BERKSHIRE, Weaker Than Rest Market, Provides Possible Bear-Flag!Hello Traders Investors And Community, welcome to this analysis about recent events, the current price-structure and what we can expect the next days and hours from BERKSHIRE one important stock under the 10 biggest in market cap in which I found important and significant signals which will determine the further outcome sustainable. As the overall market recovered from the corona-breakdowns this year a major part of the market is at its all-time-high level which is not the case with BERKSHIRE as we it is providing a weaker picture than the average market this can increase the next times when BERKSHIRE due to expanding possibility for a new corona-wave and the resulting restrictions which can affect the market meaningful therefore we are looking at the 4-hour locally timeframe.
As you can examine when looking at my chart is that BRK.B is trading in a huge parallel channel that is marked with the blue lines and since the main average market recovered from the corona-breakdown BRK.B just provided a consolidational phase which can end up in a bear-flag when confirmed properly. As the stock trades below the important 100-EMA which you can see marked in my chart in green, this is a significant local resistance level which will be highly likely confirmed as those when touched in this level as you can see the outcome pronounced in my chart after this scenario has played out we can expect the stock to test the lower boundary of the huge possible bear-flag in which it is trading currently.
After the stock has touched the lower boundary a third time we can anticipate that it sets up to form the final wave E of the possible bear flag wave count which will complete the count at the bearish confluence-cluster you can see marked in my chart in red, this level is building a logical resistance with the rising trendline in light-blue, the upper boundary of the channel and the 800-EMA in black. These factors make the zone between 208 and 212 a strong resistance zone and it is within the high likelihood spectrum that it will be confirmed as such one when touched in the area. After this has happened the stock can confirm the bear-flag to the downside when there do not come any bullish signs which will invalidate this scenario further.
Overall we have an unstable situation within this stock at the moment as the average other market is near its peaks BRK.B is consolidating far below these price-levels. As we have seen higher volatility to the downside in the market due to new upcoming corona-fears this can increase the next time and provide a more bearish environment also in the rest of the market, therefore, this scenario shouldn't be ignored and kept as the more possible one at the moment when there do not come any other bullish signals which will increase the likelihood for a more bullish environment again. Therefore we should be prepared for a possible continuation to the downside and take proper action when it happens to take profit out of possible opportunities arising out of it.
In this manner, thank you for watching, support for more market insight, good day, and all the best!
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BRKB trade ideas
Berkshire Hathaway On The Brink Of Another BreakoutBerkshire Hathaway's stock recently displayed encouraging growth, with a notable bullish surge on August 7th. After reaching its zenith in March 2022, the stock suffered a 28% drop. By October 2022, the stock steadied at $260 and recently made a bullish stride, briefly outdoing its past record. However, this new high was marginal and fleeting, as the stock soon reverted below its former peak.
A build-up of momentum led to this breakout, with the stock's inflection point being the $321 resistance, which then became support.
This pivotal level has consistently posed challenges for the stock, given its proximity to its all-time high. It took 18 months for the stock to muster the courage to challenge this robust resistance.
The stock's recent surge might be attributed to its favorable Q2 earnings report, where it reported earnings of 4.62 against the predicted 3.87. Notably, the daily 20 simple moving average stands slightly under the stock's current $350 price, potentially acting as a vital support.
If the stock maintains this position, it may pave the way for future growth, potentially setting new record highs and establishing a lasting bullish trend.
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#BRK.B Straddle/Trade planStraddle up to 15-Sep.
Based on our team's research of the options market, we expect buy activity at the support level or sell activity at the resistance.
We primarily consider levels to be activity zones, but not to be a super-fine level for establishing a limit order. Use them in combination with our own strategy, not in alone.
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BRK.B Entry, Volume, Target, StopWhen price clears: 331.84
With above average daily volume.
Target: 356.00 area
Stop: Depending on your risk tolerance; 323.81 gets you 3/1 Risk/Reward.
This trade idea is not trade advice. This swing trade idea is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
Berkshire Shares Fall after Great ReportWarren Buffett's holdings posted record operating profits last week, pushing Berkshire Hathaway's asset value to over USD 1 trillion for the first time.
