Raphael Stevens

Warren Buffett, Chairman and CEO of Berkshire Hathaway.
David A. Grogan | CNBC

Warren Buffett took control of Berkshire Hathaway in 1965, and nearly six decades later as the “Oracle of Omaha” turned 93 on Wednesday, his conglomerate is stronger today than it’s ever been.
Berkshire shares have roared back to an all-time high on record operating profit, making it the biggest nontech company by market capitalization. Buffett has been extremely active in the past year, wooing his followers with a slew of astute moves from buying underappreciated Japanese stocks to navigating a surge in interest rates skillfully.

“He’s still at the top of his game. His mental acuity is sharp as ever,” said David Kass, a finance professor at the University of Maryland’s Robert H. Smith School of Business, who once held private lunches for his students and Buffett.

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Buffett stood out as one of the only few investors who managed to take advantage of higher rates, thanks to his mountain of cash — $147 billion at the end of June. His massive cash pile, which had been an area of concern at times, is now earning him a substantial return with short-term rates topping 5%.
Meanwhile, the legendary investor has been leaning on his favorite stock Apple, which has now taken up half of Berkshire’s equity portfolio after its 40% rally this year. Buffett likens the iPhone maker to a consumer products company and has said he is also attracted to its big buyback programs. His Apple bet has made Berkshire well over $100 billion since 2016.
‘Groundbreaking’ investment
Buffett also added to his stakes in five Japanese trading houses earlier this year, a bet that made Chamath Palihapitiya call him “the GOAT.” Buffett even traveled to Japan with his successor Greg Abel, his first time in more than 11 years, to meet with the heads at these firms to emphasize his support.
“It’s groundbreaking in the sense that I’m not aware of any prominent investor, hedge manager investing in Japan,” Kass said. “The country is in a deflationary environment for decades, and these companies were just sitting out there being ignored.”

Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo have a conglomerate structure just like Berkshire, and they have been stable dividend payers and earning growers. Social Capital’s Palihapitiya said what makes the trade so brilliant is how Buffett is able to hedge currency risk by selling Japanese debt and then pocket the difference between dividends from the investments and bond coupon payments he pays out.
A born leader
The last time shareholders heard from Buffett was at Berkshire’s annual meeting in May, where the investing icon held a six-hour marathon of Q&A, along with his longtime business partner Charlie Munger. They touched on every top-of-mind topic for investors from the banking crisis to recession risks and even crypto.

Shareholders watch Warren Buffett and Charlie Munger from the overflow room during the Berkshire Hathaway annual meeting on Saturday, May 6, 2023, in Omaha, Neb.
Rebecca H. Gratz | AP

“His delivery and his intellectual clarity at the last shareholder meeting was amazing, at a time when most executives could be retired,” said Macrae Sykes, portfolio manager of the actively managed Gabelli Financial Services Opportunities ETF, which owns Berkshire as its biggest holding.
“Just his presence really demands operating accountability and alignment with the brand. I think that can’t be understated,” Sykes said.
Munger, vice chairman of Berkshire, turns 100 on New Year’s Day.
Unmatched track record
Buffett’s $800 billion conglomerate, which cuts across 40 industries and 60 companies, claims to have doubled the average annual return of the S&P 500 since Buffett first took control back in the LBJ years.
Berkshire’s compound annual gain was 19.8% from 1965 through 2022, compared with 9.9% for the S&P 500. That’s an overall total return of 3,787,464% vs. 24,708% for the benchmark. Many Berkshire shareholders were made millionaires by Buffett’s shrewd moves and patient value philosophy over the years.
“His preferred holding period is, in his words, forever. He still has this infinite time horizon, even at the age of 93,” Kass said. More

Joseph M. Hogan is CEO of Align Technology
Jin Lee | Bloomberg | Getty Images

Check out the companies making headlines before the bell.
Align Technology — Shares rose 2.5% in early morning trading after HSBC initiated coverage with a buy rating. The firm cited the Invisalign maker’s strong brand presence and its potential to grow market share in digital orthodontics.

