Latest news with #BRK
Wall Street Journal
3 hours ago
- Business
- Wall Street Journal
Geico, Berkshire Hathaway's Car Insurer, Is on Recovery Road
Geico's comeback in the car-insurance wars is incomplete. The Berkshire Hathaway BRK.B -0.87%decrease; red down pointing triangle-owned company, known for its green gecko mascot, has pared staff, invested in technology and tweaked pricing models in ways that have made it a more profitable underwriter.
Yahoo
4 days ago
- Business
- Yahoo
The Stock Warren Buffett Spent $78 Billion Buying Over the Last 7 Years Is Slumping, and It Begs the Question: Has the Oracle of Omaha Lost His Touch?
Key Points Warren Buffett has purchased close to $78 billion worth of his favorite stock since the midpoint of 2018 -- and you won't find it listed in Berkshire Hathaway's quarterly 13F filings. However, Berkshire's billionaire chief hasn't spent a dime buying shares of this stock for at least three quarters -- and there's a good reason why. Buffett sticking to his roots and purposefully sitting on his hands until valuations make sense shouldn't be misconstrued as weakness. 10 stocks we like better than Berkshire Hathaway › Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) billionaire CEO Warren Buffett is widely viewed as Wall Street's greatest money manager. Without relying on fancy charting software or algorithms, the aptly named Oracle of Omaha became one of the richest people in the world and watched Berkshire grow into one of only 11 public companies worldwide to ever hit a $1 trillion valuation. Buffett's track record -- he's overseen a 5,868,186% cumulative return in Berkshire Hathaway's Class A shares (BRK.A) in six decades -- has earned him a huge following, which includes investors who aim to mirror his trading activity. But with Warren Buffett's most-purchased stock over the last seven years recently falling more than 10% as the broad-based S&P 500 and growth-fueled Nasdaq Composite power to fresh all-time highs, the question has to be asked: Has Berkshire's billionaire CEO lost his touch? Warren Buffett's favorite stock is a company near and dear to his heart Most investors track the Oracle of Omaha's buying and selling activity by following Berkshire Hathaway's quarterly Form 13F filings. This required filing for institutional investors with at least $100 million in assets under management concisely lists all buying and selling activity from the previous quarter. However, there's a catch: Buffett's favorite stock to buy isn't listed in his company's quarterly filed 13Fs. To get the skinny on this top stock, you'll need to dig into Berkshire Hathaway's quarterly operating results. On the final page of each quarterly report, just prior to the executive certifications, you'll find a detailed breakdown of exactly how much Wall Street's most-revered billionaire money manager spent on his favorite stock (cue the dramatic music)... which happens to be shares of his own company. Prior to July 2018, Warren Buffett and now-late right-hand man Charlie Munger were only allowed to repurchase shares of Berkshire Hathaway stock if it fell to or below 120% of book value (i.e., no more than 20% above listed book value). Unfortunately, Berkshire's stock never fell to or below this line-in-the-sand threshold, which resulted in no buyback activity. On July 17, 2018, Berkshire's board amended and simplified the rules governing buybacks to two criteria. It allowed the Oracle of Omaha to repurchase shares with no ceiling or end date as long as: Berkshire has at least $30 billion in combined cash, cash equivalents, and U.S. Treasuries on its balance sheet; and Buffett views shares of his company as intrinsically cheap. This latter point is purposefully vague so as to give Buffett the discretion to put his company's capital to work via buybacks whenever he feels it's appropriate. Between July 1, 2018, and March 31, 2025, Berkshire's billionaire chief bought back almost $78 billion worth of his company's shares. This is more than Buffett has spent buying Berkshire's existing stakes in Apple, Bank of America, American Express, Coca-Cola, and Chevron, combined. But the Oracle of Omaha's favorite stock is slumping. As of this writing on July 23, it's down more than 10% from its all-time closing high in early May. Perhaps more importantly, it's underperforming the benchmark S&P 500 on a year-to-date basis. Berkshire Hathaway's slump is a sign of Buffett's resolve and shouldn't be confused with weakness With Berkshire's billionaire chief set to turn 95 in less than five weeks, as well as retiring from the CEO role at the end of this year, few investors would fault him for losing his touch. But what we're witnessing with Berkshire's stock at the moment isn't a sign of Buffett failing. Rather, it's validation of his resolve and investment philosophies. During his six decades as CEO, Buffett has bent a few of his own unwritten investment rules. For instance, while he's often viewed as a long-term investor, he and his top advisors purchased shares of gaming giant Activision Blizzard in 2022 as a short-term arbitrage opportunity given Microsoft's $95-per-share all-cash offer to acquire the company. But the one investment philosophy Warren Buffett hasn't wavered on in six decades is his desire to get a good deal. Value is of the utmost importance to Berkshire Hathaway's billionaire chief. No matter how much he appreciates a company's