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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?
NYSE:BRK.A
by moonypto
Guess?, Inc. Reports Fiscal Year 2025 Fourth Quarter ResultsGuess?, Inc. (NYSE: NYSE:GES ) a company that designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children- operating through five segments: Americas Retail, Americas Wholesale, Europe, Asia, and Licensing, reports fiscal year 2025 fourth quarter results. Reports Highlights Fourth Quarter Fiscal 2025 Results: Revenues Increased to $932 Million, Up 5% in U.S. Dollars and 9% in Constant Currency Delivered Operating Margin of 11.1%; Adjusted Operating Margin of 11.4% GAAP EPS of $1.16 and Adjusted EPS of $1.48. Full Fiscal Year 2025 Results: Revenues Increased to $3.0 Billion, Up 8% in U.S. Dollars and 10% in Constant Currency Delivered Operating Margin of 5.8%; Adjusted Operating Margin of 6.0% GAAP EPS of $0.77 and Adjusted EPS of $1.96 Full Fiscal Year 2026 Outlook: Expects Revenue Increase between 3.9% and 6.2% in U.S. Dollars Expects GAAP and Adjusted Operating Margins between 4.3% and 5.2% and 4.5% and 5.4%, Respectively Expects GAAP EPS between $1.03 and $1.37 and Adjusted EPS between $1.32 and $1.76 Plans to Execute Business and Portfolio Optimization Expected to Unlock Approximately $30 Million in Operating Profit in Fiscal Year 2027 Financial Performance In 2024, Guess?'s revenue was $3.00 billion, an increase of 7.88% compared to the previous year's $2.78 billion. Earnings were $60.42 million, a decrease of -69.15%. Analyst Forecast According to 5 analysts, the average rating for GES stock is "Strong Buy." The 12-month stock price forecast is $21.6, which is an increase of 115.14% from the latest price. As of the time of writing, NYSE:GES shares closed Thursday's session down 11.78% extending the loss to Friday's premarket trading down by 2.38%. With a weaker RSI of 38, should trades open, NYSE:GES shares might break the 1-month low pivot and dip to the $7 support point. About $2.85 trillion was wiped out from the US stock market yesterday.
NYSE:GESShort
by DEXWireNews
IAG Airlines Group what next? $261 Reached & Breached! $172?🤔 IAG Airlines Group what next? ℹ️ $261 Reached & Breached! Will the $261 be regained and start to offer some support or is $172 NEXT?❓️❔️❓️ 🌍 To be completely transparent I have no horse in this race at the moment BUT I really would like a serious flush to try and accumulate a long-term POSITION. 🟢SeekingPips🟢 is not interested at current price at all unless we start to see some SERIOUS VOLUME START TO COME IN TO PLAY
LSE:IAG
by seekingpips
Snow White's very low ratings - Bullish Disney stock ?The SnowWhite IMDB rating can't get any worse - could the same be said of Disney stock? Price is the ultimate proof but buying the shares of a well established company when sentiment is at a low point can be a fruitful endevour. The poor box office showing + very weak ratings for Snow White - maybe a contrarian buy signal ? A) The stock is attempting a long term double bottom via is 2020 + 2023 lows B) A breakout over the downtrend line (orange) could confirm a bullish trend change Bottom of the ratings ➡️ Bottom in the stock? NYSE:DIS
NYSE:DISLong
by jasperlawler
Everyone’s scared of booze stocks… Why I’m still buyingThis analysis is provided by Eden Bradfeld at BlackBull Research. One of the things I find interesting is that a lot of people say “why do you like booze stocks so much Eden” and yet many of these same people are at the pub, or buying En primeur from Glengarry Wines. The short answer is — I like stocks that trade at multi-year lows with a predictable product. There is a fairly hysterical article in the FT wondering “Is alcohol the new tobacco?” To which I say, well, tobacco companies are absolute cash machines. The best performing stock in the S&P, of all time, to the best of my knowledge, is Altria. I know investing in tobacco is not fashionable (and yet, how many people do you see on the street vaping?). I know it goes against “ESG” and the scolds at public health slap you on the hand and say “gosh that is very bad for you!”. But the truth is that tobacco does generate tremendous profits — the net income margin for British American Tobacco is 39.1%. For those in the back, that’s for every $1 you sell, you make 39.1 cents of profit. There’s very few businesses with such fantastic operating margins — Visa’s net income margin is 56%. If I owned only one stock forever, I guess it’d probably be Visa. My point is — waving your hands about and saying “oh no! Tobacco!” belies the economics of it. The tobacco companies are doing very well, thank you very much. It will come as no surprise that cigarette smoking has been replaced by vaping. To paraphrase Oscar Wilde, news of nicotine’s demise has been greatly exaggerated. This is not saying to invest in tobacco stocks, but my point is that human habits don’t change. They merely evolve, but the song remains the same. To be fair — alcohol consumption is declining. But it isn’t declining at a rate that calls for any kind of alarm. Most of the companies I follow — Brown Forman, Diageo, Constellation, etc, reported largely flat sales. It’s also instructive to look to history. In other words — alcohol consumption has largely normalised in the last few decades. There’s still cause for worry — I think wine is one area of concern, and Cognac is another — both industries need to think about how they introduce younger drinkers to their product. This is why I largely shy away from wine (and why Constellation is selling their wine portfolio). “Evergreens” like Guinness (a Diageo brand) and Jack Daniel’s (a Brown-Forman brand) are predictable. Once again — a bunch of ratios for ya’ll: Brown-Forman: 18x fwd earnings Pernod: 12x fwd earnings Constellation Brands: 13.25x fwd earnings And so on… these stocks trade like they are discount retailers in biddlybunk Ohio. They are not. There’s the issue. There’s where value lies. Cigarettes never went away; they became vapes. In my opinion, I don’t see booze going away anytime soon either.
