Berkshire Hathaway | No More Apple Pie & Bank Bread!No More Apple Pie and Bank Bread | Buffett’s Recipe for Market Caution
Berkshire Hathaway has recently disclosed its earnings amid fluctuating around a $1 trillion valuation. A notable update is its continued reduction of stakes in overvalued assets, including a 20% decrease in holdings of Apple and Bank of America, boosting its cash reserves to $325 billion
Although Warren Buffett himself isn't favoring share buybacks at present, Berkshire Hathaway stands as a compelling investment option
Why Berkshire Hathaway's $325 Billion Cash Pile Signals Market Caution
The company's net earnings remain subject to significant fluctuations due to rules requiring valuation changes of investment holdings. However, there was a slight decline in operating earnings, mainly driven by lower insurance underwriting income. Despite this, that segment is historically volatile, and year over year aka YoY, the company has maintained strong performance.
Yea2date aka YTD, operating earnings have risen over 10%, totaling just under $33 billion compared to just below $29 billion last year. This points to an annualized earnings estimate of approximately $44 billion, implying a price2earnings aka P/E ratio of about 22, without factoring in over $320 billion in cash and significant investment holdings.
Excluding cash and investments, the adjusted P/E ratio is closer to single digits. Share buybacks have paused, reflected in a ~1% decrease in the outstanding shares YoY, signaling Berkshire's assessment of current market valuations.
Segment Highlights
The various business units within Berkshire Hathaway showcase its robust asset base and earning capacity. Insurance underwriting income saw a sharp YoY drop, but other business areas performed strongly. Income from insurance investments remained solid, and BNSF, its railroad subsidiary, also showed strong results despite a double digit YoY decline.
Berkshire Hathaway Energy continues its growth, cementing its position in the utility sector with significant renewable energy ventures. For context, NextEra Energy (NEE), with a market capitalization of $160 billion, posted quarterly earnings around 10% higher.
Berkshire's other controlled and non-controlled businesses contribute over $13 billion annually, underpinning its diversification and consistent earnings performance. This strength across segments underscores its formidable financial health.
Market Context
Currently, market valuations are elevated by historical standards.
Excluding periods of earnings dips, market enthusiasm is exceptionally high, with the S&P 500 P/E ratio nearing 30x, approaching levels last seen in 1999. Buffett and Berkshire appear to view a 3% yield from such a P/E as unattractive, especially when bonds offer higher returns.
The 2008 Playbook
Berkshire's track record of effectively utilizing its cash reserves is notable. Excluding its insurance float, the company still holds $150 billion in cash.
During the 2008 financial crisis, Berkshire leveraged its liquidity for strategic investments in companies like General Electric, Swiss Re, Dow Chemical, and Bank of America, as well as finalizing the full acquisition of BNSF in 2010. This proactive use of capital proved advantageous.
The current strategic sale of assets suggests Berkshire is preparing for potential market downturns. Given high S&P 500 valuations, reallocating part of an S&P 500 position into Berkshire Hathaway could be wise, ensuring exposure to a cash-rich portfolio capable of seizing future opportunities. Meanwhile, Berkshire’s earnings are valued lower than the broader market, potentially minimizing major downturn risks.
Investment Risks
A key risk is that timing the market is inherently challenging, with the adage "time in the market beats timing the market" serving as a caution. If Berkshire's market outlook is incorrect, its $300+ billion in cash could underperform while broader markets remain strong, which would diminish its appeal as an investment.
Final Thoughts
Berkshire Hathaway has taken the bold step of liquidating some of its most significant and priciest holdings, opting to incur capital gains taxes to increase liquidity. This move has bolstered its cash position to $325 billion, $150 billion above its float level. Meanwhile, its strong operational businesses continue generating healthy cash flow.
