Some thoughts on Berkshire
$S&P 500 Index (.SPX.US)$ preface
Under Buffett's light, Berkshire's every move attracted investors' attention. We read an article about Berkshire on Seeking Alpha. The content is quite interesting, and we have translated it for your reference.
Main text
Berkshire remains a reassuring financial holding company. Despite a slight fluctuation this year, there was still a slight increase overall. I think Berkshire still provides investors with a solid margin of safety. In the third quarter, Berkshire continued to use cash, and as interest rates rose, they also received a certain amount of revenue. In the third quarter, they also bought back about 1 billion US dollars of shares. Unless the stock price rises, the repurchases will probably continue.
Q3 update
In addition to these new positions, Berkshire continues to use cash for work in 2022. They bought and sold at the same time, but they were net buyers of stocks totaling $3.7 billion. They continue to increase their significant energy positions with Chevron and Occidental Petroleum. I'm curious to know what will happen to these positions as they have rapidly become a meaningful part of stock portfolios over the past few years. Despite economic uncertainty, I am optimistic about energy because the imbalance between supply and demand seems to be beneficial to oil prices and energy stocks in general.
They also increased their holdings in RH, Celanese, and Paramount Global. In terms of sell-off, they reduced their bank holdings in Bank of America and Bank of New York Mellon to stabilize Bank of America. They dealt with STORE Capital, which is being acquired, and cut Activision's assets, which is also awaiting acquisition by Microsoft. Kroger and GM also saw some sell-offs, while other companies in the portfolio remained stable.
A $1 trillion conglomerate?
With some of its biggest stocks being smoked, Berkshire has moved on. Due to changes in economic conditions, the operating business has fluctuated and fluctuated this year, which is natural, but the stock price has risen 3% year to date. When you look at all the different parts of the company, I still think the stock is undervalued. Berkshire's market capitalization today is $685 billion, and buying shares gives you an incredible portfolio of stocks, bonds, cash, and subsidiaries.
In a year when some of the biggest stocks suffered losses, Berkshire continued to move forward steadily. Due to changes in the economic environment, it is natural for the operating business to have ups and downs this year, but the stock price has risen 3% so far this year. When you look at all the different divisions of the company, I think this price is still low. Berkshire's current market capitalization is $685 billion, but buying shares can give you an amazing combination of stocks, bonds, cash, and subsidiaries.
1. A stock portfolio worth $300 billion
2. Cash and cash equivalents exceed $100 billion
3. Santa Fe in northern Burlington
4. Berkshire Hathaway Energy
5. Large insurance subsidiaries
6. Various other subsidiaries
Berkshire is unique in its ability to generate cash on a large scale through various investments and subsidiaries. It didn't happen overnight, but I think it's only a matter of time before Berkshire's market capitalization reaches $1 trillion. Another reason investors love Berkshire is the reduction in the number of shares due to buybacks.
repurchase
Berkshire continued to buy back its shares and spent another $1.05 billion in the third quarter. While this is a big difference from earlier this year, I expect some more share buybacks in the next few years. To be honest, I'm surprised they didn't have more buybacks in the third quarter, especially with shares trading between $270 and $300, but their cash reserves are starting to get better interest rates, so that's probably part of their decision.
What are the risks?
In my opinion, Berkshire is currently one of the least risky stocks. However, the main risk I can think of is a large-scale disaster, and Berkshire's insurance business will be in trouble. If this were to happen, it would be a loss worth billions of dollars, but Berkshire's balance sheet should be able to handle it. If they can't handle it, we may have bigger problems to worry about than losing money in stock trading. $E-mini NASDAQ 100 Futures(SEP4) (NQmain.US)$ $Dow Jones Industrial Average (.DJI.US)$
Under Buffett's light, Berkshire's every move attracted investors' attention. We read an article about Berkshire on Seeking Alpha. The content is quite interesting, and we have translated it for your reference.
Main text
Berkshire remains a reassuring financial holding company. Despite a slight fluctuation this year, there was still a slight increase overall. I think Berkshire still provides investors with a solid margin of safety. In the third quarter, Berkshire continued to use cash, and as interest rates rose, they also received a certain amount of revenue. In the third quarter, they also bought back about 1 billion US dollars of shares. Unless the stock price rises, the repurchases will probably continue.
