Buffett Brushes Off Takeover Tango: Berkshire Happy Just Flirting with Occidental, Thanks!

RTW Investments: Navigating SPAC Scandals and $1.4M Settlements, All While “Minimizing Risk”

TLDR:
RTW Investments paid $1.4 million to settle allegations made by the SEC that it failed to disclose its own interests in SPACs recommended to investors, dividing shares into roughly 40% going to RTW personnel and the rest going to personnel affiliated with three related funds. RTW’s personnel had material conflicts of interest that could affect the advisory relationship between the company and its clients, leading to RTW rendering advice that was not quite disinterested.

Well folks, let me tell you about an investment advisory firm that decided to learn the hard way. RTW Investments, a New York-based company that specializes in life science ventures, got themselves into a bit of a pickle with the Securities and Exchange Commission (SEC). The SEC accused RTW of failing to disclose its own interests in special purpose acquisition companies (SPACs) it recommended to investors. And as a result, they’ve agreed to settle those allegations for a cool $1.4 million.

Now, if you’ve never heard of a SPAC before, it’s essentially a “blank check” company that raises money by selling stock through an IPO, with the sole purpose of buying privately held businesses. They’ve long been under scrutiny for their transparency and benefits to investors, and it seems RTW Investments decided to take part in the shenanigans.

The SEC’s investigation revolved around two SPACs set up by RTW Investments – Health Sciences Acquisitions Corp. and Health Sciences Acquisitions Corp. 2, established in late 2018 and 2019. By sponsoring these SPACs, RTW was entitled to receive roughly a quarter of the proceeds from the IPO financing. The proceeds would then be used to acquire private companies. Instead of being completely transparent, RTW divided these shares into roughly 40% going to RTW personnel and the rest going to personnel affiliated with three related funds.

Now, why is this a problem? Well, the SEC states that RTW’s personnel had material conflicts of interest that could affect the advisory relationship between the company and its clients. This could lead to RTW rendering advice that was, shall we say, not quite disinterested. Not a great look for an investment advisory company, wouldn’t you agree?

The SEC alleged that RTW’s personnel used money from private fund clients to complete SPAC transactions that ultimately benefited them financially. Sounds like a case of “do as I say, not as I do.” And by not disclosing these incentives, the SEC claimed that RTW violated provisions of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940.

Interestingly, the SEC didn’t identify the advisory clients or the specific SPAC deals involved in their allegations. But it’s worth noting that both of RTW’s SPACs have participated in large acquisitions in recent years. For example, Health Sciences Acquisitions Corp. bought biopharmaceutical firm Immunovant Sciences in a $100 million deal in December 2019, while Health Sciences Acquisitions Corp. 2 closed a $158 million merger with therapeutics company Orchestra BioMed in January.

So, what does this mean for the future of SPACs and investment advisory firms? Michael Edmiston, a securities lawyer, says this case highlights the dangers of SPACs. “When you have an advisory firm that’s got its own money in a SPAC, they are going to go out and encourage deals regardless of whether it’s in their clients’ best interests.”

In the end, it seems that transparency is the name of the game. Had RTW Investments been more forthcoming about their conflicts of interest and SPAC involvement, they might have avoided this costly lesson. But as with most things in life, hindsight is 20/20.

For now, let’s hope that other investment advisory firms take note of RTW’s missteps and ensure that they’re acting in the best interests of their clients. After all, nobody wants to be the next company to learn the hard way.

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A Gene-ius Merger: Anew Medical’s $94M Nasdaq Debut with Redwoods Acquisition Corp.

TLDR:
Anew Medical and Redwoods Acquisition Corp. have merged, with Anew receiving $64m in cash and $30m in stock, and the combined company set to hit the Nasdaq with a $94m valuation. Anew will maintain its management team while gaining resources and expertise to fund its research and development activities, expand clinical trials and increase manufacturing capacity, while also gaining access to pharmaceutical industry partnerships.

