Berkshire Hathaway stocks thrive despite market decline

fool.com

Warren Buffett has enjoyed a strong performance in the stock market recently, even as major indexes have dropped. Five stocks from his company, Berkshire Hathaway, hit all-time highs in the last month, showcasing Buffett's continued success. Berkshire Hathaway itself has seen shares rise about 15% this year. It has delivered impressive returns since Buffett took control in 1965. BYD, a Chinese electric vehicle maker, has been Buffett's biggest winner lately, with shares up around 50%. Charlie Munger, Buffett's late partner, praised BYD's potential in the past. International stocks are outperforming U.S. stocks this year. Aon, a professional services company based in London, also reached an all-time high, rising nearly 9%. Grocery chain Kroger and telecom company T-Mobile US have also performed well amid market volatility. Kroger is up about 7%, while T-Mobile's stock has gained roughly 16%. Most of these high-performing stocks currently trade at a premium. Berkshire Hathaway has the highest forward price-to-earnings ratio at 26.1, while Kroger is the least expensive at 13.9. Aon and T-Mobile reported strong earnings growth in their recent quarters, although Berkshire's earnings fell significantly due to lower investment gains. Berkshire is the only stock that does not pay a dividend. While Aon and BYD have low yields, Kroger offers the highest dividend yield at 1.96%. For investors focusing on income, Kroger is a solid choice. BYD is appealing for growth investors due to its new technology initiatives. However, the best overall pick may still be Berkshire Hathaway. Despite its higher price, investing in Berkshire offers exposure to its diverse portfolio and a substantial cash reserve that could lead to further investment opportunities.


With a significance score of 1.8, this news ranks in the top 63% of today's 18832 analyzed articles.

Get summaries of news with significance over 5.5 (usually ~10 stories per week). Read by 9000 minimalists.


loading...