Berkshire Hathaway Trims Apple Stake, Cash Reserves Hit New HighBerkshire Hathaway (NYSE: LSE:BRK ), the conglomerate led by legendary investor Warren Buffett, released its Q2 2024 financial report, revealing significant portfolio adjustments and a surge in cash reserves. The company's strategic moves have sent ripples through the market, reflecting a cautious stance amid economic uncertainties.
Major Reduction in Apple Holdings
In a surprising move, Berkshire Hathaway (NYSE: LSE:BRK ) slashed nearly half of its Apple holdings, reducing its stake from 790 million shares to 400 million shares—a substantial 49% decrease. This follows earlier reductions, including a 1% sell-off in Q4 2023 and a 13% cut in Q1 2024. The decision to pare down Apple, which has been a cornerstone of Berkshire's portfolio, underscores Buffett's strategic shift in response to potential changes in U.S. tax policy. At the annual shareholder meeting in May, Buffett cited the expectation of a possible increase in U.S. tax rates as a key reason for taking profits on his Apple position.
Record Cash Reserves
Berkshire Hathaway's cash reserves soared to an unprecedented $276.9 billion, up from $189 billion in Q1 2024. This massive increase was bolstered by $75.5 billion in stock sales during the quarter. The substantial liquidity positions the company advantageously for potential market downturns or opportunistic acquisitions.
Systematic Reduction in Bank of America Stake
In addition to trimming its Apple holdings, Berkshire Hathaway has been steadily reducing its position in Bank of America, its second-largest holding. Regulatory filings indicate that in the 12 trading days leading up to August 1st, Berkshire sold approximately $3.8 billion worth of Bank of America stock. This systematic reduction reflects a broader strategy of rebalancing its portfolio amid evolving market conditions.
Strategic Implications
Berkshire Hathaway's moves highlight a cautious yet opportunistic approach. The significant increase in cash reserves suggests that Buffett and his team are preparing for potential market volatility and looking to capitalize on future investment opportunities. By reducing exposure to major holdings like Apple and Bank of America, Berkshire is diversifying its risk and positioning itself to navigate an uncertain economic landscape.
Market Reaction
The response of the market to Berkshire Hathaway's (NYSE: LSE:BRK ) financial report has resulted in polarized opinions. While certain investors interpret the divestment in Apple and Bank of America holdings as a prudent risk management tactic, others express apprehension regarding the potential repercussions for these stocks, given Berkshire's influential standing in the market.
At the time of writing, LSE:BRK stock has experienced a decline of 3.42% and is currently trading with a weak Relative Strength Index (RSI) of 37.83, signaling a potential trend reversal subsequent to a prolonged bearish trend. Notably, the majority of moving averages portray a bearish trend, a substantial observation considering the widespread decrease in both stock and crypto assets today.
Conclusion
Berkshire Hathaway's Q2 2024 financial report underscores the company's adaptive strategy in a dynamic market environment. With record cash reserves and a rebalanced portfolio, Berkshire Hathaway remains well-positioned to seize future opportunities while mitigating risks. Investors will be closely watching Buffett's next moves as economic conditions evolve.
For more detailed insights and analysis on Berkshire Hathaway's strategic adjustments and their market implications, stay tuned to our updates.
BRK
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!
Chubb Stock Jumps After Buffett's Berkshire Reveals $6.7B StakeChubb shares ( NYSE:CB ) jumped over 8% in late trade on Wednesday after Warren Buffett's Berkshire Hathaway revealed a $6.7 billion stake in the Zurich-based insurer. Buffett recently told shareholders that property-casualty insurance provides the core of Berkshire's well-being and growth. Berkshire had been building its position in Chubb since 2023, but had not previously disclosed the stake after the SEC granted it permission to keep the holding confidential.