In a world where medical miracles are as rare as a real conversation on social media, gene therapy developer Anew Medical Inc. and the fine folks at Redwoods Acquisition Corp. have joined forces in a merger that will list Anew on the Nasdaq at a $94 million valuation. A testament to their potential and commitment to revolutionizing the healthcare industry, this monumental merger is sure to send shockwaves through the medical community.

Anew Medical Inc., known for being at the cutting edge of gene therapy and having a research lab that probably looks like something out of a sci-fi movie, will receive $64 million in cold, hard cash, and $30 million in Redwood stock, distributed to its shareholders. Anew’s current management team will continue to lead the combined company, while the CEO of Redwoods will join its board of directors. The transaction is anticipated to close in the second half of the year, provided all the regulatory hoop-jumping and customary closing conditions are met.

With the merger providing Anew both resources and expertise needed to speed up growth and commercialization, the company also gains access to the public market, swimming in a pool of funding for its research and development activities. Additionally, the partnership will allow Anew to tap into Redwoods’ extensive network of industry connections and relationships, like a person with too many friends and not enough time. This collaboration will help expand the company’s reach and introduce it to new markets.

Anew’s gene therapy platform is built on proprietary technology designed for precise targeting of specific genes, allowing the development of highly effective and personalized therapies. Because who wouldn’t want the luxury of custom-made treatments? Their current portfolio includes gene therapies in various stages of development, spanning from cancer treatments to genetic and rare diseases. The company’s treatment has shown promising results in those preclinical and early clinical studies that make scientists giddy with excitement, and they’re ready to initiate late-stage clinical trials in the near future.

The merger with Redwoods will enable Anew to hit the gas pedal on its research and development activities, expand clinical trials, and increase its manufacturing capacity. It’s like a mad scientist getting unlimited resources and lab time. Moreover, the company will be able to expand its sales and marketing infrastructure and establish partnerships with pharmaceutical companies and other industry players. With the support of Redwoods and its experienced management team, Anew is poised to capture the significant growth opportunities in the gene therapy market.

In conclusion, the merger of Anew Medical Inc. and Redwoods Acquisition Corp. is a transformative moment for not only Anew but for the entire healthcare industry. This union will allow the company to reach its full potential, and with the backing of Redwoods, create a leading gene therapy company that drives greater value for shareholders, employees, and patients – because, after all, who wouldn’t want to see a world where a single targeted gene therapy can change the course of a person’s health? It’s not just business; it’s the future of medicine, and it’s happening right here, right now.

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VinFast and Black Spade’s Electric Boogaloo: $27 Billion SPAC Tango Set to Shake-Up EV Industry

TLDR:
VinFast partners with Black Spade Acquisition Co in a $23 billion equity deal, with existing shareholders holding about 99% shares of the merged company. VinFast recently secured $2.5 billion in funding from Vingroup and Pham Nhat Vuong to support their ambitions in the electric vehicle market.

Ladies and gentlemen, fasten your seatbelts as we take a trip down the electric road with VinFast, the Vietnamese automobile manufacturer that’s gearing up to go public in the US. In a surprising move, VinFast has partnered with the special purpose acquisition company (SPAC), Black Spade Acquisition Co, in a business combination that values the company at a whopping $27 billion in enterprise value and $23 billion in equity. And you thought your last car purchase was expensive!

Now, let’s take a closer look at this electrifying union. After the transaction, which is expected to close in the second half of 2023, existing shareholders of VinFast will hold approximately 99% shares of the combined company. Talk about putting all your chips on the table! Thuy Le, Global CEO of VinFast, believes that this partnership is the perfect capital raising avenue for their future global ambitions, and we can’t help but wonder if they’re aiming for world domination – in the electric vehicle market, of course.

Backing this ambitious venture is Vingroup, one of Vietnam’s largest conglomerates. VinFast seems to have a solid support system, and with friends like these, who needs charge stations? Dennis Tam, Chairman and co-CEO of Black Spade Acquisition Co, shares the excitement about VinFast’s potential growth in Vietnam and globally, as the company is well positioned to capitalize on the EV lifestyle trend. So, buckle up, because it’s going to be one wild, emission-free ride!

In case you were wondering about the funds behind this operation, let’s talk numbers. VinFast recently secured a fresh round of funding pledges worth a cool $2.5 billion from its parent company Vingroup and from billionaire Pham Nhat Vuong’s own pocket. That’s a lot of pocket change for future development!

As for VinFast’s journey thus far, the company was established in 2017 and began manufacturing conventional cars in 2019 before making the bold switch to all electrics. They operate a state-of-the-art automotive manufacturing complex in Hai Phong, boasting up to 90% manufacturing automation and an annual production capacity of up to 300,000 units in phase 1. With manufacturing capabilities like these, we can’t help but wonder if they’re building an electric army to take over the world – of eco-friendly driving, that is.

VinFast’s journey doesn’t end there. The company recently crossed an important milestone, exporting its first VF 8 electric vehicle to North America earlier this year. This achievement showcases their commitment to quality and innovation, proving that they’re determined to succeed in the global electric vehicle market.

Adding to the excitement, VinFast filed for an initial public offering in New York last December. The IPO, if successful, would make it the only Vietnamese company listed in the US. Now that’s what we call electrifying news!

In conclusion, VinFast’s partnership with Black Spade Acquisition Co has put the company in high gear, with ambitious goals and a significant valuation. Backed by Vingroup and a sizable investment, VinFast is ready to charge ahead in the global electric vehicle market. So, rev up your engines, folks, because this is one electric ride you won’t want to miss!

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Dow’s Dipsy-Doodle Day, Disney’s Drooping Digits, and Debt Ceiling Debacles: Just Another Manic Monday in the Market!

TLDR:
Disney’s stock drops due to underwhelming earnings report from its streaming division, which lost subscribers in the most recent quarter but increased revenue per user through price hikes.

Microsoft pauses pay raises for salaried employees and reduces performance bonuses for executives as part of its cost-cutting strategy.

Disney, the titan of entertainment, managed to disappoint investors with its unimpressive earnings report, causing its stock to plummet more than 5% in after-hours trading. The culprit? Disney’s streaming division, which, although posting a smaller-than-expected loss, has lost subscribers in the most recent quarter. But, on the bright side, revenue per user did increase, thanks to the magical power of price hikes. It appears that the streaming wars have reached their final act, and now the industry must search for the next growth frontier. Perhaps they’ll find it in the world of gaming, where digital dragons and virtual quests await.

While Disney’s financial drama unfolds, tensions between Russia and Ukraine continue to escalate. The pro-Russian Wagner Group and Russia’s defense ministry have hit a rough patch in their “partnership,” with Wagner’s leaders threatening to take their toys and go home due to a lack of supplies. Ukrainian fighters, on the other hand, have been reclaiming ground, coinciding with expectations of a new counteroffensive bankrolled by Western money and weaponry. Russia, never one to be outdone, has resorted to recruiting prisoners to join the fight. Talk about a captive audience.

In a parallel universe where the United States’ debt ceiling is still a hot topic, Treasury Secretary Janet Yellen has once again warned of economic doom if Congress fails to address the issue. Yellen, who is currently attending G7 meetings in Japan, described the notion of defaulting on the nation’s debt as “unthinkable,” as it would severely undermine the U.S. and global economy. In response, GOP presidential hopeful Donald Trump suggested that Republicans should let the U.S default if Democrats refuse to agree to significant spending cuts. Apparently, some people are more comfortable with “unthinkable” than others.

In the land of tech giants, Microsoft has opted to pause pay raises for salaried employees as part of its ongoing cost-cutting strategy. This comes after the company announced plans to cut nearly 5% of its workforce earlier this year. Last year, Microsoft increased its budget for merit pay raises and stock awards due to inflation, but CEO Satya Nadella now claims the budget is closer to its historical average. Performance bonuses for executives will also be significantly reduced. It seems that even in the world of big tech, there’s no escaping the wrath of fiscal prudence.

