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Flush with cash

It seems like a lot of bigwigs are cashing in on the market while the going is good. The selling is also taking place across different industries, with Jeff Bezos dumping $9B worth of Amazon (AMZN) shares this past week, while JPMorgan (JPM) CEO Jamie Dimon unloaded $150M of the bank's stock in his first-ever sale. Meta's (META) Mark Zuckerberg additionally took profits by dropping $650M in shares of the social media giant in recent weeks, as well as a number of big sales by other executives and directors like the Walton family of Walmart (WMT).

Snapshot: These bulletins may get some investors nervous, even if the sales were telegraphed in advance, with smart money departing some of the most valuable companies in the world. Over the weekend, the latest glimpse of Warren Buffett further showed that Berkshire Hathaway's (BRK.ABRK.B) cash pile continued to grow, hitting a record of $167B at the end of 2023, up nearly $40B over the course of the year. As the market continues to hit all-time highs, are these high-profile players getting liquid and out when they can, or is there a bigger picture at play?

While the personal moves make splashy headlines, it's important to recognize that many CEOs or founders wait until stocks hit records to cash in or diversify their wealth, which is the case in all the firmly established companies mentioned above. It doesn't mean that the market is going to tank or enter a correction anytime soon, but rather a recognition that these players have been waiting several rocky years in the aftermath of the pandemic to take money off the table. As for Buffett, he's been sitting on a cash hoard for a long time, and he's known to only put his money to work if an opportunity is undervalued, the price is right, and he fully understands the investment.

Oracle of Omaha: "There remain only a handful of companies in this country capable of truly moving the needle at Berkshire, and they have been endlessly picked over by us and by others," Buffett detailed in his annual letter. "Some we can value; some we can't. And, if we can, they have to be attractively priced. Outside the U.S., there are essentially no candidates that are meaningful options for capital deployment at Berkshire. All in all, we have no possibility of eye-popping performance." Take the WSB survey.

Latest wearable

The Mobile World Congress kicked off today in Barcelona, with Samsung Electronics (OTCPK:SSNLF) taking one of the spotlights with its Galaxy Ring. It will "offer users an all-new way to simplify everyday wellness, empowering them with health insights, all while being delivered in lockstep with Samsung's broader vision for a more connected and seamless digital wellness platform." The smart ring will provide readings on heart rate and respiratory rate, as well as sleep monitoring data. Samsung is also working on adding non-invasive glucose monitoring and blood pressure sensing to its wearables, but those features have previously prompted some warnings from the FDA.

Search battle

Here's some big news. Microsoft (MSFToffered to sell Bing to Apple (AAPL) in 2018, or form a joint venture related to the search engine, according to a recently unsealed post-trial brief from the DOJ's antitrust case against Google (GOOGGOOGL). The case relates to Google's alleged search monopoly and the methods it used to ensure dominance, such as spending billions of dollars to make its search engine the default option on mobile phones. Google argued it had competed fairly, outlining that Apple declined to make Bing its default option, despite Microsoft approaching the iPhone maker multiple times. (9 comments)

$5 credit

AT&T (T) is reimbursing Wireless customers - both consumers and small businesses - that were most impacted by last week's network outage. The $5 credit, or the "average cost of a full day of service," will appear within two bill cycles, and "is fully manageable while achieving the 2024 business objectives we have set for ourselves," according to AT&T CEO John Stankey. However, many unhappy customers took to social media to say that the reimbursement was not enough. AT&T has blamed the outage that hit thousands of customers and prompted federal scrutiny on an update glitch, and not a cyber attack. (8 comments)

Today's Markets

In Asia, Japan +0.4%. Hong Kong -0.5%. China -0.9%. India -0.5%.
In Europe, at midday, London -0.3%. Paris -0.3%. Frankfurt +0.1%.
Futures at 7:00, Dow -0.1%. S&P -0.1%. Nasdaq flat. Crude -0.4% to $76.18. Gold -0.4% to $2,040.60. Bitcoin -1.1% to $51,091.
Ten-year Treasury Yield -1 bp to 4.25%.

Today's Economic Calendar

10:00 New Home Sales
10:30 Dallas Fed Manufacturing Survey
11:30 Results of $63B, 2-Year Note Auction
1:00 PM Results of $64B, 5-Year Note Auction
7:40 PM Fed's Schmid: Economic and Monetary Outlook

Companies reporting earnings today »

What else is happening...

Disney (DIS), Reliance sign pact to merge Indian media operations.

Alcoa (AA) to buy Australia's Alumina (OTCQX:AWCMF) in $2.2B deal.

ECB has one message for crypto traders: Bitcoin (BTC-USDis bad.

Ford (F) halts shipments of electric F-150 truck due to quality issue.

EV winter? Don't tell Toyota, Ferrari (RACE) sitting at multiyear highs.

Haley stays in the race despite Trump's South Carolina primary win.

Broadcom (AVGO) nears sale of unit to KKR (KKR) for about $4B.

Record U.S. solar, wind investment not enough to meet climate goals.

Next Apple iPhone might be an 'AI' device. What could that look like?

Radiopharmaceutical market expected to reach around $14B by 2032.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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