are forming across markets, particularly in big tech stocks and bitcoin - and shares 4 alternatives he would buy for his kid over the next decade

Klarman highlighted Tesla as an example of how heady markets have become. Elon Musk's electric-vehicle company has seen its shares skyrocket more than 850% since the start of last year, and now commands a market capitalization north of $800 billion.

The "barely profitable" automaker's stock has surged "seemingly beyond all reason," Klarman said.

Warren Buffett himself has tapped the Baupost boss as his spiritual successor. When a college student asked the Berkshire Hathaway CEO in 1992 who might be the next Buffett, he swiftly replied "Seth Klarman," according to the professor teaching the class.

Klarman and his team have been more adventurous than Buffett in recent months. Baupost's latest portfolio update revealed a $400 million stake in Bill Ackman's special-purpose acquisition vehicle, Pershing Square Tontine, as well as a $52 million position in Redball Acquisition Corp, another SPAC that is co-chaired by "Moneyball" star Billy Beane.

On the other hand, Baupost slashed its stakes in Google-parent Alphabet and Facebook in the second and third quarters of 2020, after establishing those positions in the first quarter. Those moves suggest Klarman is concerned those technology stocks are outpacing their prospects.

Read more: Bank of America says to buy these 16 semiconductor stocks as the US industry is poised to quadruple its growth rate of the past 3 years

Read the original article on Business Insider

Warren Buffett advised NFL linesman Ndamukong Suh to be ready to buy when bargains appear

BuffettSuh
  • Warren Buffett advised NFL linesman Ndamukong Suh to be ready to buy when bargains appear.
  • "He's been super cash-heavy," Suh told CNBC about his mentor. "It's being prepared to make moves."
  • Suh has turned to Buffett for career advice and investing guidance for more than a decade.
  • Visit Business Insider's homepage for more stories.

Warren Buffett underscored the importance of being ready to pounce when he spoke to NFL linesman Ndamukong Suh a few weeks ago. 

The billionaire investor and Berkshire Hathaway CEO wasn't talking about sacking quarterbacks or timing tackles on the football field, however. He was advising Suh to look out for bargains in the business world, and keep some money on hand to snap them up.

"As you can see, he's been super cash-heavy," Suh said about Buffett in a recent CNBC interview. "It's being prepared to make moves and see where there's opportunities in the market."

Read more: NFL superstar Ndamukong Suh talks his impressive business acumen, his friendship with Warren Buffett, advice for rookies, and what happens to 8-figure contracts

Indeed, Berkshire boasted about $139 billion in cash, Treasury bills, and other short-term investments at the last count. Buffett remains eager to spend a big chunk of those funds on an "elephant-sized acquisition," but had to settle for announcing more than $35 billion of investments in the third quarter of 2020.

Buffett's guidance has turned Suh's focus to the beaten-down hospitality sector, he told CNBC. The Tampa Bay Buccaneers player expects the ongoing rollout of COVID-19 vaccines, pent-up demand from lockdowns, and the boom in delivery and takeaway services to underpin a strong recovery for restaurants.

Unlike Buffett, who generally takes passive stakes in businesses, Suh probably won't be content to sit on the sidelines.

"I would say I'm a hands-on investor," he told CNBC. "I like to get my hands dirty. I like to add value, which is why I like to be an adviser to companies if I'm not a board member or a venture partner."

Read More: Bank of America says the warning signs that stocks are hurtling into bubble territory are growing - and pinpoints 6 that could signal a bear market is beginning

Buffett has coached Suh for years

Suh first met Buffett as a senior at the University of Nebraska more than a decade ago. The Berkshire chief became his mentor, and Suh seeks his advice a few times a year as he prepares to focus on investing once he retires from football.

"All you have to do is pick up the phone and he's always there to answer," Suh told Bloomberg in 2019. "I've learned a handful of things from him and continue to do so."

For example, Suh signed with the Los Angeles Rams in 2018 in part because of Buffett. California's hefty taxes were offset by the "intrinsic value" of its cities, the investor told him.

Indeed, Suh was able to connect with basketball icon-turned-businessman Magic Johnson and sports-team investor Peter Guber while living in the state.

Read More: GOLDMAN SACHS: Buy these 25 stocks best-positioned to juice profits in 2021 as stimulus and vaccine progress spur economic growth

Suh isn't just looking for ways to get rich quick when he speaks to Buffett.

