Warren Buffett had a good day.
The Oracle of Omaha's Berkshire Hathaway owns 54.1 million shares of IBM as of June quarter-end, according to FactSet. With Wednesday's more than 14 point rally in the shares, Buffett's company is up approximately $775 million on its position, assuming it hasn't sold shares since then.
Ironically Buffett told CNBC's Becky Quick in May that he was wrong on his initial appraisal of IBM as an investment.
"I was wrong … IBM is a big strong company, but they've got big strong competitors too," Buffett told CNBC. "I don't value IBM the same way that I did six years ago when I started buying ... I've revalued it somewhat downward."
SEC filings revealed Buffett's company sold 10.5 million shares of IBM in the June quarter, according to FactSet.
IBM shares are down 3.9 percent year to date through Wednesday's close versus the S&P 500's 14.4 percent return.
This was the biggest jump in the stock since Buffett has owned it. IBM last moved this high in one day in January 2009.
Shares of IBM were up 9 percent midmorning Wednesday, lifting the Dow Jones industrial average after the tech giant reported better-than-expected quarterly results the day before.
Earlier this year, Buffett, chairman and CEO of Berkshire Hathaway, spoke about a decision to dump his IBM shares.
In an interview with CNBC, Buffett said: "I don't value IBM the same way that I did six years ago when I started buying ... I've revalued it somewhat downward."
"When it got above $180 we actually sold a reasonable amount of stock," the billionaire investor added.
But, after the company's earnings, Cramer says the talk surrounding Buffett is over and "the IBM story is back."
"It's not a discussion about Buffett anymore," Cramer said on "Squawk on the Street." "It's about a discussion of reignition of earnings."
Cramer was also particularly pleased with IBM's revenue growth. The company came close to stopping the drought of revenue growth that has lasted 21 quarters.
"The next quarter is going to have the revenue up. The streak is going to break," Cramer said. "[CFO Martin Schroeter] is underpromising. He's going to overdeliver. Next year is going to be terrific."
Programming note: IBM's chief financial officer, Martin Schroeter, will make an appearance Wednesday on CNBC's "Mad Money" at 6 p.m. ET.
Trump ranks No. 248 on the billionaires list this year with a net worth of $3.1 billion, according to Forbes, which released the rankings Tuesday.
Trump ranked No. 156 in 2016.
Forbes, which has tracked Trump since the list's debut in 1982, said the president's faltering net worth is due to weakening in the New York City real estate market.
Trump did not campaign with the magazine in an effort to boost his ranking as he's done in years past, said Luisa Kroll, Forbes magazine senior wealth editor.
"We'll see if he tweets today," Kroll told CNBC's "Squawk Box." "I know he cares a lot."
The president shares his spot on the list with the 27-year-old Spiegel, co-founder and CEO of the parent of Snapchat.
Spiegel was the youngest on the list, Kroll said. "And he's been the youngest for a number of years," she said. Spiegel took his ephemeral photo messaging company public on the New York Stock Exchange earlier this year.
Forbes used closing stock prices from Sept. 22, 2017, to compile the Forbes 400 list.
From July to mid-September, North Korea launched five missile tests, including two intercontinental ballistic missiles. More recently, the North Korean threat has taken a backseat to hurricanes and tax reform as stock market triggers, and major indexes are touching new record highs.
But "Little Rocket Man" will be back, as will headlines attributing short-term volatility in the market to a potential geopolitical crisis. Ahead of planned joint naval exercises between the United States and South Korea next week, North Korea threatened on Friday to launch ballistic missiles near the U.S. territory of Guam.
During Kim Jong Un's six-year reign, he has tested more missiles than his father and grandfather combined, including 15 tests in 2017. Based on history, there's one piece of advice that may come in handy for investors (and the current president) when Kim Jong Un celebrates his next nuclear success: Don't overreact. In fact, for investors, don't do anything.
Consider the country stock market arguably facing the gravest existential threat from a nuclear crisis: South Korea. There is reason not to be complacent. U.S.-based investors may have more exposure to South Korea than they realize.
Financial advisors and retail investors have been piling into overseas stocks, primarily through exchange-traded funds based on the MSCI and FTSE developed (EAFE) and emerging markets (EM) indices. Those indexes have significant exposure to South Korea. MSCI defines South Korea as an emerging market, and its emerging markets index has between 14 percent to 15 percent exposure to South Korea. The iShares Core MSCI Emerging Markets ETF (IEMG) has taken in $13.5 billion from investors. FTSE defines South Korea as a developed market, and its EAFE index has between 4 percent to 5 percent exposure to South Korean stocks. The Vanguard FTSE Developed Markets ETF (VWO) has taken in more than $14 billion from investors this year.
But here is what the South Korean stock market returned between the July to mid-September periods, when missiles were flying: 1.37 percent. Year-to-date, the South Korean stock market is up roughly 30 percent.
Warren Buffett, 87, told fund manager Mark Yusko he will not do another bet that a simple S&P 500 index fund will beat a basket of hedge funds.
The "Oracle of Omaha" cited his age as reason not to go forward with a second 10-year wager against the hedge fund industry, in an email to Yusko Tuesday. Buffett is on track to beat the original wager this year by a blowout.
Wrote Buffett to Yusko:
"I think the Protege bet proved the point and has stimulated a re-evaluation of professional management. If I were to do another ten-year bet — and I regard that as the reasonable term for measurement — that would take me to 97 and not at the best point to write and talk about the results. There's no doubt in my mind, however, that the S&P 500 will do better than the great majority of professional managers achieve for their clients after fees."
Buffett told CNBC's Becky Quick last week that he was willing to do another bet on active versus passive as long as anybody wants to put up "a significant percentage of their net worth" on the wager.
Morgan Creek Capital's founder and chief investment officer, Mark Yusko, accepted Buffett's offer on the same day. His firm manages $1.8 billion.
The bet with Buffett "is definitely not happening. I'm surprised because he came on CNBC offering another bet. After talking to him last week I thought there was a good chance," said Yusko in a phone interview Wednesday.
But the Oracle must have changed his mind.
"I'm disappointed because his involvement would have kept the public interest on this very important topic [active versus passive] at the highest level," said Yusko.
The investor explained why he was so adamant over his advocacy for hedge funds last week.
"It's an important time in terms of the market cycle. I think it's important to be aware about the propensity of investors to chase hot returns at the peak of the cycle. It is a better time to get hedged," Yusko said on Oct. 3.
Even though Buffett said no to Yusko, the investor is hopeful perhaps another person will take the wager.
Seides conceded he lost the bet earlier this year.
Buffett still won the original wager even after a vicious bear market occurred as a result of the housing crisis. The new bull market began in March 2009.
Hedge funds lost out to simple index funds as an economic recovery and extraordinary Federal Reserve stimulus lifted the majority of stocks and assets during this latest run.
The S&P 500 "will absolutely kill every one of the fund of funds," Buffett said on CNBC's "Squawk Box" last week. "Passive investment in aggregate is going to beat active investment because of fees."
Berkshire Hathaway did not immediately respond to a request for comment.
Warren Buffett's workdays no longer include dealing with much of the minutiae of running Berkshire Hathaway. In place of conducting interviews and managing teams, he makes big picture decisions and spends 80 percent of his time reading. But what the legendary investor looks for in quality employees still speaks volumes.
"You look for three things: You look for intelligence, you look for energy and you look for integrity," he told Nebraska Business magazine, an alumni publication for Buffett's alma mater, the University of Nebraska at Lincoln's College of Business Administration, in a 2001 interview.
Out of these three traits, Buffett says it's most important to cultivate integrity.
"Every business student you have has the requisite intelligence and requisite energy," he says. "Integrity is not hard-wired into your DNA."
Seth Klarman, the value investing giant who draws comparisons to Warren Buffett, has a very large position in Puerto Rico's controversial debt.
Klarman's hedge fund, Baupost, owns $911 million of the island's bonds through Decagon Holdings entities, according to a July public court filing.
"The Baupost Group is a holder of COFINA bonds through the Decagon entities. Baupost regularly makes investments through subsidiary holding entities," Baupost spokeswoman Diana DeSocio wrote in an email.
COFINA stands for the Puerto Rico Sales Tax Financing Corp. that issues bonds.
The Intercept on Tuesday was first to report the hedge fund's large stake. It was previously known that Baupost had a holding in COFINA bonds, but the size was not.
Puerto Rico's bonds plunged Wednesday after President Donald Trump pledged to wipe out its debt in an interview with Fox News. The island's general obligation bonds fell to 36 cents on the dollar versus 56 cents on the dollar last month.
The fund declined to comment specifically on the plunge in the debt Wednesday.
Two weeks ago, the island was hit by Hurricane Maria, a Category 4 storm that left most of the population without electric power.
Puerto Rico currently has more than $70 billion in debt. Cate Long, founder of Puerto Rico Clearinghouse, told CNBC in an email retail investors own about 75 percent of the island's debt.
Baupost has $30 billion of assets under management as of March 2017, according to the firm.
Klarman's fund has generated annual returns of 16.4 percent and $22.6 billion in net profit for clients since inception through 2015, according to a Morgan Creek Capital letter. Baupost's main fund posted a 'high single-digit' return last year.
The hedge fund manager has largely avoided controversy over his career and is often compared with Buffett for his disciplined investing philosophy and solid returns. As the political rhetoric heats up around what Wall Street is owed as Puerto Rico tries to recover from this tragedy, a negative spotlight could fall on owners of the controversial debt like Baupost.
That is likely something Klarman would not welcome since he is notoriously reclusive. He rarely appears publicly and used copies of his "Margin of Safety" investment book still sell for more than $700 online.
— CNBC's Fred Imbert contributed to this report.
Billionaire investor Warren Buffett says the very best investment you can make is one that "you can't beat," can't be taxed and not even inflation can take away from you.
"Ultimately, there's one investment that supersedes all others: Invest in yourself," Buffett says in a recent interview with Forbes. "Nobody can take away what you've got in yourself, and everybody has potential they haven't used yet."
One of Buffett's investments in himself came in early adulthood, when he signed up for a $100 Dale Carnegie public speaking course that he says changed his life.
"I was terrified of public speaking when I was young. I couldn't do it," Buffett says. In fact, he admits he would become physically ill when the time came to take the podium.
The course was taught at Dale Carnegie, the institute named for the influential speaker and author of "How to Win Friends and Influence People."
Billionaire investor Warren Buffett is keenly aware of the potential for gross inequality in the very system that has allowed him his own success. The octogenarian investor is worth almost $80 billion and is the third richest person in the world, according to Forbes.
The new tax framework would eliminate the estate tax, which is levied on money and assets transferred from one person to another at the time of death. Nixing the "death tax" would be a "terrible mistake," says Buffett, because he says that change inordinately benefits the rich.
"The truth is: if they passed the bill that they're talking about, I could leave $75 billion to a bunch of children and grandchildren and great grandchildren, and if I left it to 35 of them, they would each have a couple of billion dollars," all without having to pay tax to receive the inheritance, says Buffett, who has three grown kids.
"Is that a great way to allocate resources in the United States?"