|Bid||202.21 x 900|
|Ask||0.00 x 3000|
|Day's Range||201.75 - 203.18|
|52 Week Range||184.75 - 224.07|
|Beta (3Y Monthly)||0.77|
|PE Ratio (TTM)||18.62|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||241.67|
” (May 17) provides a comprehensive analysis of Occidental’s agreed acquisition of Anadarko, which was enabled by a $10bn investment from Berkshire Hathaway. In addition to what is disclosed in the analysis, Berkshire Hathaway also gets a warrant to subscribe, subject to conditions, for up to 80m shares, which is about 10 per cent of the company, at an exercise price of $62.501. Although this may comply with US laws and regulations, it is questionable whether it complies with the spirit of good corporate governance principles, not least those of the widely supported Investor Stewardship Group, which sets out investor expectations about corporate governance practices in US publicly listed companies.
While Masayoshi Son is still very much at the helm of SoftBank Group Corp. (TSE:9984), the company he built into a leader of the Japanese telecom industry, his attention increasingly seems to be focused on the SoftBank Vision Fund. The Vision Fund is the company's venture capital investing arm. While managed by SoftBank, it is funded principally by external investors and has raised a staggering $100 billion .
Stocks in Warren Buffett's Berkshire Hathaway portfolio were mixed Monday. Among Buffett's holdings identified in Berkshire Hathaway's latest SEC filing, 18 rose while 29 fell. StoneCo shares rose 88 cents, or 3.
Warren Buffett (Trades, Portfolio)'s advice is always timeless and invaluable. Every single value investor listens wholeheartedly to and learns from what he says about market conditions, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B)'s positions in the stock market and value investing philosophy. In the 2019 annual meeting, he again gave some great lessons about value investing and how to value a business.
Warren Buffett is a fan of dividends. Just look at all the dividend stocks that fill Berkshire Hathaway's (NYSE:BRK.B),NYSE:BRK.A) portfolio. Many of his top holdings send plenty of cash flowing back into BRK.B's coffers, inflating them by billions of dollars each quarter. And for decades, BRK.B has been using those dollars to reinvest and drive the future returns of Berkshire Hathaway stock.Source: Shutterstock However, despite Buffett's love of stocks that pay dividends, Berkshire Hathaway stock doesn't pay one of its own, with Buffett preferring to use the money for other purposes. Over the years, that's been a fine approach. But these days, Buffett and BRK.B may want to rethink that stance. * 7 High-Yield REITs to Buy (Even When the Market Tanks) A huge cash pile, underperformance in recent years by Berkshire Hathaway stock and a lack of appealing elephant-sized takeover targets make the idea of paying a dividend- even a one-time special one- worthwhile for Berkshire Hathaway.InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Growing Problem for Berkshire HathawayCalling BRK.B a cash-generating machine would be an understatement. By design, the organization is set up to produce copious amounts of cash flows from its underlying holdings. Its insurance companies pull in billions from their investments, while Buffett receives billions each quarter in dividends from BRK.B's massive stakes in companies like Coca-Cola (NYSE:KO) and U.S. Bancorp (NYSE:USB). And we can't forget about the dividends/distributions that Berkshire Hathaway's subsidiaries send back to their parent.Historically, Buffett has used this cash primarily to invest in its current businesses, buy new businesses and repurchase Berkshire Hatahaway stock when its shares are cheap enough.The problem is that BRK.B may be producing too much cash these days. At the end of 2018, BRK.B had about $112 billion in cash and equivalents on its balance sheet. That balance has only grown as more of its positions have paid their quarterly dividends into the firm's coffers.The issue is that Buffett and Berkshire are having trouble finding ways to spend that cash.With stocks surging over the last year or so, valuations aren't as cheap as Buffett would like. After all, he is a value investor. As a