Drawing on its successful strategies during the 2008 crisis, Berkshire appears to be positioning itself for another downturn amid current high market valuations. We advise investors to consider shifting part of their S&P 500 exposure into Berkshire Hathaway for enhanced diversification and potential benefits in a market correction, long story short Berkshire Hathaway remains a robust investment opportunity but wont make millionaire!
What do you think moonypto fam?
Berkshirehathaway
Warren Buffett Moves to CashWarren Buffett Moves to Cash
On August 30, when the price of Berkshire Hathaway's Class B shares (BRK.B) surpassed $465, we noted that:
→ the stock was forming an ascending channel (shown in blue);
→ as the price neared $475, the likelihood of a slowdown in the bullish trend increased.
Since then (indicated by the arrow):
→ the price hit the upper channel boundary,
→ reversed downward after briefly exceeding $475,
→ and dropped to around $455 by November 1, when Warren Buffett’s Berkshire Hathaway reported Q3 earnings.
Analyst forecasts were close to the report’s actual figures:
→ Earnings per share: forecast = $4.9, actual = $4.7.
→ Revenue: forecast = $92.2 billion, actual = $92.9 billion.
→ Berkshire Hathaway’s investment income more than doubled year-over-year, reaching $3.5 billion for the quarter.
Meanwhile, some noteworthy news includes:
→ Berkshire significantly reduced its Apple (AAPL) holdings and refrained from new investments, even as stock indexes hover near historical highs.
→ Cash reserves reached a record $325 billion.
This has led to speculation that Buffett may believe:
→ stock prices are overvalued;
→ a market correction could be imminent.
Interestingly, Berkshire Hathaway is also holding off on buybacks—could Buffett be expecting a further price drop?
Technical analysis of the BRK.B chart suggests:
→ The price has fallen into the lower half of the blue channel, which remains relevant.
→ It’s possible that after a bearish reversal from $475 at the upper channel boundary, the stock has been in a correction phase since September (indicated by red lines), resembling the period from February 26 to July 10.
Traders may want to watch for demand around:
→ $445 (previous resistance in July),
→ the lower boundary of the ascending channel.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Is This the Final Chapter in Buffett's Tech Journey?Warren Buffett’s once unshakeable partnership with Apple seems to be reaching a critical juncture, leaving market watchers with more questions than answers. For years, Buffett and his Berkshire Hathaway embraced Apple, with Buffett even calling it “the greatest trade of all time.” Yet, with Berkshire’s recent decision to reduce its stake by a staggering 67%, the dynamic is shifting. While initial statements attributed the sales to tax planning, the sheer scale hints at a deeper strategy. This raises the question: is this a calculated portfolio rebalancing or the beginning of a more profound shift in Buffett’s investment philosophy?
The timing of these sales isn’t random. Apple now faces several hurdles, from slower growth projections in a competitive smartphone market to increasing regulatory scrutiny in the U.S. and Europe. The conglomerate’s move coincides with Apple's potential weaknesses, suggesting Berkshire is not immune to the broader industry concerns, such as competition in China and challenges in artificial intelligence—a field where Apple appears to be lagging.
Interestingly, some experts speculate that the recent passing of Charlie Munger may have influenced Buffett’s decision. Munger, who historically favored Apple, played a pivotal role in Berkshire’s tech investments, balancing Buffett’s more cautious stance on technology. Now, Berkshire’s shift could signal a strategic return to its foundational values, preferring stability over tech’s unpredictable currents.
As Berkshire Hathaway maneuvers through these adjustments, Apple remains its largest equity holding, hinting that Buffett hasn’t fully turned his back on the tech giant. But with record cash reserves and a keen eye on emerging opportunities, the next steps Berkshire takes could redefine not just its portfolio but perhaps even broader investment trends in the years to come.
Berkshire Hathaway Testing Crucial Levels: Will the Bulls WIN? Berkshire Hathaway (BRK.B) is approaching key levels that could dictate its next big move!
Upside Potential : A break above $465.04 could push the stock toward the next target at $473.18, where bulls are likely to step in for a rally. Watch for increased momentum if price closes above these resistance levels.
