When Warren Buffett speaks, Wall Street listens — and the “Oracle of Omaha” issued a full-throated defense of stock buybacks in his latest annual letter to Berkshire Hathaway shareholders. That’s why we’re shining a light on the Club holdings that repurchase the most stock, including Morgan Stanley (MS), Meta Platforms (META) and Apple (AAPL). Buffett’s argument, which mirrors the Club’s thinking, is simple: “When the share count goes down, your interest in our many businesses goes up. Every small bit helps if repurchases are made at value-accretive prices,” Buffett wrote in the letter , published Feb. 25, alongside Berkshire’s fourth-quarter earnings report. In other words, buybacks allow investors to own a greater percentage of a company’s earnings without needing to spend more money on additional shares. Not all repurchases are created equal, as Buffett rightfully pointed out in his much-anticipated annual letter. They can be done at irresponsible times, such as when a company’s stock price is overvalued. But, in general, buybacks are a beneficial tool at management’s disposable. “When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive),” wrote Buffett, Berkshire Hathaway’s chairman and CEO. Buffett has overseen Berkshire, a multinational holding company whose myriad subsidiaries span most corners of the U.S. economy, since 1965. He is one of the most successful investors and wealthiest in the world, with a net worth over $100 billion. For more than a year, the Club’s investment mantra has emphasized companies that return cash to shareholders via buybacks and dividends. “It really helps to know that’s what Buffett is focused on, so we’re of course going to put our portfolio through the Buffett test,” Jim Cramer said on Monday’s “Homestretch ,” our daily afternoon audio feature to get members ready for the last hour of trading. He added: “We like to test ours in every single way.” So, here’s a full breakdown of buyback activity for the 35 companies in Jim Cramer’s Charitable Trust in one big chart. Notes on methodology: All numbers are courtesy of Factset. For each company, the repurchase activity covers the firm’s most recent four quarters of reported results. Most Club holdings have reported for the current earnings season, but we’ve yet to hear from Costco (COST) and Salesforce (CRM). Those two companies report on Tuesday and Wednesday, respectively, meaning there is a slight lag on their four-quarter buyback activity. Market capitalization figures are based on Friday’s closing prices. Context Here’s some additional color on the buyback activities of seven key Club holdings. Devon Energy (DVN): The oil-and-gas producer slowed down its pace of buybacks in the second half of 2022 after buying Validus Energy for roughly $1.8 billion. Devon bought back just $183 million worth of stock in the third and fourth quarters combined, compared with $535 million in the first six months of 2022. However, management has said the company expects to be “active buyers” of its stock in 2023 . Coterra Energy (CTRA): Repurchases are set to be a bigger focus for the company this year . After spending more than $1.2 billion on stock buybacks in 2022, Coterra’s board approved a $2 billion buyback authorization last week. The company’s capital return priorities also will emphasize buybacks over its variable dividend, CEO Tom Jorden said on Coterra’s earnings call Thursday. Costco: In January, the wholesale retailer’s board reauthorized a $4 billion stock repurchase program , which is set to expire in four years. However, we don’t expect them to aggressively buy back stock because history indicates they prefer to use excess cash to issue special dividends. Wells Fargo (WFC): After buying back roughly $6 billion worth of shares in the first quarter of 2022 , the bank stopped doing buybacks in the final nine months of the year. However, management said on the firm’s fourth-quarter earnings call it intended to resume repurchases in the current quarter . Starbucks (SBUX): The coffee chain recently restarted its buyback activity, following a roughly two-quarter pause after Howard Schultz took over as interim CEO last spring. Schultz instead upped the company’s investment in its stores and employees. Repurchases returned in Starbucks’ fiscal 2023 first quarter totaled $191.4 million. The company has said it expects to return $20 billion to shareholders by the end of fiscal 2025 through dividends and buybacks. Haliburton (HAL): The oilfield services giant resumed share repurchases in the fourth quarter of 2022 , buying up $250 million worth of stock. It was the company’s first major buyback activity since the first quarter of 2020, following a multiyear commitment to reduce debt levels. Haliburton also recently committed to a framework that will see them return at least 50% of free cash flow to shareholders through dividends and buybacks. Salesforce: The enterprise software maker’s first-ever buyback program commenced in the quarter ended Oct. 31, during which the company repurchased $1.7 billion worth of stock to minimize dilution. It’s part of a $10 billion buyback authorization issued by Salesforce’s board last August. Bottom line Buffett’s buyback commentary hits the nail on the head. As the chart makes clear, the vast majority of Club holdings engage in some level of stock repurchases, which is good news for shareholders. We’re big proponents of wisely-executed buybacks, allowing us to have a bigger piece of our companies’ earnings than we otherwise would absent the repurchase activity. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
The logo of Meta Platforms is seen in Davos, Switzerland, May 22, 2022.
National Grid Renewables has broken ground on its 100 MW Apple River Solar Project in Polk County, Wisconsin.
The Wisconsin solar farm, which will use US-made First Solar Series 6 Plus bifacial modules, will be constructed by The Boldt Company, creating 150 construction and service jobs. Apple River Solar will generate over $36 million in direct economic benefits over its first 20 years.
