BERKSHIRE: $331 (+19%) Year to datewhales love liquidity and they buy more of it when the Oracle of Omaha rolls over institutional placements
BRKBD trade ideas
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?
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.
BRK.B ratio to SPX daily.Hello community,
I had fun doing the ratio between Warren Buffett's stock and the SP500 via the SPX, since the beginning of the year.
The result on the graph, i.e. 5.11% in favor of Warren.
Grandpa Warren, still holds the road, despite his 94 years.
Experience and wisdom have struck again.
Bravo the artist.
Make your opinion, before placing an order.
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BRK ETF LongEntry here on todays rally. This ETF is preforming well in comparison to others. Usual SL management of trailing the weekly candles.
Berkshire Hathaway Inc. New (log)Hello community,
Weekly graph on logarithmic scale.
A quick look in the rearview mirror.
What can we say about the performance of the fund of the "god" of investment, except BRAVO!
A little quote that I love:
"Wall Street is the only place where people get into a Rolls Royce to get advice from those who take the subway."
Make your own opinion, before placing an order.
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Berkshire Hathaway ,,, Buying opportunity Uptrend
Breaking through the price levels has been a good opportunity all the time, especially after a good bullish candle. 462 was broken in the chart that was a resistance level by a suitable bullish candle. Next target could be 485 and guarantee your position with setting a good SL for your trade.
Berkshire Hathaway - BREAKOUT CONFIRMED!NYSE:BRK.B strap on and get ready, price have been trading under resistance of previous highs and we have finally broke above key level. Any retrace toward previous highs is a long opportunity to target all time high....
Berkshire Hathaway educational BRK.B educational as you can see a clear trend is been years when this market trending up n it's still going far up,as a trader or investors the only thing that you do is to wait for small pull n buy,alot of new traders can tend to sell this to 00.00 from 460 n get 2000 likes from tradingview users but they never see this trend before n how it's trending 😉 soo let's stop confusing each other n do what is right n follow the right trend I don't have to say much n write paragraphs this picture is showing you everything.
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
thinkin about birk BThinking birk B will fall into the 300's big rejection off the top of my channel.
thinking this might be a leading indicator for some tough times ahead.
thinking if buff daddys cant do well, can anyone?
BERKSHIRE HATHAWAY STRUCTURE If you have been following me, from the previous analysis we marked out a weak high that was supposed to be taken out and it has broken out into a 4H OB and now we have marked out the 4H OB, You can trade shorts or wait for prices to pull into the 4H OB before looking for longs. Do well to like share and follow.
Berkshire Hathaway's price hike soon to cool off... on chart! Join me as I give fresh insights and try to figure out if Berkshire Hathaway is really on the brink of a crash!
In this eye-opening video, I share insights on the potential impending crash of Berkshire Hathaway. As the charts indicate a significant downturn, we delve deep into the reasons behind this forecast and what it could mean for investors.
Join us as we analyse the trends and patterns that suggest a rocky road ahead for the company, and Charlie Munger's perspectives in a recent interview, providing additional context to my claims.
If you're curious about the future of Berkshire Hathaway and want to stay ahead in your investment strategy, this video is a must-watch.
Don't miss out on understanding the dynamics at play that could impact one of the most talked-about companies in the market!
Like, subscribe and share this video.
Time to Short Berkshire?BRK.B just reached over MIL:1T market cap. It's also hitting a key resistance line on the chart. Although, I respect Warren Buffet very much, due to the overbought signals on the chart, I'm taking a short position at $471.27. We'll see where it goes from here.
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.
Berkshire Hathaway just hit a $1 TRILLION market cap!Berkshire Hathaway just hit a $1 TRILLION market cap! 🎉🚀💰 This milestone makes it the first non-technology company in history to achieve such a feat. A testament to Warren Buffett’s legendary investing strategy and the strength of diversified businesses. 📈🏆
NYSE:BRK.A NYSE:BRK.B #BerkshireHathaway #WarrenBuffett #StockMarket #Investing #Finance #Success #Milestone #SPX500 AMEX:SPY
BERKSHIRE HATHAWAY STRUCTURE This is the season of testing patience level, we will have to wait for the price to take out the weak high before we can draft our bias on what we are to do next, but for now, we sit on our hands and wait, we will allow the market commit to us before we commit to the market.
Long Term $270 Buying ZoneIt's hard to find entries on ultra strong stocks like this. But looking at the weekly chart we see that the median of the fork created by the 2008 crisis has not been touched in a long time.
This gives an idea to match that median with a low volume zone on the volume profile. Should another global financial crisis arise then it may make a similar buying opportunity.
$270 may seem like a long way to fall for such a blue chip stock but it's not impossible considering it went from about $100 to $45 in 2008.
It is currently near the upper fork extension of so it could be considered over extended.
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.
Berkshire Hathaway will begin to go bearish this week?Berkshire Hathaway, Buffett's company, released its 10-Q report on Saturday, revealing a massive reduction in its Apple holdings, down nearly 50%. This is likely to put some selling pressure on Apple.
Now check the weekly chart of Berkshire Hathaway.
It closed as a bearish engulfing candle last week, signaling the start of a pullback.
So the price might continue to drop this week.
We could pay attention to the support level from previous high because the daily chart may have a short-term callback here.
Berkshire Hathway Inc. Support Breakout At $430.78 05.08.2024Bearish Breakout: Berkshire Hathaway Class B shares broke support at $430.78 on the 1-hour chart.
Downside Targets: If the breakout holds, expect price to drop to $425.21 and $420.85.
Breakout Failure: If the breakout fails, expect price to rise to $437.83 and $446.82.
Apply risk management
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Bullish triangule in this stock, get ready to buy this breakoutIt is a buy with this uptrend triangule! nice stock to buy and hold to take profits
#Birkshire about to make another run?#BRK (#SPX) is currently at an MACD cross to the upside. Looking to see a break next week for a medium term trade.