Hewlett Packard Enterprise — The tech stock fell nearly 2% in premarket trading after the company’s quarterly report. HPE posted adjusted earnings of 49 cents per share for its fiscal third quarter, 2 cents higher than a Refinitiv estimate. Revenue of $7 billion matched expectations.
Insulet — Insulet jumped 4.4% after CEO James Hollingshead disclosed Tuesday buying 5,550 shares of the medical device maker. Separately, the company announced Monday the launch of an insulin delivery system called Omnipod 5 in Germany, its third market after the U.S. and U.K.
Box — The stock plunged 10.2% premarket after the California-based cloud storage company posted a mixed second-quarter report postmarket Tuesday. Box’s revenue came in at $261 million, in line with Wall Street’s estimates, according to Refinitiv, while adjusted earnings of 36 cents per share beat analysts’ estimates by 1 cent. Box issued weak top- and bottom line financial guidance for the current quarter, and for full-year revenue, according to FactSet.
Texas Instruments — The semiconductor stock lost nearly 2.1% premarket Wednesday after Bernstein downgraded the shares to underperform from market perform, citing concerns revolving around the capital-intensive nature of its long-term strategy to increase in-house chip production.
HP — Shares of the PC and printer maker added 0.7% after revenue for the fiscal third quarter missed Wall Street estimates. HP posted $13.2 billion in revenue, below analysts’ $13.37 billion, according to Refinitiv, while earnings per share matched expectations at 86 cents, excluding items.

Ambarella — Shares plunged more than 20% on softer-than-expected forward guidance. Ambarella topped expectations for the second quarter on the top and bottom line but said it anticipates $50 million in third-quarter revenue, missing analysts’ estimate of $67.6 million, according to Refinitiv.
PVH — The Calvin Klein parent advanced 2.6% after a strong earnings report. PVH reported $1.98 in earnings per share, excluding items, on $2.21 billion in revenue, while analysts surveyed by Refinitiv had forecast $1.76 per share and revenue at $2.19 billion. The company reaffirmed its full-year revenue guidance and raised its outlook for earnings per share for the year.
— CNBC’s Samantha Subin, Yun Li and Sarah Min contributed reporting. More

Low earners find cost a larger barrier to making green lifestyle choices.
That’s partly because there’s often a “green premium” for certain consumer products. Investments to make a home more efficient, for example, may also not be affordable for some.
Here are eight easy, cost-effective ways consumers can cut their planet-warming greenhouse gas emissions. Most come with cost savings, too.

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Most Americans see climate change as a major threat. But income level seems to guide one’s willingness or ability to live a greener lifestyle.
Fifty-nine percent of high-income consumers always or often choose sustainable products, whereas that’s true for only 44% and 42% of mid- and low-income households, respectively, according to a new Deloitte survey. The poll was global, but the findings were consistent across individual countries such as the U.S., said James Cascone, partner at Deloitte.

A sustainable purchase would largely aim to reduce your planet-warming greenhouse gas emissions — for example, replacing a household appliance with a more energy-efficient counterpart or buying an electric vehicle.
More from Personal Finance:Consumers may get $14,000-plus in green rebatesEVs may beat out gas cars in long run, experts sayThat socially responsible fund may not be as ‘green’ as you think
Low earners were much more likely to cite cost as a barrier to an environmentally friendly purchase than high earners, Deloitte found.
“Cost is a big factor,” said Gregory Keoleian, director of the Center for Sustainable Systems at the University of Michigan.
High earners generally have the largest carbon footprints, noted Deloitte’s Cascone. They own bigger homes, have more vehicles and travel more by air, for example, but they can also more easily afford to change their behavior.

Sustainable products tend to carry a “green premium,” meaning they’re generally more expensive than the standard, experts said.

Even if a purchase would ultimately save money over the long term — due to lower household energy costs, for example — people living paycheck to paycheck generally can’t afford to invest in things such as new home insulation or efficient windows, said Katharine Hayhoe, chief scientist for the Nature Conservancy and professor at Texas Tech University.
A new national rebate program aims to ease or eliminate the cost burden of such investments, especially for lower-earning households. EV tax credits also seek to reduce net cost to buyers.
Here are some easy — and inexpensive or no-cost — ways to reduce your carbon footprint today, according to efficiency and environmental experts. You may even save money in the process.

1. Switch to LED lightbulbs ASAP

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Switching out older lightbulbs in your home for LED bulbs as soon as possible is among the best actions you can take, according to Hayhoe.
“It’s a no-brainer,” she said.
Why? LED, which stands for light-emitting diode, is today’s most-efficient lighting technology, according to the U.S. Department of Energy.
LEDs use up to 90% less energy and last up to 25 times longer than traditional incandescent bulbs, for example, the Energy Department said. They also last about three to five times longer than compact fluorescent light bulbs.
As such, the average household saves about $225 in energy costs per year by switching to LED lighting, the Energy Department said. While LEDs are a bit more expensive, costs have decreased “dramatically” and prices are expected to fall further, officials say.
However, households start saving money very quickly after switching to LED lighting, meaning it makes sense from both a financial and environmental standpoint to switch now rather than later, Keoleian said.

