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Yahoo
13 hours ago
- Business
- Yahoo
Down 10% Since Warren Buffett's Retirement News, Should You Buy the Dip in Berkshire Hathaway Stock?
On May 3, 2025, Warren Buffett — the 94-year-old investing legend known as the 'Oracle of Omaha' — announced he would step down as CEO of Berkshire Hathaway (BRK.A) (BRK.B) at the end of the year. The market's response has been to sell Berkshire stock, which is now down over 10% since the news broke to wipe out tens of billions in market cap. The announcement from Buffett marked the end of an era at Berkshire. But now, the stock's pullback could mark the start of a new era for value investors: an opportunity to buy shares at a rare discount. More News from Barchart Option Volatility And Earnings Report For July 21 - 25 What Gamma Exposure is Saying About Alphabet Stock Ahead of Earnings Block Stock Spikes on S&P 500 Index Addition. Here's What Traders Need to Know. Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! The Buffett Premium is Gone… or is It? Berkshire stock often trades with what is known as a 'Buffett premium.' Due to the legendary investor's history of outperformance, the market trusts Buffett's calm, rational investing style. But with that halo gone, Berkshire shares have re-rated closer to their book and intrinsic value. Since the announcement, BRK.B has dropped just over 11% from its early May highs, even as the broader S&P 500 Index ($SPX) rallied to new highs during the same period. Yet, for long-term investors, that divergence might be a gift. Buffett's Famous Words: Buy When Others Are Fearful In his 1977 shareholder letter, Buffett famously wrote: 'We welcome lower market prices of stocks we own as an opportunity to acquire even more of a good thing at a better price.' For fans of Buffett's investing wisdom, it's worth considering that notion as it applies to Berkshire stock itself. What Barchart Data Tells Us When we look at Barchart's put/call ratios for BRK.B, the open interest ratio has declined since May, even as the share price has fallen. This suggests bullish positioning may be building into Berkshire's next earnings. Buffett's Stats: The Numbers That Matter If investors are nervous about a post-Buffett Berkshire Hathaway, it's because the Oracle leaves some big shoes to fill with his epic returns: 19.9% compounded annual gain for Berkshire vs. 10.4% for SPX (1965-2024) $93,150/hour in Coca-Cola dividends alone Over $816 million/year in passive income from just one stock (KO) And yet, Berkshire is underperforming the S&P 500 this quarter. That's the kind of divergence that value investors live for. For a closer look at what's fueling Berkshire's long-term performance, track Buffett's favorite stocks — including Coca-Cola (KO), Apple (AAPL), and American Express (AXP) — in the Warren Buffett Watchlist under the Investing tab on Final Thoughts Buffett might be stepping down, but the core investing philosophies he championed — driven by patience, value, and conviction — remain baked into Berkshire Hathaway's DNA. Given that, the dip in Berkshire stock may just be a prime opportunity to buy while others are fearful about what the future may hold. Watch this quick reel for the current backdrop on Warren Buffett & Berkshire Hathaway stock: On the date of publication, Barchart Insights 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 Sign in to access your portfolio
CNBC
3 days ago
- Business
- CNBC
Berkshire Hathaway continues to underperform after Buffett's exit news, now trailing the S&P 500
Berkshire Hathaway 's underperformance in share price has continued since Warren Buffett's exit news, now falling behind the S & P 500 in 2025. The Omaha-based conglomerate's B shares have suffered six negative weeks in the past seven, on track for its third straight negative month. Since May 3, when the "Oracle of Omaha" announced his plans to hand over the reins, the stock of his conglomerate has fallen more than 12%, cutting year-to-date gains to 4.5%, trailing the S & P 500's 7% increase. BRK.B .SPX YTD mountain Berkshire Hathaway B shares year to date vs. the S & P 500 If the stock closes July in the red, that would be its longest streak of monthly losses since June 2022. The B shares recently closed below their 200-day moving average after an impressive 573-day streak, their longest run above that level since the B shares were created in 1996. Buffett himself has tempered expectations for continuous outperformance. He noted that it's very difficult for any investments to move the needle because of the sheer amount of cash Berkshire is working with. Buffett said Berkshire's group of diversified, quality businesses — from BNSF Railway to See's Candy —should provide "slightly better" performance than the average U.S. company, but anything more than that is unlikely. 'With our present mix of businesses, Berkshire should do a bit better than the average American corporation and, more important, should also operate with materially less risk of permanent loss of capital," Buffett said in his 2023 annual letter. "Anything beyond 'slightly better,' though, is wishful thinking." Still, Buffett's long-term track record is unparalleled. Berkshire, which cuts across 40 industries and 60 companies, has doubled the average annual return of the S & P 500 since Buffett first took control in the 1960s, touting an overall gain from 1964 to 2024 of 5,502,284%.