→ Operating income rose 6.65% in the second quarter to USD 10.04 billion, the company's all-time high from USD 9.42 billion in the same period last year.
→ BRK's earnings per share were USD 4.6 (expected USD 3.7).
However, a bearish engulfing pattern has formed on the BRK stock chart near the all-time high of USD 362.1 set in March 2022. The share price fell overall with the US stock market under pressure, including from the rating downgrade by Fitch. At the same time, BRK's share price is stronger than E-mini S&P 500 futures, which are down more than 2% from their August high.
Technical analysis of the BRK chart suggests that Berkshire Hathaway's share price may be affected by:
→ support from the lower border of the ascending channel (shown in blue);
→ support from the USD 333 level, which served as resistance for the May range;
→ a bullish gap zone around USD 337, where, by the way, the 50% level of growth from the lows of the May range to the high of the year passes.
Analysts polled by MarketWatch have a median target price of USD 384.26 for BRK (about +10% from current levels).
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.
#BRK.B trade plan up to 18-Aug-2320-Aug-23 straddle was detected. Value- 1.6M$. We primarily consider levels to be activity zones, but not to be a super-fine level for establishing a limit order. Use them in combination with our own strategy, not in alone.
In our opinion, considering the upward trend supported by the VWAP slope, buying from the support level seems like a more driven decision.
The activity of the options market confirms the trading range within the borders shown on the
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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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Charlie Munger's 10 Golden Nuggets!Charlie Munger, the esteemed Vice Chairman of Berkshire Hathaway, is known for his investment acumen and his indispensable role in building an investment empire alongside Warren Buffett. Munger attributes their phenomenal success to a set of fundamental ideas that guide their investment decisions. Below are the 10 key principles:
1. Consider Opportunity Costs - It is imperative to approach capital allocation with rigor and discipline. Munger advises to cautiously evaluate investment options and wait for an opportunity with great potential. When such an opportunity arises, allocate capital decisively.
2. Mitigate Financial Losses - Munger identifies common reasons for financial losses among investors, such as susceptibility to trends, excessive risk-taking without safeguards, complacency in the face of losses, and the erosion of purchasing power through inflation and interest rates. Addressing these issues is essential for capital preservation and growth.
3. Decisiveness in Execution - Being well-prepared to capitalize on an opportunity when it presents itself is crucial. Munger emphasizes the importance of quick and informed decision-making when a highly promising investment opportunity arises.
4. Focus on Key Priorities - In a world with endless investment options, Munger suggests narrowing one’s focus on investments with a proven track record, paying attention to relevant details, and having a well-thought-out investment plan.
5. Flexibility in Investment Strategy - The ability to adapt to changing market conditions is essential. Accepting new information, even if contrary to prior beliefs, and making necessary adjustments to one's investment strategy can be vital for success.
6. Exercise Patience - Munger stresses the importance of a long-term perspective in investment. It’s vital to develop and refine your investment strategy, and patiently wait for the results to materialize.
7. Cultivate Humility - It is important to recognize the limitations of one’s knowledge. Accepting that there are things you do not know can open avenues for learning and making better-informed investment decisions.
8. Commitment to Continuous Learning - Staying informed and constantly seeking to understand the underlying reasons behind market movements is crucial. Munger recommends reading extensively and engaging with diverse sources of information.
9. Risk Management - Munger suggests focusing on the value that an investment offers over its price, prioritizing wealth preservation over the sheer size of the portfolio, focusing on meaningful progress rather than constant activity, analyzing individual companies in-depth, and making projections based on fundamentals rather than past trends.
10. Maintain Independence in Thought and Action - Rather than following the crowd, Munger believes in the importance of independent thinking in investment decisions. This requires carving out a unique investment path that aligns with one’s principles and understanding of the market.
In summary, Charlie Munger’s insights serve as invaluable guidance for anyone looking to achieve long-term investment success. By diligently applying these principles, investors can make more informed decisions and build a sustainable investment portfolio.
Berkshire to find buyers at previous resistance?Berkshire Hathaway B - 30d expiry - We look to Buy at 332.52 (stop at 327.52)
This is currently an actively traded stock.
The stock is expected to outperform in its sector.
The primary trend remains bullish.
