Look At Warren Buffet Stocks For Investment Cue?
Stocks fell on Thu, 21 Sep 2023 as Treasury yields popped to multiyear highs and investors grew wary that lawmakers would be able to prevent the US government from shutting down.
By the time market called it a day: (see above)
DJIA: -1.08% (-370.46 to 34,070.42). Dow is on track to end this week down -1%.
S&P 500: -1.64% (-72.20 to 4,330.00). Worst session for S&P since March 2023. On track to end the week down -2%.
Nasdaq: -1.82% (-245.14 to 13,223.99). Most drastic fall of the 3 indexes. Tech index is poised to fall > -3%.
3 Composite Indexes - Moving Averages.
Above is the Moving Averages for the 3 indexes on the 3rd straight day of losses.
As expected, they are way below their respective 20day-ma, 50day-ma & 200day-ma.
With the indexes below their 50day-ma, it means “buying demand is drying up and the index’s run is ending”.
This is further reinforced by the “Relative Strength Index (RSI)” all languishing around the 26 marking.
General rule of thumb is Low RSI levels, below 30, usually [a] generate buy signals and [b] indicates an oversold or undervalued condition.
Official report - US weekly Jobless Claims:
Thursday also saw the weekly official report on US weekly jobless data released.
For week ending 16 Sep 2023, claims data is still showing a strong labour market — egging the Fed to adopt a “hiking” mode stance.
Weekly jobless claims decreased by 20,000 (or -9.05%) to 201,000 versus market expectations of 225,000 claims.
It is the lowest since April 2023 (see above).
Logically speaking, a low level of jobless claims should be a positive news for the US market sentiments.
This is because it reflects a strong demand for workers and a low risk of layoffs.
The labor market is a key driver of consumer spending, which accounts for about 70% of the US gross domestic product (GDP).
Healthy job market also supports consumer confidence and income growth, that could offset some of the negative effects of rising prices and borrowing costs.
In light of the recent US market downturn, are there anything stocks to be considered?
Based on above post, there are three from Berkshire Hathaway’s holdings.
Due to limited real estate, I would be covering 1 of 3.
The stock is $MasterCard(MA)$ (see above).
Berkshire Hathaway - Holdings Extracts
Mastercard ranked 15th In $Berkshire Hathaway(BRK.B)$ holdings.
It one of the stocks in Mr Buffet’s portfolio that was digging in near entries Thursday.
Mastercard (MA) has been on a roll since the beginning of 2023.
Looking at its YTD performance, it is up +16.31% or $56.56.
Looking at its 1-Year performance, it is up +35.19% or $105.
Based on MarketSmith analysis, this credit card is just below a flat base entry of $405.19 and it looks to be getting support at the 50-day line.
Mastercard is one of the Top 10 Payment Processing Solutions in the world.
Based on a 2021 Emergen Research titled “Payment Processing Solutions”, the global market size was valued at US$46.81 Billion.
In terms of ranking by Revenue, Mastercard ranked sixth.
As the saying goes “Money Makes The World Go Round”, Mastercard will be around fortifying global payment processings for a long time to come.
Do you think the US market will continue to consolidate or try to recover lost grounds?
Do you think Mastercard is worth investing, considering its borderless payment processings.
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How much longer will Warren hang on as Chairman? And, what kind of correction will result when he leaves. Or will his heir apparent experience remarkable returns with revised investing principles?
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
BRK earnings are inflated by current stock holdings value. Current cash on hand is outsized. Problems easy to live with. Being 92 and sharp beats looking up at dirt. Also, The current PE of BRK.B is 9.32. The historical average PE of BRK stock is 15.89. I realize this is misleading and yet BRK's long term stock performance out performs a 15 or even 45 PE.
Wow Apple takes more than half
Would you consider "Follow me" and get first hand read of my Daily new posts? Thanks!
Add to BRK every month, that's all you have to do