competitive edge, brand, and/or management team, he's not going to buy shares if the valuation doesn't make sense. When Buffett green-lit the cumulative purchase of nearly $78 billion worth of his favorite stock over 24 quarters (six years), Berkshire Hathaway stock consistently traded at a 30% to 50% premium to its book value. But between July 1, 2024, and March 31, 2025, Buffett hasn't spent a dime to repurchase his company's stock. The reason? Berkshire's premium to book climbed to between 60% and 80%. Even shares of the Oracle of Omaha's own company are off-limits when the valuation no longer makes sense. However, Buffett's cold-turkey approach with his own company's stock isn't unique. He's been a net-seller of equities for 10 consecutive quarters, with $174.4 billion more in stocks sold than purchased. Back in 2001, in an interview with Fortune magazine, Buffett referred to the market-cap-to-GDP ratio as, "probably the best single measure of where valuations stand at any given moment." This valuation tool, which divides the cumulative value of all public companies by U.S. gross domestic product (GDP), has averaged a multiple of 85% when back-tested to 1970. This is to say that the aggregate value of all publicly traded stocks has equaled about 85% of U.S. GDP over 55 years. As of the closing bell on July 22, the "Buffett Indicator," as this valuation measure is now more-commonly known, hit a record high of 212.23%! Value isn't just hard to come by in this market -- it's practically nonexistent. What we're witnessing from Buffett isn't weakness. Rather, we're seeing a time-tested investor sticking to his roots and purposefully sitting on his hands until valuations make sense. Though there's no timeline as to when valuations will fall back into Warren Buffett's (or successor Greg Abel's) wheelhouse, patience has proved to be a virtue and substantial moneymaker in the past for Berkshire's CEO and the company's shareholders. Should you buy stock in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Chevron, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. The Stock Warren Buffett Spent $78 Billion Buying Over the Last 7 Years Is Slumping, and It Begs the Question: Has the Oracle of Omaha Lost His Touch? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
The Stock Warren Buffett Spent $78 Billion Buying Over the Last 7 Years Is Slumping, and It Begs the Question: Has the Oracle of Omaha Lost His Touch?
Key Points Warren Buffett has purchased close to $78 billion worth of his favorite stock since the midpoint of 2018 -- and you won't find it listed in Berkshire Hathaway's quarterly 13F filings. However, Berkshire's billionaire chief hasn't spent a dime buying shares of this stock for at least three quarters -- and there's a good reason why. Buffett sticking to his roots and purposefully sitting on his hands until valuations make sense shouldn't be misconstrued as weakness. 10 stocks we like better than Berkshire Hathaway › Berkshire Hathaway 's (NYSE: BRK.A)(NYSE: BRK.B) billionaire CEO Warren Buffett is widely viewed as Wall Street's greatest money manager. Without relying on fancy charting software or algorithms, the aptly named Oracle of Omaha became one of the richest people in the world and watched Berkshire grow into one of only 11 public companies worldwide to ever hit a $1 trillion valuation. Buffett's track record -- he's overseen a 5,868,186% cumulative return in Berkshire Hathaway's Class A shares (BRK.A) in six decades -- has earned him a huge following, which includes investors who aim to mirror his trading activity. But with Warren Buffett's most-purchased stock over the last seven years recently falling more than 10% as the broad-based S&P 500 and growth-fueled Nasdaq Composite power to fresh all-time highs, the question has to be asked: Has Berkshire's billionaire CEO lost his touch? Warren Buffett's favorite stock is a company near and dear to his heart Most investors track the Oracle of Omaha's buying and selling activity by following Berkshire Hathaway's quarterly Form 13F filings. This required filing for institutional investors with at least $100 million in assets under management concisely lists all buying and selling activity from the previous quarter. However, there's a catch: Buffett's favorite stock to buy isn't listed in his company's quarterly filed 13Fs. To get the skinny on this top stock, you'll need to dig into Berkshire Hathaway's quarterly operating results. On the final page of each quarterly report, just prior to the executive certifications, you'll find a detailed breakdown of exactly how much Wall Street's most-revered billionaire money manager spent on his favorite stock (cue the dramatic music)... which happens to be shares of his own company. Prior to July 2018, Warren Buffett and now-late right-hand man Charlie Munger were only allowed to repurchase shares of Berkshire Hathaway stock if it fell to or below 120% of book value (i.e., no more than 20% above listed book value). Unfortunately, Berkshire's stock never fell to or below this line-in-the-sand threshold, which resulted in no buyback activity. On July 17, 2018, Berkshire's board amended and simplified the rules governing buybacks to two criteria. It allowed the Oracle of Omaha to repurchase shares with no ceiling or end date as long as: Berkshire has at least $30 billion in combined cash, cash equivalents, and U.S. Treasuries on its