—— U.S. Homebuilder Confidence Hits Six-Month High; MicroStrategy Bitcoin Worth $700 Million; Boston Faces $1 Billion Tax Deficit; Billionaires Buy into Biotech Stocks; Microsoft Shares Games with Competing Platforms; Citigroup Tracks Employees’ Call Frequency; Berkshire Sells $100 Million Worth of Apple Shares
1. U.S. Homebuilder Confidence Hits Six-Month High
This month, the National Association of Home Builders (NAHB) reported that the builder confidence index rose by 4 points to 48, exceeding economists’ expectations of 46 and marking a six-month high.
Since late last year, with mortgage rates falling below 7%, homebuilders have become more optimistic about the sale of new homes.
The NAHB’s expected sales index rose by 3 points, and the index for current sales and potential buyer traffic also increased.
Builder confidence rose across all four major regions of the U.S., with the West and Northeast leading the way.
In February, 25% of builders reported lowering prices, a decrease from 31% in January.
______
2. MicroStrategy Bitcoin Worth $700 Million
During the peak of the pandemic, Michael Saylor of software company MicroStrategy invested all the company’s cash into Bitcoin, a high-risk move for a corporation.
Previously, MicroStrategy’s $500 million in funds had been primarily invested in short-term U.S. Treasury bonds. However, after the pandemic hit, the returns on traditional strategies plummeted, prompting Saylor to explore non-traditional options. He believed that the Federal Reserve’s quantitative easing during the pandemic would lead to future inflation, so he invested in Bitcoin.
Now, four years later, Saylor remains one of Bitcoin’s biggest advocates. After Bitcoin’s recent price surge, the company’s position has grown to $10 billion, with an unrealized return of 70%.
Earlier this month, MicroStrategy disclosed that it holds 190,000 Bitcoins, with an average cost of $31,224.
______
3. Boston Faces $1 Billion Tax Deficit
According to research published today by Tufts University, Boston may face a $1 billion tax deficit over the next five years due to the sharp decline in office building valuations.
McKinsey & Co. predicts that office building values could drop by at least 30% by 2030, with Boston heavily reliant on commercial real estate.
CBRE statistics show that by the end of Q4 2023, the vacancy rate for office buildings in downtown Boston had reached 15.8%, double the pre-pandemic rate.
One-third of Boston’s tax revenue is linked to commercial real estate, much higher than the 5% to 15% in major cities like New York and Chicago.
The commercial real estate tax rate in Boston is 2.5%, while the residential rate is 1.1%.
Source：Bloomberg – Boston Faces $1 Billion Tax Deficit From Faltering Office Market
______
4. Billionaires Buy into Biotech Stocks
Billionaire George Soros’ family office bought a large amount of medical technology company stocks during the fourth quarter.
Soros Fund Management purchased $24.5 million in Merck shares and $19.2 million in shares of Eli Lilly, a weight-loss drug company.
Iconiq Capital, which manages assets for Mark Zuckerberg and other tech billionaires, bought $57.9 million in shares of brain disease pharmaceutical company Neumora Therapeutics.
UBS research found that medical devices and health technology were among the most popular investments for family offices last year.
These investments highlight the growing interest of billionaires in biotech stocks.
______
5. Microsoft Shares Games with Competing Platforms
Billionaire George Soros’ family office bought a large amount of medical technology company stocks during the fourth quarter.
Soros Fund Management purchased $24.5 million in Merck shares and $19.2 million in shares of Eli Lilly, a weight-loss drug company.
Iconiq Capital, which manages assets for Mark Zuckerberg and other tech billionaires, bought $57.9 million in shares of brain disease pharmaceutical company Neumora Therapeutics.
In October last year, after nearly two years of antitrust investigations, Microsoft finally acquired Activision Blizzard for $69 billion.
Microsoft has agreed to bring four Xbox exclusives to PlayStation and Nintendo Switch.
______
6. Citigroup Tracks Employees’ Call Frequency
Sources revealed that Citigroup’s new wealth management division is off to a slow start. In response, the company will begin tracking how often private bankers call high-net-worth clients.
The company is reportedly encouraging bankers to call each client every 90 days. Tracking call frequency is also aimed at improving work efficiency.
A Citigroup spokesperson said that improving customer experience is a top priority, and recording and sharing call details is a key way to ensure employees meet their targets, as well as a standard in the industry.
Citigroup and other banks are paying close attention to the development of wealth management businesses because of the stable fee income it generates.
______
7. Berkshire Sells $100 Million Worth of Apple Shares
In the fourth quarter of last year, Warren Buffett’s Berkshire Hathaway sold 10 million shares of Apple, representing 1.1% of Berkshire’s tech stock holdings.
Berkshire first bought Apple in 2016, and it now accounts for one-fifth of the company’s market value.
Documents filed with the U.S. SEC this Wednesday show that, after selling a significant amount of shares, Berkshire still holds 5.9% of Apple, valued at $174 billion as of the end of 2023, far surpassing Berkshire’s second-largest holding—Bank of America.
In the fourth quarter, Berkshire also reduced its stake in HP by 78%.
______
This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.