Once it comes online in late 2025, Apple River Solar will supply clean energy to Xcel Energy, which serves customers throughout the Upper Midwest. According to National Grid Renewables, the solar farm will generate enough energy to power around 26,000 homes annually. It will also offset about 129,900 metric tons of carbon dioxide emissions each year – equivalent to taking 30,900 cars off the road.
“We are excited to see this project begin as it underscores our dedication to delivering clean, reliable and affordable energy to our customers,” said Karl Hoesly, President, Xcel Energy-Wisconsin and Michigan. “This project is an important step in those goals while bringing significant economic benefits to Polk County and the local townships.”
Electrekreported in February that Xcel Energy, Minnesota’s largest utility, expects to cut more than 80% – and possibly up to 88% – of its emissions by 2030, putting it on track to hit Minnesota’s goal of net zero by 2040. It also says it’s on track to achieve its clean energy goals for all the Upper Midwest states it serves – Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
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Tesla has announced that it will finally deliver 500 kW charging as it is about to install its long-awaited V4 Supercharger cabinets.
The rollout of Supercharger V4 has been a strange one, to say the least.
Tesla has been deploying the new charging stations for two years and calling them “Supercharger V4”, but it has only been deploying the charging stalls.
Supercharger stations are made of two main parts: the stalls, which are where the charging cable is located, and the cabinets, which are generally located further back and include all the power electronics.
For all these new “Supercharger V4”, Tesla was actually using Supercharger V3 cabinets. This has been limiting the power output of the charging stations to 250 kW – although
Today, Tesla officially announced its “V4 Cabinet”, which the automaker claims will enable of “delivering up to 500kW for cars and 1.2MW for Semi.”
Here are the main features of the V4 Cabinet as per Tesla:
Faster charging: Supports 400V-1000V vehicle architectures, including 30% faster charging for Cybertruck. S3XY vehicles enjoy 250kW charge rates they already experience on V3 Cabinet — charging up to 200 miles in 15 minutes.
Faster deployments: V4 Cabinet powers 8 posts, 2X the stalls per cabinet. Lower footprint and complexity = more sites coming online faster.
Next-generation hardware: Cutting-edge power electronics designed to be the most reliable on the planet, with 3X power density enabling higher throughput with lower costs.
Tesla reports that its first sites with the new V4 Cabinets are going into permitting now. The company expects its first sites to open next year.
We recently reported about Tesla’s new Oasis Supercharger project, which includes larger solar arrays and battery packs to operate the charging station mostly off-grid.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to all Supercharger stations, and Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
It took about 8 years, but it sounds like the pieces are now getting actually in place with Supercharger V4, Megapacks, and this new Oasis project.
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Hyundai has a new secret weapon it’s about ready to unleash. To revamp the brand in China and counter BYD’s surge, Hyundai is launching a new AI-powered EV next year. The new model will be Hyundai’s first dedicated electric car for the world’s largest EV market.
With the help of Haomo, a Chinese autonomous startup, Hyundai will launch its first EV equipped with generative AI. It will also be its first model designed specifically for China.
A Hyundai Motor official said (via The Korea Herald) the company is “working to load the software” onto the new EV model, “which will be released in the Chinese market next year.” The spokesperson added, “The level of autonomous driving is somewhere between 2 and 2.5.”
In comparison, Tesla’s Autopilot is considered a level 2 advanced driver assistance system (ADAS) on the SAE scale (0 to 5), meaning it offers limited hands-free features.
With Autopilot, you still have to keep your eyes on the road and hands on the steering wheel, or the system will notify you and eventually disengage.
Haomo’s system, DriveGPT, unveiled last spring, takes inspiration from the OpenAI’s popular ChatGPT.
The system can continuously update in real-time to optimize decision-making by absorbing traffic data patterns. According to Haomo, DriveGPT is used in around 20 models as it looks to play a bigger role in China.
Hyundai hopes new AI-powered EV boosts sales in China
Electric vehicle sales continue surging in China. According to Rho Motion, China set another EV sales record last month with 1.2 million units sold, up 50% from October 2023.
Over 8.4 million EVs were sold in China in the first ten months of 2024, a notable 38% increase from last year.
BYD continues to dominate its home market. According to Autovista24, BYD accounted for 32.9% of all PHEV and EV (NEV) sales in China through September, with over half of the top 20 best-selling EV models.
Tesla was second with a 6.5% share of the market, but keep in mind these numbers only include plug-in models (PHEV).
Like most foreign automakers, Hyundai is struggling to keep up with the influx of low-cost electric models in China. Beijing Hyundai’s sales have been slipping since 2017. Through September, Korean automaker’s share of the Chinese market fell to just 1.2%.
According to local reports, Hyundai is partnering with other local tech companies like Thundersoft, a smart cockpit provider, and others in China to power up its next-gen EVs
With its first AI-powered EV launching next year, Hyundai hopes to turn things around in the region quickly. The new model will be one of five to launch in China through 2026.
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