Previous resistance now becomes support at 331.50.
We look to buy dips.
The sequence for trading is higher highs and lows.
Our profit targets will be 344.52 and 346.52
Resistance: 342.50 / 345.00 / 348.00
Support: 337.00 / 334.00 / 331.84
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BRK.B Rising wedge, head and shoulder, at a 786.The title says it all.
The 786 I am referring to though, is not shown. It is measured from the peak to the low, and we have retraced to it.
Right now I am seeing a mini head and shoulders within the larger potential head and shoulders pattern, which is occurring near the end of a rising wedge, after tapping the 786.
If were going to head into tough economic times, now would be a great turning point, as the entire market is bullish, and bears had their faces ripped off.
If we are going into tough economic times, it would be max pain for bears, as they have already been squeezed out of their positions, only to be right in the end.
If we are going into an expansion, then I doubt there will be any meaningful pullback. it will pretty much be up only for at least a few months.
But yeah, if its going to turn, this looks like a good place to do it.
Bearish divergence on the MACD with a moving average turndown as well 1d.
Berkshire Hathaway Q1 Earnings Rise on Insurance ReboundWarren Buffett's Berkshire Hathaway reported strong earnings growth in the first quarter of the year, primarily driven by the recovery of the conglomerate's insurance business. Operating earnings, which include profits from Berkshire's wholly-owned businesses, increased by 12.6% year-over-year to $8.065 billion. Insurance underwriting profit surged to $911 million, a sharp increase from $167 million a year ago, while insurance investment income also rose by 68% to $1.969 billion from $1.170 billion. The turnaround in Geico, which saw an underwriting profit of $703 million, was a significant contributor to the overall insurance business success.
On the other hand, the company's railroad business BNSF and energy company posted year-over-year earnings declines. However, other controlled businesses and non-controlled businesses saw slight increases from the same period last year. Berkshire's cash reserves also increased to $130.616 billion from $128 billion in Q4 2022. Additionally, the company repurchased $4.4 billion worth of its own stock, the most since Q1 2021, up from $2.8 billion at the end of last year.
Berkshire's net earnings, which include short-term investment gains, rose to $35.5 billion in Q1 2023, up from $5.6 billion in the same period last year, reflecting a first-quarter comeback in Warren Buffett's equity investments such as Apple. Nonetheless, Buffett cautioned investors not to pay too much attention to quarterly fluctuations in unrealized gains on investments. These results were released ahead of Berkshire's highly anticipated annual shareholders meeting, known as "Woodstock for Capitalists."
Despite lagging behind the S&P 500's 7.7% advance with a 4.9% increase in its Class A shares this year, Berkshire's stock is still less than 3% below its all-time high.
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
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
BRK.B has many more years of growing stock priceApple will likely be the catalyst on June 5th, with a similar move to Nvidia.
Aside from apple, I have taken the opportunity to look at the top holdings of Berkshire Hathaway from a technical standpoint. (why bother business standpoint, buffet already did that)
From what I see, the top 10 holdings are all at points where you could expect their corrections to be over, or over shortly. When they start moving up again, they will supplement the Apple pump.
BRK loves to form these megaphone patterns and then break out.
I have highlighted the RSI where it feels the same as many years ago. The price action has acted very similar as well.
Will this be the best preforming asset in the market? Fuck no.
But this is the savings account.
Once in awhile you pull some money from BRK and buy an asset that you may hold for a few hours, days, weeks or months, But then you always come back to BRK.
Speculation is for becoming rich, and BRK is for staying rich.
Currently long, But potential correction aheadIf there were a place to reverse course, I would suspect were almost there. realistically it is more likely we continue up, Thats just how markets work.
However, one could argue the market is still a bear, and new lows are incoming.
I think it would be wise to entertain both ideas and know what to look for.
As we come closer to the potential top I will be updating. For now just neutrally long the stock.
Wise words from Buffett’s annual letterWarren Buffett, often referred to as the "Oracle of Omaha," is one of the most successful investors of all time. His investment philosophy, centered around value investing and long-term growth, has transformed Berkshire Hathaway from a struggling textile company into a sprawling conglomerate, encompassing a diverse range of businesses from insurance and utilities to railroads and retail. Buffett's shrewd investment strategies and unparalleled business acumen have made Berkshire Hathaway a powerhouse in the global economy, and himself a beacon of wisdom in the world of finance.