"I want to understand him as a person, not a stock tip or the next thing he's getting involved in," Suh told The Wall Street Journal in 2014. "I want to understand what made him successful."

Meanwhile, Buffett appreciates Suh's business acumen and the comedic value of their dramatically different statures.

"I'm just glad he's not running against me for a board spot," Buffett told The Journal. "Everyone tries to hustle sports stars. I think he knows I'm not trying to take him; I'm not trying to get involved in his finances."

Buffett armwrestled the six-foot-four, 305-pound linesman on live television in 2015, and jokingly sent an injury waiver to Suh beforehand.

"I, Ndamukong Suh, hereby release Warren Buffett from any claims for physical injury that I may suffer in the armwrestling contest…" the form read.

Read the original article on Business Insider

‘Shark Tank’ star Kevin O’Leary slams Bitcoin as niche and poorly regulated: ‘a giant nothingburger’

kevin o'leary
  • "Shark Tank" investor Kevin O'Leary criticized Bitcoin as niche, illiquid, and poorly regulated.
  • "Bitcoin is still a nothingburger, a giant nothingburger," he said on his YouTube channel.
  • O'Leary emphasized the potential for a global digital currency approved by regulators.
  • Visit Business Insider's homepage for more stories.

"Shark Tank" star Kevin O'Leary dismissed Bitcoin as too niche, illiquid, and badly regulated to justify a substantial investment in an interview this week.

"I look at the asset value of Bitcoin versus the asset value of all things traded and Bitcoin is still a nothingburger, a giant nothingburger," he told investor Anthony Pompliano in a video on his YouTube channel.

"You don't have every institution willing to play ball with it," the O'Leary Funds and O'Leary Ventures chairman continued.

Read more: 'Vastly technically disconnected': A market strategist breaks down the 3 indicators that show Tesla is overpriced - and what to look for that could signal a crash resembling Cisco's in 2000

O'Leary - whose nickname is "Mr. Wonderful" - added that it's a headache to buy a large sum of Bitcoin and a pain to navigate the regulatory minefield around cryptocurrencies.

"If I want to buy a million dollars' worth of Bitcoin right now, I've gotta do a fair amount of work to pull that off," he said. "I can't get consistency with any single regulator on endorsing bitcoin for me to actually do a significant transaction."

However, O'Leary underscored the rich potential for a digital currency that is widely approved by regulators and can be used to buy assets around the world.

Read more: Cathie Wood's ARK Invest runs 5 active ETFs that more than doubled in 2020. She and her analysts share their 2021 outlooks on the economy, bitcoin, and Tesla.

"Then you would have something of tremendous value," he said. "That is a vision that's really attractive versus this tiny little thing."

O'Leary voiced similar criticisms in a CNBC interview last month. The size of the Bitcoin market makes it "completely irrelevant to the institutional client," he said.

The veteran investor also highlighted a regulatory crackdown as a major risk for crypto fans. "Grown men are going to weep when that happens," he said. "It will be brutal."

Read more: How the boom in sustainable investing is influencing the way massive companies react to events like the Capitol riots

O'Leary proposed a solution to his concerns on "The Pomp Podcast" last month: a cryptocurrency ETF approved by regulators.

"Give me the top seven cryptocurrencies, put them into an ETF wrapper, and let me invest in it with liquidity, so that if I want to buy a million dollars of it in the morning and sell a million dollars in the afternoon, I can do that in an ETF format," he said. 

Read the original article on Business Insider

Billionaire investor Chamath Palihapitiya is the next Warren Buffett, Ritholtz chief Josh Brown says

Chamath Palihapitiya

  • Chamath Palihapitiya could be the next Warren Buffett, according to investor Josh Brown.
  • "He has that aura about him," the Ritholtz Wealth Management chief said on "The Compound."
  • Like the Berkshire Hathaway boss, Palihapitiya excels at sourcing funds and has a strong track record.
  • Visit Business Insider's homepage for more stories.

Billionaire investor Chamath Palihapitiya might just be the next Warren Buffett, investor Josh Brown said on "The Compound" YouTube channel this week.

"I think he's the new Buffett," the Ritholtz Wealth Management chief and "How I Invest My Money" co-author said. "He has that aura about him."

"He's not there in dollar terms yet, but he seems to have figured out a lot of things before other people and he's executing very well," Brown added.

