The markets acted like a dying quale today as the Dow rose while the NASDAQ fell in mild action. At the close the Dow was up 18 points to 17,938……yawn.
Shares of Tesla shot higher when Ron “The Billionaire” Baron announced he has purchased $1.3 billion worth of Tesla common stock and plans to hold it until the cows come home. Ron is Wall Street’s worst nightmare since is a buy and hold investor who has been very successful. If he were a hen in a chicken coop he would undoubtedly lay an egg and then never leave the nest. The hen right next to him would be Warren Buffett. While there are no guarantees in this business Ron thinks Tesla is close to becoming capital efficient and will someday be a very big and successful company. Maybe Tesla will make a new model in honor of Ron. It will be the Tesla model “B & H”. You can buy it but never sell it.
Facebook is expanding in Seattle. The company is moving into a new 10 story office building on Dexter Avenue near Lake Union and even while it is moving in, it has already told the Puget Sound Business Journal that it intends to grow the space more than the 1,000+ employees it had originally planned.
WTI oil today crested $50 a barrel rising 1.5% to close at $50.47 a barrel. US crude stockpiles fell 3.5 million barrels making it the third straight week of drawdown. The continuing rebel action in Nigeria is affecting supply from that region which is also lending support for higher prices. Royal Dutch Shell announced it was curtailing operations in 10 of the 70 countries in which it operates and slashing its capital budget by about 25% to focus on more efficient energy plays in the US and Australia.