The Pandemic Impact on Berkshire Hathaway

A recent Morningstar article offers insights from senior analyst Gregg Warren regarding the impact the pandemic will have on Berkshire Hathaway. Here are some highlights of Warren’s comments: It is difficult to predict the impact given that Berkshire is “not really the most transparent of firms when it comes to its operating subsidiaries.” Morningstar foresees that the company will be impacted in three ways: The low interest rate environment “opens up refinancing funding opportunities” but… Read More

A Look at Warren Buffett’s Portfolio Might Make You Feel Better

“If you stick around long enough, you’ll see everything in markets,” said Warren Buffett earlier this month in an interview with Yahoo Finance. This according to a recent article in MarketWatch. And conditions have only gotten worse since then, the article reports, noting that the stock market “continues to spin out of control in both directions.” Although Buffett’s Berkshire Hathaway is sitting on a pile of cash that “has him prepared to pick up the… Read More

Buffett Likes U.S. Banks

Warren Buffett’s Berkshire Hathaway has increased its holding of financial services stocks to roughly $100 billion, about one-fifth of its total market capitalization. This according to an article inThe Wall Street Journal. “Berkshire’s position has built up over years and includes banks, payment companies, insurers and a ratings firm,” the article reports, with total holdings increasing from its 2010 level of 12% of market capitalization. It adds, “banks are often viewed as a proxy for… Read More

Buffett now Largest Shareholder in Bank of America

Now that Bank of America got the Fed’s green light to up its dividend to 48 cents a share (a 60% hike), Berkshire Hathaway has decided to exchange its preferred shares in the bank to roughly $17 billion in common stock, according to last week’s Wall Street Journal. The move will render Berkshire the largest shareholder (7%) of the bank—the country’s second largest in terms of assets—passing Vanguard, which now owns 6.6% (data from FactSet).… Read More