As investors navigate the tumultuous waters of the stock market, it’s important to remember that success lies not only in following the predictable patterns but also in seeking out the novel and uncommon. With the streaming wars drawing to a close, industries will need to shift their focus to other avenues for growth, such as gaming. Meanwhile, as tensions mount between Russia and Ukraine, global market players must remain vigilant and adaptive. Amidst the chaos, the debt ceiling debate serves as a stark reminder that sometimes, the unthinkable must be considered – even if it’s not particularly amusing.

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MoneyHero’s SPAC-tacular Public Debut: Billionaire-Backed Fintech Firm Leaps into NASDAQ with Bridgetown Holdings

TLDR:
MoneyHero Group and Bridgetown Holdings Limited are merging to form a new company with an enterprise value of $342 million, called MoneyHero Limited, to chase after the growing market for digital distribution of financial products in Asia. MoneyHero Group is an established fintech firm in Singapore, Hong Kong, Taiwan, the Philippines, and Malaysia, and all existing shareholders, including PCCW, FWD, and Goldman Sachs, will roll 100% of their equity into the combined company.

Well, folks, the fintech world just got a whole lot more interesting. MoneyHero Group, a Singapore- and Hong Kong-based fintech firm with a billionaire backer, is joining forces with a publicly-traded special purpose acquisition company (SPAC) called Bridgetown Holdings Limited. This beautiful marriage will result in the birth of a new company named MoneyHero Limited, with an enterprise value of $342 million. It will strut its stuff on NASDAQ under the ticker symbols MNY and MNYWW.

Now, before you go and spend your hard-earned cash on this shiny new stock, let’s delve a bit deeper into what makes this union so exciting. With the $154 million transaction proceeds, MoneyHero plans to chase after the rapidly growing market opportunity in digital distribution of financial products in the region. Talk about a hot pursuit!

Operating across Singapore, Hong Kong, Taiwan, the Philippines, and Malaysia, MoneyHero Group is no stranger to the game. It boasts a pre-money enterprise value of $200 million and an equity value of around $198 million. To make things even more enticing, all of MoneyHero’s existing shareholders, including heavy hitters like PCCW, FWD, and Goldman Sachs, will roll 100% of their equity into the combined company.

MoneyHero Group CEO Prashant Aggarwal seems pretty jazzed about the whole ordeal, stating that becoming a public company will help them “transform lives through accessible and innovative financial solutions.” Ambitious? Yes. But with a management team led by Aggarwal and CFO/COO Shaun Kraft sticking around after the transaction, there’s potential for greatness.

This isn’t the first time MoneyHero Group, formerly known as Hyphen Group, has considered going public. Back in 2021, it was courted by Provident Acquisition Corp in a deal that could have valued the company at a whopping $1 billion. Despite the hefty price tag, that deal never came to fruition. But who needs old flames when you’ve got a new love, right?

As for Bridgetown Holdings, it’s no slouch either. Backed by billionaire buddies Richard Li and Peter Thiel, it raised $595 million in a US IPO back in October 2020. At the time, it was the biggest SPAC focused on Southeast Asia. It was even in advanced talks with Indonesian unicorn Traveloka in April 2021. However, that relationship didn’t work out either. Sometimes it’s just a matter of finding the right partner, you know?

So, what does this all mean for the financial industry? In a nutshell, MoneyHero Group’s combination with Bridgetown Holdings Limited signals an important development in the world of fintech. By teaming up, they have the potential to create innovative products and services that could revolutionize the way we approach our finances.

It’s an exciting time for both companies, and as a business journalist, I can’t help but be intrigued by the possibilities that lie ahead. Will they achieve greatness together or simply fade away as another flash in the pan? Only time will tell. But one thing’s for sure: we’ll be watching closely as this new chapter unfolds.

