Watch Out, Elon. Warren Has Caught Up to You
With the 46% sharp drop in shares this year, the market value of $Tesla(TSLA.US$ has just been supplanted by $Berkshire Hathaway-A(BRK.A.US$ as the fifth-biggest company in the $S&P 500 Index(.SPX.US$.
The EV maker's shares closed with a market valuation of $604 billion Tuesday, versus nearly $645 billion for Warren Buffett's conglomerate.
The EV maker's shares closed with a market valuation of $604 billion Tuesday, versus nearly $645 billion for Warren Buffett's conglomerate.
Berkshire is demonstrating its defensive attributes in a bear market with its class A share down only 2% this year.
Former high-flying technology stocks plunge while industrial companies outperform. $Apple(AAPL.US$, $Microsoft(MSFT.US$, $Alphabet-A(GOOGL.US$ and $Amazon(AMZN.US$ -- have all fallen at least 20% so far in 2022.
Rising interest rates are spurring investors to bid up value firms that offer stable cash flows, while the relative resilience of the industrial and consumption cycle is proving a boon for steady and stable businesses.
"This is a great representation of slow and steady wins the race in the current environment," said Arthur Hogan, chief market strategist at B. Riley Wealth. "Value has underperformed growth for the better part of a decade, but the tide has certainly shifted this year and likely will continue into next year."
Mooers, value or growth stocks: which would you choose in the current environment?
Rising interest rates are spurring investors to bid up value firms that offer stable cash flows, while the relative resilience of the industrial and consumption cycle is proving a boon for steady and stable businesses.
"This is a great representation of slow and steady wins the race in the current environment," said Arthur Hogan, chief market strategist at B. Riley Wealth. "Value has underperformed growth for the better part of a decade, but the tide has certainly shifted this year and likely will continue into next year."
Mooers, value or growth stocks: which would you choose in the current environment?
Source: Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo Official Account
Welcome to moomoo chat room.
6748Followers
3Following
9995Visitors
Follow
Mr Market : Have faith on growth stock ..they are innovative great companies of future ...
Dream Weaver : value 80% growth 20%
Detroit-view : value is the best defensive position. Value stocks will respond faster to upward trends when recession ends. growth stocks may not survive recession.
Wolfish Ntr : Value over Growth 70% to 30%
Growth is always a great thing but Value will show it's Loyalty