Analyzing the Earnings Beat of Warren Buffett’s Top Stock: Is it Time to Buy?

• Warren Buffett’s Berkshire Hathaway (BRKB) has been in the spotlight following another earnings beat. The conglomerate’s portfolio includes well-known American firms such as Geico, Duracell, and Dairy Queen, among others.
• Recently, Berkshire Hathaway has been increasingly investing in tech stocks, including Apple (AAPL), Brazilian fintech Nu (NU), and software firm Snowflake (SNOW).
• The company sold some of its Apple stock in Q4 of 2023, but still holds nearly 906 million shares. It also increased its stake in Occidental Petroleum (OXY) and agreed to a $3.3 billion deal to buy Dominion Energy’s (D) share of the Maryland-based Cove Point LNG export plant.

Warren Buffett’s Berkshire Hathaway continues to make strategic investments and adjustments to its portfolio. This article delves into the company’s recent moves and their potential impact on the stock’s performance.

Portfolio Adjustments and Investments

Berkshire Hathaway has been making significant changes to its portfolio. In Q4 of 2023, the company exited positions in Brazilian fintech StoneCo (STNE) and homebuilder D.R. Horton (DHI), among others. It also sold some of its Apple stock, but still retains a substantial stake. Meanwhile, it increased its stake in Chevron (CVX) and Sirius XM (SIRI).

Increasing Energy Exposure

One noteworthy development is Berkshire Hathaway’s increased investment in the energy sector. The company has been building a large stake in Occidental Petroleum (OXY) and recently agreed to a $3.3 billion deal to buy Dominion Energy’s (D) share of the Maryland-based Cove Point LNG export plant. This move expands Berkshire Hathaway Energy’s share in the LNG export facility to 75%.

Stock Performance and Analyst Recommendations

Despite these strategic moves, Berkshire Hathaway stock has struggled to outperform the S&P 500 index in recent years. The stock is currently forming a new base with a potential entry point of 430.00, according to MarketSurge analysis. However, its relative strength rating of 71 indicates that it has outperformed 75% of stocks in terms of price performance over the past 12 months.

Future Outlook

Looking ahead, Wall Street expects year-over-year earnings growth to slow for Berkshire Hathaway. Analysts are projecting annual earnings will rise 6% in 2024 and then slow to 5% growth in 2025. Despite this, the company’s diversified portfolio of businesses and recent strategic investments could offer potential growth opportunities for investors.