Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 27, 2021
Why Warren Buffett is Investing Big in Fintech

Why Warren Buffett is Investing Big in Fintech

Fintech is on the upswing. Its companies have been largely immune from cross-industry drops in investment dollars, with KPMG’s latest The Pulse of Fintech report revealing healthy growth in venture capital, private equity, and mergers and acquisitions deals through Q1 and Q2 2018, exceeding 2017’s totals.

Now, Warren Buffett’s Berkshire Hathaway is entering the space in a big way, with the Wall Street Journal reporting the investment giant has invested $600 million in two fintech companies: Brazil’s StoneCo Ltd (a payment processing service). and India’s Paytm (the “parent company of India’s largest mobile-payments service”).

Traditionally, Buffett and Berkshire Hathaway have focused their investments on legacy companies and industries – the man himself has described tech as outside his purview, and Berkshire avoids investing in unestablished tech startups.

But Todd Combs and Ted Weschler, portfolio managers at Berkshire, are exploring new opportunities and industries for the company to invest its $111 billion in cash. “Todd and Ted bring additional expertise to the table,” David Kass, a business professor at the University of Maryland and a Berkshire shareholder, told the Wall Street Journal. “They’re broadening the perspective of Berkshire and broadening the opportunities where they would look to invest.”

That new perspective includes two fintech companies, but the investments are by no means avant-garde. Each fits traditional Berkshire criteria by dominating markets in their respective countries – Stone is four years old and “already the fourth-largest payment processor in Brazil by volume, according to its securities filings”, and Paytm’s 300 million-plus users exceeds PayPal’s worldwide user base – while also operating in regulated environments.

Buffett has given progressively more autonomy to Combs and Weschler in recent years, trusting their expertise in less-familiar areas and going about their investments in new ways.

Purchasing a significant amount of StoneCo shares in the company’s initial public offering goes against the Berkshire grain – in 2012, Buffett himself told Berkshire shareholders that he couldn’t “recall any time in the last 30 years, at least, that we’ve bought a new issue”, largely because sellers have a distinct advantage in timing the IPO. But the decision to invest has already paid short term dividends, with share prices increasing 30 percent over its first days of trading.

While it is still early days for Berkshire’s relationship with StoneCo and Paytm, the moves are indicative of an evolving Berkshire – and another stamp of approval for fintech, which has already seen $35 billion in venture capital money invested through September 2018. Fintech’s future is now, and companies have the investment dollars to prove it.

Tickeron’s Approach to Fintech: Artificial Intelligence for Retail Investors

Hedge funds and large institutional investors have been using Artificial Intelligence to analyze large data sets for investment opportunities, and they have also unleashed A.I. on charts to discover patterns and trends. Not only can the A.I. scan thousands of individual securities and cryptocurrencies for patterns and trends, and it generate trade ideas based on what it finds. Hedge funds have had a leg-up on the retail investor for some time now.

Not anymore. Tickeron has launched a new investment platform, and it is designed to give retail investors access to sophisticated AI for a multitude of functions:

  • Finding stock patterns in the market
  • Finding trends in the stock market
  • Testing portfolios to see if they are well-diversified
  • Back-testing statistics to see how different stock patterns generated trading results
  • Making Predictions for price movements in the future, with “A.I. Rank” and level of confidence in the trade.

And much more. No longer is AI just confined to the biggest hedge funds in the world. It can now be accessed by everyday investors. Learn how on Tickeron.com.

Related Tickers: BRK.A
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.