|Bid||210.29 x 100|
|Ask||211.15 x 100|
|Day's Range||209.36 - 214.03|
|52 Week Range||158.61 - 214.03|
|PE Ratio (TTM)||27.78|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
An accounting change is about to have a big effect on Warren Buffett’s conglomerate because swings in the value of its stock portfolio will soon be included in earnings.
In the previous part of this series, we discussed that Warren Buffett is fully bullish on the stock market (SPX-INDEX), and he believes that the tax reform will add more value to the equity market rally. Billionaire investor Warren Buffett is very optimistic about the financial sector. Wells Fargo (WFC), Apple (AAPL), Kraft Heinz (KHC), Coca-Cola (KO), and Bank of America (BAC) were Berkshire Hathaway’s largest holdings in 3Q17.
Branded consumer staples aren't what they used to be, the rise of robot investors, and Berkshire Hathaway takes one step closer to implementing its post-Buffett succession.
Berkshire Hathaway (BRK.B) is sitting on a cash pile of $100 billion. Whereas the company had long kept a policy of no dividends, repurchases, or stock splits, Buffett and Munger altered their strategies to accommodate repurchases for the first time in 2011. Berkshire has agreed to do buybacks at a premium of not more than 20% for Class A and B shares through open-market or privately negotiated transactions.
Berkshire Hathaway (BRK.B) continues to garner higher expectations for its operating performance. Berkshire is expected to post EPS (earnings per share) of $2,633 in 4Q17, marginally lower than 4Q16’s $2,665 and a substantial improvement from 3Q17. The rise is expected due to lower losses in the insurance space and growth by BNSF Railway and the manufacturing sector. Earnings before taxes for Berkshire’s service, manufacturing, and energy divisions and BNSF Railway rose 1%–9% year-over-year in 3Q17.