This Is The Ultimate Warren Buffett Stock: Is It A Buy As Key Executive Sells Shares?

Blockhead09-18 22:34

Warren Buffett is widely regarded as one of the greatest investors of all time. One way to share in his success is to invest in his firm, Berkshire Hathaway (BRKB). But is Berkshire a good buy ...

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But is Berkshire a good buy ...</p>\n\n<a href=\"https://www.investors.com/research/berkshire-hathaway-stock-buy-now-warren-buffett-stock/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>This Is The Ultimate Warren Buffett Stock: Is It A Buy As Key Executive Sells Shares?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThis Is The Ultimate Warren Buffett Stock: Is It A Buy As Key Executive Sells Shares?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-18 22:34 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/research/berkshire-hathaway-stock-buy-now-warren-buffett-stock/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Warren Buffett is widely regarded as one of the greatest investors of all time. One way to share in his success is to invest in his firm, Berkshire Hathaway (BRKB). But is Berkshire a good buy ...</p>\n\n<a href=\"https://www.investors.com/research/berkshire-hathaway-stock-buy-now-warren-buffett-stock/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FND.AU","symbol_name":"Findi Limited","start_time":0,"source_url":"https://www.investors.com/research/berkshire-hathaway-stock-buy-now-warren-buffett-stock/","article_id":"2468580085","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2019/06/BIZ90_buffett_0610109_news-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2468580085","pubTimestamp":1726670083,"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"Berkshire Hathaway is the ultimate Warren Buffett stock — but is it a good buy as its cash pile builds and a key executive sells shares?","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"FND.AU":"Findi Limited","LU1732799900.SGD":"JPMorgan Investment Funds - Global Income A (irc) SGD-H","FND":"Floor & Decor Holdings Inc.","OEF":"标普100指数ETF-iShares","LU1267930490.SGD":"TEMPLETON GLOBAL EQUITY INCOME \"AS\" (SGD) INC A","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","LU0278409577.USD":"MANULIFE GLOBAL FUND-GLOBAL RESOURCES FUND \"AA\" (USD) INC","PARA":"Paramount Global","IVV":"标普500指数ETF","ULTI":"The Ultimate Software Group","VOO":"Vanguard标普500ETF","LU0048575426.USD":"FIDELITY EMERGING MARKETS \"A\" INC","CVX":"雪佛龙","LPX":"路易斯安那太平洋","BRK.B":"伯克希尔B","LU0456842615.SGD":"JPMorgan Funds - Emerging Markets Equity A (acc) SGD","LU1032955483.USD":"NORDEA 1 STABLE RETURN \"HB\" (USDHDG) ACC","NU":"Nu Holdings Ltd.","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","SDS":"两倍做空标普500ETF","SSO":"两倍做多标普500ETF","IE00BVYPNV92.GBP":"GUINNESS GLOBAL EQUITY INCOME \"C\" (GBP) ACC","SPXU":"三倍做空标普500ETF","LU0323591593.USD":"SCHRODER ISF QEP GLOBAL QUALITY \"A\" (USD) ACC","SH":"标普500反向ETF","LU0742534661.SGD":"Fidelity America A-SGD (hedged)","COF.AU":"CENTURIA OFFICE REIT","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","COF":"第一资本","AXP.AU":"AXP Energy Ltd",".SPX":"S&P 500 Index","CB":"安达保险","SPY":"标普500ETF","AXP":"美国运通","LU1116320901.HKD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A6\" (HKD) INC","BK4125":"广播","SPY.AU":"SPDR® S&P 500® ETF Trust","OEX":"标普100","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","BRK.A":"伯克希尔","IE000M9KFDE8.USD":"NEUBERGER BERMAN US LARGE CAP VALUE \"A\" (USD) ACC","LU1732800096.USD":"摩根大通环球收益基金A (irc)"},"translate_title":"这是沃伦·巴菲特的终极股票：关键高管出售股票时是否买入？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AXP":1,"AXP.AU":1,"ULTI":1,"SPY.AU":1,"BRK.B":1,"CB":1,"COF":1,"COF.AU":1,"CVX":1,"FND":1,"FND.AU":1,"SPY":1,"PARA":1,"NU":1,"LPX":1,"VOO":0.9,"BRK.A":0.9,".SPX":0.6,"SSO":0.6,"ESmain":0.6,"SPXU":0.6,"SH":0.6,"SDS":0.6,"OEX":0.6,"OEF":0.6,"IVV":0.6},"content_text":"Warren Buffett is widely regarded as one of the greatest investors of all time. One way to share in his success is to invest in his firm, Berkshire Hathaway (BRKB). But is Berkshire a good buy following its latest earnings report? Let's take a close look at the fundamental and technical performance of the ultimate Warren Buffett stock.