Buffett

In his 2018 annual letter, Berkshire Hathaway (BRK-B) chair Warren Buffett said that he and vice-chair Charlie Munger “hope for an elephant-sized acquisition.” At the same time, Buffett admitted that such acquisitions haven’t come easily, especially when it comes to valuation.

Buffett’s Wait for His ‘Elephant’ Might Be Longer Now

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

In an interview with CNBC earlier this year, Buffett alluded that Berkshire was looking at a major acquisition in the fourth quarter. However, the deal apparently did not go through. Berkshire was rumored to be buying Southwest Airlines (LUV) earlier this year, but so far, we haven’t heard anything concrete about the deal.

Fourth quarter sell-off

Despite the sell-off in the fourth quarter, Berkshire’s net buys were even lower compared to the previous quarter. Among the most notable changes to its portfolio were the addition of Red Hat (IBM) and the exit of Oracle (ORCL). Berkshire also sold some Apple (AAPL) shares, sending observers into a tizzy. Buffett later clarified that the shares had been sold by a different investment manager at Berkshire.

Now, Berkshire is sitting on a massive cash pile, and a major acquisition would have helped Buffett deploy that cash. However, as market sentiments have revived in the last month, Buffett’s wait for his next elephant might become a bit longer. In a strong economy (SPY), acquisition opportunities could become even more expensive from a valuation standpoint. The last major acquisition Berkshire completed was in 2016. Buffett minced no words in calling that deal expensive.

Latest articles

Today, Canopy Growth announced that it acquired the Saskatchewan-based KeyLeaf Life Sciences along with entities relating to the company and its intellectual property. Here's what you need to know about the completed deal.

Yesterday, Tyson Foods (TSN) and fellow meat producers Pilgrim’s Pride (PPC) and Sanderson Farms (SAFM) took a hit to their stocks after news came out about an investigation over price-fixing allegations.

On June 24, RH (RH) was trading at $115.01, implying a rise of 21.2% since its announcement of its first-quarter earnings results on June 12. Despite the surge in its stock price, the company is still trading at a discount of 29.1% to its 52-week high.

26 Jun

Roku Stock Fell Close to 7.0% Yesterday

WRITTEN BY Aditya Raghunath

Roku stock fell 6.8% yesterday to close trading at $93.25 per share. Roku stock has lost over 9.0% in market value in the last two trading days. Prior to this pullback, Roku stock was up a whopping 235.0% year-to-date.

26 Jun

Beyond Meat Stock Up Today on New Product Launch

WRITTEN BY Rajiv Nanjapla

Today, Beyond Meat (BYND) announced that its new product, Beyond Beef, will hit markets across the US later this week.

FedEx (FDX) ended fiscal 2019 on a dismal note and reported a significant YoY decline in fourth-quarter earnings. The delivery giant posted adjusted EPS of $5.01, which was 15.2% lower than the year-ago quarter’s earnings of $5.91. The company cited sluggish revenue growth and increased expenses as the main reason behind the dismal bottom-line performance.