2. Cut food waste

Erlon Silva – Tri Digital | Moment | Getty Images

The average American wastes more than 400 pounds of food a year. In total, about 30% to 40% of edible food is wasted, Keoleian said.
Reducing such waste saves emissions across the food supply chain on agricultural production inputs such as fuel for tractors and fertilizers, and in other areas such as refrigeration and food distribution, he said.
Organic waste in landfills also generates methane, a greenhouse gas that is more than 25 times more potent than carbon dioxide at trapping heat in the atmosphere.
The U.S. Environmental Protection Agency publishes a list of ways to prevent food waste at home, such as planning meals for the week before shopping and properly storing fruits and vegetables.
Composting food scraps also “significantly” reduces methane emissions from waste. Check out this EPA list for tips on how to start composting at home.

3. Stop ‘energy vampires’

Jose Luis Pelaez | Stone | Getty Images

Many household appliances draw power from electrical outlets even when off or idle.
These “energy vampires” — which may include computers, hair dryers, cable boxes and coffee makers, among others — can add $100 to $200 a year to the average household energy bill, according to the Energy Department.
Unplug these devices when not in use. You can also plug them into a power strip or an outlet with a wall switch and switch the whole system on or off when you need to.

4. Seal any leaks

Kali9 | E+ | Getty Images

Heating and cooling accounts for nearly half the average home’s energy use, according to the Consumer Federation of America. In aggregate, small leaks around the house amount to leaving open a 3-foot-by-3-foot window, the group said.
“Simple steps” such as caulking windows and sliding draft guards under doors can save up to 20% on heating costs, the group said.
Even buying a clear, plastic film for windows helps insulate from heat and cold by adding a pocket of air between you and the outside, Hayhoe said. Indeed, she did this in her home.

5. Save water

Thanasis | Moment | Getty Images

Conserving water is important because water and wastewater treatment are carbon-intensive processes, as is heating that water at home, Keoleian said.
There are many ways to cut water use. For example, fully load machines such as dishwashers and clothing washers. Those who wash dishes by hand can be efficient by using two basins (one for cleaning and another for rinsing) instead of running the water.
Also, use cold water when possible. A washing machine spends 90% of its energy to heat water, for example, the Consumer Federation of America said. For drying, use a clothesline in warmer weather. On a related note, open the door at the end of a dishwasher’s wash cycle and let the dishes air dry.
Even putting something like a brick in your toilet tank will displace — and therefore save — water.  

6. Tweak your diet, even slightly

10’000 Hours | Digitalvision | Getty Images

Certain foods are more carbon-intensive than others.
Eating a more plant-based diet and cutting red meat intake is generally more environmentally friendly, as well as cheaper and healthier, experts said.
For example, beef’s greenhouse gas emissions per kilogram is about seven times higher than that of farm-raised fish, 10 times that of chicken and 230 times that of nuts or root vegetables. This is largely because cows produce a lot of methane.
While red meat — beef, pork and lamb — accounts for about 10% of the calories in an average diet, it contributes almost half the greenhouse gas emissions from agricultural production, Keoleian said.
Legumes, beans, nuts and lentils are very good protein substitutes, he said.
“You could still eat meat,” Keoleian said. “Just limit it and have a diversity of diet, which will be healthier.”
Of course, this might not be possible, he said. Food and diet are cultural, and not everyone likes plant-based proteins.

7. Use cars efficiently

Oscar Wong | Moment | Getty Images

Car owners — even those with gas guzzlers — can use their vehicles more efficiently.
For example, “trip chaining” means bundling trips. An example of this would be picking up groceries on the way home from work instead of making a one-off trip to the store.
Households with more than one car can also “rightsize,” a concept that matches the most efficient car with the trip. For example, that may mean commuting to work in a sedan instead of an SUV or pickup truck, Keoleian said.
Public transit, walking, biking and carpooling are other options, too, Hayhoe said.

8. Talk about it

Tom Werner | Digitalvision | Getty Images

Reducing individual carbon footprints can have an enormous influence on how businesses cut their greenhouse gas emissions, experts said. An industry will respond to consumer choices, sentiment and buying behavior, they said.
Consumers can therefore have a big effect by talking with friends, family and colleagues about how they saved money by living greener, Hayhoe said.
“The No. 1 thing that costs nothing and is most impactful is starting conversations about why this matters,” Hayhoe said.
“Do something — anything — and then talk about it,” she added. “Make it contagious in a good way.” More

U.S. Commerce Secretary Gina Raimondo spoke with CNBC’s Eunice Yoon in an exclusive interview Wednesday.
“My message was there’s a desire to do business, but we need predictability, due process and a level playing field,” Raimondo said.
“They said that China wants to embrace American business,” she told CNBC. “So now, let’s back that up with concrete actions to create a more predictable business environment.