Downside Risk: If the stock fails to hold the current support around $459, a drop toward the lower support zone at $448.29 could be in play. Bears should be ready for action if the price breaks below this level.
Stay sharp, traders—both scenarios present strong opportunities. Keep an eye on price action and volume!
Happy Trading
Mindbloome Trader
Buffett's Company Hits $1 Trillion Market CapBuffett's Company Hits $1 Trillion Market Cap
Berkshire Hathaway's (BRK.B) Class B shares surpassed $465 this week, while Class A shares exceeded $700,000, pushing the market capitalisation of Warren Buffett's company past the $1 trillion mark. This milestone makes it the first non-tech U.S. company to join the trillion-dollar club, alongside Apple, Nvidia, Microsoft, Alphabet, Amazon, Meta, and Saudi Aramco.
Buffett's success lies in his value investing philosophy, which has allowed him to build a portfolio that consistently outperforms the market. This month is no exception—while the S&P 500 (US SPX 500 mini on FXOpen) has rebounded about 9.4% from its 5 August low, Berkshire Hathaway's Class B shares have surged over 14%.
Can the price climb even higher?
Technical analysis of the BRK.B chart reveals that:
→ Since mid-2023, the price has been forming an upward channel (shown in blue). On 5 August, the price attempted to break below the lower boundary but failed. The long lower wick on that day's candle indicates strong demand.
→ Following 5 August, a steady uptrend emerged without significant pullbacks, lifting the price to the upper half of the channel. The median line acted as support during a test (indicated by an arrow), and the RSI indicator soared into the overbought zone.
→ When analysing 2024 price action using Fibonacci proportions, the B→C retracement is about 0.50 of the A→B impulse. This suggests a target for the current rally could be at the 1.618 level, around $475, which aligns with the upper boundary of the rising channel.
Therefore, as the price approaches $475, the bullish trend may slow down. According to TipRanks, the target price for BRK.B shares is $477 over the next 12 months.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Is Warren Buffett Losing Faith in Bank of America?A Strategic Shift with Far-Reaching Implications
Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has taken a significant step that has sent ripples through the financial world. Berkshire, a long-time major shareholder of Bank of America (BofA), has been steadily selling its stake in the bank. This strategic move, totaling over $3.8 billion in sales, has raised eyebrows and sparked speculation about the future of BofA.
Buffett's decision to reduce Berkshire's holdings in BofA is a departure from his typical investment strategy, which often involves long-term, unwavering commitments. This shift raises questions about his perception of the bank's prospects and the broader financial landscape.
The implications of this move extend beyond Berkshire and BofA. As one of the most closely watched investors in the world, Buffett's actions can influence market sentiment and investor behavior. His decision to sell BofA shares could signal a potential shift in his outlook on the banking sector or broader economic conditions.
To learn more about the reasons behind Buffett's decision, the potential impact on Bank of America, and the broader implications for the financial sector, please visit our website.
AAPL: Warren Buffett accelerates sale of Apple sharesBerkshire Hathaway, led by Warren Buffett, has dramatically reduced its holdings in Apple Inc., marking a significant shift in its investment strategy. Over the past seven quarters, Berkshire has been consistently selling off its Apple shares, with the process intensifying in the second quarter of 2024. During this period, Buffett disposed of over USD 75 billion in stocks, including a substantial portion of his Apple holdings, reducing Berkshire’s stake in Apple from 789 million shares at the end of Q1 to 400 million.
The massive sell-off contributed to Berkshire Hathaway’s cash reserves reaching a record high of USD 276.9 billion. Buffett’s strategic move reflects broader market sentiments, where investors are increasingly cautious, favouring the security of high-yield US government bonds amid expectations of a rate cut by the Federal Reserve.
