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Buffett's Interest in Activision: ETF Lessons to Follow
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Billionaire investor Warren Buffett is famous for his incredible investment ideas. If you an ardent follower of the investment guru Warren Buffett, you might find his latest suggestions intriguing.
Normally, Buffett takes interest in companies trading below what he believes is their intrinsic value. He aims for long-term outperformance and apparently ignores short-term downturns.
With COVID-19 bringing about a vast change in the global investment backdrop, many are waiting for the predictions from the Oracle of Omaha on his companies.
ETF Strategies in Focus
Video Geming Industry Offering Value?
Warren Buffett's Berkshire Hathaway bought nearly $1 billion of shares in Activision Blizzard Inc. before Microsoft Corp. agreed to buy the video game maker for $68.7 billion, according to a regulatory filing on Monday, as quoted on Reuters. Berkshire said that as of Dec 31, it owned 14.7 million shares worth about $975 million of the videogame maker.
Video gaming stocks and ETFs have immensely benefited from the pandemic as consumers spend generously, hitting record-breaking highs in 2021. Market experts are positive about the strength that the video gaming industry is witnessing in terms of solid sales growth despite tough year-over-year comparisons, highlighting the momentum in the space.
Recently-released data from The NPD Group emphasizes that the video game industry, including packaged media, digital, consoles and accessories, witnessed robust sales in 2021, with people spending $60.4 billion in all, reflecting 8% growth year over year.
Since Buffett always look for value in an investment, we can conclude that the video gaming space is still offering value and momentum. Video gaming ETFs like TheRoundhill BITKRAFT Esports & Digital Entertainment ETF (NERD - Free Report) , VanEck Video Gaming and eSports ETF (ESPO - Free Report) , Global X Video Games & Esports ETF (HERO - Free Report) and Wedbush ETFMG Video Game Tech ETF (GAMR - Free Report) should thus be followed by Buffett lovers.
Time to Avert Pharma Stocks?
Berkshire Hathaway has been trimming its stakes in drug stocks like AbbVie and Bristol Myers Squibb.AbbVie has solid exposure in Invesco Dynamic Pharmaceuticals ETF (PJP - Free Report) and Strategic CRISPR & Gene Editing Technology ETF . Bristol Myers Squibb has exposure to VanEck Vectors Pharmaceutical ETF (PPH) and SPDR S&P Pharmaceuticals ETF (XPH). So, investors may take a second look at their holdings in such stocks.
Apple Will Make Your Portfolio Healthy
Apple (AAPL) is still a key holding of Berkshire’s portfolio, making up more than 40% of Berkshire’s portfolio by market value. The Oracle of Omaha now owns over 5% of outstanding the Apple stock.
There is a set of consumers who always choose to buy Apple products irrespective of inflationary pressure. In 2017, Buffett indicated that the Apple stock is a buy candidate as consumers “want the product” despite its prices.
This gives Apple the leeway to pass on the rising costs to consumers (which won’t hurt sales) due to its sheer brand name. And Apple is now paying off for Buffett. Hence, one can bet on Apple ETFs like Technology Select Sector SPDR FundXLK), Fidelity MSCI Information Technology Index ETF (FTEC) and Vanguard Information Technology ETF (VGT - Free Report) .
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Buffett's Interest in Activision: ETF Lessons to Follow
Billionaire investor Warren Buffett is famous for his incredible investment ideas. If you an ardent follower of the investment guru Warren Buffett, you might find his latest suggestions intriguing.
Normally, Buffett takes interest in companies trading below what he believes is their intrinsic value. He aims for long-term outperformance and apparently ignores short-term downturns.
With COVID-19 bringing about a vast change in the global investment backdrop, many are waiting for the predictions from the Oracle of Omaha on his companies.
ETF Strategies in Focus
Video Geming Industry Offering Value?
Warren Buffett's Berkshire Hathaway bought nearly $1 billion of shares in Activision Blizzard Inc. before Microsoft Corp. agreed to buy the video game maker for $68.7 billion, according to a regulatory filing on Monday, as quoted on Reuters. Berkshire said that as of Dec 31, it owned 14.7 million shares worth about $975 million of the videogame maker.
Video gaming stocks and ETFs have immensely benefited from the pandemic as consumers spend generously, hitting record-breaking highs in 2021. Market experts are positive about the strength that the video gaming industry is witnessing in terms of solid sales growth despite tough year-over-year comparisons, highlighting the momentum in the space.
Recently-released data from The NPD Group emphasizes that the video game industry, including packaged media, digital, consoles and accessories, witnessed robust sales in 2021, with people spending $60.4 billion in all, reflecting 8% growth year over year.
Since Buffett always look for value in an investment, we can conclude that the video gaming space is still offering value and momentum. Video gaming ETFs like The Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD - Free Report) , VanEck Video Gaming and eSports ETF (ESPO - Free Report) , Global X Video Games & Esports ETF (HERO - Free Report) and Wedbush ETFMG Video Game Tech ETF (GAMR - Free Report) should thus be followed by Buffett lovers.
Time to Avert Pharma Stocks?
Berkshire Hathaway has been trimming its stakes in drug stocks like AbbVie and Bristol Myers Squibb.AbbVie has solid exposure in Invesco Dynamic Pharmaceuticals ETF (PJP - Free Report) and Strategic CRISPR & Gene Editing Technology ETF . Bristol Myers Squibb has exposure to VanEck Vectors Pharmaceutical ETF (PPH) and SPDR S&P Pharmaceuticals ETF (XPH). So, investors may take a second look at their holdings in such stocks.
Apple Will Make Your Portfolio Healthy
Apple (AAPL) is still a key holding of Berkshire’s portfolio, making up more than 40% of Berkshire’s portfolio by market value. The Oracle of Omaha now owns over 5% of outstanding the Apple stock.
There is a set of consumers who always choose to buy Apple products irrespective of inflationary pressure. In 2017, Buffett indicated that the Apple stock is a buy candidate as consumers “want the product” despite its prices.
This gives Apple the leeway to pass on the rising costs to consumers (which won’t hurt sales) due to its sheer brand name. And Apple is now paying off for Buffett. Hence, one can bet on Apple ETFs like Technology Select Sector SPDR Fund XLK), Fidelity MSCI Information Technology Index ETF (FTEC) and Vanguard Information Technology ETF (VGT - Free Report) .