Warren has been investing through Berkshire Hathaway (BRK.A) (BRK.B) for 58 years, but he ascribes most of his success to remarkably few decisions.
He writes:
“Our satisfactory results have been the product of about a dozen truly good decisions – that would be about one every five years – and a sometimes-forgotten advantage that favors long-term investors such as Berkshire.”
The turbulent swings of the market are utterly engrossing. An overwhelming amount of information and analytics are constantly prompting us to act. However, taking into account Buffett's advice—that only one great idea is needed every five years—can help us understand the importance of every investment decision we make.
This parallels another renowned saying from Buffett, advising us to limit the number of good investment strategies we attempt to execute.
Buffett proposes a '20-slot punch card' guideline: Imagine being handed a card with only 20 holes, each punch representing each investment you could make in your entire life. After all the slots have been punched, you can't make any more investments. Given these constraints, you would be compelled to scrutinize each decision and would tend to invest heavily in what you've deeply pondered. Consequently, your results would significantly improve.
Warren’s letter goes into his ‘secret sauce’ and some of the 12 ideas that have worked for him. Of particular emphasis this year: the compounding of long-term dividend and cash flow growth from his purchases 30 years ago, particularly Coca-Cola (KO) and American Express (AXP).
He writes:
“In August 1994 – yes, 1994 – Berkshire completed its seven-year purchase of the 400 million shares of Coca-Cola we now own. The total cost was $1.3 billion – then a very meaningful sum at Berkshire.
The cash dividend we received from Coke in 1994 was $75 million. By 2022, the dividend had increased to $704 million. Growth occurred every year, just as certain as birthdays. All Charlie and I were required to do was cash Coke’s quarterly dividend checks. We expect that those checks are highly likely to grow.
American Express is much the same story. Berkshire’s purchases of Amex were essentially completed in 1995 and, coincidentally, also cost $1.3 billion. Annual dividends received from this investment have grown from $41 million to $302 million. Those checks, too, seem highly likely to increase.
These dividend gains, though pleasing, are far from spectacular. But they bring with them important gains in stock prices. At year end, our Coke investment was valued at $25 billion while Amex was recorded at $22 billion. Each holding now accounts for roughly 5% of Berkshire’s net worth, akin to its weighting long ago.
Assume, for a moment, I had made a similarly-sized investment mistake in the 1990s, one that flat-lined and simply retained its $1.3 billion value in 2022. (An example would be a high-grade 30-year bond.) That disappointing investment would now represent an insignificant 0.3% of Berkshire’s net worth and would be delivering to us an unchanged $80 million or so of annual income.”
Advice for contemporary investors: Given the resurgence of returns in the fixed income sector, where short-term Treasuries are currently yielding close to 5%, some investors are wondering if equities are now facing stiffer competition. However, these fixed income returns may find it challenging to outpace inflation over time. Unlike fixed income, equities such as Coca-Cola and American Express offer long-term compounding through dividend growth, which is a critical advantage for investors seeking wealth accumulation.
In conclusion , Warren Buffett's investing principles, embodied in his stewardship of Berkshire Hathaway, provide invaluable lessons for all investors. Despite the allure of seemingly competitive returns in other markets, it is essential to remain focused on the long-term potential of equities, particularly those with a robust track record of dividend growth. As Buffett's success has shown, patient investing based on sound understanding and rational decision-making can yield substantial results over time.
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Looking for a somewhat deep correction here on BRK.If we look at price to book, it peaked at 1.57 ish and currently 1.52. it does not generally go higher than this... 1.6 on an occasion in the past.
Brk.b usually goes to at least 1.25 before it rallies again. There are occasions where it goes lower but I am not a gambler and would love to buy at 1.25
I do not anticipate that we have as severe correction as the prior situation i have highlighted, i simply think we are moving to the bottom of this megaphone pattern. Sometime BRK.B likes to dip below the megaphone pattern as a fake out before a mega rally, so that may happen too.
Bounces along the way are likely, but i think the chart plus the book value can give us a great entry soon.