NYSE:MO
by BlackBull_Markets
RITES: INVERSE H&S BREAKOUTThe Inverse Head and Shoulders pattern is a bullish reversal chart pattern that signals a potential trend reversal from bearish to bullish. It consists of three key components: Structure of the Pattern: Left Shoulder: A price decline followed by a temporary rally. Head: A deeper decline forming the lowest point, followed by another rally. Right Shoulder: A decline similar in size to the left shoulder but not as deep as the head, followed by a move higher. Neckline: A resistance level that connects the highs of the two rallies after the left shoulder and head. The Inverse Head and Shoulders pattern in RITES, with a neckline at ₹225, indicates a potential bullish reversal. The stock has formed a well-defined left shoulder, head, and right shoulder, suggesting that selling pressure is weakening. The target price for this breakout is ₹263 calculated by measuring the distance from the head’s low to the neckline and projecting it upwards. If the stock sustains above the neckline, it could gain further momentum. However, traders should consider placing a stop-loss at 212 to manage risk in case of a failed breakout.
NSE:RITESLong
by TradingSutra
GUJRAT GAS: INVERSE H&SThe Inverse Head and Shoulders pattern is a bullish reversal chart pattern that signals a potential trend reversal from bearish to bullish. It consists of three key components: Structure of the Pattern: Left Shoulder: A price decline followed by a temporary rally. Head: A deeper decline forming the lowest point, followed by another rally. Right Shoulder: A decline similar in size to the left shoulder but not as deep as the head, followed by a move higher. Neckline: A resistance level that connects the highs of the two rallies after the left shoulder and head. The Inverse Head and Shoulders pattern in Gujrat Gas, with a neckline at ₹396, indicates a potential bullish reversal. The stock has formed a well-defined left shoulder, head, and right shoulder, suggesting that selling pressure is weakening. A breakout above ₹406, supported by strong volume, could confirm the pattern and trigger an upward move. The target price for this breakout is ₹440, calculated by measuring the distance from the head’s low to the neckline and projecting it upwards. If the stock sustains above the neckline, it could gain further momentum. However, traders should consider placing a stop-loss below the right shoulder i.e. 376 to manage risk in case of a failed breakout.
NSE:GUJGASLTDLong
by TradingSutra
Watch This Before Trading Delta Airlines Stock in 2025!The Art of Trading: Price Action, Supply and Demand, and Patience in Delta Airlines. Trading in the stock market is a skill that requires a deep understanding of market dynamics, disciplined decision-making, and the ability to remain patient in the face of volatility. Among the most effective strategies for achieving consistent success are price action analysis, supply and demand principles, and meticulous money management. This supply and demand stock analysis will explore how these strategies can be applied to Delta Airlines (DAL), focusing on key price levels, candlestick patterns, and the importance of patience in making informed investment decisions. A strong demand level for Delta Airlines (DAL) has been identified at $43. This level represents a price zone where buyers have historically shown significant interest, leading to price reversals. By waiting for the stock to retrace to this level, traders can enter positions with a higher probability of success as the likelihood of renewed buying pressure increases.
NYSE:DALLong
by AlfonsoMoreno
Abbott and Amazon: Two Bright Spots in a Sea of Red◉ Abbott Laboratories NYSE:ABT ● The stock previously faced strong resistance near the $134 level, leading to an extended consolidation phase. ● During this period, a Rounding Bottom pattern emerged, signalling a potential continuation of the upward trend. ● Following a recent breakout, the stock has surged to its all-time high and is expected to maintain its upward momentum in the coming days. ◉ Amazon NASDAQ:AMZN ● Since August 2020, Amazon's stock has been consolidating, forming a clear Inverted Head & Shoulders pattern. ● After breaking above the neckline, the stock rallied sharply and reached an all-time high near $242. ● Following this, the price pulled back to retest the breakout level and with a successful retest, the stock is now well-positioned to resume its upward trend.
