What we’re reading (11/4)
“Stock Market Falling Deeper Into Undervalued Territory” (Morningstar). “The pullback in October has been relatively broad-based as each of the style categories has fallen by similar amounts. As such, based on our valuations, we continue to advocate for an overweight position in value, underweight in core/blend, and market weight in growth. By market capitalization, large-cap stocks fared better to the downside whereas mid-cap and small-cap took the brunt of the selloff, making those categories even more undervalued compared with our valuations.”
“Warren Buffett’s Berkshire Hathaway Sits On Record $157 Billion Cash Pile” (Wall Street Journal). “The stash leaves Berkshire equipped to pounce if Buffett, the company’s chief executive and chairman, finds an attractive opportunity to buy a business. Charlie Munger, Berkshire’s vice chairman and Buffett’s longtime business partner, told the Wall Street Journal in a recent interview that the odds of another big acquisition under the pair were ‘at least 50/50.’”
“What Happened To Airbnb?” (Vox). “What started as a scrappy idea offering an affordable alternative to hotels has now made Airbnb a target for lawmakers and a magnet for critics. Airbnb may not be collapsing, as some doomsayers are predicting, but it is facing a reckoning — an existential questioning of what it offers and where it will go from here.”
“New York City Is Enforcing A ‘De Facto Ban’ On Airbnb. Will Travelers Be Better Off Without It?” (Insider). “‘In just the first two months since the rules have gone into effect, the negative consequences are clear — visitors to New York City now have fewer accommodation options in fewer neighborhoods, hotels have increased their nightly rates, and, predictably, activity has gone underground with a myriad of unregistered listings popping up on unregulated third-party websites,’ an Airbnb spokesperson said in an email to Insider Tuesday.”
“How The Real Estate Broker Business Could Change” (New York Times). “Real estate experts say the current system won’t stand. Right now, home sellers essentially pay fees for both their own agent and the buyers’ agent, with a typical commission around 5 to 6 percent, split between the two brokers. That structure is largely enforced by the National Association of Realtors, which has about 1.5 million dues-paying members. If a seller doesn’t agree to those terms, the listing isn’t shown on the multiple listing services that underpin most home sales.”