Read more: Corporations rushed to address the Capitol riot and political donations. Here's how those moves reflect the rise of sustainable investing.

Palihapitiya is a former Facebook executive, the founder and CEO of Social Capital, and a minority owner of the Golden State Warriors.

He specializes in using special-purpose acquisition vehicles (SPACs) to take companies public. He counts Virgin Galactic, Opendoor, Clover Health, and SoFi among his deals to date.

Like Buffett, Palihapitiya has "figured out how to have the zero cost of capital and the endless money coming in and everything he touches turns to gold immediately because he's had past success," Brown said.

Read more: Morgan Stanley says to buy these 26 economically sensitive stocks poised to outperform as oil prices spike 10% by year-end

Buffett is never short of funding for investments thanks to his Berkshire Hathaway conglomerate. He takes the cash thrown off by subsidiaries such as See's Candies, as well as the "float" (the difference between premiums and claims) from Geico and his other insurance businesses, and invests it elsewhere in the company, or in public markets to generate higher returns.

Moreover, many investors trust Buffett's decisions and follow him into the stocks he buys, bumping up their prices and making him more money.

Palihapitiya has also shown a knack for raising and deploying funds, and his future SPACs are likely to benefit from the halo effect of his past ones.

Read more: A former journalist who worked his way up to become one of Wall Street's best tiny-company stock pickers tells us the 4 pillars of the approach that's beating 98% of his competitors

It's not too surprising that Palihapitiya is drawing comparisons to Buffett, given he's modeling his company on the famed investor's conglomerate.

"My ambition is to be our generation's Berkshire Hathaway," Palihapitiya told Fortune last year.

He envisions Social Capital as "a Berkshire, a holding company that, instead of holding Gillette and Coca-Cola and McDonald's, will hold technology businesses."

Read the original article on Business Insider

Billionaire investor Chamath Palihapitiya is the next Warren Buffett, Ritholtz chief Josh Brown says

Chamath Palihapitiya

  • Chamath Palihapitiya could be the next Warren Buffett, according to investor Josh Brown.
  • "He has that aura about him," the Ritholtz Wealth Management chief said on "The Compound."
  • Like the Berkshire Hathaway boss, Palihapitiya excels at sourcing funds and has a strong track record.
  • Visit Business Insider's homepage for more stories.

Billionaire investor Chamath Palihapitiya might just be the next Warren Buffett, investor Josh Brown said on "The Compound" YouTube channel this week.

"I think he's the new Buffett," the Ritholtz Wealth Management chief and "How I Invest My Money" co-author said. "He has that aura about him."

"He's not there in dollar terms yet, but he seems to have figured out a lot of things before other people and he's executing very well," Brown added.

Read more: Corporations rushed to address the Capitol riot and political donations. Here's how those moves reflect the rise of sustainable investing.

Palihapitiya is a former Facebook executive, the founder and CEO of Social Capital, and a minority owner of the Golden State Warriors.

He specializes in using special-purpose acquisition vehicles (SPACs) to take companies public. He counts Virgin Galactic, Opendoor, Clover Health, and SoFi among his deals to date.

Like Buffett, Palihapitiya has "figured out how to have the zero cost of capital and the endless money coming in and everything he touches turns to gold immediately because he's had past success," Brown said.

Read more: Morgan Stanley says to buy these 26 economically sensitive stocks poised to outperform as oil prices spike 10% by year-end

Buffett is never short of funding for investments thanks to his Berkshire Hathaway conglomerate. He takes the cash thrown off by subsidiaries such as See's Candies, as well as the "float" (the difference between premiums and claims) from Geico and his other insurance businesses, and invests it elsewhere in the company, or in public markets to generate higher returns.

Moreover, many investors trust Buffett's decisions and follow him into the stocks he buys, bumping up their prices and making him more money.

Palihapitiya has also shown a knack for raising and deploying funds, and his future SPACs are likely to benefit from the halo effect of his past ones.

Read more: A former journalist who worked his way up to become one of Wall Street's best tiny-company stock pickers tells us the 4 pillars of the approach that's beating 98% of his competitors

It's not too surprising that Palihapitiya is drawing comparisons to Buffett, given he's modeling his company on the famed investor's conglomerate.

"My ambition is to be our generation's Berkshire Hathaway," Palihapitiya told Fortune last year.

He envisions Social Capital as "a Berkshire, a holding company that, instead of holding Gillette and Coca-Cola and McDonald's, will hold technology businesses."

