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Chicago, IL – January 28, 2025 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2404073/should-you-buy-berkshire-hathaways-stock-in-2025)
(0:20) - Is It Still A Good Idea To Follow Warren Buffett’s Investment Strategy?
(3:00) - Should You Be Buying Berskhire Hathaway’s Stock Right Now?
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Over the years, Tracey has talked about Berkshire Hathaway's (BRK.B - Free Report) stock portfolio and the moves made by Warren Buffett in it. In 2024, things changed. Buffett sold off big chunks of Apple and Bank of America and has moved the money into cash.
As of Sep 30, 2024, Berkshire Hathaway had a cash position of $325 billion, a new record high.
That was up from $276.9 billion at the end of the second quarter. The company hasn't yet filed fourth quarter earnings and financials, so we don't yet know how much cash it had by the end of Q4.
But between dividends and the treasury investments, the cash position will likely have grown again.
Berkshire Hathaway's Valuation: Stretched or Not?
In the first quarter of 2024, Berkshire Hathaway used $2 billion of its cash to buyback shares. While Berkshire Hathaway doesn't pay a dividend, Buffett has bought back shares when he has thought the shares were undervalued.
In the second quarter, however, Berkshire Hathaway bought back just $345 million worth of shares. And by the third quarter, Berkshire Hathaway wasn't buying back ANY shares.
Could it be valuation?
Berkshire Hathaway is trading with a forward price-to-earnings (P/E) ratio of 23.5. A stock is considered a value when it has a much lower P/E ratio, usually under 15.
And if Buffett isn't buying more shares, should you be jumping in?
Find out the answers to all your pressing Berkshire Hathaway questions on this week's podcast.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: Berkshire Hathaway
For Immediate Release
Chicago, IL – January 28, 2025 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2404073/should-you-buy-berkshire-hathaways-stock-in-2025)
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Over the years, Tracey has talked about Berkshire Hathaway's (BRK.B - Free Report) stock portfolio and the moves made by Warren Buffett in it. In 2024, things changed. Buffett sold off big chunks of Apple and Bank of America and has moved the money into cash.
As of Sep 30, 2024, Berkshire Hathaway had a cash position of $325 billion, a new record high.
That was up from $276.9 billion at the end of the second quarter. The company hasn't yet filed fourth quarter earnings and financials, so we don't yet know how much cash it had by the end of Q4.
But between dividends and the treasury investments, the cash position will likely have grown again.
Berkshire Hathaway's Valuation: Stretched or Not?
In the first quarter of 2024, Berkshire Hathaway used $2 billion of its cash to buyback shares. While Berkshire Hathaway doesn't pay a dividend, Buffett has bought back shares when he has thought the shares were undervalued.
In the second quarter, however, Berkshire Hathaway bought back just $345 million worth of shares. And by the third quarter, Berkshire Hathaway wasn't buying back ANY shares.
Could it be valuation?
Berkshire Hathaway is trading with a forward price-to-earnings (P/E) ratio of 23.5. A stock is considered a value when it has a much lower P/E ratio, usually under 15.
And if Buffett isn't buying more shares, should you be jumping in?
Find out the answers to all your pressing Berkshire Hathaway questions on this week's podcast.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.