\n\n\n\n↑\nX\n\n\n\n\nStocks Erase Gains With Fed Due; Interactive Brokers, Wingstop, DoorDash In Focus\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nStocks Erase Gains With Fed Due; Interactive Brokers, Wingstop, DoorDash In Focus\n\n\n\n\nBerkshire Hathaway is a conglomerate that owns some of America's most famous firms. It wholly owns the likes of Geico, Duracell, Dairy Queen, Fruit of the Loom and railroad operator BNSF.\nBerkshire Hathaway is perhaps more famous for serving as an investment vehicle for Warren Buffett and his top lieutenant, Charlie Munger, who died in 2023. Following their value investing philosophy, the company owns huge stakes in American Express (AXP), Coca-Cola (KO) and other heavy hitters.\n\n\n\nIBD Newsletters\nGet exclusive IBD analysis and actionable news daily.\n\n\nSIGN UP NOW!\n\n\n\n\n\nIBD Newsletters\nGet exclusive IBD analysis and actionable news daily.\n\n\n\n\n\n\t\t\t\t\t\t\t\tHow To Invest\t\t\t\t\t\t\t\t\n\n\n\n\n\n\t\t\t\t\t\t\t\tMarket Prep\t\t\t\t\t\t\t\t\n\n\n\n\n\n\t\t\t\t\t\t\t\tTech Report\t\t\t\t\t\t\t\t\n\n\n\n\n\nPlease enter a valid email address\nPlease select a newsletter\n\n\nGO\nGet these newsletters delivered to your inbox & more info about our products & services. Privacy Policy & Terms of Use\n\nx\n\n\n\nThank You!\nYou will now receive IBD Newsletters\n\n\nALL DONE!\n\n\n\n\nSomething Went Wrong!\nPlease contact customer service\n\n\nCLOSE\n\n\n\n\nBut the definition of a Warren Buffett stock has evolved in recent years.\nUnder investment managers Todd Combs and Ted Weschler, Berkshire Hathaway has been increasingly sinking money into tech stocks. It's taken large positions in established giants like Apple (AAPL), as well as younger companies like Brazilian fintech Nu (NU). Berkshire has also snapped up a stake in Amazon.com (AMZN).\nBerkshire Hathaway Tweaks Portfolio, Slices Apple\nBuffet's Berkshire Hathaway was making portfolio tweaks in Q2 of 2024, the most recently reported period.\nThe company sliced off about half of core holding Apple. Nevertheless, it remains the company's most valuable holding, with the firm owning 400 million shares.\nBerkshire exited Paramount Global (PARA) and Snowflake (SNOW) during the quarter. The former investment was a particularly chastening one for the Oracle of Omaha, with Buffett confessing he was \"100% responsible for the Paramount decision.\" At one point the firm owned 63.3 million shares in the media company.\nAmong other moves, Berkshire made another trim to its position in Chevron (CVX). It now holds about 118.6 million shares. The firm also cut smaller positions in Capital One Financial (COF), railroad Louisiana-Pacific (LPX) and Floor & Decor (FND).\nWarren Buffett Admires OXY, Chubb Stock\nChevron is not the only way in which Berkshire has energy exposure. In fact, the firm made waves by building up a large stake in Occidental Petroleum (OXY).\nBerkshire previously received regulatory approval to purchase up to 50% of the oil giant. It now holds a stake of about 27.9% in the firm, or 255.3 million shares. At Berkshire's annual shareholder meeting in May 2023, Buffett said Berkshire is \"not going to buy control\" of Occidental.\nThe identity of a mystery stock that Buffett had been snapping up for a number of quarters has finally been revealed. Berkshire has acquired around 27 million shares of insurer Chubb (CB), strengthening the firm's exposure to the insurance space.\nAjit Jain Sells Berkshire Stock\nIt was key executive Ajit Jain, the firm's vice chairman of insurance operations, who made news recently by unloading half his stake in the conglomerate. It emerged Sept. 12 that he had unloaded 200 of the company's Class A shares. He raked in about $139 million after selling at an average price of $695,418 per share.\nIt may have been that the canny businessman was taking advantage of the Berkshire's recent run, with the stock rallying as much as 35.9% from the end of 2023 to its peak for the year so far.\nJain has been a key man in the construction of Berkshire's insurance empire. He now retains 61 Berkshire shares and has an additional 55 shares in his family trust. He retains 50 shares in the Jain Foundation, which is focused on finding a cure for dysferlinopathy, which is a rare group of muscular dystrophies.