result, it's difficult for Berkshire to buy more shares of companies in which it already has stakes .Meanwhile, expensive valuations make buying companies outright an expensive proposition. Since Berkshire Hathaway is so big, it takes a large deal to really move the needle for Berkshire Hatahawau stock. Unfortunately, Buffett and the team at Berkshire Hathaway recently haven't found any major company that they like. It's been more than three years since BRK.B carried out a substantial buyout. So, its cash keeps piling up.That could explain Buffett's recent bout of underperformance.Over the long haul, Berkshire Hathaway stock has been a great investment. Since Buffett took over, Berkshire Hathaway has managed to produce a compound annual gain of 21% , versus a compound annual gain of just 9.7% for the S&P 500 during that time.However, the last decade hasn't been so kind for Buffett. BRK.B stock has risen by 259% over the last ten years. That's not bad at all. However, the S&P has returned a total of 314% during that time. This year alone ,the S&P 500 has risen more than twice as rapidly as Berkshire Hatahaway stock. Berkshire Hathaway Should Give It All AwayThere is a relatively easy solution to the problem for Berkshire: enact a dividend of its own. Buffett has notoriously been stubborn on this issue and has said that in 10 or 20 years, the company may decide to institute a dividend. BRK has only paid a dividend once, back in 1967. However, it might be a good idea for for Berkshire Hathaway stock to start paying one.For one thing, Buffett's argument that it's better to use the money for investments is only valid if he actually puts the cash to work. Handing some of the cash back to investors as a dividend would certainly remove some of the drag on the performance. of Berkshire Hathaway stock.And Buffett wouldn't have to get rid of all of the cash. If Berkshire Hathaway last year- after kicking out the issues with Kraft Heinz (NYSE:KHC) - put 42% of its profits into dividends, it would have spent about $20 billion on the payouts. In that scenario, Buffett would still have had plenty of cash to play with. In fact, about five years ago, Buffett had only about $42 billion in cash on Berkshire's balance sheet, and he was perfectly content and performed better.By paying a dividend, BRK.B would remove one of Buffett's main complaints about Berkshire Hathaway as well. That is, that Berkshire Hathaway stock constantly trades at a huge discount to book value. If Buffett was to pay an annual dividend or even a one-time large special payout and remove some of the excess cash, the owners of Berkshire Hathaway stock would receive an improved return on their investment. Most likely, they would enjoy higher share prices and higher net asset value. Here's Hoping Berkshire Hathaway Starts Paying UpBuffett is an amazing investor and has steered Berkshire Hathaway towards enviable returns that may have been too good. BRK just throws off too much cash these days. It's a great problem to have, but it is starting to significantly hinder the performance of BRK.B stock. Initiating a one-time, special dividend or annual payout would go a long way towards removing that excess cash from Berkshire's balance sheet, while improving the performance of BRK.B stock. At the time of writing, author Aaron Levitt did not hold a position in any of the stocks mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Berkshire Hathaway Stock Should Pay a Special Dividend appeared first on InvestorPlace.
To start with, the company is a lot more than Warren Buffett's carefully selected stock portfolio.
Berkshire Hathaway's vast $200 billion stock portfolio is far more concentrated than you may realize. But that doesn't mean investors should follow his lead.
Stocks in Warren Buffett's Berkshire Hathaway portfolio fell Friday. Among Buffett's holdings identified in Berkshire Hathaway's latest Securities and Exchange Commission filing, 11 rose while 35 fell.
Nicely was the executive chairman of Government Employees Insurance Company Inc. (Geico) from 1993 to 2018 and its CEO from 1992 to 2018. Warning! GuruFocus has detected 2 Warning Sign with BRK.A. Click here to check it out. Geico has a different culture that's not replicable.
