|Bid||0.00 x 900|
|Ask||345,000.00 x 800|
|Day's Range||338,438.00 - 340,600.00|
|52 Week Range||294,511.00 - 347,400.00|
|Beta (5Y Monthly)||0.85|
|PE Ratio (TTM)||20.73|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||382,500.00|
Futures: Walmart, Medtronic and InMode earnings are due Tuesday. IPO stocks InMode, Progyny, Ping are near buy points. So is Taiwan Semiconductor. Buffett-boosted RH is likely to break out.
Kroger Co.’s stock soared in after-hours trading Friday following the disclosure that Warren Buffett’s Berkshire Hathaway conglomerate has made a huge investment in the supermarket giant’s stock.
The coronavirus will continue to be felt throughout the week in company earings updates and economic data. China’s central bank is expected to cut rates, and China sales will feature in Walmart’s results. Berkshire Hathaway also reports this coming weekend.
This weekend's Barron's cover story explores what comes next for the empire that Warren Buffet built. Other featured articles present the annual ranking of top fund families, examine regulatory issues at tech giants and review the performance of former Dividend Aristocrats. Cover story "Inside Berkshire Hathaway's Future Without Warren Buffett" by Andrew Bary makes a case that as the Oracle of Omaha turns 90 this year, the company he built, Berkshire Hathaway Inc. (NASDAQ: BRK-A), could be in for a stock-boosting makeover.
Munger, who serves as chairman for the Daily Journal along with his Berkshire role, cited the increasing use of EBITDA — earnings before interest, taxes, depreciation and amortization — as an example of that excess. “I don’t like when investment bankers talk about EBITDA, which I call ‘bulls**t earnings,’” Munger, 96 years old, explained.
When Warren Buffett turns 90 years old in August, it would be only natural for (BRKA) shareholders to celebrate his success—and worry about the future of the extraordinary company he built. In his 55 years at the helm as CEO, chairman, and investment chief, Buffett turned a struggling textile maker into a $555 billion conglomerate, using investment skills that became the envy of American business. An investor who put $1,000—roughly 50 shares—in Berkshire in 1965 would now have $20 million, against $175,000 for a similar investment in the S&P 500index.
Kraft Heinz saw its bonds lose their investment-grade status and fall into “junk” territory after two credit ratings firms downgraded their debt.
SEC filing shows Warren Buffett's Berkshire Hathaway took new stakes in Kroger stores and Biogen in fourth quarter, but cut Apple.
Barron’s writer Andrew Bary has written a dozen major stories on Berkshire Hathaway over more than 20 years, and he still finds covering the legendary investor to be both challenging and rewarding.
The embattled bank’s shares were once Buffett’s “Big Four” investments. Berkshire Hathaway sold more than 55 million Wells Fargo shares in the fourth quarter.
In a regulatory filing detailing its U.S.-listed investments as of Dec. 31, Berkshire also said it took a new 648,000 share stake in drugmaker Biogen Inc worth $192.4 million, and significantly reduced its stakes in two major banks, Wells Fargo & Co and Goldman Sachs Group Inc. Berkshire has sold more than 86 million shares, or 21%, of its Wells Fargo stake since June 30, as the bank tries to restore its reputation following scandals over its mistreatment of customers. Berkshire began investing in Wells Fargo in 1989.
(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. piled funds into biotechnology company Biogen Inc. and supermarket operator Kroger Co. as it trimmed some of its bank wagers in the last few months of 2019.Berkshire’s Kroger investment, which totaled $549 million at the end of the year, was disclosed more than a year after Buffett’s conglomerate sold off its stake in retailing giant Walmart Inc. The company also built a $192 million stake in Biogen while trimming its stakes in Wells Fargo & Co., Goldman Sachs Group Inc. and Bank of America Corp., according to a regulatory filing Friday.Kroger shares surged in late trading, with the stock up 5.6% to $29.81 at 4:59 p.m. in New York. Buffett’s company is wagering on a business that’s trying to navigate a shifting retail landscape, with challenges from online grocery companies and discounters including Walmart, a company that Berkshire eventually exited in 2018.Biogen stock also climbed, rising 1.6% to $338.40 after Berkshire disclosed its holding. The Omaha, Nebraska-based conglomerate hasn’t historically been a big investor in the biotechnology industry, although the company already owns a stake in pharmaceutical company Teva Pharmaceutical Industries Ltd.Both the Biogen and Kroger stakes are small in comparison with some of Berkshire’s biggest bets. The company’s Apple Inc. holding, which was cut 1.5% in the fourth quarter, was valued at $72 billion at the end of the year.Buffett’s company has been trimming its stakes in some major lenders to try to avoid crossing a 10% ownership threshold that often draws regulatory scrutiny. He was closer to that level with Wells Fargo and Bank of America, but holds a stake of only about 3.4% in Goldman Sachs.Here’s some other key takeaways from Berkshire’s 13F:Berkshire disclosed two new exchange-traded fund holdings, in Vanguard S&P 500 ETF and SPDR S&P 500 ETF Trust. The bets were small investments, totaling $25 million across both.Buffett’s company ramped up its bet on Occidental Petroleum Corp., bringing that investment to $780 million. Berkshire also owns preferred stock in the oil producer, which Buffett obtained as part of a deal to help Occidental in its pursuit of Anadarko Petroleum Corp.Berkshire also increased its stakes in furnishings retailer RH, Suncor Energy Inc. and General Motors Co.For more on Hedge Funds Fourth-Quarter Investments in 13F Filings, click here for our TOPLive blog.(Updates with more information on bank investments starting in second paragraph, Kroger and Biogen shares starting in third paragraph.)To contact the reporter on this story: Katherine Chiglinsky in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Daniel Taub, Lananh NguyenFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Berkshire Hathaway bought Kroger and Biogen, but Warren Buffett further pared his stakes in Apple, Wells Fargo and Bank of America.