Read the original article on Business Insider

Billionaire investor Howard Marks discussed Tesla’s valuation, growth vs value investing, and the Fed juicing markets in a recent interview. Here are the 8 best quotes.

Howard Marks

  • Howard Marks advised casual investors who have won big on Tesla to withdraw some of their gains in a recent Bloomberg TV interview.
  • The billionaire cofounder of Oaktree Capital Management also argued that value investors can own growth stocks, without undermining their investing principles.
  • Marks highlighted the Federal Reserve and Treasury's stimulus efforts as key drivers of the current stock-market boom as well.
  • Here are Marks' 8 best quotes from the interview.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Billionaire investor Howard Marks recommended amateur Tesla investors cash out some of their profits during a Bloomberg TV interview this week. His comments suggest he's not especially bullish on Elon Musk's electric-vehicle company following its 700% stock rally over the past year.

The cofounder and cochairman of Oaktree Capital Management also argued value investors can buy growth stocks trading at high price-to-earnings ratios without betraying their principles. Moreover, he attributed a large part of the recent stock-market boom on the US government's efforts to stimulate the economy.

Here are Marks' 8 best quotes from the interview, lightly edited and condensed for clarity:

1. "Tesla is an extreme case. There's an argument to be made that it's too high. The people who are buying it, you can't say that they're all nuts. There may be people who have a view that it's attractive. By the way, people said that it was too high two years ago. Have all the appreciations in the last two years been fallacious? Who are we to say?"

2. "An individual not of great means - he should take some profits. If he bought Tesla two years ago, he probably has a huge gain. It's probably a very disproportionate amount of his financial net worth and his portfolio. He should absolutely cut back. Unless he really wants to try to hit the long ball. To do that, he should have a high pain threshold."

Read more: A leading Wall Street firm asked 7 famous investors about their favorite stocks and the global trades they're using to stay ahead of the competition. Here's what they're betting on now.

3. "There's no reason that you can't do so-called value investing in growth companies." - arguing that the key tenets of value investing - treating shares as pieces of a business, focusing on companies' true worth instead of their price, relying on fundamentals to calculate their intrinsic value, identifying investments as attractive when their price diverges from their value, and having the emotional discipline to act only when that gap opens up and not otherwise - don't preclude growth bets.

4. "The investor's mentality should be eclectic and you shouldn't decline to invest in companies just because they're fast-growing and carry high P/E ratios. Just because something has a high P/E ratio doesn't mean it's overvalued, and just because something has a low P/E ratio doesn't mean it's cheap."

5. "There was a very famous value investor who made good money in some of the tech leaders. I said, 'Well how could a value guy invest in high-growth tech companies?' He says, 'Well, they looked like value to me.' The point is that he was open-minded."

Read more: GOLDMAN SACHS: Buy these 50 under-owned stocks that will roar higher as growth and inflation lift off in 2021

6. "There's no disputing the fact that growth stocks have outperformed value stocks. On the other hand, I think there's no disputing the fact that growth stocks have a better future than value stocks." - arguing that high P/E ratios and strong stock-price performance may fairly reflect the improving prospects of tech companies as they grow larger and more dominant.

7. "It's not something everybody can do, but I don't think it's something nobody can do." - on assessing which companies will survive and which will fail during a bubble.

8. "The Fed and Treasury's actions, and specifically the reduction of the federal funds rate to zero, has had a very coercive effect on the market. It has required people to invest because they don't want to sit around with cash, money market funds, bank deposits, all earning zero. They don't want Treasuries at less than 1%, or high-grade bonds at 2% and so they've had to push out into risk assets." - explaining why the stock market continues to boom, despite immense political division and the pandemic's continued fallout.

Read the original article on Business Insider

Billionaire investor Chamath Palihapitiya predicted Tesla stock will triple and Bitcoin will soar 5-fold in a recent interview. Here are the 15 best quotes.

Chamath Palihapitiya
Chamath Palihapitiya.
  • Chamath Palihapitiya expects Tesla stock to triple and Bitcoin's price to surge five-fold, he said on CNBC's "Halftime Report" this week.
  • The billionaire boss of Social Capital and Virgin Galactic chairman also blasted Facebook, trumpeted SPACs, and explained why he doesn't expect the current market boom to end in tears.
  • Here are Palihapitiya's 15 best quotes from the interview.
  • Visit Business Insider's homepage for more stories.