Berkshire's stake of nearly 26 million shares in Chubb ( NYSE:CB ), one of the world's largest publicly traded property-casualty insurers, had a market value of around $6.7 billion as of March 31, making it the conglomerate's nineth largest holding. The investment is driven by Berkshire's heavy footprint in the insurance industry, which Buffett recently told shareholders that "property-casualty insurance" provides the core of Berkshire's well-being and growth.
The stock has continued to track higher since bottoming out in June last year, with the trend gathering momentum after the 50-day moving average crossed above the 200-day MA to form a bullish golden cross signal. Recently, the stock has traded within an ascending triangle, indicating a continuation of the longer-term uptrend.
Moreover, Chubb ( NYSE:CB ) has a Relative Strength Index (RSI) of 71.75 which is overbought hence, a trend reversal might lurk in the corners.
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.
Analyzing Berkshire Hathaway A (BRK.A) Stock: Insights & OutlookBerkshire Hathaway ( LSE:BRK ) has long been a staple in investors' portfolios seeking stability and growth. However, recent performance metrics and analyst projections have sparked discussions among market participants. As LSE:BRK prepares to unveil its earnings report, investors are scrutinizing key indicators to gauge the company's trajectory and potential.
Earnings Expectations:
The upcoming earnings release for Berkshire Hathaway is generating significant anticipation within the investment community. Analysts predict an EPS of $3.41, reflecting a slight decline compared to the previous year. Despite this modest setback, the company's quarterly revenue estimate stands at $81.03 billion, underscoring its robust operational scale.
Analyst Insights and Estimate Revisions:
Analyst sentiment towards LSE:BRK is crucial in shaping investor perceptions and market dynamics. Recent adjustments to analyst estimates highlight the fluid nature of short-term business patterns. Positive estimate revisions are often interpreted as favorable indicators for the company's outlook, signaling potential upside in the stock's performance.
Valuation Metrics:
Assessing BRK.B's current valuation metrics reveals insights into its market positioning. With a Forward P/E ratio of 22.07, the company commands a premium compared to industry peers. Similarly, its PEG ratio of 3.15 suggests a premium relative to projected earnings growth, underscoring investor confidence in Berkshire Hathaway's long-term prospects.
Technical Outlook
The stock's price momentum, trading near its 52-week high and above its 200-day moving average, signals positive sentiment among investors and potential for further upside.
Warren Buffet’s Berkshire Records Annual Profit SoarBerkshire Hathaway ($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: Step by Step 👣Although the last few days have been volatile, the price of Berkshire has now backed the low of the magenta wave (1) and is currently in an uptrend. The same colored wave (2) should reach $360 before a reversal takes place. The 37% probability alternative scenario is for the price to rise further, which would come into play on a break of the resistance at $373.34.
Berkshire Hathaway Trail competitors Berkshire Hathaway Inc . (NYSE:BRKa)'s Class B shares (NYSE:BRK.B) continued their upward trend for a third consecutive day on Friday, with a modest gain of 0.37%, closing at $346.34. This comes amidst a broadly positive market, where the S&P 500 Index and Dow Jones Industrial Average advanced to 4,308.50 and 33,407.58 respectively.
BRK, Massive Volatility-Developments, Important Price-Dynamics!Hello There!
Welcome to my new analysis about BRK on several timeframe perspectives. The BRK stock is one of the few stocks within the recently bearish inclined stock market that is actually showing all-time-high developments with the price-action bouncing into a new all-time-high. Within this case there are important underlying dynamics going on which could turn out to be a major factor in determining the stocks future and incoming price-actions. Especially as BRK did not pulled back massively yet this is actually increasing the possibility of no bull-trap to emerge here.
First of all, BRK is recently forming this ever so decisive Ascending-Triangle-Formation on the local timeframe perspective which is likely to be completed within the next times. Once the Ascending-Triangle-Formation has been completed it is going to activate initial target-zones. In this case 5 factors will be important to consider. The first factor on how the momentum shows up once the breakout emerged. The second factor on if BERKSHIRE actually pulls back from the target-zone or it has such a momentum that it continues above it. The third factor on if the major ascending-supports hold and BERKSHIRE emerges with a bounce from there on. The fourth factor on how Apple a major holding of BERKSHIRE develops and the fifth factor on if the U.S. CPI continues to decline.