balance sheet; and Buffett views shares of his company as intrinsically cheap. This latter point is purposefully vague so as to give Buffett the discretion to put his company's capital to work via buybacks whenever he feels it's appropriate. Between July 1, 2018, and March 31, 2025, Berkshire's billionaire chief bought back almost $78 billion worth of his company's shares. This is more than Buffett has spent buying Berkshire's existing stakes in Apple, Bank of America, American Express, Coca-Cola, and Chevron, combined. But the Oracle of Omaha's favorite stock is slumping. As of this writing on July 23, it's down more than 10% from its all-time closing high in early May. Perhaps more importantly, it's underperforming the benchmark S&P 500 on a year-to-date basis. Berkshire Hathaway's slump is a sign of Buffett's resolve and shouldn't be confused with weakness With Berkshire's billionaire chief set to turn 95 in less than five weeks, as well as retiring from the CEO role at the end of this year, few investors would fault him for losing his touch. But what we're witnessing with Berkshire's stock at the moment isn't a sign of Buffett failing. Rather, it's validation of his resolve and investment philosophies. During his six decades as CEO, Buffett has bent a few of his own unwritten investment rules. For instance, while he's often viewed as a long-term investor, he and his top advisors purchased shares of gaming giant Activision Blizzard in 2022 as a short-term arbitrage opportunity given Microsoft 's $95-per-share all-cash offer to acquire the company. But the one investment philosophy Warren Buffett hasn't wavered on in six decades is his desire to get a good deal. Value is of the utmost importance to Berkshire Hathaway's billionaire chief. No matter how much he appreciates a company's competitive edge, brand, and/or management team, he's not going to buy shares if the valuation doesn't make sense. When Buffett green-lit the cumulative purchase of nearly $78 billion worth of his favorite stock over 24 quarters (six years), Berkshire Hathaway stock consistently traded at a 30% to 50% premium to its book value. But between July 1, 2024, and March 31, 2025, Buffett hasn't spent a dime to repurchase his company's stock. The reason? Berkshire's premium to book climbed to between 60% and 80%. Even shares of the Oracle of Omaha's own company are off-limits when the valuation no longer makes sense. BRK.A Price to Book Value data by YCharts. However, Buffett's cold-turkey approach with his own company's stock isn't unique. He's been a net-seller of equities for 10 consecutive quarters, with $174.4 billion more in stocks sold than purchased. Back in 2001, in an interview with Fortune magazine, Buffett referred to the market-cap-to-GDP ratio as, "probably the best single measure of where valuations stand at any given moment." This valuation tool, which divides the cumulative value of all public companies by U.S. gross domestic product (GDP), has averaged a multiple of 85% when back-tested to 1970. This is to say that the aggregate value of all publicly traded stocks has equaled about 85% of U.S. GDP over 55 years. As of the closing bell on July 22, the " Buffett Indicator," as this valuation measure is now more-commonly known, hit a record high of 212.23%! Value isn't just hard to come by in this market -- it's practically nonexistent. What we're witnessing from Buffett isn't weakness. Rather, we're seeing a time-tested investor sticking to his roots and purposefully sitting on his hands until valuations make sense. Though there's no timeline as to when valuations will fall back into Warren Buffett's (or successor Greg Abel's) wheelhouse, patience has proved to be a virtue and substantial moneymaker in the past for Berkshire's CEO and the company's shareholders. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
Yahoo
5 days ago
- Business
- Yahoo
Warren Buffett Warns Inflation Turns Business Into ‘The Upside-Down World of Alice in Wonderland' But Weeds Out ‘Bad Businesses'
Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK.B) (BRK.A), is known for his clear-eyed assessments of economic forces and their impact on business fundamentals. In his 1981 shareholder letter, Buffett addressed the distorting effects of inflation on corporate behavior, writing: '...inflation takes us through the looking glass into the upside-down world of Alice in Wonderland. When prices continuously rise, the 'bad' business must retain every nickel that it can. Not because it is attractive as a repository for equity capital, but precisely because it is so unattractive, the low-return business must follow a high retention policy. If it wishes to continue operating in the future as it has in the past — and most entities, including businesses, do — it simply has no choice.' More News from Barchart China, Chips, and Chaos: Where Smart Investors Are Putting Their Money Now Alphabet Had a 'Standout Quarter.' Should You Buy GOOG Stock Here? The Saturday Spread: Leveraging Practical Math to Extract Alpha in Hidden Places Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. This observation came at a time when the U.S. economy was grappling with high inflation and rising interest rates, conditions that posed unique challenges for both investors and managers. Buffett's metaphor of an 'upside-down world' captures the counterintuitive reality that, in inflationary periods, even