Billionaire investor Chamath Palihapitiya predicted Tesla stock will double or triple and Bitcoin will soar five-fold during an interview on CNBC's "Halftime Report" this week.

The Social Capital CEO and Virgin Galactic chairman also compared Facebook spreading disinformation to selling cigarettes, defended special-purpose acquisition vehicles (SPACs) as another way to take companies public, and argued the current market boom is fundamentally different from the bubble that preceded the 2008 financial crisis.

Here are Palihapitiya's 15 best quotes from the interview, lightly edited and condensed for clarity:

1. "The world's richest person should be somebody that's fixing and figuring out climate change." - defending Tesla CEO Elon Musk surpassing Amazon CEO Jeff Bezos in net worth this week.

2. "The big disruption that's coming is to power utilities. There are trillions of dollars of bonds, of capital expenditure, of value sitting inside the energy-generation infrastructure of the world that is gonna go upside down. When that goes pear-shaped, Tesla will double and triple again." - arguing that Tesla is a clean-energy company that will eventually capture a chunk of the fossil-fuel industry's value.

3. "I don't understand why people are so focused on selling things that work. You're paid to stay with people who know what they're doing, and this is a guy who has consistently been one of the most important entrepreneurs in the world, so why bet against him? It's the same thing with Bezos, why bet against him? You get behind these people who have incredibly strong character, who know what they're doing, who aren't gonna bend to short-term profits, and who are just gonna drive the train for 10 or 20 years and make the world a better place." - explaining why he doesn't plan to sell any Tesla shares.

4. "These guys are dancing, they are in rhythm, they're in flow. Let them do their thing, get behind them. Don't sell a share, just let 'em create value."

5. "It is rocket fuel for assets. Whether those are housing markets, or whether those are capital purchases like cars or vacations, or stocks in this case if we're still under a lockdown, these things are just gonna go to the moon for a while and so you just have to be long. Everybody who's trying to understand why you shouldn't be long, I think is going to regret it for at least the next 18 to 24 months." - arguing that shrinking consumer credit-card debts, ballooning savings, and a record amount of funds in money markets will drive markets higher.

6. "Building products, cars, energy systems, batteries, retail infrastructure, robots, transforming financial services to be fair for everybody - that's not trading derivatives and playing gotcha. That was not real value, those people were just shuffling shells around. This time it is different because people are making tangible things you can touch and feel." - explaining why the current market boom won't lead to a repeat of the 2008 financial crisis.

7. "There's a massive inequality gap in the United States. There's trillions of dollars sitting inside of 401(k)s, they need to be allocated into things that can be fast-growing so that normal ordinary Americans can generate savings for their future retirement, for their homes, for their ability to pay for college. You're not gonna do that by owning American Express. Those companies are dormant, legacy businesses, that game is over."

8. "I don't think it's peak SPAC. You have to have a simple on-ramp to the public markets, a SPAC represents that. There are really going to be IPOs, initial public offerings, and now IPMs, initial public mergers, and it's just gonna be the two ways that things are done."

9. "Look at the amount of money we waste as a country on all kinds of random nonsense. We let politicians run into the Capitol, hang around for 2, 4, 6 years and then just take from the till."

10. "Can you play the clip in 2012 and 2013 when it was at $200 and everybody was laughing at me on CNBC every time I would talk about Bitcoin? Where is it going? It's probably going to $100,000, then $150,000, then $200,000." - Palihapitiya didn't specify a timeframe, saying it could take five or 10 years for Bitcoin to reach those prices.

11. "We really do need to have some kind of insurance we can keep under our pillow that gives us some access to an uncorrelated hedge. It's going to eventually transition to something much more important but for right now, the fabric of society is frayed and until we figure out how to make it better, it's time to just have a little schmuck insurance on the side." - suggesting that events such as the siege on the Capitol have sapped faith in leaders and institutions, fueling demand for Bitcoin.

12. "It amplifies echo chambers on purpose and by design. If you're somebody who for whatever reason feels disenfranchised, you can find a corner of the internet where you can amplify your worst fears, and unfortunately 90% of that activity now happens inside of Facebook."

13. "We optimize for short-term profitability at the sake of our democracy. What we left in tatters was any sense that there was any sort of moral or ethical imperative that would govern decision making at that company. And so that saddens me for the people that work there." - sharing his feelings as an ex-Facebook employee on the social network's role in spreading the disinformation that led to protesters storming the Capital.

