Tagged: profit

Softbank’s net profit in fy2020

According to people familiar with the matter, soft bank (46.75, 2.02, 4.52%) group’s net profit in 2020 as of the end of March was around 4.5 trillion yen, which set a record high for Japanese enterprises, and benefited from the huge profits from the listing of multiple investment targets of Softbank vision fund.

Softbank's net profit in fy2020

Previously, Japanese companies had a record high of 2.4939 trillion yen in fy2017 (as of march2018). In the previous fy19, Softbank group had a record loss of y96.5 billion, and its performance is recovering significantly.

 

What drives the performance of Softbank group is the vision fund business. The fund has never invested in the IPO phase for IT companies with global potential. If the invested enterprise achieves growth and valuation increase, the added part will be included in the earnings of soft bank group’s financial report.

 

In fy2020, Softbank’s investment target companies have launched IPO successively. Coupang, the South Korean e-commerce giant, which was listed in March, has recently reached $73.1 billion. These enterprises brought hundreds of trillion yen book income to Softbank group, which greatly boosted the earnings on the financial statements.

 

Softbank group will officially release its fy2020 performance on May 12.

This year, Mr. Buffett has made a profit from these two stocks

Berkshire Hathaway (403089, – 3416.00, – 0.84%) of “stock god” Warren Buffett’s company has gained $12 billion from only two stocks this year — American Express and Bank of America (38.08, – 1.09, – 2.78%).

This year, Mr. Buffett has made a profit from these two stocks

Regulatory documents show that the legendary investor’s business group held 152 million American Express shares at the end of last year. Since then, the stock has risen more than 20 per cent, adding about $4bn to the value of Berkshire’s stake to $23bn.

 

Bank of America’s shares have also risen more than 20% this year, bringing Berkshire’s 1 billion shares to nearly $40 billion in less than five months.

 

At present, American Express has surpassed Coca Cola (54.17, 0.17, 0.31%), becoming Berkshire’s third largest position stock, second only to Apple (133.11, – 1.73, – 1.28%) and Bank of America. The premise, of course, is that Mr. Buffett has not adjusted his position since the end of last year.

 

Mr. Buffett has owned American Express stock for more than 25 years and has never adjusted his position since 1998. In the meantime, however, the buyback of the credit card company raised Berkshire’s stake from about 11% to nearly 19%. Berkshire spent about $1.3 billion on American Express that year, which means it has gained nearly 18 times the return so far.

 

In 2011, Mr. Buffett made a big bet on Bank of America in exchange for its preferred shares and warrants with $5 billion. He exercised the warrants in 2017, immediately making the bank one of Berkshire’s largest holdings.

 

Last fall, Berkshire took another big position in Bank of America, investing $2.1 billion in 12 trading days, despite a sharp decline in U.S. banking stocks in the quarter.

 

So far, Buffett’s company has invested a total of $14.6 billion to buy bank of America shares, which means that it has gained about $25 billion in return, with a return rate of 170%.

Financial Times: Sony threatens to move factories out of Japan

Nikkei Asian Review: Ant Group approved US$3 billion ABS financing

A few days ago, Ant Group’s US$20 billion ABS financing was approved. This means that there is no problem with financing through ABS, but it needs to be placed under stronger supervision.

Under regulatory pressure, Ant Group has reduced its sales of ABS products and increased capital. According to the new regulations, Ant Group can issue up to 140 billion yuan of ABS.

Analysts said that it is expected that Ant Group may have to change the way it raises funds for Huabei and Bibai.

Ant Group

Financial Times: Sony threatens to move factories out of Japan

Sony’s CEO Kenichiro Yoshida recently said that if the government’s pressure to reduce emissions is too great, it may move Sony’s factories out of Japan.

Kenichiro Yoshida’s voice was supported by Japanese companies such as Ricoh and Kao.

The Japanese government previously stated that it would achieve a carbon balance in 2050. In fact, many overseas factories of these Japanese companies have turned to renewable energy.

However, in Japan, the price of renewable energy is very high. In addition, most of the factories in Japan that Japanese companies like Sony produce are the most sophisticated products and require a more stable power supply, so the switch to renewable energy is at this stage. It is more difficult to say.

Nikkei Asian Review: Global unicorns break 500, China and the United States account for 70%

With the US-Israeli joint venture cyber security start-up Forter with a valuation of over US$1 billion and becoming the 500th unicorn company, the number of unicorn companies worldwide has also successfully doubled in the past two years.

Among these 500 unicorn companies, the United States continues to lead with 242. China ranked second with 119 companies.

This was followed by 24 in the UK and India, and South Korea ranked sixth with 11. Japan has only 4, ranking 11th.

In 2019, a total of 122 companies made the list, with technology finance and AI companies accounting for 20% and 13% respectively.

This year’s speed has slowed down. So far, only 89 companies have made the list, mainly e-commerce and medical companies.

e-commerce and medical companies

Bloomberg: China’s industrial profit growth rate reached the highest in nearly 9 years

In October this year, the profit of Chinese industrial enterprises increased by 28.2% year-on-year, reaching the largest increase in the past nine years.

According to the National Bureau of Statistics of China, such a large increase is related to the lower level of the same period last year on the one hand, and the higher investment income in October this year on the other.

In the first 10 months of this year, the profits of state-owned industrial enterprises fell by 7.5%, while the profits of private enterprises rose by 1.1% year-on-year.

As China’s domestic demand increases and exports rebound, profit growth is likely to be maintained.

 

 

be vigilant! Ordinary people invest the most easily

“I want to invest recently. What can I buy?”
“Go to the fund to place a fixed investment. You can buy it at will.”
This kind of cognition has become the most easy mistake for beginners.
01
it is beyond logic and above reason! Fixed investment lost 20% in 7 years!
Many people think that the fixed investment fund will make money, for example: “the fixed investment fund is a means of compulsory savings.” “When the fund is fixed, the risk will be shared equally.”
This kind of cognition gives us the illusion that we are going to invest money in the bank.
It’s right to force savings and share risk equally, but it’s wrong to make money.
“Fixed investment is just an investment means, not an investment variety.”
Remember, as long as the means of investment will have risks, fixed investment is not a panacea for investment.
For example: under different years, the income gap of monthly fixed investment and weekly fixed investment is not a little bit.
What’s more, because I don’t know how to stop profit, I have worked hard to set up a bid for 7 years, but I lost more than 20%!
I almost cried.
If you are a novice, I advise you do not know anything in the case of a hot brain run to fund fixed investment.
02
As ordinary people, how to invest in the fund market?
Whether it is a fixed investment or not, we must pay attention to two points in selecting funds
First, the criteria for fund selection
The second is: the standard of profit stop
If you want to place a fixed investment, what kind of fund should you choose?
“Funds with high net worth volatility. ”
”Funds with good long-term performance. ”
Then why set profit stop?
What is the standard of profit control?
”In the early stage, you should not only win, but also be alert when you earn 15% in the middle and later stages. ”
As ordinary people, the most extravagant is to sell at the highest point.