Q3 update
In addition to these new positions, Berkshire continues to use cash for work in 2022. They bought and sold at the same time, but they were net buyers of stocks totaling $3.7 billion. They continue to increase their significant energy positions with Chevron and Occidental Petroleum. I'm curious to know what will happen to these positions as they have rapidly become a meaningful part of stock portfolios over the past few years. Despite economic uncertainty, I am optimistic about energy because the imbalance between supply and demand seems to be beneficial to oil prices and energy stocks in general.
They also increased their holdings in RH, Celanese, and Paramount Global. In terms of sell-off, they reduced their bank holdings in Bank of America and Bank of New York Mellon to stabilize Bank of America. They dealt with STORE Capital, which is being acquired, and cut Activision's assets, which is also awaiting acquisition by Microsoft. Kroger and GM also saw some sell-offs, while other companies in the portfolio remained stable.
A $1 trillion conglomerate?
With some of its biggest stocks being smoked, Berkshire has moved on. Due to changes in economic conditions, the operating business has fluctuated and fluctuated this year, which is natural, but the stock price has risen 3% year to date. When you look at all the different parts of the company, I still think the stock is undervalued. Berkshire's market capitalization today is $685 billion, and buying shares gives you an incredible portfolio of stocks, bonds, cash, and subsidiaries.
In a year when some of the biggest stocks suffered losses, Berkshire continued to move forward steadily. Due to changes in the economic environment, it is natural for the operating business to have ups and downs this year, but the stock price has risen 3% so far this year. When you look at all the different divisions of the company, I think this price is still low. Berkshire's current market capitalization is $685 billion, but buying shares can give you an amazing combination of stocks, bonds, cash, and subsidiaries.
1. A stock portfolio worth $300 billion
2. Cash and cash equivalents exceed $100 billion
3. Santa Fe in northern Burlington
4. Berkshire Hathaway Energy
5. Large insurance subsidiaries
6. Various other subsidiaries
Berkshire is unique in its ability to generate cash on a large scale through various investments and subsidiaries. It didn't happen overnight, but I think it's only a matter of time before Berkshire's market capitalization reaches $1 trillion. Another reason investors love Berkshire is the reduction in the number of shares due to buybacks.
repurchase
Berkshire continued to buy back its shares and spent another $1.05 billion in the third quarter. While this is a big difference from earlier this year, I expect some more share buybacks in the next few years. To be honest, I'm surprised they didn't have more buybacks in the third quarter, especially with shares trading between $270 and $300, but their cash reserves are starting to get better interest rates, so that's probably part of their decision.
What are the risks?
In my opinion, Berkshire is currently one of the least risky stocks. However, the main risk I can think of is a large-scale disaster, and Berkshire's insurance business will be in trouble. If this were to happen, it would be a loss worth billions of dollars, but Berkshire's balance sheet should be able to handle it. If they can't handle it, we may have bigger problems to worry about than losing money in stock trading. $E-mini NASDAQ 100 Futures(SEP4) (NQmain.US)$ $Dow Jones Industrial Average (.DJI.US)$
Another risk I don't want to point out is what will happen to the company after Buffett and Munger leave. I think the company will be good and continue to grow for decades to come, but the idea of losing two leaders who have been at the helm for so long is unimaginable. Everyone knows they won't be around forever, and I do think it will be different when the company is no longer managed by those who created it. Having said that, I don't think this has a substantial impact on Berkshire's long-term bullish argument.
conclusions
With its impressive balance sheet, huge stock portfolio, and diversified exposure to different sectors of the economy, Berkshire remains the ultimate financial stock to stay up at night. While expectations for a $1 trillion market cap seem overly optimistic, it's a matter of time frame and risk tolerance.
conclusions
With its impressive balance sheet, huge stock portfolio, and diversified exposure to different sectors of the economy, Berkshire remains the ultimate financial stock to stay up at night. While expectations for a $1 trillion market cap seem overly optimistic, it's a matter of time frame and risk tolerance.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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