Praleisti ir pereiti prie pagrindinio turinio

How Did Warren Buffett and Berkshire Hathaway Beat The Street In Q4?







The Oracle of Omaha and Berkshire Hathaway are a beacon of hope to weary investors during a time of great turmoil.



Like an oasis amidst a desert of despair, this investor’s waning morale managed to find genuine solace in Berkshire Hathaway’s (NYSE: BRK.B) earnings win on Saturday.

As the world plunges into the darkness of inflation, looming rate cuts, and war, how did Buffett & Co. produce a much-needed win?
Berkshire could be the anchor we all need…

Sure, Berkshire’s impressive results span a retrospectively blissful time of ignorance towards any conflict in Ukraine, but that doesn’t make it any less welcome.

The conglomerate posted some impressive results on Saturday morning’s earnings call:
Operating earnings (total profits) reached $7.3 billion — up 45% year-over-year (YoY)
Berkshire’s operating revenue for Q4 totaled $39.65 billion for the quarter — up 10%
The company also used $6.9 billion to buy back shares in the fourth quarter.
Despite this, total cash-in-hand by the end of 2021 was at about $146.72 billion — that’s enough to buy roughly 16 Peloton’s (business, not bikes) as of Friday’s closing price.

However, don’t expect Berkshire to make any large acquisitions any time soon, with big man Buffett explaining in his accompanying annual shareholder letter that he and Vice Chairman Charlie Munger found little that “excites” them — hence the share buybacks.

Speaking of, it’s no small thing that Buffett and Munger — arguably two of history’s greatest investors — have so much faith in their own business, that they put buying back Berkshire shares ahead of acquiring a new company. That should tell investors all they need to know about the value of Berkshire as a business, and judging by its 2021 numbers, the company’s value as an anchor in your portfolio.

With a hand in old-world businesses such as insurance and energy, as well as huge stakes in the likes of Apple and Coca-Cola, it’s like owning an ETF with as close to a modern Nostradamus at the helm as one can get.


Dont trust old school investing? Read about some new tech in  our previous article:
Labels:

Komentarai

Rašyti komentarą

Populiarūs šio tinklaraščio įrašai

Bet on the bots

  Robotics is increasingly seen as a way of improving our way of life, from driverless cars to healthcare and even music. This content has been produced by Opto and was originally published on the  Opto Blog . Elon Musk last year announced he is developing the Tesla Bot, a prototype humanoid designed to eliminate “dangerous, repetitive and boring” tasks. “In future,” said Musk, “physical work will be a choice.” In the context of a lack of labour and rising labour costs, the segment has immense potential to grow, both commercially and in domestic use. Bots are already present or imminent in many areas of our lives. Here are just a few examples of how science fiction is becoming fact, bringing with them investment opportunities for their makers. Security Robocop will be patrolling US city streets in 2022, following the rollout of police robot trials in Huntington Park — a city southeast of downtown Los Angeles — and Las Vegas. The autonomous security robot, a 5ft-tall conical ar...
Rašyti komentarą
Read more »

How Do Conflicts and War Affect Stocks?

Russia's military assault triggered a sharp sell-off in the S&P 500 and pushed the Nasdaq briefly into bear market territory before both stock indexes bounced back into positive territory in a wild trading session. Escalating tensions between Russia and Ukraine came to a head early Feb. 24 when Russia launched a deadly invasion into its neighboring nation, with explosions and missile strikes in Ukraine's capital of Kyiv and several other cities. The potential for Russian military aggression in Ukraine has been weighing on global financial markets for weeks. The military assault triggered a sharp sell-off in the S&P 500 and pushed the Nasdaq briefly into bear market territory before both stock indexes bounced back into positive territory in a wild trading session. Russian President Vladimir Putin has said his goal is the "demilitarization" of Ukraine and claims Russia has no intention of occupying the territory. Some experts speculate that Putin's true goa...
Rašyti komentarą
Read more »