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Schmid Goes Public: From Iron Foundry to NYSE in Just 158 Years!

TLDR:
Schmid Group merges with Pegasus Digital Mobility Acquisition Corp to become a $640 million NYSE-listed company, marking SPACs’ shift to stable targets. Schmid Group’s majority ownership and management positions will remain while aiming to accelerate growth and expand into new markets, including the automotive sector, with the help of Pegasus’s experienced team.

In the world of business, where money talks and innovation takes a back seat, it’s a pleasure to witness a company with over a century of history shake things up with a public debut. The Schmid Group, a German powerhouse of advanced electronics manufacturing technology, has decided to do just that as they leap into the wild, wacky world of the New York Stock Exchange. And who better to guide them into this new era than an auto industry veteran called Ralph Speth, and his blank-check company, Pegasus Digital Mobility Acquisition Corp?

The merger with Pegasus Digital Mobility Acquisition Corp. has left Schmid Group in a pretty cozy spot, valuing the family-owned company at $640 million, including debt. This isn’t just another deal in the cutthroat world of special-purpose acquisition companies (SPACs). No, this marks a significant shift, as SPACs are now targeting growing, profitable ventures after getting a little too cozy with wobbly startups in 2020 and 2021. It seems that SPACs have finally learned from their past mistakes and are setting their sights on more stable targets.

Schmid Group’s roots can be traced back to 1864 as an iron foundry in Freudenstadt, a picturesque town in the heart of the Black Forest. This is a place where fresh air and lush trails are aplenty, but don’t be fooled by its fairytale-like setting; Schmid Group has been hard at work creating technologies for industries such as renewable power and energy storage. With over 800 employees under its umbrella, Schmid has been responsible for developing equipment and manufacturing processes for printed circuit boards. But don’t worry, the Schmid family isn’t going anywhere. They will maintain majority ownership and retain management positions after the listing on the New York Stock Exchange.

Christian Schmid, the company’s CEO, shared his enthusiasm for the upcoming endeavor, stating that becoming an NYSE-listed company will strengthen Schmid’s position as a global solutions provider and accelerate their growth trajectory and innovation. It’s truly heartwarming to see a company wanting to excel not just for the sake of profit but also for the betterment of all stakeholders involved.

On the other side of this partnership, Pegasus Digital Mobility Acquisition Corporation raised $200 million in its October 2021 IPO and has been looking for deals in areas such as next-generation transportation. Backed by StratCap, an investment firm focused on digital infrastructure, Pegasus CEO Speth has over 20 years of experience with BMW AG and played a significant role in running Jaguar Land Rover after its sale to India’s Tata Motors.

With the experienced team of former Morgan Stanley investment banker F. Jeremy Mistry as the SPAC’s CFO, and ex-Jaguar Land Rover executive Stephen Berger as CIO, Speth had this to say about the partnership: “We are excited to partner with the Schmid team to further grow the group’s platform and accelerate expansion into new attractive markets, including the automotive sector.” It seems like a match made in heaven, or at least a very productive conference room.

So, dear readers, as we celebrate this partnership between Schmid Group and Pegasus Digital Mobility Acquisition Corporation, let’s take a moment to appreciate the power of forward-thinking collaboration and the value of continuous innovation in the technology industry. In a world where the pace of change is breakneck, it’s refreshing to see that some companies still prioritize staying ahead of the curve. Here’s to Schmid Group’s future success and the endless possibilities they will undoubtedly create.

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Twilio’s Q1 Report: A Sour Note in the Stock Market Symphony

TLDR:
Twilio’s Q1 results were mixed, with revenue just missing the forecast and a net loss increase, leading to a 14% drop in after-hours trading. However, the company added nearly 10,000 active customer accounts during the first quarter, exceeding analysts’ expectations, and is still growing its active customer base and revenue year over year.