\nBerkshire Stock Out Of A Buy Zone\nBerkshire Hathaway stock has climbed above the buy zone from a flat-base entry point of 430, according to MarketSurge analysis.\nIt has battled back with aplomb after undercutting the entry amid broader market pressure. It rebounded well after getting support at the 50-day moving average, a previous area of support. However it hasn't reached its 20% profit target from the 430 entry.\n\nThe relative strength line has backed off of recent highs. This gauges a stock's performance compared to the broader S&P 500. BRKB's Relative Strength Rating of 80 means it has outperformed 80% of stocks in terms of price performance over the past 12 months.\nThe stock's price performance in recent years has been solid but not stellar. Berkshire Hathaway stock held strong in 2022, making a slight gain compared to a loss of more than 19% for the S&P 500. But it lagged in 2023, rising about 16% compared to the S&P 500's gain of 24%.\nSo far in 2024, the stock has made a gain of 28%, while the S&P 500 is up more than 18%.\nAll-around performance is strong, but not quite ideal, for Berkshire Hathaway stock. This is reflected in its IBD Composite Rating of 85. Earnings are a key strength, with its EPS Rating coming in at a muscular 95 out of 99.\nEarnings have grown by an average of 29% over the past three quarters. Investor's Business Daily recommends investors look for companies with average EPS growth of at least 25% in each of the most recent quarters.\nAnalysts are projecting annual earnings will rise 17% in 2024 and then actually dip by 1% in 2025.\nBig Money has been snapping up Berkshire stock of late, which is reflected in its Accumulation/Distribution Rating of B. In total, 46% of its stock is held by funds, with a further 32% held by management. Fund ownership rose in the past couple of quarters.\nWarren Buffett Recommendation\nBerkshire stock has struggled to outperform the S&P 500 index in recent years despite its outperformance in 2022.\nBefore that, the stock at best moved with the market for a decade. An investor could have bought an index fund or ETF, like the SPDR S&P 500 ETF (SPY), and generated similar or higher returns with less stock-specific risk.\n\"In my view, for most people, the best thing to do is owning the S&P 500 index fund,\" Buffett himself previously said at a Berkshire annual meeting. \"If you bet on America and sustain that position for decades, you'd do far better than buying Treasury securities, or far better than following people. Perhaps with a bias, I don't believe anyone knows what the market is going to do tomorrow, next week, next month, next year.\"\nBerkshire Hathaway Earnings Growth Slows\nBerkshire Hathaway's earnings per share rose 16% to $5.38 in the second quarter, beating views, as revenue rose 1% to $93.7 billion. Growth slowed on both counts compared to the prior quarter.\nThe company also saw its operating profit jump 15% to $11.6 billion. This was boosted by big gains in insurance underwriting and insurance investment income. Total net income, which includes investment gains or losses, fell 16% to $30.3 billion.\nBuffett says investors should focus on operating earnings, not net earnings, to get a truer reflection of the performance of the business. He stresses that stock gains and losses in any particular quarter are \"usually meaningless.\" This fits in with Buffett's longer-term investment philosophy.\nWarren Buffett Cash Mountain Hits Record Levels\nBerkshire's cash pile rose to record levels in the most recent quarter to $276.9 billion, up from the previous quarter's $188.99 billion. This was another record high for the company.\nHaving such a large supply of cash protects the Warren Buffett stock during tough times. It also means Berkshire Hathaway is able to deploy capital when desirable businesses become available for purchase.\nBuffett said at the firm's annual meeting that the company would \"love to spend it\" but is looking for \"something that has very little risk and can make us a lot of money.\" He also said that valuations at the moment \"aren't attractive.\"\nThe firm also slowed the repurchases of its own stock during the second quarter. Buffett bought back $345 million worth of shares. That was down from the previous quarter's $2.6 billion.\nRecent buying of Berkshire Hathaway stock contrasts with Buffett's larger number of deals during and after the Great Recession. But the firm may look to make more deals if a recession starts to make acquisition targets more alluring.\nAnalyst Rates Berkshire Stock\nCFRA analyst Catherine Seifert reiterated her buy rating on BRKB stock and held her price target at 488 following earnings.\n\"Despite the revenue miss and the near-term macro headwinds, we view the shares as undervalued versus historical averages, and see secular strength in insurance, aided by a restructuring and improved claim trends at GEICO, coupled with a 'flight to quality' as BRK builds cash ... ,\" she said in an Aug. 5 note to clients.\nDifference Between BRKA And BRKB Shares\nThe most obvious difference between Berkshire Hathaway's A class and B class shares is the price. BRKB stock may be considered relatively expensive given it trades at more than 450 a share. However, this is a relative drop in the ocean given BRKA stock is the most expensive on the market. It currently trades at over 685,000 per share.\nWarren Buffett decided to introduce the BRKB shares to allow investors to purchase the stock directly. Big demand for Berkshire Hathaway stock had previously forced less-moneyed players to plow cash into unit trusts or mutual funds that mirrored his company's holdings.\nWarren Buffett Names Successor\nOne of the biggest questions around the future of Berkshire Hathaway in recent years was who would take over the mantle of CEO from Buffett.\nThe Oracle of Omaha has finally given the answer. He said Greg Abel, who runs the noninsurance businesses, will take over in his stead.\nAnalysts had long viewed Abel, a Berkshire vice chairman since 2018, as a possible successor. The Canadian is chairman and CEO of Berkshire Hathaway Energy. He has also been vice chairman of Berkshire's noninsurance operations since January 2018.\nThe firm has not disclosed the timing of Berkshire's leadership turnover.\nLegendary Investor Charlie Munger Dies\nCharlie Munger was honored at this year's annual shareholder meeting. The legendary Berkshire executive died in late November at the age of 99.\n\"Berkshire Hathaway could not have been built to its present status without Charlie's inspiration, wisdom and participation,\" Buffett previously said.\nMunger had been key in moving Buffett away from a pure value investing approach into buying high quality firms at \"fair\" prices.\nIt was he who persuaded Buffett to stump up the cash to purchase See's Candies in 1971, for what Buffett later dubbed a \"fancy price.\" Munger's belief that buying a very good business would pay off in the long run due to its ability to generate superior profits turned out to be true, making billions for Berkshire Hathaway.\nBuffett later said the success of the investment led to him abandoning his approach of finding \"mediocre companies at 'bargain' prices.\"\nIs Berkshire Hathaway Stock A Buy Now?\nBerkshire Hathaway stock has generally performed in-line with the S&P 500 index in recent years after a period of underperformance.\nBerkshire stock has been outperforming in 2024, but has rallied out of a buy zone. For now those keen to own some shares would be better served waiting for a better entry to emerge on its chart.\nAdditionally, not everything is rosy. While Wall Street sees EPS growth ahead for Berkshire in 2024 and 2025, it remains well shy of the rates sought by many growth investors.\nBottom line: Berkshire Hathaway stock is not a buy now. Those interested in the ultimate Warren Buffett stock should add it to a watchlist. Investors looking for true market leaders should also check out IBD Stock Lists, including the IBD 50.\nPlease follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.\nYOU MIGHT ALSO LIKE:\nThese Are The 5 Best Stocks To Buy And Watch Now\nBuffett Stocks: Who Joins Nvidia, Alibaba, Alphabet On This Screen?\nWarren Buffett's Net Worth Driven By These 'Ironclad' Rules\nFind The Latest Stocks Hitting Buy Zones With MarketSurge\nCheck Out IBD's New Investing Podcast For Exclusive Trading Tips And Market Insights","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.4","shortVersion":"4.26.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2468580085"}