14. "There are people inside of that company who are building these things that are amplifying the lobotomization, the intellectual cornering of people so that they cannot learn what's truly happening, so that their worst fears and their worst concerns are amplified. We need to do a better job of understanding that that diet is unhealthy. Now that you sell cigarettes that cause cancer, there need to be labels, they need to be put behind the counter, they need to be far away from the children's reach." - arguing that Facebook should be legally treated as a publisher and face tougher regulations.

15. "We just have to have a real 'come to Jesus' in this country about what's truly important."

Read the original article on Business Insider

Rock star Bono helped recruit ex-Treasury Secretary Hank Paulson to run a new climate fund

Bono
  • Bono phoned former Treasury Secretary Hank Paulson to recruit him as the head of a new climate fund, according to The New York Times.
  • "We don't just need the usual suspects, we need some 'unusual suspects,' if you like, and some unexpected partnerships in the conversation as well," the U2 frontman and philanthropist said. 
  • "My dance card is full," Paulson initially told Bono.
  • However, after more coaxing he agreed to become the executive chairman of TPG Rise Climate.
  • Visit Business Insider's homepage for more stories.

U2 frontman Bono helped recruit former Treasury Secretary Hank Paulson to run an investment fund focused on combating climate change, The New York Times reported on Wednesday.

Paulson, who has been running a nonprofit and working on environmental programs for the past 12 years, fielded a call from the rock star last fall, the newspaper said.

Bono, who played a part in setting up TPG's Rise impact-investing funds, told Paulson that the investment group wanted to start a climate-change fund with the financier in charge.

Read more: Investing legend Terry Smith's $30 billion equity fund returned 449% to investors over a decade - Here's his 4-part strategy for success and 10 pieces of investing wisdom to take into 2021

"I thought he'd be amazing," Bono told The Times. "My work on global poverty and then the AIDS fight taught me that we don't just need the usual suspects, we need some 'unusual suspects,' if you like, and some unexpected partnerships in the conversation as well."

Paulson, who led the Treasury between 2006 and 2009 and bailed out the banks during the financial crisis after a late-night call from Warren Buffett, didn't immediately accept the invitation. "My dance card is full," he replied in Bono's telling.

"I wasn't looking to do this," Paulson told The Times. "At this stage in my career, I'm not looking to do a startup. I'm in a hurry to make a difference."

Read more: Wall Street experts are calling Georgia's runoff results 'the first surprise of 2021.' Here's how 4 of them recommend positioning your portfolio for what could happen next.

However, the former Goldman Sachs banker warmed to the idea after multiple calls and meetings with TPG co-chief executive Jon Winkelried, a friend and ex-colleague. He was also swayed by the success of TPG's other impact funds and the firm's recognition of the immense scale of the climate challenge, he told The Times.

Paulson will serve as the executive chairman of TPG Rise Climate. He intends to make climate bets that match the returns of other types of investments, he told the newspaper. "The market will not scale for concessionary or subsidized returns," he said.

Read the original article on Business Insider

Tesla zooms past $700 billion in market value after nearly hitting 500,000 deliveries in 2020

Elon Musk
Elon Musk.
  • Tesla stock climbed as much as 5% to a fresh high on Monday, boosting the electric-car company's market capitalization to north of $700 billion.
  • Elon Musk's automaker exceeded its production target of 500,000 vehicles last year, and fell just short of 500,000 deliveries.
  • "So proud of the Tesla team for achieving this major milestone!" Musk tweeted about the news.
  • Tesla's stock price soared by more than 740% in 2020.
  • Visit Business Insider's homepage for more stories.

Tesla shares jumped as much as 5% to a record high on Monday after the automaker revealed it delivered about 500,000 vehicles to customers last year. The stock-price surge added up to $36 billion to the automaker's market capitalization, lifting it past $700 billion for the first time.

Elon Musk's electric-car company recorded 499,550 deliveries in 2020 - 450 short of its target. However, Tesla said its delivery figures tend to be "slightly conservative" and the final number could vary by 0.5% or more. Therefore, Musk and his team counted the performance as achieving their goal.

Read more: GOLDMAN SACHS: Buy these 37 stocks that could earn you the strongest returns without taking on big risks in 2021 as the recovery and vaccine distribution get underway

"So proud of the Tesla team for achieving this major milestone!" Musk tweeted. "At the start of Tesla, I thought we had (optimistically) a 10% chance of surviving at all."