Greetings, dear readers, from the land of relentless optimism and mild disappointment. Today, we’re here to discuss the recent financial report of Twilio, the developer of communications software that keeps our digital lives connected. You might think that it’s all rainbows and unicorns for a company in the tech sector, but hold onto your hats, folks, for the rollercoaster ride that is the stock market.

In what can only be described as a cruel game of “expectations limbo,” Twilio managed to beat their adjusted earnings per share, with a tantalizing 47 cents instead of the anticipated 21 cents. However, just like an overeager contestant on “The Price is Right,” Twilio came up a tad short on its revenue predictions. With $1.01 billion in revenue for the first quarter, they barely missed the $1 billion forecast. But, as we all know, the stock market is like a hyperactive child who takes everything too seriously, which is why Twilio’s shares fell as much as 14% in after-hours trading.

Now, you might think it’s all doom and gloom, but there’s a silver lining to this cloud. Twilio’s Q1 revenue increased by a respectable 15% year over year. However, their net loss also increased, reaching $342 million ($1.84 per share) compared to their $222 million ($1.23 per share) in the same period last year.

So, what exactly has Twilio’s stock plunging like a lead balloon, you might ask? It seems that consumer adoption is taking its sweet time, and the company is still grappling with weaknesses in social media, e-commerce, and cryptocurrencies. To top it all off, Twilio’s CFO, Aidan Viggiano, mentioned that customers are being budget-conscious and evaluating their spending with the precision of a Swiss watchmaker.

In an attempt to trim the fat, Twilio announced in February that they would furlough about 1,500 employees (or 17% of its workforce) and buy back up to $1 billion of its stock. It may sound like they’re grasping at straws, but let’s not forget that the company added nearly 10,000 active customer accounts during the first quarter, bringing the total to over 300,000. This exceeded the expectations of those know-it-all analysts who predicted a mere 295,400.

In conclusion, Twilio’s Q1 results were a mixed bag of tricks, not entirely living up to the hopes and dreams we all had for them. But, as a wise person once said, “Innovation distinguishes leaders from followers.” Twilio has always been a leader in its field. Although their growth may have hit a few speed bumps, it doesn’t mean they won’t continue to overcome these challenges and push boundaries.

So, let’s not be too hasty to count Twilio out just yet. After all, they’ve proven themselves adept at seeking help when in need. And in the ever-changing world of technology, that’s a skill worth its weight in gold.

In the meantime, it seems that investors may be left with a bitter taste in their Twilio-flavored mouths. But, as the saying goes, “You can’t make an omelet without breaking a few eggs.” The company may have missed the mark with its Q2 guidance, but it’s important to remember that they’re still growing their active customer base and revenue year over year. So, let’s give them the benefit of the doubt and see what the future holds. After all, when it comes to Twilio, there’s never a dull moment.

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Lottery.com Suit-uation: Jackpot for Lawyers Instead of Shareholders

TLDR:
Lottery.com faces $300M lawsuit from shareholders regarding lost IPO funds. Company views lawsuit as opportunity to showcase transparency and accountability and is working to protect interests.

Well, folks, it looks like Lottery.com might need a little luck of their own. Recently, two of the company’s shareholders filed a class action lawsuit in Delaware Chancery Court seeking damages for over $300 million lost from the 2021 IPO. But hey, who doesn’t love a good courtroom drama? Especially when it involves a company that deals with luck and chance.

Now, you might be thinking that this spells doom and gloom for Lottery.com, but the company seems to have a different perspective. They view this lawsuit as an opportunity to showcase their commitment to transparency and accountability. After all, they say that adversity builds character. So, grab your favorite beverage and let’s watch the company put their money where their mouth is.

Of course, lawsuits involving millions of dollars can make shareholders and stakeholders a bit jittery, but Lottery.com wants to reassure everyone that they’re taking this matter seriously. They’ve got their legal team working diligently to resolve the claims and protect the interests of the company. You know, just your typical David and Goliath story – except in this case, it’s more like “Shareholders vs. Eleven Individuals and Three Companies.”