Warren Buffett revealed May 3 that Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) had invested in Amazon (NASDAQ:AMZN) for the first time in the holding company's history. On May 15, we found out that its initial bet on Amazon stock was $860 million or less than a half a percent of Berkshire's $199 billion equity portfolio. Source: Shutterstock Since the announcement in early May, Amazon stock has retreated in price, delaying hitting $2,000 for only the second time in its history with the first being last August. So, while the media seem obsessed by Berkshire's ownership of Amazon stock (Google search the term "Warren Buffett Amazon stock," and you'll get 812 results) you could hardly call a weighting of 0.5% a significant commitment on Buffett's part. By comparison, the Canada Pension Plan Investment Board has an Amazon weighting of 1.1% on a $51.8 billion equity portfolio. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe fact that Buffet is a reformed value investor has investors speculating about where Amazon stock is headed next. * 6 Chinese Stocks That Could Pop On a Trade Deal As I said previously, Amazon hit $2,000 on August 30. Then, after hitting its 52-week high of $2,050.50 on September 4, it ended up retreating to below $1,400 prior to Christmas before doing the 2019 climb back to $2,000.Is $3,000 in the cards or will AMZN face another 30% correction in the second half of 2019 and into 2020? I'll make a case for both scenarios. It's Going to Continue Its Trek to $3,000Let's consider Amazon's free cash flow for the past five years. It will tell us a great deal about the company's success trajectory and overall financial health. Keep in mind that free cash flow, especially when we're talking about a serious growth company like Amazon, can be a bit lumpy as investments are made to grow segments of its business.Year Free Cash Flow YOY Growth 2018 $17.30B 167.0% 2017 $6.48B -33.3% 2016 $9.71B 32.5% 2015 $7.33B 275.9% 2014 $1.95B Source: MorningstarAs I said, you're not going to be able to avoid the lumpy factor. Long-term, however, the trend is unmistakable. Over the past four years, has grown its free cash flow at an annualized annual rate of 72.6%. So, when Buffett talks about value being the price you're willing to pay today to get more back later, he's talking about Amazon. A simple look at its free cash flow grow suggests that it's not as simple as saying AMZN is overpriced because it trades at 3,9 times sales or 53 times free cash flow.Why is that?That's because free cash flow is king. If you grow that by 73% annually and you'll find new ways to keep improving it. A Recession Could Put Amazon Stock in Full RetreatAmazon's business is going great guns right now, but what happens if a global recession takes hold?I know the odds aren't good at the moment, but investment professionals are increasingly worried that we're on a slippery slope; once we get on it, it will be tough to stop it in its tracks given interest rates are still reasonably low. "The risk of an economic downturn has increased substantially," Morgan Stanley chief equity strategist Mike Wilson stated May 13 in a note to clients. "While last week's correction helped move the risk-reward closer to balanced, we think there is likely more downside than upside based on our high conviction view that earnings expectations remain too high by 5-10 per cent."The reality is that if a 25% tariff is slapped on the remaining $325 billion in Chinese imports that don't have already have the tax applied to them, the hit to the economy is more than enough to send us into a recession. Every day that goes by that President Trump and his trade delegation don't have a signed deal with the Chinese, the likelihood of a recession increases and the probability of Amazon's share price getting anywhere near $3,000 goes right out the window. The Reality Is Likely Somewhere in BetweenI believe that most things we fear in life don't come to fruition. That is to say that life usually happens in the boring middle. Yes, there could be a recession, but even if there is one, it won't last very long. It's also possible that Amazon's AWS business will continue to print money because it's pretty hard to take away the servers once you've got a need for them.So, where to from here? If I knew that, I'd have already bought some Amazon stock. What I do know is that Warren Buffett's a patient man. As long as the fundamentals (free cash flow being a primary one) remain healthy, $3,000 will happen. It's only a matter of time.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Amazon Stock Looks More and More Bulletproof Every Day appeared first on InvestorPlace.
Warren Buffett has consistently ranked highly on Forbes' list of billionaires. He has a careful methodology for evaluating value stocks and investing.