Tesla hustled to hit its numbers last quarter. Its deliveries stood at about 318,000 at the end of September, meaning it had to deliver a demanding 180,000 vehicles in the fourth quarter.

Musk's company also achieved its production target. It manufactured about 509,000 vehicles in 2020, exceeding its goal of 500,000.

Read more: The space industry will grow by over $1 trillion in the next decade, says Bank of America. Here are the 14 stocks best-positioned to benefit from the boom.

Tesla's stock price skyrocketed by about 740% last year, boosting its market cap to north of $600 billion. Here's a chart showing its remarkable rally:

Teslastock_040120
Read the original article on Business Insider

On the anniversary eve of the drone strike ordered by Trump that killed its top general, Iran reveals its plan to expand its nuclear program

General Qassem Soleimani
People attend a vigil marking the one year anniversary of the killing of Iranian military commander General Qassem Soleimani in a U.S. drone attack, in Sanaa, Yemen January 2, 2021.
  • Iran intends to resume enriching uranium to 20% purity, the Associated Press reported on Saturday.
  • "We are like soldiers and our fingers are on the triggers," Ali Akbar Salehi, the head of Iran's civilian atomic energy organization, reportedly said on state television, adding that the country would produce 20% enriched uranium "as soon as possible."
  • Iran agreed not to enrich uranium above 4% as part of an international nuclear deal in 2015.
  • President Trump exited the agreement in 2018 and reimposed sanctions on Iran, but President-elect Biden intends to rejoin and lift sanctions if the country strictly complies with international demands.
  • The first anniversary of the drone strike in Baghdad, killing Iran's most powerful military commander, General Qasem Soleimani, ordered by President Trump, is on January 3.
  • Visit Business Insider's homepage for more stories.

Iran plans to enrich uranium to 20% purity "as soon as possible," marking its latest breach of international restrictions on its nuclear program, the Associated Press reported on Saturday.

Iranian authorities recently penned a letter to the International Atomic Energy Agency (IAEA), informing the watchdog that they plan to boost enrichment levels from under 5% to as high as 20% at one of their nuclear plants. The officials didn't say when the increases would be implemented.

Ali Akbar Salehi, the boss of Iran's civilian atomic energy organization, said on state television on Saturday that Iran won't waste any time, according to the AP. 

"We are like soldiers and our fingers are on the triggers," he said. "The commander should command and we shoot. We are ready for this and will produce (20% enriched uranium) as soon as possible."

As part of a nuclear deal in 2015, Iran agreed not to enrich uranium above 4% and allow international inspections of its nuclear facilities to exchange relief from sanctions.

President Trump exited the agreement in 2018 and reimposed sanctions. It set in motion a series of incidents that culminated in a drone strike on January 3, 2020, in Baghdad, killing Iran's most powerful military commander, General Qasem Soleimani.

The latest brinkmanship comes as renewed tension ramped up in the region in the last days of the Trump presidency. 

This week, the US sent B-52 bombers to fly over the Persian Gulf region to send a message to Tehran after a rocket attack on the US Embassy in Baghdad that the Trump administration said was the work of Iranian proxy forces.

European intelligence officials are alarmed about the possibility of military action towards Iran in the waning days of the Trump administration, Insider reported in November.
 According to three European intelligence officials who spoke with Insider, the prospect of  Trump - who has pushed for maximum pressure on Iran - or a combination of Israel or Saudi Arabia creating a military confrontation has been a concern.

President-elect Joe Biden has indicated he will seek to reenter it and lift sanctions if Iran strictly complies with international demands.

Iran's parliament passed a bill allowing 20% enrichment last month after one of the country's top nuclear scientists, Mohsen Fakhrizadeh, was assassinated in November.

The new law required the Iranian government to resume enriching uranium to 20% if sanctions on its oil and financial sectors weren't eased within two months. It also enables officials to block UN inspectors from several nuclear facilities.

Uranium is enriched to low levels to provide fuel for nuclear power plants and enriched to 20% or more for research reactors.

Higher enrichment levels might accelerate the speed at which Iran could theoretically develop a nuclear bomb, which requires around 90% enrichment levels. However, Iran has repeatedly emphasized it has peaceful goals for its nuclear program.

Read the original article on Business Insider