Before the bell: Positivity Returns

Markets turn green again as Berkshire Hathaway shareholders bid farewell to a legendary investor.

Investor sentiment has turned positive once more, reflected in global stock market movements. The average European stock gained 3.3% over the past week. Brussels’ benchmark index performed even better, climbing 4.7%. Stocks like UCB (+5%), Melexis (+4.4%), and Lotus Bakeries (+3.9%) ended Friday with strong gains. A standout performer in the Bel20 was Cofinimmo, surging 10.4% after peer Aedifica expressed interest in a potential acquisition. On the other side of the Atlantic, markets also closed in the green: both the S&P 500 and the Nasdaq rose by 1.5%.

Today, several markets remain closed. Hong Kong observes Buddha’s Birthday, China remains shut for Labor Day, Japan celebrates Children’s Day, and the UK is closed for the Early May Bank Holiday. European and U.S. markets are open, with earnings expected today from Tyson Foods, Palantir, Hims, Ford, Clorox, and Realty Income. Later this week, investors will turn their focus to the upcoming Federal Reserve interest rate decision and, more importantly, what Fed Chair Jerome Powell has to say.

Well-Deserved Retirement

Sixty years—that’s how long Warren Buffett has led Berkshire Hathaway. Over those decades, he transformed a struggling textile manufacturer into one of the world’s most powerful investment conglomerates. But the time has come for a changing of the guard. During the company’s annual shareholder meeting—now a pilgrimage of sorts for investors—the “Oracle of Omaha” announced he will step down by the end of the year, with Greg Abel (62) set to succeed him as CEO. Abel inherits a staggering $348 billion in cash—and just as many questions about where he plans to invest it. The decision, while somewhat unexpected, was met with applause from the tens of thousands of attending shareholders. After the passing of Buffett’s longtime business partner Charlie Munger in November 2023, it was widely assumed that Buffett’s retirement was only a matter of time. The 94-year-old investing legend has no plans to sell his shares, however, saying he intends to gradually donate them to society.

Something Smells in Diaperland

Ontex is gathering its shareholders today for the annual general meeting, and there’s plenty to discuss. The diaper manufacturer has quietly been locked in a patent war with rival Drylock over the absorbent layers in their products. Ontex took the matter to court in Düsseldorf and initially won, forcing Drylock to remove its products from store shelves. Drylock appealed—and succeeded. The European Patent Office reversed the Düsseldorf ruling, and Drylock is now seeking damages, reportedly in the tens of millions of euros. The company plans to sue Ontex, according to Belgian newspaper De Tijd. In addition to former Ontex owner Bart Van Malderen, prominent Belgian investment firm Sofina is also a stakeholder in Drylock. The Boël family’s holding company owns a 25% stake in the Ontex competitor—one of Sofina’s largest investments.

Did You Know…

that during last week’s blackout in Spain and Portugal, residents of the affected areas used Elon Musk’s Starlink satellite network to stay connected? While the increased traffic reduced connection quality, the service remained accessible throughout the outage.

This article was translated from Dutch and was originally published on Spaarvarkens.be.