Technical analysis of Apple Inc. (NASDAQ: AAPL)
Reviewing Apple’s stock performance in light of recent developments:
Timeframe : Daily (D1)
Current trend: the stock is in a downtrend, exacerbated by the negative sentiment pervading the stock market and Buffett’s significant sell-off
Resistance level : 225.60 USD
Support level : the previous support at 214.50 USD has been breached
Short-term target : if the downtrend continues, the next target could be 181.45 USD following a rebound from the broken support
Medium-term target : a continued decline might see the stock reaching 172.70 USD
Potential uptrend scenario : if market conditions improve and the stock reverses its current trend, a potential growth target could be set at 235.00 USD
Investors and market watchers should closely monitor Apple’s stock, particularly in the context of Berkshire Hathaway’s reduced exposure and broader market dynamics. A significant divestment by a major investor like Buffett could influence other stakeholders and affect Apple’s stock performance in the near to medium term.
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Million dollar stock.Berkshire Hathaway breaking out versus Gold*Note #BRK does own Barrick Gold #ABX
Very interesting chart pattern
25 years in the making
The close of September should mark a confirmed breakout, of Warren Buffet's famous holding company, against Gold on a quarterly basis.
More evidence of a Melt Up in paper assets? And the continuation of the Bull market in the "roaring 20's"
If this is a continuation structure the amplitude suggests that one Berkshire Share, could be converted into well over 530 ounces of Gold.
At current prices that would equate to over a million dollars per share!
🏯 TOPIX FUTURES: JAPANESE BULL SAMURAI IS STILL ALIVELegendary investor Warren Buffett was on a trip to Tokyo, the capital of Japan, two months earlier in mid-April 2023, and the titans of the country's giant energy and commodity conglomerates were there to make their presentations.
As usual, over glasses of Coca-Cola NYSE:KO - one of Buffett's most famous investments, they walked into Warren Buffett's suite at the luxury Four Seasons hotel and individually told the 92-year-old American investor the same thing: Japanese trading houses are cheap and should accelerate their move beyond commodities.
The support of the Oracle of Omaha is an important vote of confidence in the big five Japanese trading houses - Mitsubishi Corporations TSE:8058 , Mitsui TSE:8031 , Sumitomo TSE:8053 , Itochu TSE:8001 and Marubeni TSE:8002
It's also a broad endorsement of Japan, that is considered to have outlived its heyday 30-35 years ago, as well as considered less relevant than Asian counterparts such as China and India.
But there's one big question: Is Buffett betting on phasing out fossil fuels, the trading house products themselves, or a combination of the two? Or something else, like impact of the weak yen!?
Buffett's Berkshire Hathaway NYSE:BRK.B reported in August 2020 that it had acquired about 5% of the shares of five trading houses, that sent their stocks up and raised their total investment value above $6 billion. When the Covid-19 pandemic dampened demand for goods, it pushed down the value of company stocks, four of which traded below book value.
“They were selling, I thought, at a ridiculous price,” - Buffett said to CNBC in March 2023.
Three years after the Covid-19 pandemic (that is now hardly remembered) Warren Buffett's bets on Japan have nearly tripled to over $17 billion.
But even this Growth does not stop Buffett. Staying in Tokyo this spring, Buffett confirmed intentions to buy more shares, and participate in more big deals.
In addition, Berkshire recently unveiled plans to issue its own yen-denominated bonds, which help hedge against the depreciation of the yen against the US dollar as well as depreciation of Japanese stocks in dollar terms.
The technical main chart is dedicated to futures on the TOPIX index TSE:TOPIX widely known, along with the Nikkei 225 index $TSE:NKY .
The TOPIX index is an important stock market index for the Tokyo Stock Exchange (TSE) in Japan, tracking all the local companies of the TSE Prime-market division.
Buffett's mission to Japan marked, as it easy to find in the technical picture of TOPIX ( TSE:TOPIX ) - a significant moment, as a result of the breakdown of the key long-term resistance, with the prospect of further more than doubling the index TSE:TOPIX and its market value.
