September 12, 2023 Investor Insights
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Buffet's Birthday
September 12, 2023
Enjoy this week's "Investor Insights," a weekly newsletter highlighting the financial news you need and providing tips and tricks to help you make better investment decisions.
- Warren Buffett turned 93 recently. His company, Berkshire Hathaway, has achieved an average annual return of 20.1% since 1965 (compared to just 10.5% for the S&P 500). In fact, the Berkshire shares could drop 99% and still be outperforming the S&P 500 over that period of time. 1
- Hurricane Idalia, which hit the US at the end of August, was the 19th major hurricane since 1990. Historically, however, hurricanes have had little impact on the stock market. In the week following each of the previous 18 major hurricanes, the S&P 500 saw a median gain of 1.22%. 1
- Instacart is planning to go public with a valuation of around $8.6 billion to $9.3 billion, significantly lower than its $39 billion valuation in 2021. This decline in value reflects reduced investor interest in high-growth startups due to rising interest rates. 2
- Big tech companies have consistently outperformed the rest of the S&P 500 since 2015, with an average annual revenue growth of 12.5%. Big technology companies also had profit margins of 22% compared to just 12% for all non-big-tech companies in the S&P 500. 3
Sources:
- MFS - "Beyond the News"
- WSJ - "Instacart to Target Much-Diminished Valuation Range of Under $10 Billion in IPO"
- The Irrelevant Investor - "bubbles and BUBBLES"
*Past performance is not indicative of future performance
Disclosure: This information is furnished for the use of Glen Eagle Advisors, LLC, Glen Eagle Wealth, LLC, and their clients and/or contacts. It does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific objectives, financial situation, or particular needs of any specific person. Investors reading this commentary should consult with their Glen Eagle representative/financial advisor regarding the appropriateness of investing in any securities or adapting any investment strategies discussed or recommended in this newsletter.
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