Over the weekend, Berkshire Hathaway (BRK-B) released its 2018 annual report. The event is watched closely due to the accompanying letter from Warren Buffett—the company’s chairman. Over the last five decades, Buffett’s letter has offered insights into his investment style. Investors also look for cues regarding Buffett’s views on the economy and markets.
Investors were eagerly waiting for Buffett’s 2018 annual shareholder letter. On February 22, Kraft-Heinz (KHC), one of Berkshire Hathaway’s biggest holdings, fell more than a quarter after its earnings missed the estimates. Kraft Heinz also announced a $15.4 billion write-down and revealed a subpoena from the Securities and Exchange Commission it received in October.
The fourth quarter wasn’t really pleasant for markets (SPY). Berkshire Hathaway’s portfolio of publicly traded securities, which was valued at $172 billion at the end of 2018, also suffered massive losses in the fourth quarter. Apple (AAPL), Berkshire Hathaway’s biggest holding, fell 30% in the fourth quarter.
Looking at Berkshire Hathaway’s other top holdings, Bank of America (BAC), Wells Fargo (WFC), American Express (AXP), and U.S. Bancorp (USB) fell 16.4%, 12.3%, 10.5%, and 13.5%, respectively. Moody’s (MCO) and Goldman Sachs (GS) fell 16.2% and 25.5%, respectively. JPMorgan Chase (JPM), which Buffett added to Berkshire Hathaway’s portfolio in the third quarter, fell 13.5% in the fourth quarter. However, Coca-Cola (KO) rose 2.5%.
In the annual shareholder letter, Buffett lamented the lack of big acquisition opportunities, which he called “elephants.” We’ll discuss the lack of big acquisition opportunities in the next part.
In his 2018 shareholder letter, Buffett hit out at doomsayers. Several observers are bearish on the markets.
After opening on a bearish note on Wednesday, Tesla (TSLA) was trading with 4.8% losses for the day, near $195.25 at 1:16 PM ET.
With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.
Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).
Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.
Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.
The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.