Trade Like A Sniper - Episode 19 - BRK.B - (6th June 2024)This video is part of a video series where I backtest a specific asset using the TradingView Replay function, and perform a top-down analysis using ICT's Concepts in order to frame ONE high-probability setup. I choose a random point of time to replay, and begin to work my way down the timeframes. Trading like a sniper is not about entries with no drawdown. It is about careful planning, discipline, and taking your shot at the right time in the best of conditions.
A couple of things to note:
- I cannot see news events.
- I cannot change timeframes without affecting my bias due to higher-timeframe candles revealing its entire range.
- I cannot go to a very low timeframe due to the limit in amount of replayed candlesticks
In this session I will be analyzing the Berkshire Hathaway ETF chart, starting from the 6-Month chart.
Why Large Firms with Huge Cash? Small Firm Are Leading...Berkshire Hathaway, an investment company is not investing. What is the signal?
Why are they hoarding cash?
• Not much good investment opportunity ahead
• Preparing for tougher time
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Berkshire Hathaway's Q1 Operating Earnings Jumped 39% Berkshire Hathaway's ( LSE:BRK ) Q1 operating earnings rose 39% to $11.22 billion, driven by robust insurance and investment income. The Omaha-based company reported a 39% increase from $8.065 billion in the year-ago quarter. At the end of the quarter, approximately 75% of the aggregate fair value was concentrated in five companies.
In Q1 net earnings, investment losses totaled approximately $9.7 billion, while gains amounted to around $23.4 billion in the same period of 2023. These gains and losses were primarily due to changes in unrealized gains in equity security investments. After-tax realized gains from investment sales were $11.2 billion in the quarter under review, compared with $1.7 billion in the year-ago period.
Net earnings attributable to Berkshire ( LSE:BRK ) shareholders decreased to $12.702 billion from $35.504 billion a year ago. Insurance underwriting generated earnings of $2.59 billion versus $911 million year over year. Earnings from insurance-investment income totaled $2.598 billion compared to $1.969 billion in the year-ago period.
Berkshire Hathaway ( LSE:BRK ) Energy Company generated first-quarter earnings of $717 million, higher than $416 million a year ago. Other controlled businesses earnings in the first quarter totaled $3.088 billion, higher than the $3.065 billion in the first quarter of 2023.
Warren Buffett, known as the "Oracle of Omaha," has a real-time net worth of $131.7 billion. BRK/B shares closed higher by 0.07% to $400.87 on Friday, with shares up by 0.26% after hours.
Rail/Transportation Stocks: Macro Fib SchematicsThe biggest rail companies in the world. union Pacific, Berkshire Hathaway, CSX Corp, Northfolk Southern, Canadian Railway Co... GATX is a logistical distributor of railcars, trucks, ect...
FedEx and UPS are postal companies which transport many things.
These Schematics are an eye full but with a careful eye, it is easy to see the patterns of support and resistance. This is a 2 Month chart but they still work with the schematics because all timeframes work in tandem.
Some examples of stock movement include Berkshire Hathaway blasting off from an important Fibonacci Level (RED). Also, there are rejections on GATX and supports on UPS. Canadian Railway is heading into resistance. ECT ECT ECT...
Buffett is just one step away from skyrocketing to the Moon 🚀Warren Buffett's Berkshire Hathaway just snapped up more Occidental Petroleum shares, pushing the legendary investor's stake in the oil company to just over 25%.
Buffett's conglomerate purchased another 2.1 million shares of Occidental in the past week when the stock traded at $57.89, an amount worth $123 million in total, according to a recent Securities and Exchange Commission filing.
Berkshire now owns 224 million shares of the oil producer worth $13 billion. That represents just over quarter of Occidental's entire value, with a total market cap of $52.56 billion.
Buffett has been vocal about his bullishness on Occidental Petroleum, snapping up big chunks of the stock over the past year as oil and natural gas prices skyrocketed in the aftermath of Russia - Ukraine tensions.
And though Buffett has said he has no interest in taking over Occidental, Berkshire gained approval from regulators to potentially own up to 50% of the company last August.
Energy prices, meanwhile, have eased from their highs last summer, but analysts have said prices are in for another surge later in the year, especially if China's economic reopening leads to a big upswing in oil demand.
Moreover El Niño is here. Commodity prices could swing in turmoil.
Was it Charlie the whole time or does Warren just give up...Was it Charlie the whole time or does Warren just give up...
Berkshire Hathaway, Inc. engages in the provision of property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, and retailing services. It operates through following segments: GEICO, Berkshire Hathaway Reinsurance Group, Berkshire Hathaway Primary Group, Burlington Northern Santa Fe, LLC (BNSF), Berkshire Hathaway Energy, McLane Company, Manufacturing, and Service and Retailing. The GEICO segment is involved in underwriting private passenger automobile insurance mainly by direct response methods. The Berkshire Hathaway Reinsurance Group segment consists of underwriting excess-of-loss and quota-share and facultative reinsurance worldwide. The Berkshire Hathaway Primary Group segment consists of underwriting multiple lines of property and casualty insurance policies for primarily commercial accounts. The BNSF segment operates railroad systems in North America. The Berkshire Hathaway Energy segment deals with regulated electric and gas utilities, including power generation and distribution activities, and real estate brokerage activities. The McLane Company segment offers wholesale distribution of groceries and non-food items. The Manufacturing segment includes industrial and end-user products, building products, and apparel. The Service and Retailing segment provides fractional aircraft ownership programs, aviation pilot training, electronic components distribution, and various retailing businesses, including automobile dealerships, and trailer and furniture leasing. The company was founded by Oliver Chace in 1839 and is headquartered in Omaha, NE.
Warren Buffet’s Berkshire Records Annual Profit SoarBerkshire Hathaway ($NYSE: LSE:BRK ), the conglomerate led by legendary investor Warren Buffett, has once again demonstrated its financial prowess with a second consecutive year of record annual profit. The company's stellar performance, fueled by gains from investments in common stock and robust insurance operations, underscores its resilience amidst market volatility. However, amidst the positive financial results, Buffett's cautious outlook on buying opportunities and the revelation of Berkshire's foray into crypto-related stocks add layers of intrigue to the narrative.
Record Profit and Financial Highlights:
Berkshire Hathaway ( LSE:BRK ) reported an impressive net profit of $96.2 billion for the entirety of 2023, surpassing its previous record set in 2021. The company's operating profit for the fourth quarter surged by 28% to $8.48 billion, driven by gains across various investment portfolios and increased revenue from insurance operations. Berkshire's resilience in the face of market downturns, such as the crash in 2022, underscores its ability to navigate turbulent economic landscapes.
Buffett's Cautionary Tone and Limited Buying Opportunities:
Despite Berkshire's stellar financial performance, Warren Buffett remains cautious about the firm's future buying prospects. With Berkshire's massive size and a scarcity of significant acquisition opportunities, Buffett suggests that the conglomerate may only marginally outperform typical American corporations. Buffett's remarks shed light on the challenges of deploying capital efficiently in a market characterized by limited investment options, reflecting his prudent approach to capital allocation.
Surprise Crypto Investments Contradict Buffett's Stance:
In a surprising turn of events, Berkshire Hathaway's ( LSE:BRK ) disclosed investments in crypto-related stocks stand in stark contrast to Warren Buffett's well-known skepticism towards cryptocurrencies. The revelation that Berkshire increased its investment in Nubank, a leading Latin American digital bank offering crypto trading services, highlights the conglomerate's recognition of the disruptive potential of digital banking and cryptocurrencies. This strategic move underscores Berkshire's forward-looking vision and its willingness to adapt to evolving market dynamics.