Now, you might be curious about the allegations in this lawsuit. The plaintiffs claim that the defendants made false and misleading disclosures during the IPO, even engaging in some insider trading. Shocking stuff, really. But let’s not forget that these are just allegations, and we all know the saying: innocent until proven guilty. So, maybe it’s best to hold off on the pitchforks and torches for now.

Even with this lawsuit hanging over their heads, Lottery.com remains optimistic about their business. They believe in the strength of their business model and their ability to continue growing for years to come. They’ve been investing in people, technology, and other resources to drive growth and profitability. And if there’s one thing that we can all agree on, it’s that a little optimism can go a long way.

Despite the challenges this lawsuit poses, Lottery.com is confident that they’ll come out of this situation stronger than ever. They’re striving for transparency and accountability, and this lawsuit is a prime opportunity for them to show just how dedicated they are to these values. So, if you’re a shareholder or stakeholder, don’t lose hope just yet. This might just be the plot twist that keeps things interesting and ultimately leads to a triumphant resolution.

In conclusion, it’s safe to say that Lottery.com has found itself in quite a predicament. They’re facing a class action lawsuit that could potentially cost them hundreds of millions of dollars. But, as we’ve seen time and time again, it’s not about how many times you get knocked down; it’s about how many times you get back up. And with their commitment to transparency, accountability, and growth, it seems Lottery.com is ready to rise to the challenge and prove that they can overcome this obstacle.

So, grab your popcorn and settle in, because this legal battle is bound to be an entertaining one. And remember, folks, no matter how this all plays out, we’ll always have the lottery to keep us dreaming of better days. Good luck out there!

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Buffet’s Banking Bummer: “So Messed Up” Incentives Make Berkshire Cautious, Local Banks Still A-OK

TLDR:
Berkshire Hathaway is cautious about the banking sector and has sold bank shares in the past six months. They still own Bank of America but are wary of the system and banking regulations. First Republic’s heavy losses in government-guaranteed debt have highlighted the risks of unguaranteed home loans in the banking industry.

Ladies and gentlemen, today we bring you some banking news that really tickles my funny bone. As you may know, Warren Buffett, the Oracle of Omaha, mentioned that Berkshire Hathaway is cautious about its banking sector. But why, you might ask? Well, let me explain. Buffett said the news flow surrounding federally insured deposits is scant. The public remained confused about what would happen if a bank failed, and the media, bless their hearts, was of little help. I’ve even seen bank failures. Some may think that the bank is in trouble, that the system is not working. But we are confident in our banking sector. The US government and US people don’t care that banks fail, and people actually lose their deposits. There was a demonstration project at Silicon Valley Bank over the weekend, but the public is still confused.

As of the end of 2022, 89% of SVB’s $175 billion deposits were uninsured, while the US banking system, in its infinite wisdom, protected depositors with a “systemic risk exemption.” This exemption applied even to depositors with accounts greater than $250,000. As you know, Berkshire has about $128 billion in cash and Treasury bills. If the banking system somehow temporarily malfunctions, we want to be there. Buffett said one reason we’re cautious is that the bank regulatory stimulus is “messed up.” First Republic Bank, the last US community bank to fail, announced in its annual report that it is offering jumbo-sized unguaranteed home loans at fixed interest rates. Referring to his father’s loss of his job in a bank run in 1931, Buffett said, “That’s what the First Republic did, it’s blatant, and the world ignored it until it exploded. “Bank regulation incentives are so messed up, and so many people are interested in screwing them up.” That’s why we’re very cautious about ownership in situations like this.”

Don’t get me wrong, we’re not completely out of the banking sector yet. We still own Bank of America, and Buffett is happy with that, he said. However, it has sold bank shares in the last six months after selling some when the pandemic hit. Buffett sits behind a sign that says “Available for Sale” to comment, while his longtime business partner Charlie Munger sits behind a “Hold to maturity” sign to warn the bank that the regional banking crisis is on its way. Seized by regulators and sold to JP Morgan, First Republic suffered heavy losses in its held-to-maturity investment portfolio, primarily government-guaranteed debt.

