Previewing the Fed's Decision, Apple Rises on Hope AI Will Fuel Upgrades
Jun 11, 2024
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Bloomberg News staff previews the Fed's decision and discusses Apple's AI plan. They cover inflation data, Apple's stock rise, and the impact on M&A. Real estate trends in luxury markets are explored, along with investment strategies and stock picks.
Apple's new AI plan boosts stock value despite initial response.
Goodhaven Capital Management prioritizes non-consensus opportunities for strong returns in varying markets.
Deep dives
Vitesse Energy: A Capital Provider for Oil and Gas Wells
Vitesse Energy, a spin-off from Jeffries, focuses on providing financial interests as a non-operator in oil and gas wells to leading US operators. Their management team has a strong track record and expertise in the Bakken region. With a sub-billion-dollar market cap, Vitesse offers an 8.5% dividend yield and a stock price at around 11 times forward free cash flow.
Alphabet: A Reasonably Priced Long-Term Holding
Goodhaven Capital Management maintains a long-term holding in Alphabet, finding it reasonably priced. With the resources and talent to navigate the evolving landscape of AI, Alphabet remains a comfortable investment. Despite the early stages of AI development, the firm views Alphabet as a valuable exposure.
Investment Approach and Environment
Goodhaven Capital Management focuses on seeking non-consensus opportunities in the market to generate strong returns. Rather than predicting Fed actions, the firm emphasizes finding individual securities with a margin of safety. Prioritizing value picks, the investment approach navigates through varying market conditions for long-term growth.
Bloomberg News Economics Editor Molly Smith, Bloomberg News Economics Reporter Steve Matthews and Steven Skancke, Chief Economic Advisor at Keel Point all join for a roundtable to preview both the Federal Reserve's meeting tomorrow and rate decision, plus the latest inflation data. Bloomberg News Chief Technology Correspondent Mark Gurman discusses why traders sent Apple shares higher one day after unveiling its new AI plan to a muted response. Jim Gold, CEO of Steward Partners shares his insight on the Fed's fight against inflation and the impact its had on mergers and acquisitions. Louise Phillips Forbes, Real Estate Broker at Brown Harris Stevens provides a check in on the luxury real estate industry. And we Drive to the Close with Larry Pitkowsky, Managing Partner at Goodhaven Capital Management.
Hosts: Carol Massar and Tim Stenovec Producer: Paul Brennan, with assistance from Justin Milliner