Conclusion:
Berkshire Hathaway's ( LSE:BRK ) record profit, coupled with Warren Buffett's cautious tone and unexpected foray into crypto-related stocks, paints a multifaceted picture of the conglomerate's evolving strategy. While the company continues to deliver impressive financial results, Buffett's prudent approach to capital allocation reflects a commitment to long-term sustainability and value creation. As Berkshire navigates the complexities of the modern financial landscape, investors are poised to monitor its strategic moves with keen interest, recognizing the convergence of tradition and innovation within one of the world's most renowned investment vehicles.
Berkshire Hathaway - BreakoutHello Traders, welcome to today's analysis of Berkshire Hathaway.
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Explanation of my video analysis:
In 2013 Berkshire stock broke above a key resistance area which was acting as resistance for multple years. This breakout was followed by a +300% pump towards the upside. Last month Berkshire stock then also broke out of a long term triangle formation. If we get a retest back to the previous resistance mentioned in the analysis, I will be looking for long-continuation setups.
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I will only take a trade if all the rules of my strategy are satisfied.
Let me know in the comment section below if you have any questions.
Keep your long term vision.
🔝 Berkshire Hathaway. Grandpa Warren Breaks The TopLegendary investor Warren Buffett was on a trip to Tokyo, the capital of Japan, ten months earlier in mid-April 2023, and the titans of the country's giant energy and commodity conglomerates were there to make their presentations.
As usual, over glasses of Coca-Cola NYSE:KO - one of Buffett's most famous investments, they walked into Warren Buffett's suite at the luxury Four Seasons hotel and individually told the 92-year-old American investor the same thing: Japanese trading houses are cheap and should accelerate their move beyond commodities.
The support of the Oracle of Omaha is an important vote of confidence in the big five Japanese trading houses - Mitsubishi Corporations TSE:8058 , Mitsui TSE:8031 , Sumitomo TSE:8053 , Itochu TSE:8001 and Marubeni TSE:8002 .
It's also a broad endorsement of Japan, that is considered to have outlived its heyday 30-35 years ago, as well as considered less relevant than Asian counterparts such as China and India.
But there's one big question: Is Buffett betting on phasing out fossil fuels, the trading house products themselves, or a combination of the two? Or something else, like impact of the weak yen!?
Buffett's Berkshire Hathaway NYSE:BRK.B reported in August 2020 that it had acquired about 5% of the shares of five trading houses, that sent their stocks up and raised their total investment value above $6 billion. When the Covid-19 pandemic dampened demand for goods, it pushed down the value of company stocks, four of which traded below book value.
“They were selling, I thought, at a ridiculous price,” - 3 years later Buffett said to CNBC, in March 2023.
Three years after the Covid-19 pandemic (that is now hardly remembered) Warren Buffett's bets on Japan have nearly tripled to over $17 billion.
But even this Growth does not stop Buffett. Staying in Tokyo last spring, Buffett confirmed intentions to buy more shares, and participate in more big deals.
In addition, Berkshire recently unveiled plans to issue its own yen-denominated bonds, which can help hedge against the depreciation of the yen against the US dollar as well as depreciation of Japanese stocks in dollar terms.
In nowadays Japan Stock Index TSE:TOPIX ended 2023 on a positive note, adding more than 25 percent at the end of the year, that is, the maximum growth over the last 10 calendar years.
Early in 2024 TSE:TOPIX continues its growth path, as technology companies stocks are rallying.
In 2024 TSE:TOPIX hit the 2,500 yen mark - point that not been seen for more than 30 years - since the first half of 1990, while another one Japan stock index Nikkei225 INDEX:NKY hit its 36'000 Milestone - the level that was not seen also since early 1990s.
The main technical graph says Berkshire Hathaway Class B NYSE:BRK.B stocks are on the runway to break its key resistance - 6-month and all time highs, to further upside price action delver.