I know some people are worried about their money at their local bank. But Buffett isn’t personally concerned about local banks. “I have my own money. It’s probably over the FDIC limit. I keep it in my local bank, but I’m not at all concerned.” Berkshire Hathaway is cautious in its banking sector, but we are still there, and I’m sure the system will work for many years. Thank you for your attention. We look forward to bringing you more news in the future.

It was quite an emotional roller coaster. First, we hear that Warren Buffett and Berkshire Hathaway are wary of the banking sector. Then I heard they were still stuck with Bank of America and didn’t personally care about their money at their local bank. The fact is that the message around deposits has been bad and has caused panic among depositors and three mid-sized banks since March. I don’t know about you, but I suddenly had the urge to hide all my money under my mattress. Just kidding, I stick to trusted banks. Or do I? More and more banks seem to be taking risks with unguaranteed home loans and fixed interest rates. Is this a ticking time bomb waiting to explode in the face of the banking industry? Only time will tell. But one thing’s for sure, Warren Buffett’s dry wit and blunt honesty will keep us entertained and informed.

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VinFast Ditches IPO, Chooses SPAC-tacular Merger for a Zippier Ride to the Public Market

TLDR:
VinFast withdraws IPO filing and merges with BSAQ, valuing the company at $27 billion. The merger allows VinFast to continue research and development of affordable electric vehicles, and to showcase their commitment to sustainability on a global stage.

Ladies and gentlemen, gather ’round for a tale of electric vehicles, Vietnamese innovation, and a merger that’s hotter than a jalapeño in a sauna. That’s right, VinFast, Vietnam’s pride and joy in the automotive industry, has decided that going public through an IPO is so 2022 and has withdrawn its filing. Instead, they’re jumping on the SPAC bandwagon and merging with Black Spade Acquisition Group (BSAQ).

Now, you might be asking, “Why the sudden change of heart?” Well, it’s simple, really. VinFast was originally seeking a measly $1 billion through their IPO, but the SPAC merger values the company at an enterprise value of $27 billion – talk about a glow-up. The deal is expected to close in the second half of this year, and we can only imagine the fireworks display they’ll put on to celebrate.

So, what does this mean for the world of electric vehicles? For one, VinFast is already making waves with its sleek designs and innovative technology. With this merger, they’ll have the opportunity to show off their commitment to sustainability and make a name for themselves on the global stage. And let’s face it, the world could use a few more shining examples of eco-friendly innovation.

But the fun doesn’t stop there. VinFast is on a mission to make electric vehicles affordable for everyone, not just the well-heeled elite who can afford luxury electric cars. This merger gives them the financial boost they need to continue their research and development, bringing us one step closer to the electric car utopia we’ve all been dreaming of.

And what about the folks at Black Spade Acquisition Group? They must be pretty stoked to partner with a company that’s so committed to making the world a cleaner, greener place. Together, these two powerhouses can work toward a future where electric cars are the norm, and gasoline-powered vehicles are relics of a bygone era.

So, what’s the moral of this story? Never underestimate the power of a good merger, especially one involving innovative electric vehicles and a boatload of cash. VinFast’s decision to ditch the IPO route and join forces with BSAQ is a bold move, but one that’s likely to pay off in the long run. The electric vehicle market is a competitive one, and this merger gives VinFast the edge it needs to stay ahead of the game.

In conclusion, VinFast has demonstrated that sometimes, the road less traveled is the one paved with gold – or, in this case, billions of dollars and a promising future in the electric vehicle industry. With their innovative technology, commitment to sustainability, and partnership with BSAQ, we can expect great things from this Vietnamese powerhouse. So, buckle up, folks. The future of electric vehicles is about to shift into high gear, and VinFast is leading the charge.

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