Under Buffett’s criteria, Berkshire is not a value investment because of its slow growth rate. Fortunately, Berkshire Hathaway has the resources to fix that flaw fast.Read more
Macy’s (NYSE: M) I think this department store icon is closer to death than many people suspect. Incredibly, Mr. Market valued Macy’s at $5.36 a share on 18 May 2020. Thus, Macy’s share price is less than the Gap. I think all Macy’s stores could close this year.Read more
Consequently, I think Berkshire could add a vast amount of future value with a strategic purchase now. Companies Berkshire could buy include grocers; such as Kroger or the privately-held Safeway, Grubhub, Uber, Lyft, Ford (NYSE: F), railroads such as the Union Pacific (NYSE: UNP), CSX (NYSE: CSX), Netflix (NASDAQ: NFLX), Walgreens (NASDAQ: WBA), and the Canadian Pacific (NYSE: CP), and food makers such as General Mills (NYSE: GIS).Read more
Consequently, Wells Fargo has serious management and ethical problems. Hence, Buffett could be smart to dump this stock.Read more
Consequently, Ecolab’s business could explode because of the latest disease hysteria. However, Ecolab’s business could shrink if events show Coronavirus is not a threat.Read more
Buffett’s thinking on Biogen is easy to interpret. Uncle Warren thinks healthcare is a growth industry that could make a lot of money.Read more
“At Berkshire, the whole is greater – considerably greater – than the sum of the parts.” – Warren E. Buffett Chairman of the Board, Berkshire Hathaway Inc. Taken from the 2018 shareholder letter.Read more
However, there are far cheaper railroads out there. For example, the CSX Corp had a market cap of $59.79 billion, the Norfolk Southern had a market cap of $49.02, and the Kansas City Southern had a market cap of $11.24 billion on 22 February 2019.Read more
Therefore, California could limit the amount of float, Berkshire Hathaway (NYSE: BRK.A) brings in by changing the way auto insurance rates calculated. For instance, women could pay less and men more through gender-neutral auto insurance.Read more
My prediction is that Buffett will buy up lower priced stocks of cash-rich dividend paying companies. Since there are lots of those out there it is hard to predict what will catch his eye.
Berkshire will be confine major investments to private equity, which is booming right now. Likely, private equity targets for Berkshire Hathaway include Lyft, Instacart, and Airbnb.
Lyft and Airbnb which both have the potential to generate a lot of cash will attract Uncle Warren’s attention. Instacart, which has escaped attention by operating in an unsexy; but huge, market groceries might catch Buffett’s eye.