U.S. stock futures are trading sharply lower this morning, snapping the market's three-day winning streak.Heading into the open, futures on the Dow Jones Industrial Average are down 0.78%, and S&P 500 futures are lower by 0.77%. Nasdaq-100 futures have lost 1.06%.With bulls running the tables yesterday it should come as no surprise that calls proved more popular than puts. Overall volume climbed to above average levels on the session with 19.8 million calls and 18.9 million puts changing hands.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe uptick in call activity was enough to pull the CBOE single-session equity put/call volume ratio down from its lofty panic-induced levels. It fell to 0.66, which is a one-week low. Meanwhile, the 10-day moving average held firm at its highest reading of the year at 0.69.Options activity was a mixed bag on Wednesday (Options traders zeroed in on analyst actions yesterday). Cisco (NASDAQ:CSCO) jumped following a robust earnings report and solid forward guidance. Amazon (NASDAQ:AMZN) benefited from Warren Buffet revealing the size of his stake. Finally, Boeing (NYSE:BA) scored its third up day in a row.Let's take a closer look: Cisco Systems (CSCO)Cisco Systems surged 6.66% on the back of strong earnings. For its fiscal third quarter, the technology conglomerate raked in earnings-per-share of 78 cents on revenue of $12.96 billion. Both metrics topped analyst estimates of 77 cents and $12.89 billion, respectively. * 10 Stocks to Sell Before They Tank Your Portfolio Its revenue forecast for the next quarter was also robust, adding to the excitement surrounding the event. Cisco expects 4.5% to 6.5% revenue growth, handily beating analyst calls for 3.5% growth.The sharp rally carried CSCO stock back above its 20-day and 50-day moving averages, effectively healing all the damage inflicted during the recent market temper tantrum in a single session. It now sits within striking distance of its 52-week high of $57.53. With solid sales growth at its back, CSCO shares should be viewed as a buy into any weakness this quarter.On the options trading front, earnings enthusiasm spurred call demand. Activity lifted to 305% of the average daily volume, with 193,495 total contracts traded; 68% of the trading came from call options alone.With the uncertainty of earnings now in the rearview mirror, sellers slammed implied volatility down to 27% or the 22nd percentile of its one-year range. Premiums are now pricing in daily moves of 77 cents or 1.4%. Amazon (AMZN)Warren Buffet surprised the Street recently when he revealed his flagship Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) was buying shares of Amazon. On Wednesday, in a filing with the Securities and Exchange Commission, he finally revealed the size of the purchase: 483,300 shares.Based on Thursday's closing price that pegs the value of his investment at $921.9 million.AMZN stock scored its third up day, rising 2% amid a comeback in the tech sector. This week's successful defense of the rising 50-day moving average confirmed that dip buyers are still alive and well. With the bounce, $1,815 has established itself as the crucial support zone to watch. As long as we remain above it, the path of least resistance is higher.As far as options trading goes, calls outpaced puts by a slim margin accounting for 56% of the total. Activity ticked higher to 130% of the average daily volume, with 245,923 total contracts traded. * Top 7 Dow Jones Stocks of 2019 -- So Far Implied volatility sunk to 25% placing it at the 25th percentile of its one-year range. The expected daily move is now $28.23 or 1.5%. Boeing (BA)Boeing shares finally achieved liftoff, but with overhead resistance looming large it's bound to be a short flight. Yesterday's 2.4% climb marked its third up day in a row and recovered some of the ground lost during last week's nasty breakdown.The $362 area was a significant support level on the way down, and I fully expect it to prove stiff resistance moving forward. This run-up smells like a dead-cat bounce.Nonetheless, yesterday's jump was enough to create a surge in options trading. Speculators favored calls almost 2 to 1 over puts. Total activity grew to 109% of the average daily volume, with 118,273 contracts traded.Meanwhile, on the implied volatility front, the reading fell to 27% which lands it at the 26th percentile of its one-year range. Premiums are now pricing in daily moves of $6.12 or 1.7%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Friday's Vital Data: Cisco, Amazon and Boeing appeared first on InvestorPlace.
Jack Stoddard, Haven's second hire and its COO, left for personal reasons and has yet to be replaced.
The Dow Jones Industrial Average finished up more than 200 points Thursday after strong earnings reports from some market heavyweights. advanced after the networking giant posted fiscal third-quarter earnings that topped Wall Street forecasts. Stocks ended up Thursday after strong earnings reports from some market heavyweights helped push aside investors' concerns -- for now -- about the U.S.-China trade war.
The highest-paid CEO of an S&P 500 company in 2018 earned $129.4 million, and the lowest earned $1, according to The Wall Street Journal's annual report.