Money. It’s how we buy groceries, pay for electricity, and save for retirement. There are thousands of books, TV shows, and movies all about money. It’s an essential part of our everyday lives, yet as soon as you bring it up during your Fourth of July BBQ, the room goes silent. Then all your friends and family are staring at you, wondering why you would say such a thing. You look around and find yourself asking, ‘What, is there something in my teeth?’.
According to an article published by the National Science Foundation in 2005, the average person has 12,000 to 60,000 thoughts per day. Approximately 80% of those thoughts are negative, and 95% repeat each day. In another study from Cornell University, scientists found that approximately 85% of what we worry about never happens.
While cash across Berkshire has swelled to over $122 billion, its first yen-denominated bond will soon add roughly $3.9 billion to the balance sheet. The bond maturities will range from five to 30 years and carry interest rates of .17% to 1.1%.
At first blush, it would seem that bonds are easier investments to evaluate than stocks. After all, bonds pay a set interest rate and generally repay your original investment after a set amount of time.
International stocks have been a real bummer for investors over the last decade. In fact, while the S&P 500 has delivered a 294% increase for the ten years ending 6/30/19.
The Tax Cuts and Jobs Act of 2017 (TCJA) included a tax break for investors related to realized capital gains. Through this program, an investor may receive tax benefits, including potential deferral and elimination of tax, by investing those gains in a Qualified Opportunity Zone Fund (QOZF).