The Fall Street Journal

Paris Hilton on her New York childhood

2010-06-13T09:29:00.000-07:00

Buffett and Gates Pour $2 Billion into Republic Services (RSG) and Waste Management (WM)

2010-05-11T18:50:00.000-07:00

The world's two richest men appear to be eyeing a takeover of one of the world's most vital industries. Here's how to cash in...

Buffett and Gates Pouring Billions into Trash

Bill Gates and Warren Buffett are more than just close friends and bridge buddies. With a combined net worth of over $77 billion, they're arguably the two most powerful men in business.

So powerful, in fact, that they can move the stock market further and faster than just about any individuals on the planet.

Case in point -- In 2009 a small Chinese clothing stock skyrocketed +108.3% in a single month after the press discovered that both Gates and Buffett regularly wear the firm's suits.

If these two men can move the stock market by altering their dress code, just imagine what they can do when they team up and start pouring billions of dollars into one or two individual stocks.

That's exactly what's happening right now. In fact, Buffett and Gates now appear to be eyeing a takeover of one of the world's most vital industries: trash.

Bill Gates Makes The Biggest Insider Trade of 2009

Last year Bill Gates invested more than $450 million into Republic Services Inc. (NYSE: RSG) -- making it the largest insider trade of the year. (Gates may or may not want the public to know he's buying this stock, but he doesn't have a choice. The fact that he owns more than 10% of the company's outstanding shares automatically makes him an "insider." And company insiders are legally obligated to report their trades... as Bill Gates has.)

Meanwhile, Warren Buffett is just starting to load up on the same stock, purchasing a total of 8.3 million shares last year. And Gates also owns $500 million worth of this company's closest competitor, Waste Management Inc. (NYSE: WM).

All told, Buffett and Gates have invested more than $2.0 billion into these stocks, and recent filings show they could be accelerating their purchasing:

Gates bought Republic Services 23 different times in 2008, pouring an estimated $256 million into the stock. In 2009 he bought $452 million more of the stock, purchasing it on 39 separate occasions.

Meanwhile, Buffett first bought 3.6 million shares of Republic Services between June 30, 2009 and September 30, 2009... and then bought ANOTHER 4.7 million shares between September 30, 2009 and December 31, 2009.

What makes these companies so attractive?

   They control an essential service every American uses every day.

   Competition is virtually nonexistent -- these two stocks together control half of the U.S. market, giving them a virtual monopoly on this essential service.

   These growing monopolies deliver big profits for investors. Period. Republic Services has consistently outperformed the S&P 500 and has skyrocketed +76.2% over the past year.

But don't think you've "missed the boat" on this stock already -- the most recent Berkshire Hathaway quarterly filing (on February 16, 2010) shows that Warren Buffett is just starting to buy Republic Services -- and if you act now, you can pick up shares today for around the same price Buffett paid!

Bottom line -- Buffett and Gates could be trying to corner the market in this vital industry. If you want to profit alongside them, then you must act soon. Both of these stocks are already getting pushed higher thanks to Buffett and Gates' enormous insider purchases. And if history is any guide, then Buffett might eventually buy one (or both) of these companies outright. The last time he did that, the shares of his target firm -- Burlington Northern -- jumped +29% on the day of the announcement.

Investors who were smart enough to buy the stock a few months earlier, when word first surfaced that Buffett bought $271 million of the stock, were treated to gains of +60.6% in less than a year.

History could be repeating itself here, and you can profit right alongside both Buffett and Gates as they pile into this booming market.

Stocks surge in relief rally

2010-05-10T07:45:00.000-07:00

European leaders agree to a $955 billion bailout package to prevent the debt crisis from spreading. Oil jumps higher. McDonald's posts strong sales.

Posted on Monday, May 10, 2010 9:00 AM

Updated at 10:30 a.m ET

Stocks were surging this morning after European Union finance ministers late Sunday agreed to a massive 750 billion euro ($955 billion) bailout plan -- an effort to stabilize the euro and prevent Greece's sovereign debt crisis from spreading across the eurozone.

At 10:30 a.m. ET, the Dow Jones Industrial Average ($INDU) had jumped 376 points, or 3.6%, to 10,757 after losing 140 points on Friday. The Nasdaq Composite Index ($COMPX) had jumped 97 points, or 4.3%, to 2,363, and the Standard & Poor's 500 Index ($INX) was up 44 points, or 4%, to 1,155.

