The Buffett You Don't Know

Apple had an impressive Q2 with double-digit growth in revenue and earnings, and the announcement of a new $100 billion stock buyback plan. Apple's services sector, including Apple Music, Apple Pay, and iCloud, now makes up 15% of their sales, demonstrating their shift from a hardware-focused company to a consumer products powerhouse. Warren Buffett, a long-term investor, recently bought an additional 75 million shares, showing his confidence in Apple's long-term potential. Despite some questions about their growth beyond established markets, Apple's strong brand and excellent consumer products make it a valuable investment for many, including Buffett. Additionally, the podcast recommendation stands - the Think Fast, Talk Smart podcast from Stanford Graduate School of Business is a valuable resource for improving communication skills.

Apple's success allows them the flexibility to expand their consumer base and explore new markets beyond the iPhone, such as the iPad, without needing to prove global penetration to critics. Meanwhile, Tesla's Elon Musk faced backlash for dismissing analysts' questions during the earnings call, raising concerns about the company's need for future capital and the importance of engaging with investors and the financial community. Activision Blizzard bucked the trend with a record-breaking quarter, generating significant revenue despite the absence of new game releases. These events highlight the unique challenges and opportunities faced by tech giants in managing their public image, engaging with investors, and expanding their businesses.

The video game industry is seeing a major shift with the rise of Battle Royale games like Fortnite, causing companies like Activision to adapt and compete. Activision reported a 14% revenue increase, boosted by the success of Call of Duty: World War 2 and Candy Crush. However, there was some disappointment as the full year guidance was slightly below analysts' expectations. The bigger story is the growing influence of Battle Royale games, which have taken the industry by storm. Activision is responding with updated versions and new modes of play, but it's a serious competition they need to be aware of. In other news, Walmart is reportedly closing in on a deal to take majority ownership of Flipkart, one of India's leading ecommerce companies. The deal, which values Flipkart at around $20 billion, could give Walmart a significant presence in the massive Indian market, where around 500 million people are online. India's population size and low GDP per capita make it an attractive market for growth. The deal also includes Google's parent company, Alphabet, and may have given Walmart the edge over Amazon, who were also bidding. The founders of Flipkart, Satchin and Binny Bansal, will continue to be involved in the company, and regulatory concerns might have played a role in Amazon not winning the bidding war.

Using Bloom 401k can help simplify the process of managing your retirement investments by analyzing your existing account and suggesting the best mix to meet your goals with minimal fees. However, investing in individual stocks, like Snap, requires careful consideration. Snap's recent quarterly report showed missed revenue and daily active user targets, with management expressing plans for decelerating growth in Q2. The team's tone during the call suggested they are struggling to keep up, and the limited audience and lack of network effects for Snapchat raise concerns about the company's near-term prospects. On a positive note, Shake Shack reported stronger-than-expected first-quarter profits and raised full-year guidance, leading to a 23% stock increase. Despite these solid results, the high valuation, exceeding 25 times EBITDA, makes it an unattractive investment for some.

Mergers and acquisitions, such as T-Mobile and Sprint's attempted union, can have significant impacts on industries and markets. Despite Wall Street's skepticism, some analysts believe that the deal will ultimately be approved, leading to potential benefits for consumers and companies. Additionally, specific stocks like Titan International and Middleby are worth watching due to their recent financial performances and growth opportunities. Titan International, a manufacturer of large industrial wheels, reported a strong quarter with increased sales and profits, while Middleby, a maker of food service equipment, is looking to continue its growth through acquisitions. IDEXX Laboratories, a company in the health care and wealth care basket, also reported strong earnings with organic growth and growth in recurring revenue. However, the stock is priced high with a valuation of around 50 times full-year estimates. It's important for investors to keep an eye on these companies and their industries while considering the potential risks and rewards.

The annual meeting of Berkshire Hathaway is highly anticipated for insights on the company's biggest holdings, particularly Wells Fargo, given the ongoing issues with compliance and customer relations. Buffett has maintained a hands-off approach as a passive investor, but the persistent problems may lead to questions about the need for external help. Additionally, Buffett's surprise investment in Apple, despite his previous reluctance to invest in technology companies, is a topic of curiosity. The ongoing issues at Wells Fargo and the unexpected investment in Apple highlight the complexity and evolving nature of Berkshire Hathaway's business holdings.

Warren Buffett, despite his old-fashioned ways, such as using a flip phone, is always looking for value and staying informed about the market. His recent decision to invest in Apple was based on his own research and the stickiness of the iPhone ecosystem. Buffett is known for being secretive about potential acquisitions for Berkshire Hathaway, only revealing them when necessary. The upcoming documentary on Buffett, premiering on CNBC, offers a unique perspective on his influence, focusing on everyday people he has taught rather than high-level investors or CEOs. These individuals are a significant part of the Berkshire Annual Meeting crowd, and Buffett has expressed a desire to be remembered as a teacher.

Warren Buffett's influence extends far beyond the financial world, inspiring individuals from all walks of life. Buffett's annual meeting is not just an event for investors but also a source of motivation and education for those seeking guidance. The documentary showcases various individuals who have been impacted by Buffett's teachings, from college students to soldiers serving in wars. These individuals have taken Buffett's advice to heart and have made significant changes in their lives, leading to drastic improvements. One such individual is President Fish, a soldier who used Buffett's teachings as a distraction during the financial crisis while serving in Afghanistan. He went on to create his own podcast and become a Buffett expert, inspiring others in his barracks. Buffett's impact is not limited to those who closely follow his investing strategies; it reaches people who are looking for direction and motivation, no matter their circumstances.

Key takeaway from the documentary is the unexpected contrast between Damon Harrison's demeanor on and off the football field. Known for his rough play and numerous fines, Harrison surprises many by being soft-spoken and thoughtful off the field. He emphasizes the importance of financial education for athletes and shares lessons learned from Warren Buffett. Another intriguing observation is the enduring appeal of Berkshire Hathaway's annual meeting, where investors and fans seek not only investment advice but also life lessons from Buffett and Munger. Despite the success of other business leaders, their willingness to engage in lengthy Q&A sessions sets them apart and continues to attract large crowds.

Warren Buffett and Charlie Munger's unique ability to answer any question with depth and breadth sets them apart as CEOs. They have been doing it for years and their extensive knowledge base allows them to do so intelligently. Buffett's interviewer shared her experience of interviewing him, as well as legendary puppeteer Frank Oz, and reflected on how both were influential figures in her life. Oz, known for voicing iconic characters like Yoda, Miss Piggy, and Cookie Monster, shared stories about his career and experimentation. Buffett's upcoming CNBC documentary, "Warren Buffett: Investor, Teacher, Icon," premieres May 4th. The interviewer expressed her gratitude for the opportunity to speak with these remarkable individuals. Subscribe to Motley Fool Money for weekly financial news and analysis.