Will Berkshire Hathaway investors panic when Warren Buffet...Will Berkshire Hathaway investors panic when Warren Buffet passes away?
Few companies are as closely tied to their leaders as Berkshire is to Warren Buffett and was to Charlie Munger.
Munger's recent passing, who served as Berkshire's vice chairman since 1978, signifies the end of an era for the company. While Munger's role was significant, Buffett's influence on the company is even more substantial. Given his age of 93, Buffett's eventual passing could potentially have a large impact on Berkshire's stock price. Investors may be spooked or optimistic about Berkshires possible future. The cult of personality and reverence for billionaires among the investing class suggests that the impact would be negative. But who knows?
In a recent letter, Buffett asserted that Berkshire is "built to last" and will continue to thrive under capable leadership, likely from Greg Abel. Currently the CEO of Berkshire Hathaway Energy and vice-chairman of non-insurance operations, Abel is seen as a potential successor. As pondered by Reuters; will he be willing to divest underperforming or uninspiring businesses, unlike his predecessors who preferred long-term holdings, or whether Berkshire might consider paying its first dividend since 1967?
REST IN PEACE to one of the greatest financial mindsCharlie Munger right hand man to investment giant Warren Buffett has passed away on the 28 November 2023, born 1 January 1924. Not only was he an investment wiz he was great at behavioral psychology.
He started his investment career in 1962 working as a real estate attorney which he gave up to pursue investment management along side Otis Booth, he later went on to form an investment firm with Jack Wheeler to his own firm to 1975. 1978 when he started working closely with Warren Buffett on BERKSHIRE HATHAWAY which owns businesses with a networth of 782.64BILLION in different industries and they have since made an average annual gain of 20.1% every year till 2022, and has made a personal wealth for himself of 2.6 billion.
He considers himself to be a value investor ( investment strategy where investors identify stocks whose prices don't reflect what they are really worth) . Charlie also was a long term investor looking at companies that were high in value and also had the potential to continue increasing in value by holding for a long term compounding gain.
some of his best qoutes are :
-the best way to get what you want is to deserve what you want.
-all intelligent investing is value investing
-the world is not driven by greed but by envy.
the investment community suffered a great loss, Charlie is really one of the greats, showing it pays to be patient and the importance of portfolio diversification.
what have you learned from Charlie Munger yourself?
put together by : Pako Phutietsile ( @currencynerd )
Berkshire Hathaway's (NYSE: BRK.A) Key Stocks Milestone
KEY METRICS
Berkshire Hathaway reported a third-quarter net loss of $12.77 billion.
Apple’s 12% fall over the quarter hurt the company’s $350 billion stock portfolio.
The company's cash hoard rose to a record $157.2 billion, thanks in large part to Treasury holdings.
The company continued to slow the pace of buybacks in the third quarter.
Warren Buffett's Berkshire Hathaway Inc. (BRK.A, BRK.B) reported its third-quarter earnings Saturday, which showed a net loss of $12.77 billion but the company's operating income rose by 40.65% from the year-ago period to $10.76 billion.
Yields Boost Cash Hoard
Berkshire continued to expand its huge cash hoard to a record $157.2 billion, up from $147.4 billion in the second quarter.
The cash pile is largely invested in U.S. Treasury bills, which recently surged to 5%. The company increased its Treasury bill holdings by 36% in the last year, which totaled $126 billion in the third quarter.
Berkshire is likely looking to capitalize on the yields that exceed consumer inflation by more than 1 percentage point as rising interest rates have made investments in Treasuries more attractive.
Price Momentum
BRK.A is trading near the top of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
Is It Worth Investing in Berkshire Hathaway B (BRK.B)Berkshire Hathaway B currently has an average brokerage recommendation (ABR) of 1.67, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by three brokerage firms. An ABR of 1.67 approximates between Strong Buy and Buy.
Looking at the earnings estimate revisions for Berkshire Hathaway B, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $15.82.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Berkshire Hathaway B.