The Daily Alpha: Real Talk on Warren Buffett, Jeremy Corbyn, Millennials and California Feudalism

Jun 12 2017 | 3:59pm ET

Hair of the Dog

Shot: Matthew Goodwin: “I am saying this out loud. I do not believe that Labour, under Jeremy Corbyn, will poll 38%. I will happily eat my new Brexit book if they do.”

Chaser: Yum.

Quotes of the Day

"We are very delighted and proud that Mr. Buffett has for years made sure that he participates."

Want to have lunch with Warren Buffett?

Lunch with the octagenarian sold at auction for $2,679,001 at an online charity auction.

Rev. Cecil Williams, the co-founder of Glide and pastor of the Glide Memorial United Methodist Church, thanked Buffett for his annual participation in the auction to raise money for his organization. However, this year’s winning bid is lower than winning ones in the past.

“It could be a little bit of a headwind on the single-family housing market, especially for these millennials being so unsure about getting into the housing market to begin with over the last couple of years.”

Robert Dye is Comerica Bank’s chief economist who says that an interest rate hike this week is going to be bad for the state of Michigan. His reasoning: Millenials who finally want to get out of their mom and dad’s basements are going to face higher costs of owning a house.

It’s not Dye’s comments that attracted our attention. It’s the editor of poor Steve Carmody, who had to write this article. Once again, the editors hedged in their headline: “Pending interest rate hike may impact Michigan's economy.”

It’s “will.” The interest rate hike will affect Michigan’s economy. An interest rate hike, by definition, affects an economy. It might be just 25 basis points, but we have to get into semantics because this isn’t even an argument. It’s a statement of fact.

“Get out. I have been talking about this — and now I think more and more investors are beginning to realize it.”

That’s Stephen Ng.

Let’s just say that he doesn’t have too many nice things to say about hedge funds.

“In the end, we are witnessing the continuation of an evolving class war, pitting the oligarchs and their political allies against the state’s diminished middle and working classes.”

That is Joel Kotkin, the R.C. Hobbs Presidential Fellow in Urban Futures at Chapman University.

In a fascinating op-ed, Kotlin explains how California’s dream of Socialist Utopia is really just creating a Digital Feudalism that will make upward economic mobility nearly impossible in the future.

Before we get to the Monday Reading List, be sure to read his effective argument on how the climate activists are subjecting a populace to a bleak future. That’s their goal after all… isn’t it?

Monday Reading List

Bloomberg: Hedge Fund Delivers 19% Return by Betting Only on Safest Bonds

Reuters: Chowdhry to leave Paulson & Co as pace of exits quickens

Yahoo! Finance: Why high-cost money managers aren't worried about the passive investing boom

Nigeria Today: Hedge Funds Are Quietly Investing in Bitcoin

The Sunday Telegraph: Theresa May must start Brexit talks as soon as possible

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You can also pick up a copy of the June Hedge Fund issue at Barnes & Noble.

Garrett Baldwin is the voice of the The Daily Alpha, the features editor for Modern Trader magazine, and the author of The Man with The Big Red Balloon. 

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