Posted on May - 16 - 2010
(This post is part of our series on tracking hedge fund portfolios. If you’re unfamiliar with tracking investments they disclose via SEC filings, check out our series preface on hedge fund filings.)
Next up in our coverage is the Oracle of Omaha himself, Warren Buffett. From his original Buffett Partnerships to present day Berkshire Hathaway (BRK.A), Warren Buffett has invested his way to the third richest person in the world according to Forbes’ billionaire list. He needs no introduction so let’s dive right into it. Our recent coverage of Buffett’s company includes some notes from Berkshire Hathaway’s annual meeting as well as Berkshire’s annual letter.
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Posted on May - 16 - 2010
After sifting through the rubble of the financial crisis of 2008-2009, Congress is spreading the blame liberally across various constituencies, including the almighty rating agencies (think of Moody’s (MCO), Standard & Poor’s (MHP), and Fitch). The Senate recently added a proposed amendment to the financial regulation bill that would establish a government appointed panel to select a designated credit rating agency for certain debt deals. The proposal is designed to remove the inherent conflict of interest of debt issuers – such as Goldman Sachs Group Inc. (GS),
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Posted on May - 16 - 2010
People may be placed in financial turmoil because banks are charging customers higher rates on lending.
This is despite the historically low base rate, according to Darren Cook, a spokesperson for Moneyfacts.
Mr Cook said that there is no direct association between the rate provided by the Bank of England and the amount individuals actually end up paying.
Regarding unsecured loans and credit cards, he commented: “When the basic economic situation is unsettled there is a much higher probability of default and unfortunately that is passed onto the consumer.”
The specialist was speaking in regard to new research disclosed by Moneyfacts that showed overdraft rates to have reached their highest level in a decade.
He added that customers should shop around before choosing a bank as there are substantial differences between rates.
Figures released by Defaqto show that the average rate of an unsecured loan has risen from 8.8 per cent in 2007 to 12.9 per cent in 2010.
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Posted on May - 16 - 2010
Concerns over the potential for debt problems to arise in a difficult economy could be causing mental health problems for British employees.
Research by Mind revealed half of staff believe morale is low due to the recession, with ten per cent having visited a GP for support.
In addition, nearly 50 per cent of people have lost sleep because of work over the course of their careers, with less than four in ten thinking their employer has done enough to support them.
The charity is launching a campaign to make businesses aware of the problems and it is backed by Dragon’s Den entrepreneur Duncan Bannatyne, who warned of the problems worries such as the fear of being out of work and falling into debt can cause.
He said: The recession will really have an impact on many employees who are a bit insecure in their jobs … and are scared in case the company goes into administration, or redundancies are made.”
Last week, the Personal Finance Society argued the UK has not yet recovered from the recession.
Posted on May - 16 - 2010
British consumers have been advised to pay closer attention to their money in order to avoid falling into economic difficulty.
John Hughes, director of retail products at the Co-operative Bank, described his organisation’s finding that many people are not aware of their standing as concerning.
Vigilance is needed not only because of the potential for fraud, he explained, but because financial products can differ greatly.
The fact that some current accounts will charge for going overdrawn was highlighted, while Mr Hughes observed some do not permit this practice at all.
“What is important, therefore, for customers to do – by monitoring and tracking how their expenditure may be changing – is to ensure that they have got the right one for them,” he concluded.
According to the Co-operative Bank survey, only 33 per cent of respondents were extremely certain how much cash was in their current account, while 39 per cent said they have faced financial problems because they do not regularly review finances.