US Commerce Secretary Gina Raimondo (C) talks to US Ambassador to China Nick Burns (L) as they head to a meeting with Chinese Premier Li Qiang at the Great Hall of the People in Beijing on August 29, 2023.
Andy Wong | Afp | Getty Images

BEIJING — U.S. Commerce Secretary Gina Raimondo has called on China to improve the predictability of the business environment for American companies in the country.
“My message was there’s a desire to do business, but we need predictability, due process and a level playing field,” Raimondo said in an exclusive interview with CNBC’s Eunice Yoon on Wednesday.

“There’s an appetite certainly for U.S. business to continue to do business in China,” she said, adding however that “It’s an unlevel playing field for U.S. business. It’s unpredictable.”
Raimondo was in China this week and met government officials in both Beijing and Shanghai. She is the first U.S. Commerce Secretary to travel to the country in five years — a period that’s seen the bilateral relationship grow increasingly tense.
Foreign companies in China have long complained about market access challenges including forced tech transfers and preferential treatment for local companies, especially state-owned enterprises.

Those issues and China’s longstanding trade surplus with the U.S. contributed to the Trump administration’s decision to levy tariffs on China in 2018, followed by restricting certain Chinese companies’ ability to buy from U.S. suppliers.
Increasingly, the U.S. government has emphasized the goal is to ensure national security.

Raimondo held firm on that point in her remarks.
“We just cannot allow sophisticated emerging technology from America to advance China’s military,” she said. “I’ll do whatever it takes to meet that mission.”
The U.S. Department of Commerce’s Bureau of Industry and Security last year announced export controls to limit Chinese access to advanced semiconductors. This month, the Biden administration revealed a proposal to restrict U.S. investment into high-end Chinese tech.

Calls for more action

Beijing also has national security in mind.
The Chinese government this year updated its counter-espionage law, alongside a few high-profile raids on international consulting firms — developments that rattled foreign businesses.

They said that China wants to embrace American business. So now, let’s back that up with concrete actions to create a more predictable business environment.

Gina Raimondo
U.S. Commerce Secretary

The updated law is of “great concern” to U.S. companies, Raimondo said.
She said clarifying the new parts of the counter-espionage law would a helpful, concrete action Beijing could take.
“Actions speak louder than words,” Raimondo said. “In all of my meetings, speaking with the premier and the vice premier, they were gracious, they were open.”
“They said that China wants to embrace American business,” she told CNBC. “So now, let’s back that up with concrete actions to create a more predictable business environment. To, as you say, grow confidence.”
Foreign business organizations have noted improvements over the years in China’s protection of intellectual property. The country is also trying to improve its court system.
Recent high-level Chinese government statements have included general calls to create a more predictable environment, and encourage foreign investment.

Read more about China from CNBC Pro

“China and the U.S. agree to continue to maintain communication, and support practical cooperation between businesses from both countries,” according to a CNBC translation of the Chinese-language readout of Raimondo’s meeting with Vice Premier He Lifeng. He is also the Chinese leader on China-U.S. trade and economic affairs.
This week, the U.S. and China agreed to establish regular communication channels on commerce, export controls and protecting trade secrets.

China will continue to believe that the U.S. is determined to block its rise, and the U.S. will continue to believe that China is determined to usurp the post-war global order.

Stephen Olson
Hinrich Foundation

Stephen Olson, senior research fellow at the Hinrich Foundation, cautioned against expecting real breakthroughs from increased communication alone.
“The Raimondo trip highlights the fundamental contradiction at the heart of the Biden administration’s China strategy,” he said. “It is putting a stranglehold on China’s access to critical technologies while at the same seeking to maintain if not expand trade and investment opportunities with China in those areas that suit U.S. interests.”
“China will continue to believe that the U.S. is determined to block its rise, and the U.S. will continue to believe that China is determined to usurp the post-war global order.”

A Boeing deal?

Raimondo wrapped up her China trip with a visit with Boeing executives at a company facility in Shanghai.
The U.S. aircraft giant is getting ready to resume 737 Max deliveries to China after a four-year hiatus, Bloomberg reported earlier this month, citing sources familiar with the situation.

When asked about a potential Boeing deal, Raimondo deferred to the company, but called it “an example of an action.”
“I know that the Chinese government has purchased these planes and we’re looking for them to take possession. I hope that that happens.”
Boeing did not immediately respond to a CNBC request for comment. More