Taking all these factors into the consideration here now, the next times will be highly important because BERKSHIRE is going to show up with the major decisive volatility developments. When considering this whole dynamic on the global perspective also BERKSHIRE is forming this gigantic ascending-triangle also besides the local timeframe and once BERKSHIRE holds this gigantic ascending-triangle lower boundary it is going to be the impediment of the whole continuations to accelerate, activate the target-zones and reach out to all of the target-zones in the upcoming times.
In this manner, thank you everybody for watching the analysis, support from your side is greatly appreciated.
VP
BERKSHIRE is at a critical top. Follow the breakout.Berkshire Hathaway / BRK.A is trading inside a Rising Wedge for nearly 1 year.
Since March 17th it is being supported by an Inside Rising Support, which is now even higher than the 1day MA50.
The price is at the top of the Rising Wedge, so it is likely to see a strong medium term correction.
However sell is confirmed only after the Inside Rising Support breaks, so in that case target Support B and the 1day MA200 at 483500.
If the price crosses above the Rising Wedge, buy instead and target Resistance A (and All Time High) at 544500.
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Buying Berkshire Hathaway in current range.Berkshire Hathaway B - 30d expiry - We look to Buy at 319.21 (stop at 314.21)
Price action continued to range between key support & resistance (320 - 330) although we expect a break of this range soon.
The bias is to break to the upside.
The primary trend remains bullish.
This is currently an actively traded stock.
Support is located at 320 and should stem dips to this area.
Our profit targets will be 331.21 and 333.21
Resistance: 322.63 / 324.00 / 327.00
Support: 320.00 / 317.41 / 314.00
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Buying a Berkshire break higher.BRK.B - 30d expiry - We look to Buy a
break of 283.03 (stop at 274.88)
The primary trend remains bullish.
Bullish divergence can be seen on the weekly chart (the chart makes a lower low while the oscillator makes a higher low), often a signal of exhausted bearish momentum, or at least a correction higher.
282.50 has been pivotal.
A break of 283 is needed to confirm follow through bullish momentum.
Prices have reacted from 260.
Our profit targets will be 304.97 and 309.97
Resistance: 280 / 290 / 300
Support: 270 / 265 / 260
Disclaimer – Saxo Bank Group.
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BRK looking goodbullflags on bullflags turn into bullflags
The tyupical anatomy of a bullflag is a pole, then a core that looks like a steep bullflag, then an exit, which typicall forms a container bullflag around the core, often contains a mini bullflag, and repeat.
So here...
Big green bullflag
Core is awedge (green)
exit bullflag was a wedge -> bullflag (yellow)
Now that will morph to a flatter bullflag (purple), and prob have a tiny buillflafg in the top-right corner.
The whole purpose is to jam in up the stairs adn down the elevator as much as possible to work off RSI and shed the sellers
Expanding Megaphone on Berkshire Hathaway + Trade IdeaExpanding Megaphone on Berkshire Hathaway
-The main structure we are observing right now is an expanding megaphone
-Currently, the price is above a major resistance zone (previous ATH)
-IF the price breaks above the last ATH, we expect a bullish movement towards the higher trendline of the megaphone
-The secondary structure we are observing is the Ascending channel (yellow lines)
TRADE IDEA:
-Here, we are looking for a 1 : 2 Risk Reward Ratio. The first Fibo extension is the break-even level, and the 2nd one is the Target level.
-We will risk 1% of our Trading Capital on this setup.
-If the price goes below the Stop zone without executing the setup, we will keep moving it below the price until we reach a minimum risk-reward ratio of 1 : 1.5 (if the price keeps falling, we will cancel the idea)
-In case our setup is executed, we expect a resolution of 30 to 45 days