All 30 Dow components were up today, and all 100 of the Nasdaq 100 Index ($NDX) were higher.

Bank of America (BAC) was up $1.06, or 6.5%, to $17.24, Citigroup (C) jumped 24 cents, or 6.1%, to $4.24. Apple (AAPL) was up $15.08, or 6.4%, $250.95, and Intel (INTC) rose $1.14, or 5.4%, to $22.45.

Bailout plan boosts European markets
The biggest contribution to the bailout plan, 440 billion euros ($570 billion), will come from EU government-backed loans. The International Monetary Fund will contribute 250 billion euros, and an EU emergency instrument will contribute 60 billion euros.

"These steps announced by the EU, IMF, and ECB are impressive in total, and indicate that the authorities are finally coming to grips with the contagion threat to a number of countries stemming from the Greek debt crisis," Howard Archer, IHS Global Insight chief European and U.K. economist, wrote in a note to clients.

"As a result, they should, temporarily at least, alleviate market concerns over the ability of Greece, Portugal, Spain, and Ireland to meet their funding requirements over the next three years," he wrote.

Overseas markets also surged today. London's FTSE 100 Index ($FTSE) jumped 4.5%, and the CAC 40 Index ($PARI) surged 9.3%. The MSCI EAFE Index (EFA), which is an aggregate of 21 country indexes, shot up 6.5%.

The European Central Bank said after the announcement that it is ready to buy eurozone government and private bonds "to ensure depth and liquidity" in markets.

The euro shot higher this morning. Worries about Greece's debt crisis and fears that it will spread to Portugal, Spain and other European countries had slammed the euro, causing the currency to tumble 4.3% last week -- the biggest drop since after Lehman Brothers went under in September 2008. The fears also caused $3.7 trillion to be erased from the value of global stock markets last week, Bloomberg News reported.

"We are going to defend the euro," Spanish Economy Minister Elena Salgado told reporters Sunday. "We think we have a duty for more stability for our currency. We will do whatever is necessary." All 27 EU members attended the meeting.

Crude was up $2.33 to $77.44 a barrel.

IMF approves its chunk of Greek bailout
The International Monetary Fund, meanwhile, approved a 30 billion euro ($38 billion) loan to Greece over the weekend, with an immediate 5.5 billion euro disbursement to help prevent the country's growing debt crisis from worsening. The loan is part of the 110 billion euro ($147 billion) package with the European Union to help the troubled country.

It is the biggest financial commitment ever to any one country.

Under the terms of the deal, Greece will cut its budget deficit from a record 13.6% of gross domestic product in 2009 to 8.1% this year. Greece will cut its deficit to below the EU's 3% limit by the end of 2014.

McDonald's sales sizzle
McDonald's (MCD) said this morning that sales at stores open at least one year rose 4.9% in April, topping analysts' expectations of a 4.5% gain. Sales jumped 3.8% in the U.S., 5.3% in Europe and 3.9% in Asia, Middle East and Africa.

Shares of the fast-food giant rose $2.34, or 3.4%, to $70.35.

Bernie Madoff - Whistle Blowers Story

2009-05-27T09:48:00.000-07:00

Inspirational Speech - Any Given Sunday - "Inch By Inch"

2009-05-25T15:17:00.000-07:00

David Buckner faints on Glenn Beck's show

2009-04-14T16:42:00.000-07:00

Blame for economic crisis goes beyond Washington

2009-03-11T14:15:00.000-07:00

Jim Cramer: The Flip-Flop that Ought to be Illegal

2009-03-06T17:29:00.000-08:00

Liesman Gives Santelli His Best Shot.. "Shut up Rick"

2009-02-22T17:14:00.000-08:00

Rick Santelli and the "Rant of The Year"

2009-02-22T17:11:00.000-08:00

Ann Coulter on Larry King Live - Part 1

2009-02-20T10:40:00.000-08:00

Collapse Of The Entire World Economy In 24 hours

2009-02-20T09:35:00.000-08:00

Federal Reserve Chart Showing US Money Supply

2009-02-20T08:46:00.000-08:00