Contemplating Purchasing Berkshire Hathaway Shares Prior to January 30th?
Berkshire Hathaway, the investment behemoth helmed by the legendary Warren Buffett, has been a money-maker for investors for decades. From 1964 to 2023, Berkshire's overall gain clocked in at a staggering 4,384,748%, surpassing the S&P 500's growth by over 140 times during the same period. And the good news? Berkshire has outperformed the S&P 500 since the end of 2023.
So, should you jump on the Berkshire Hathaway bandwagon? There might be a reason to do so before January 30, but it isn't because Berkshire has something special scheduled for that date. Instead, it's due to Apple's quarterly results announcement on the same day.
Apple, which holds the crown as Berkshire's largest portfolio holding, will be reporting its first quarter fiscal 2025 results on January 30. Investors will be keeping a close eye on the impact of its new generative AI features on iPhone sales. Apple is Berkshire's sixth-largest institutional shareholder, owning around 2% of the tech giant.
Historically, Berkshire's performance has been closely tied to Apple's due to its substantial investment in the tech giant. While there's no guarantee that Berkshire's share price will skyrocket following a strong Apple quarterly update, it's worth noting that in the past, Berkshire's shares have remained relatively unresponsive to Apple's impressive performance.
While it might be tempting to invest in Berkshire Hathaway ahead of Apple's results, the better question might be whether to invest in Berkshire Hathaway, period. Berkshire hasn't repurchased any of its shares for the third quarter of 2024, signaling that Buffett doesn't view the company as an attractive investment right now. At a forward P/E ratio of 23.6, Berkshire is more expensive than it has been in a while, and analysts are predicting limited growth in 2025.
Despite these concerns, Berkshire remains an attractive long-term investment due to its reliable cash flow, diversified portfolio, and massive cash stockpile. While there's no need to rush to invest in Berkshire, it's a stock worth keeping an eye on.
Considering Berkshire Hathaway's significant investment in Apple, any positive impact on Apple's first quarter fiscal 2025 results, particularly from its new generative AI features, could potentially influence Berkshire's share price. (contains: 'Berkshire', 'Apple', 'influence')
Investors interested in Berkshire Hathaway might want to evaluate its recent financial decisions and analyst predictions before making an investing decision, as the company hasn't repurchased shares in the third quarter of 2024 and has a higher forward P/E ratio compared to previous years. (contains: 'Berkshire', 'investors', 'financial decisions', 'P/E ratio')