NYSE:ABTLong
by NaranjCapital
Finolex Cables: Unveiling the Bullish Momentum Beyond Resistancewww.tradingview.com Current Market Overview Finolex Cables Ltd. has exhibited significant price movements recently, indicating potential future trends. The stock is currently priced at 914.95, with notable highs and lows. Analyzing key technical indicators and historical data, we can formulate a well-rounded prediction. Technical Indicators Price Levels: -------------- -> Support Levels: 800, 700 -> Resistance Levels: 1,090, 1,345.75, 1,577 Volume Profile: ------------------ Strong volume around 11,757,413 suggests significant interest and potential support at this level. Break of Structure (BOS): ----------------------------- Multiple BOS annotations indicate significant trend changes, highlighting key reversal points. Order Blocks and D-Key Levels: ------------------------------------- Order blocks (OB) and D-Key levels mark areas of high trading activity and potential reversal zones. Historical Performance The chart showcases several Break of Structure (BOS) points, signaling critical trend reversals. The recent price action around the 800 support level suggests a potential rebound, while resistance levels at 1,090, 1,345.75, and 1,577 indicate possible challenges ahead. Future Projections Based on the current analysis, we can outline three potential scenarios: Bullish Scenario: ------------------- -> Minimum Projection: 1,090 (+17.38%) -> Average Projection: 1,345.75 (+47.08%) -> Maximum Projection: 1,577 (+72.36%) If the stock breaks above the 1,090 resistance level and sustains this momentum, it may target higher levels. This would require strong buying pressure and favorable market conditions. Bearish Scenario: --------------------- If the stock fails to break above 1,090 and instead breaks below the 800 support level, it could decline further towards 700. This would indicate continued bearish pressure and lack of buying interest. Conclusion ------------- The technical analysis suggests a potential bullish trend for Finolex Cables Ltd. The support levels around 800 and 700 provide a strong foundation, while the resistance levels at 1,090, 1,345.75, and 1,577 offer potential targets. Traders should monitor these levels closely and consider the projections when making trading decisions.
NSE:FINCABLESLong
by Stox_Ware
1
The Convoluted Wellness Movement Say what you will about RFK Jr, but his ideas, if implemented even in some small ways, would have a drastic impact on the psychopharmaceutical industry. I'm a therapist myself, and I can't tell you how many teenagers are placed on SSRIs and ADHD medication without careful consideration for long term effects. Not that these medications are poisonous - they can be very helpful for many. I do think they are overprescribed, however, and can lead to lifelong dependency if not used carefully or with intent. While I don't think psychedelics would be great for teenagers and their developing brains (says the guy who took mushrooms for the first time at 17), I do think they are a powerful alternative, and do not require as much consistent dosing. The pharmaceutical industry will try to push microdosing, so as to make greater profits. Do I think psychedelics will be implemented as mental health treatment successfully on the first go-around? Not necessarily. Do I think that certain people with a family history of psychosis and mood disorders should avoid psychedelics? Probably. The companies at the forefront of this research could be in a decent position to spike in value. They may be eventually bought out by other entities, of course, or simply lose their speculative value. Maybe this is already happening. I'm wondering if CYBIN in particular, is forming a bottom here. It does look trapped in an endless wedge, with every pump getting aggressively sold. However, volume is steadily increasing week by week, which could indicate some hidden accumulation. MindMedicine may be positioned a little better, from a technical perspective. I've bought back into both MindMedicine and Cybin equally over the last day or two. Not a big position, but perhaps worth the gamble. Each could easily decline by 50% or more from here. MNDMD at least seems to have a healthier chart. The bigger concern is whether these companies' finances can withstand more time before regulatory clarity, as well as governmental stability as a whole. Things are looking very strange in the U.S. Either way, there is a movement (public or not) towards homeopathic medicine. I guess we'll see. This investment is entirely speculative, and seems just as likely to trend towards zero as it is to explode 10x in value. This is my personal opinion, and is meant for personal use only - not as financial advice. These stocks have relatively low volume and are prone to wild price swings.
AMEX:CYBNLong
by VictorCobra
1
Pricol Ltd – Bearish on 1D Time FramePricol Ltd - Symmetrical Triangle Breakdown giving us a potential short trade. You can use your own strategy and trade accordingly. Give me some energy!! ✨ We pour our heart and soul into uncovering potential opportunities and crafting ideas that truly matter to you. Your support fuels our passion and keeps us going! 💚 With gratitude, ProfitsNinja ✅ Thank you for being part of our journey! For more insights and ideas, show some love with a ❤️ Like ❤️ and 🌟 Follow 🌟! ⚠️ Stay alert! Markets are dynamic and unpredictable. Even with the best signals, shifts can happen swiftly and powerfully. Stay prepared, stay ahead!
NSE:PRICOLLTDShort
by ProfitsNinja
SOFI Ready to Break Out to $30+ ?I’ve been watching this move closely, and right now, we’re heading toward $16.49—a level that could decide the next big move. If we break through $16.98, there’s a real shot at pushing toward $18.33 and beyond, with a longer-term target of $30+. But here’s the flip side: if we reject at $16.49, we could see a pullback to $15.50, maybe even $14.50 if buyers don’t step in. That $1 range is where things could get really interesting. I know a lot of you are in SOFI or watching it closely. What’s your plan? Are you holding, adding, or waiting for a dip? Kris/ Mindbloome Exchange Trade Smarter Live Better
NASDAQ:SOFILong
by Mindbloome-Trading