Yahoo
4 days ago
- Business
- Yahoo
4 Finest PEG-Rated GARP Stocks to Boost Your Portfolio Now
In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that arises often is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability. The investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers. Per the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid, sustainable growth potential (Investopedia). Several stocks that have surged significantly in recent years have demonstrated the overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success of four such stocks. These include Carnival Corporation CCL, Levi Strauss & Co. LEVI, Vodafone Group VOD and Invesco IVZ. A Few More Words on GARP GARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing. The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate It relates the stocks' P/E ratio with the future earnings growth rates. While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential. A lower PEG ratio, preferably less than 1, is always better for GARP investors. Say for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential. Unfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock. There are some drawbacks to using the PEG ratio though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term. Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration. Here are the screening criteria for a winning strategy: PEG Ratio less than X Industry Median P/E Ratio (using F1) less than X Industry Median (For more accurate valuation purpose) Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or #2 have a proven history of success.) Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.) Average 20-Day Volume greater than 50,000: A substantial trading volume ensures that the stock is easily tradable. Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5%: Upward estimate revisions add to the optimism, suggesting further bullishness. Value Score of less than or equal to B: Our research shows that stocks with a Value Style Score of A or B, when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential. Our PEG-Driven Picks Here are four out of the 11 stocks that qualified the screening: Carnival: Headquartered in Miami, FL, Carnival operates as a cruise and vacation company. As a single economic entity, Carnival Corporation & Carnival plc forms the largest cruise operator in the world. It is the world's leading leisure travel firm and carries nearly half of the global cruise guests. The company operates in North America, Australia, Europe and Asia. Carnival can also be an impressive GARP investment pick with its Zacks Rank #2 and a Value Score of A. Apart from a discounted PEG and P/E, the stock has an impressive long-term historical growth rate of 28.5%. You can see the complete list of today's Zacks #1 Rank stocks here. Levi: It designs, markets and sells apparel and accessories for men, women, and children globally. Its offerings include jeans, pants, tops, jackets, footwear, and more under the Levi's, Dockers, Signature by Levi Strauss & Co., Denizen, and Beyond Yoga brands. LEVI also licenses its trademarks for products like belts, bags, outerwear and kidswear. Levi stock can also be an impressive GARP investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, LEVI has a solid long-term historical growth rate of 9.5%. Vodafone: The company provides telecom services across Germany, the UK, Europe, Turkey and South Africa. It offers mobile, fixed and connectivity solutions, including IoT, cloud, edge computing and digital services. Vodafone also operates M-PESA, a mobile money platform in Africa, and provides international voice, roaming and infrastructure services. Vodafone stock can be an impressive value investment pick with its Zacks Rank #1 and a Value Score of A. Apart from a discounted PEG and P/E, VOD also has an impressive long-term historical growth rate of 11.8%. Invesco: Headquartered in Atlanta, GA, Invesco Ltd. is an independent investment manager with $1.84 trillion in AUM as of March 31, 2025. The company operates in over 20 countries and offers a wide range of investment products, including ETFs, fixed income, equities, private markets, multi-asset solutions and QQQ. Invesco can also be an impressive value investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, the stock also has a solid long-term expected growth rate of 6.3%. