Warren Buffett fans will have a lot to cheer this weekend 2022-04-29 07:18:55


Buffett has a lot to be proud of. Top Berkshire collectibles like coca cola (KO) And Kraft Heinz (KHC) Flourish. Food and beverage giants recently reported strong profits. Coca-Cola is up 11% this year while Kraft Heinz is up more than 20%.
Berkshire also owns a large stake in the giant oil company chevron (CVX)The daw Top stocks this year with gains of over 35%.

Buffett and Berkshire’s vice chairman, Charlie Munger, have been criticized by some investors in the past few years as technology stocks have swept the market. But Buffett and 98-year-old Munger have stuck to their belief that owning high-quality, well-capitalized US companies in the consumer, financial services and energy industries is a good recipe for long-term success.

This does not mean that Berkshire is completely against the idea of ​​owning tech stocks. In fact, Berkshire’s highest property is apple (AAPL). The company has also recently invested in Amazon (AMZN) Beside HP (HPQ).

However, investment experts point out that Buffett’s penchant for buying big companies and holding them for the long haul remains the key to Berkshire Hathaway’s success.

“One thing that stands out with Buffett and Munger is their ability to generate such significant returns over such a long period,” Bill Stone, chief investment officer at Glenview Trust Company, said in a report. “The investment business is full of shooting stars that have had big returns only to blaze, sometimes in a stunning way.”

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

But other experts say they want to know how Buffett and Munger feel about the market in light of the recent slowdown in the economy and concerns that the Federal Reserve is expected to keep raising interest rates.

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

Investors will also want to hear what Berkshire plans to do with its massive cash stack, which amounted to about $147 billion by the end of February.

Berkshire put some money to work this year, with planning to buy Insurance company the rich (s) and enhance their share in an oil company Occidental Petroleum (OXY). But Buffett has long talked about wanting to make a file An “elephant-sized” deal.
There’s one problem Berkshire investors won’t need to address this year: the question of succession planning. Buffett announced last year That Vice Chairman Greg Appel, who oversees energy, consumer and other non-insurance businesses in Berkshire, will eventually take over as CEO.

Amazon and Apple add to market confusion

It’s been a volatile month for the big tech companies, and the markets just can’t figure out what to make of all of this.

Investors are in crisis: Big tech stocks led the way 1000 dots drop The Dow Jones index last week and then recovered on Monday. On Tuesday we saw another 800 dao drop points And another big recovery on Thursday.

Investors’ hopes of removing neck braces finally stalled on Apple and Amazon’s first-quarter earnings announcements yesterday afternoon. Some cohesion among companies worth more than $2 trillion could provide an explanation for market expectations.

Strong numbers from Apple and Amazon will increase investor confidence like The Federal Reserve plans to raise interest rates next week. Both companies also serve as gauges of consumer confidence; The good news could allay fears of the upcoming economic downturn.

But this did not happen.

Apple beat earnings estimates. Revenue grew nearly 9% year over year as sales were up 19%. Earnings per share came in at $1.52, beating estimates of $1.43. The company announced a $90 billion share buyback and a 5% dividend increase.

But Apple’s look doesn’t look great. Shares fell after Chief Financial Officer Luca Maestri warned of Covid-related supply restrictions that could hit second-quarter sales by $4 billion to $8 billion. CEO Tim Cook added that Apple is not immune to supply chain challenges.

Amazon disappointed investors with good earnings expectations. The stock fell nearly 13% in after-market trading after the company reported a $7.6 billion loss on its investment in Rivian Electric Vehicle Company. Amazon reported earnings of $7.38 per share, beating estimates of $8.36.

Revenue at Amazon grew 7% during the first quarter, compared to 44% last year. This is the company’s slowest growth rate in any quarter since the Internet crash in 2001. The outlook for the second quarter was also disappointing. Growth may slow to 3% compared to the previous year.

“The pandemic and subsequent war in Ukraine have brought extraordinary growth and challenges,” Andy Gacy, Amazon CEO, said in a statement.

McDonald’s has to give up millions of Russian burgers

Dustbins in Russia are filled with bad Big Macs and rotting McNuggets.

McDonald’s lost $100 million in food and supplies after it closed its restaurants in Russia in the wake of the country’s invasion of Ukraine. The company said it was “likely to dispose” of the stock.

McDonald’s made the choice to close 850 Russian restaurants and 108 in Ukraine due to the conflict but continued to pay its 62,000 employees and many suppliers in the region.

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

McDonald’s Announced in February It has closed its Ukrainian restaurants for safety reasons, but staff will provide local councils with additional food where possible. The restaurant said it hoped the councils would distribute products such as cakes, cookies, cheese, milk and water to Ukrainians in need.