Category: UPS News

Berkshire Hathaway is holding a record cash position. These stocks could be great buys.

Key Points

• Walmart has key hallmarks of a stock Buffett would love.
• UPS stock offers value, income, and growth.
• Amazon has a tremendous moat and a penchant for innovation.

UPS has a simple yet powerful investment thesis

Daniel Foelber (United Parcel Service): Berkshire Hathaway technically owns shares of package delivery giant UPS. But the stake makes up less than a hundredth of a percent of its portfolio. UPS is Buffett’s smallest stock holding, but there are many reasons it deserves to be one of his largest.

If there are three things Buffett likes, it’s dividends, entrenched moats that protect a business from competition, and steady long-term growth potential. UPS has all three of these attributes in spades.

Getting a driver’s license is a rite of passage for teens. It’s an accomplishment that takes months or even years to achieve. Preparing for and earning your license is an exciting time, but it’s important to remember the responsibility that comes along with the right to drive.

Did you know that motor vehicle crashes are the number one cause of death among teens in the United States? To help keep teens like you safe on the road, The UPS Foundation teamed up with Boys & Girls Clubs of America to create UPS Road Code, a national program educating teens on safe driving techniques.

According to the Centers for Disease Control and Prevention, motor vehicle accidents are the leading cause of death for U.S. teens, accounting for more than 1 in 3 teenage deaths. About seven young people die every day in motor vehicle crashes, and 285,000 teen drivers are injured in crashes annually.

UPS Road Code is a Boys and Girls Club Teen Program promoted to teach younger drivers about the dangers of distracted driving. Boys & Girls Clubs across the country have partnered with UPS to offer youth members the same training on distracted driving offered to their drivers before hitting the road.

The party supported an array of small businesses.

Uncovering the next big thing is what ComplexCon is all about. And with its highly-anticipated return earlier this month, attendees couldn’t be more excited for a stacked lineup. To make sure people didn’t miss out on streetwear’s most promising brands, official shipping partner UPS tapped none other than Kids of Immigrants [KOI] to bring together an eclectic squad of small businesses.

With a commitment to supporting different communities, KOI used their activation space in Long Beach to help up-and-coming creatives gain next-level exposure. KOI co-founders Daniel Buezo and Weleh Dennis threw the Support Your Friends potluck, a hype backyard BBQ featuring the official ComplexCon debut of 13 must-know brands including Black Billionaires Club, Pasadena Roots, Gente Unida, and more.

UPSer leads networking and community service club

What’s new: VETLANTA is working to transition veterans and their families to civilian life by connecting them with employers like UPS that embrace military backgrounds.

Why it matters: Job skills acquired from military experience can sometimes be difficult to translate into civilian positions.

“I had all this great leadership and management experience, but I had never written a resume,” said Lloyd Knight, a 20-year U.S. Air Force veteran and founder of VETLANTA. “But I had the exact qualifications UPS was looking for, such as a security clearance and load planning experience.”

That’s why he organized a group of veterans from Atlanta-area Fortune 500 companies to educate employers and support transitioning veterans.

Key Points

• U.S. domestic margin was better than expected.
• The company’s strategy of focusing on small and medium-sized businesses continues to pay off.
• Investors can expect management to raise its 2023 targets.

It’s fair to say that investors approached UPS third-quarter earnings with a sense of trepidation. After all, its main rival FedEx gave a horrible earnings report in September, taking a $450 million hit due to constrained labor markets caused by the lingering impact of the COVID-19 pandemic. What would UPS report?

An excellent report

The answer to this question is that a super set of third-quarter earnings served to silence the doubters. And I know because I was one of them.

The critical number to follow with UPS is its U.S. domestic package segment margin. Not only is the segment the most significant earnings generator for the company, but the growth in its margin is the key to its 2023 targets laid out on its investor day presentation in June.