Even though it is Memorial Day Weekend and the US markets are closed, markets around the world are open for business. There’s some news on CNN, where Bufett is quoted as saying that the US is in a recession.
"I believe that we are already in a recession," Buffet was quoted as saying. "Perhaps not in the sense as defined by economists. ... But people are already feeling the effects of a recession."
"It will be deeper and longer than what many think," he added.
My belief is that Buffet, who knows that markets listen to his every word, is trying to create a self-fulfilling prophecy. His gain would be buying some good quality companies stock at a bargain.
There are rumors floating around that InBev will be buying Anheuser- Busch (BUD) at $65/share. The stock is currently trading at about 36.35 euro/share in Germany, which at 1.5771 US Dollars per Euro equals to about $57.33, or about a 2% increase over last Fridays close.
It’s very intriguing that BUD is the second dividend aristocrat that might be taken over this year, after WWY agreed to be bought by a consortium of Mars Inc and Warren Buffet. Both companies are every value investors dream come true- strong, easily recognizable brand, stable business model as well as long history of paying increasing dividends. The issue with dividend aristocrats is that there are many great value companies within this list. Thus, they could potentially attract competitors, which will buy them at a record price, which will actually turn out to be a bargain in the long term. The dividend investor would have to look for new opportunities for his or her money as a result of the abovementioned happenings.
And last but not least,this Memorial Day I wanted to thank everyone who has fought, or is fighting for the right of american people to live in a free democratic country.
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