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Disclosure: Performance information for Zacks' portfolios and strategies are available at: Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL) : Free Stock Analysis Report Vodafone Group PLC (VOD) : Free Stock Analysis Report Invesco Ltd. (IVZ) : Free Stock Analysis Report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CNBC
10-07-2025
- Business
- CNBC
Nvidia CEO Jensen Huang could soon be richer than Warren Buffett—he's worth $142 billion now
Nvidia co-founder and CEO Jensen Huang is now nearly as rich as longtime billionaire Warren Buffett — and could even soon surpass the Oracle of Omaha, in terms of net worth. Huang, 63, has a $142 billion net worth — including a $27.6 billion increase since January 1 — according to a Bloomberg estimate on Wednesday evening. Much of his wealth comes from his roughly 3.5% stake in Nvidia, which is currently the world's most valuable public company. Nvidia's market cap briefly passed $4 trillion on Wednesday, making it the first to ever reach that benchmark, and its stock is up roughly 22%, year-to-date. In the technology industry's artificial intelligence arms race, Nvidia's computer chips have become valuable components for multiple leading AI developers. The company currently has a market cap of $4 trillion. Its market valuation could peak near $6 trillion, Loop Capital analyst Ananda Baruah said in a client note on Wednesday, according to $144 billion estimated net worth has also grown since January 1 — by $2.19 billion, according to Bloomberg. His conglomerate holding company Berkshire Hathaway has performed well in 2025 — its stock is up approximately 5%, year-to-date — but given Nvidia's growth rate, Huang could soon overtake Buffett on the list of world's richest people. Buffett, 94, has also given away some of his wealth. He recently donated $6 billion to five different charities, and has now given over $60 billion of his fortune away over the past two decades — a number that's "substantially more than my entire net worth in 2006," Buffett announced in a press release on June 27. (Buffett's net worth that year was $46 billion, and he was the world's second-wealthiest person, behind Microsoft co-founder Bill Gates, according to Forbes.) Of course, Huang's net worth isn't guaranteed to surpass Buffett's. Despite Nvidia's year-to-date stock growth, the business has experienced large market swings in both directions in 2025. Nvidia's shares dropped 17% in one day on January 27, after a report that Chinese AI lab DeepSeek used reduced-capacity chips from Nvidia to power its then-new language model, sparking panic in investors. It was the biggest single-day drop for a U.S. company in history, with Nvidia losing almost $600 billion in market cap, CNBC reported at the time. The company's stock then fell 9% in one day on March 3, after U.S. President Donald Trump announced tariffs on Mexico, where the company hosts a portion of its manufacturing. But the company has been on a winning streak on Wall Street since June, perhaps a sign that investors' concerns have quelled — at least, for now. Huang co-founded Nvidia with fellow engineers Chris Malachowsky and Curtis Priem in 1993, when he was just 30 years old. None of them had never run a company before, which may have worked in their favor, Huang told the "Acquired" podcast, in an episode that aired on October 15, 2023. "If we realized the pain and suffering, just how vulnerable you're going to feel, and the challenges that you're going to endure, the embarrassment and the shame, and the list of all the things that go wrong, I don't think anybody would start a company," said Huang. "I think that's the superpower of an entrepreneur," he added. "They don't know how hard it is, and they only ask themselves, 'How hard can it be?'"
