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magazineWhy Berkshire Hathaway is hitting fresh highs
Berkshire Hathaway $352.5
Gain to date: 10.2%
Original entry point: Buy at $320, 17 February 2022
Our bullish call on Warren Buffett-run Berkshire Hathaway is paying off handsomely, with the trade 10.2% in the money as the B shares test new highs. Berkshire Hathaway has been bid up during the recent market turmoil with rattled investors keen to access its diverse portfolio of financially strong and market leading businesses.
The market responded positively to news (21 Mar) of the $11.6 billion purchase of insurance company Alleghany Corporation. This is Berkshire’s biggest acquisition in almost seven years and we are pleased to see the multinational conglomerate deploying some of its enormous cash pile.
A business run by CEO Joseph Brandon, a long-time friend of Buffett’s, Alleghany will be added to Berkshire Hathway’s portfolio of insurance brands that includes GEICO and General Re.
As outlined in our original thesis, Berkshire Hathaway is a great vehicle for achieving a ready-made exposure to a diverse group of some of the best companies in the US and increasingly, elsewhere in the world, in sectors spanning railroads, confectionery, home furnishings, house building, insurance and energy.
SHARES SAYS: Still a sound defensive option for investors.
Important information:
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Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Editor's View
Feature
- Why Magners maker C&C can cope with unprecedented cost inflation
- Fighting cyber attacks: Invest in the world's digital defenders
- Which is better - high yield today or dividend growth tomorrow?
- New world order: the big impact of a geopolitical earthquake
- Private equity has made a lot of people rich – how do you get invest in it?
Great Ideas
- BlackRock Throgmorton is a great fund for a small cap recovery rally
- Cordiant Global Infrastructure remains a way to play the growth in digital assets
- Why Berkshire Hathaway is hitting fresh highs
- FDM shows substantial recovery potential at shares rally 21% in two weeks
- US growth can drive undervalued Homeserve shares higher
- Essentra to become a streamlined components champion
News
- Chancellor Sunak’s spring statement full of surprise support measures
- Ferguson to leave the FTSE 100 in May as it focuses on the US
- Robust results from Nike as direct to consumer strategy delivers
- IG and Plus500 venture overseas with mixed success
- Hospitality enjoys good times despite spending pressures
- Value and inflation protection leave FTSE 100 well placed
- Hong Kong suspends shares in Chinese property giant Evergrande