Warren Buffett's Berkshire Hathaway Inc. started new stakes in Biogen Inc. and Kroger Co. while increasing its stake in Kraft Heinz Co. , the company disclosed late Friday in a Securities and Exchange Commission filing. Berkshire reported a stake of about 648,000 shares of Biogen and 549,000 shares of Kroger that were not listed in last quarter's filing. Kroger shares rose 6% after hours, while Biogen shares advanced 2%. Also, Berkshire increased its stake in Kraft to about 10.5 million shares from 9.1 million in the previous quarter. Berkshire cut its stake in Travelers Cos. to about 312,000 shares from a previous stake of nearly 6 million shares.
I last wrote about Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT) stock back in October. At the time, I urged Uber stock investors to consider a ridesharing pair trade by shorting Lyft stock. Since that time, Uber stock is up 28%, while Lyft stock is up 18%, netting a 10% gain for that trade while limiting downside risk.Source: Daniel Dror / Shutterstock.com At this point, I believe the pair trade has run its course. Uber and Lyft are both extremely high-risk speculative bets. Following the recent outperformance of Uber stock, I no longer see it as the safer play. The NumbersIn the fourth quarter, Uber reported a net loss of $1.1 billion, slightly better than the $1.2 billion loss it reported in the third quarter. Revenue growth was 37%, up from 30% a quarter ago.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn the same quarter, Lyft reported a net loss of $356 million, significantly better than its $463 million net loss in the third quarter. Revenue growth was 52% compared to 63% in the previous quarter. * 7 Exciting Stocks to Buy for Aggressive Investors In a nutshell, Uber's revenue growth bounced back a bit in the quarter, while Lyft's continued to erode. However, Lyft is still outgrowing Uber by a significant margin, suggesting it is gaining market share. Both Uber and Lyft improved their loss situation in the most recent quarter. Lyft shaved off a higher percentage of its losses than Uber did, but Lyft is still losing more money per share.Outside of those numbers, the rest of the Uber and Lyft bull thesis is mostly just a story. The two companies are hemorrhaging cash, but investors believe that will change at some point in the future. It certainly didn't change in the fourth quarter.But the only reason why Uber stock is up and Lyft stock is down since earnings is because Uber management changed their story a bit, while Lyft did not. Lyft had previously told investors it will be profitable by the end of 2021. Uber had told investors the same thing until this month, when it changed its profitability target date to the end of 2020. What Has Changed?As soon as Uber stock and Lyft stock hit the public market last year at IPO prices of $45 and $72, respectively, I told investors to stay away. The two companies were plagued by slowing revenue growth and huge losses. Investors were simply putting their faith in a story management was telling them about how things will get better in the future.So what has changed from that situation in nearly a year? To me, the most significant changes are the stock prices. Uber is now trading at $41.25, down about 8.3%. Lyft is trading at $48.46, down 32.6%.The other thing that has changed, as I said before, is the story. Uber management's story is now that it will be profitable a year ahead of Lyft. Of course, this isn't "real" profitability. It's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) profitability. Warren Buffett's long-time right-hand man and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) vice chairman Charlie Munger expressed his disdain for EBITDA in an interview this week."I don't like when investment bankers talk about EBITDA, which I call bulls-- earnings," Munger said. "Think of the basic intellectual dishonesty that comes when you start talking about adjusted EBITDA. You're almost announcing you're a flake."In other words, Uber said this week it will hit its bulls -- milestone before Lyft hits its bulls -- milestone. Who cares? How to Play Uber Stock and Lyft StockProfitability has become the new trend among growth stock investors because of the flood of unprofitable growth stocks to hit the market in recent years. Investors need to decide which they want-growth or profitsWhat do Uber and Lyft's arbitrary profitability targets really mean when the target is so far in the future and there are so many unknowns between now and then? Just this week, a judge denied Uber's attempt to block California's AB5 law that could slam Uber and Lyft with massive new costs. How will the driverless vehicle technology race unfold in the next two years? How will partnerships and outside investments impact these two companies?For now, all investors know for sure is growth rates. The rest is just a story. Lyft is growing at a 52% rate, while Uber is growing at a 37% rate. Lyft stock is trading at a significantly larger discount to its IPO price. If you're a high-risk trader that wants to dip a toe in, pick the story you like best. I no longer see Uber stock as the better alternative given the recent price action. But I still need to see more progress from both companies to recommend buying.Wayne Duggan has been a U.S. News & World Report Investing contributor since 2016 and is a staff writer at Benzinga, where he has written more than 7,000 articles. Mr. Duggan is the author of the book "Beating Wall Street With Common Sense," which focuses on investing psychology and practical strategies to outperform the stock market. As of this writing, Wayne Duggan does not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post How to Play Uber Stock and Lyft Stock Following Earnings appeared first on InvestorPlace.