companies with poor returns are forced to reinvest heavily just to maintain their existing operations. Unlike high-quality businesses that can generate surplus cash and reward shareholders, low-return enterprises must retain capital simply to keep pace with rising costs of inventory, receivables, and fixed assets. Buffett's authority on this subject is grounded in decades of experience navigating different economic cycles. Since taking control of Berkshire Hathaway in the 1960s, he has consistently emphasized the importance of investing in businesses with durable competitive advantages and strong pricing power — traits that allow companies to pass rising costs on to customers and maintain profitability in inflationary environments. By contrast, businesses with weak economics are forced into a perpetual cycle of capital retention, leaving little room for dividends, growth, or debt reduction. This insight has enduring relevance for investors and corporate leaders. Even as inflationary pressures ebb and flow over time, the underlying principle remains: capital allocation decisions should be based on the ability of a business to generate real returns above the rate of inflation. Buffett's warning also serves as a caution against being misled by headline earnings or reported profits during inflationary periods. What matters most is not the nominal growth in revenues or assets, but the true economic value created for shareholders after accounting for the 'silent tax' of inflation. Buffett's 1981 letter to investors continues to be studied for its timeless lessons on business quality, capital allocation, and the dangers of inflation. His ability to distill complex macroeconomic realities into practical guidance has made his annual letters essential reading for investors seeking to build resilient, value-driven portfolios in any market environment. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
6 days ago
- Business
- Yahoo
Warren Buffett Doesn't Want to Control a Company; Says Just Invest in ‘Wonderful' Businesses and Let Them Do the Rest
Warren Buffett, the longtime chairman and CEO of Berkshire Hathaway (BRK.B) (BRK.A), is celebrated for his disciplined, value-oriented approach to investing. In his 1981 shareholder letter, Buffett articulated a principle that continues to guide Berkshire's acquisition strategy: 'we would rather buy 10% of Wonderful Business T at X per share than 100% of T at 2X per share.' This philosophy stands in contrast to the prevailing mindset among many corporate managers, who often prioritize full ownership and control, sometimes at the expense of economic rationality. That's because Buffett's reasoning is rooted in a focus on maximizing real economic benefits rather than expanding managerial domain or inflating accounting figures. More News from Barchart 2 Recession-Proof Dividend Stocks to Buy for the Second Half of 2025 UnitedHealth Stock Spirals Lower Again. Don't Buy the Dip. This Self-Driving Car Stock Is Surging on a Major Nvidia Boost Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. In fact, the legendary investor has frequently cautioned that managers who stress 'accounting appearance over economic substance usually achieve little of either.' This perspective reflects his belief that the true measure of an investment lies in its underlying value, not in the optics of ownership or the ability to consolidate earnings on financial statements. Throughout his career, Buffett has demonstrated a willingness to take significant minority stakes in high-quality businesses when the price is right, rather than overpaying for full control. This approach allows Berkshire Hathaway to benefit from the growth and profitability of leading companies without incurring the risks or costs associated with outright acquisitions. Notably, this strategy has led to successful long-term investments in firms such as Coca-Cola (KO), American Express (AXP), and Moody's (MCO), where Berkshire's minority positions have generated substantial returns. Buffett's stance also reflects his broader skepticism of empire-building — a tendency among some executives to pursue acquisitions for the sake of expanding their influence, rather than to create genuine shareholder value. He has repeatedly emphasized that capital should be allocated where it can generate the highest real return, regardless of whether that means owning a small piece or the entirety of a business. The relevance of Buffett's 1981 guidance is evident in today's market environment, where mergers and acquisitions remain a central feature of corporate strategy. As companies face pressure to grow and diversify, the temptation to pursue large, transformative deals can be strong. Yet Buffett's preference for economic substance over managerial control serves as a reminder that disciplined, value-driven decision-making is often the more prudent path. Buffett's enduring influence is grounded in his consistency and transparency. His annual letters, including the 1981 edition, offer investors and business leaders a blueprint for rational capital allocation and long-term thinking. By prioritizing real economic benefits over the allure of control or superficial accounting gains, Buffett has built Berkshire Hathaway into one of the world's most respected and successful conglomerates — a testament to the power of value-driven leadership On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