Yahoo
09-07-2025
- Business
- Yahoo
53% of Warren Buffett's $259 Billion Stock Portfolio Is Invested in Just 3 Stocks
Buffett, who's stepping down soon as CEO, has been one of the greatest investors. Investors can always look for stock ideas in Berkshire's large equities portfolio. Buffett and his team do their homework and are never afraid to go all in on stocks. 10 stocks we like better than Apple › Warren Buffett will likely go down as the greatest investor of all time. Unfortunately for the countless market watchers that have followed the Oracle of Omaha for decades, the 94 year old is set to retire as the CEO of Berkshire Hathaway at the end of the year. He will remain chairman of the board of directors. Buffett has never been a big believer in portfolio diversification, calling it protection against ignorance. His strategy has certainly paid off. Between 1965 and 2024, Berkshire's stock generated compound annual gains of 19.9%, compared to 10.4% for the broader benchmark S&P 500 including dividends. Buffett and his team continue to deploy this strategy today. At the end of the first quarter of the year, over half of Berkshire's $259 billion equities portfolio was invested in just three stocks. Buffett and Berkshire began buying the consumer tech giant Apple (NASDAQ: AAPL) in 2016. Buffett reportedly first got interested in the stock after hearing how distraught one of his friends was after losing his iPhone. That made Buffett realize how strong the brand had become, something Buffett looks for in all of his major holdings. Berkshire eventually built its position in Apple to over 40% of the total portfolio. However, since the fourth quarter of 2023, Berkshire has sold some two-thirds of its position in Apple. Berkshire may have sold for several reasons including the iPhone losing market share or the stock being overvalued, or Berkshire simply deciding to get more defensive -- the large conglomerate has piled into record levels of cash. Berkshire also seems to have timed its sales of Apple right because the stock is down about 15% this year (as of July 3), largely due to tariffs. President Donald Trump's administration has levied high tariff rates in countries where Apple houses much of its production, such as China and Vietnam. I wouldn't say that Apple concerns me too much because the company will always have one of the most desirable brands and some of the most desirable products in the world. However, I'm not particularly optimistic about the company right now. For one, recent trade deals with China and Vietnam include much higher tariff rates than in the past. Analysts have also recently come out and said that the company's AI capabilities are not yet compelling enough to be a "game changer," particularly when it comes to the iPhone. Apple's current forward price-to-earnings ratio of 28.7 is right around its five-year average, another reason the stock is not at the top of my list right now. It will be interesting to see if Berkshire continues to sell more of its Apple position this year. Credit card powerhouse American Express (NYSE: AXP) is one of the longest-owned stocks by Buffett and Berkshire, with the company purchasing the bulk of its position in 1991. In the past, Buffett has reportedly called the AmEx brand "special," and it's easy to see why. People not only buy AmEx cards because they are credit cards, but also because flashing the AmEx brand comes with a certain status, whether it's being well off or trendy. Perhaps that's why AmEx's platinum card fetches close to a $700 annual subscription fee. AmEx also tends to attract higher-net-worth customers who are more resilient during economic downturns. This shows how AmEx's strong brand translates into a financial strength for the company. AmEx also has a very unique and attractive business model. Not only does the company extend credit on its debit and credit cards, but AmEx runs a closed-loop payments system in which it facilitates most of the work required in completing card transactions, collecting significant fee income from facilitating these transactions. Strong payment networks can receive strong multiples from the market. Despite trading around all-time highs, AmEx's unique business model and revenue diversification as well as looming deregulation in the banking sector (that should enable large banks to return more capital to shareholders) make the stock a buy. Iconic beverage maker Coca-Cola (NYSE: KO) is another stock that Buffett and Berkshire have owned for many years, since 1988. When Buffett and Berkshire buy stocks, they look for companies that will be strong enough to weather an entire economic and interest rate cycle. Coca-Cola is one of these companies. When Trump's tariff announcements crushed the market in April, Coca-Cola remained resilient and the stock has performed well this year, up over 15%. The company is guiding for 5% to 6% of organic growth this year and management also discussed how it has flexibility to offset some of the impact from aluminum tariffs by focusing on plastic packaging. Coca-Cola also regularly innovates in the beverage space. In addition to its iconic brands, the company now owns coffee and tea brands, juices, water, alcohol, and much more. The beverage king is also an excellent way for investors to generate passive income. Its dividend yield is close to 2.90%, and the company has paid and raised its annual dividend for 63 straight years. Coca-Cola has returned over $93 billion in dividends to shareholders since 2010. Expected free cash flow of $9.5 billion this year exceeds the projected nearly $8.8 billion of estimated dividend payments. Coca-Cola will never be a fast-growing AI stock, but it's good to have some exposure to the consumer staples sector, which tends to outperform during economic downturns. Coca-Cola is definitely one of the higher-quality consumer staple stocks and when you factor in the dividend, it's an easy buy. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Apple 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 $695,481!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $969,935!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 American Express is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy. 53% of Warren Buffett's $259 Billion Stock Portfolio Is Invested in Just 3 Stocks was originally published by The Motley Fool
