February 2, 2023

Premarket stocks: Warren Buffett fans have plenty to cheer this weekend

5 min read

A version of this story first appeared in the CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up. right here. You can listen to the audio version of the newsletter by clicking on this link.

New York
CNN Business

Berkshire Hathaway investors are set to land in Omaha, Nebraska for the company’s first annual meeting with existing shareholders since 2019. Victory for CEO Warren Buffett.

Shares of Berkshire Hathaway

It has grown by 10% this year and is not far off the record high. Berkshire. Hit the market easily. Of S&P 500 About 12% less.

Buffett has a lot to be happy about. Berkshire Holdings, like Coca-Cola

And Craft Heinz

Record (KHC)
Two food and beverage giants are reported to be booming recently. Strong income. Coke’s stock has risen 11 percent this year, while Kraft Heinz’s

Record (KHC)
An increase of more than 20%.

Berkshire also has a large stake in oil giant Chevron.

the Dowz Top stock this year with an increase of over 35%.

Buffett and Berkshire’s vice chairman Charlie Manger have been criticized by some investors over the past few years as tech stocks have taken the market by storm. But Buffett and 98-year-old Manger are convinced that owning quality, large US companies in the consumer, financial services and energy industries is a good recipe for long-term success.

This is not to say that Berkshire is totally against the idea of ​​owning tech stocks. In fact, Berkshire’s top holding is Apple.

. The company has also recently invested in Amazon.

As well as HP


Still, investment experts point out that Buffett’s tendency to buy and retain top companies is key to Berkshire Hathaway’s success.

“One thing that stands out with Buffett and Monger is their ability to generate such tremendous profits in such a long period of time,” said Bill Stone, chief investment officer at The Glenn View Trust Company. “The investment business is full of shooting stars with huge profits just to get out of the flames, sometimes brilliantly.”

Stone is also a Berkshire shareholder and will attend the meeting.

But other analysts say they want to know how Buffett and Monger feel about the market in light of the recent slowdown in the economy and concerns over the Federal Reserve’s expected rise in interest rates.

“With rising rates and inflation, what kind of asset allocation is appropriate? We’re looking at the wisdom of this Buffett and Munger,” said Sean Bonner, CEO of Guild, an investment education app. Which is designed for military members. Bonner is a Berkshire shareholder planning to attend the meeting for the first time.

Investors will also want to hear what Berkshire intends to do with its huge cash pile, which stood at about 7 147 billion at the end of February.

Berkshire has set aside some money to operate this year. Intends to buy Insurer Alleghany

And a Promote its stake Oil Company Occidental Petroleum

. But Buffett has long spoken of his desire to make one. The “elephant-shaped” deal.

One problem is that Berkshire investors will not have to ask about this year: the question of succession planning. Buffett Announced last year That vice chairman, Greg Able, who oversees Berkshire’s energy, consumer and other non-insurance businesses, will eventually take over as CEO.

It’s been a tumultuous month for Big Tech, and the markets don’t know what to do with it.

Investors in Whiplash: Leading MegaCapTech 1,000 points loss Last week in Dow and again on Monday. On Tuesday we saw another 800 point dow drop And another big revival on Thursday.

Investors’ hopes of finally removing the braces from their necks are pinned on Apple and Amazon, which are reporting first-quarter earnings tomorrow afternoon. Two trillion dollars plus some coordination between the companies could clarify the market perspective.

Strong numbers from Apple and Amazon will boost investor confidence. The Federal Reserve plans to raise rates next week.. Both companies also serve as a measure of consumer confidence. The good news is that future economic downturns can be reduced.

But that did not happen.

Apple beats earnings estimates Revenue grew about 9% year-on-year as sales grew 19%. Earnings per share came in at $ 1.52, beating the 1.43 estimate. The company announced a $ 90 billion share buyback and a 5% dividend increase.

But Apple’s outlook doesn’t look good. Shares fell after CFO Luca Maestri warned of supply disruptions related to code, which could hurt second-quarter sales of between $ 4 billion and $ 8 billion. CEO Tim Cook added that Apple’s supply chain is not immune to challenges.

Amazon disappointed investors with good earnings expectations. The stock fell nearly 13 percent in post-market trading after the company reported a 7.6 billion loss on its investment. Electric car company Raven. Amazon posted earnings of $ 7.38 per share, missing the $ 8.36 estimate.

Amazon’s revenue grew 7% in the first quarter, up from 44% a year earlier. This is the company’s slowest growth rate in any quarter since the collapse of 2001.com. Forecasts for the second quarter were also disappointing. Growth could slow to 3% from a year earlier.

“The epidemic in Ukraine and the ensuing war have brought extraordinary growth and challenges,” Amazon CEO Andy Jesse said in a statement.

In Russia, the trash is full of bad Big Max and loose McNugs.

McDonald’s lost 100 100 million in food and supplies after closing its restaurant in Russia following the country’s invasion of Ukraine. The company said inventory would “probably be scrapped”.

McDonald’s chose to close its 850 Russian restaurants and 108 restaurants in Ukraine because of the controversy, but continued to pay its 62,000 employees and several suppliers in the region.

McDonald’s reported better-than-expected revenue and earnings as it offset Russian losses in the United States with rising prices and strong international growth.

McDonald’s Announced in February That it closed its Ukrainian restaurants for security reasons, but that employees would provide extra food to local councils wherever possible. The restaurant said it hopes the councils will distribute products such as buns, donuts, cheese, milk and water to those in need in Ukraine.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *