This is called “Woodstock for the Capital”.
Thousands gather in Nebraska for a weekend of market gigs from the oracle from Omaha himself, Warren Buffett.
I’m talking about the annual Berkshire Hathaway shareholders’ meeting, of course.
I will not focus so much on what Buffett said today Investment with Charles. To read my take on this front, Click here.
Instead, research analyst Matt Clark and I want to dive into how Buffett approaches his conglomerate’s portfolio.
Let’s see what has changed and whether each of these stocks is a buy through our stock rating system as a guide.
Here are highlights from some of our conversation. Watch the full video above.
BRK.B is a solid stock
slowing down: Let’s start by looking Berkshire Hathaway Inc. (Symbol: BRK.B). Here is this stock chart.
BRK.B was not immune from the sale
The stock (red line) reached a 52-week high in March. It has dropped slightly, but it has risen around 14% over the last 12 months. It still knocks the pants out of the wider financial sector (blue line).
The stock is trading below its simple 50-day moving average, but I think a lot of it has to do with the big jump it had to March and then to the counter-wind of the subsequent market.
Berkshire Hathaway ranks a 95 in total To our stock power rating system.
We have a 94 In momentumAs we have seen the big rise that led to the peak of the 52 weeks in March. Volatility is b 97 Because the stock moves without much bouncing.
Charles: That’s part of Berkshire Hathaway’s appeal. This stock is solid in rock, with an unassailable balance. This is a society that needs to survive the apocalypse … If Russia finally pushes the button and detracts from us, it’s going to be a world of cockroaches, rats and Berkshire Hathaways.
slowing down: What an interesting party to be a part of.
BRK.B rates a 95 On our quality index and 89 On growth. The value is in 81. I think it will come back a bit after this retreat of the stock.
The size is a 1. It’s a huge company, so it’s expected. We can get kind of discount size, especially when BRK.B gets such a good score in other factors.
So Berkshire is a strong stock, and I agree with you. I think it will keep that power going.
Now let’s look at how its investment portfolio has changed in recent months.
Of Berkshire The biggest bet: energy
slowing down: I want to start with probably the two largest stocks that Berkshire Hathaway has added shares of. The first is the oil and gas company, Occidental Petroleum Corp. (Symbol: Oxy).
I’m not sure exactly what percentage Berkshire increased its share of, but it was significant enough to attract financial media.
If we look at Occidental now, in terms of our stock rating system, it’s a 79. We are “bullies” about it.
It should hit the market at least twice over the next 12 months.
OXY has strong momentum and growth, both ratings in the 90s. This is another big company, so size is going to snatch a hit here. Value and quality are about in this mid-range, but still strong.
Volatility is a type of this neutral zone.
This is because we have seen energy stocks move quite a bit recently. Especially with the Russian invasion of Ukraine and higher inflation.
Take a look at the stock chart here:
OXY’s huge leap
Oxidental has risen by about 123% in the last 12 months, while the broad energy sector has risen by about 54%.
So Occidental is very strong, especially compared to its counterparts.
Charles: Before I talk about the stock, I want to get a little more of the big picture.
Our stock rating system is divided between three technical indicators and three basic indicators. It’s half thorough, half technical.
So we always assume Warren Buffett is the basic guy. He is a valuer who does not look at stock graphs or technical analysis.
This is true to some extent.
Buffett is not a table man. It pretty much eliminates that aspect. But it focuses on one aspect of technical analysis. Throughout his career, Buffett has had a fairly strong preference for low-volatility stocks.
What he realized long ago is that one needs to find good growth stocks that have a long track ahead of them. You buy them at a reasonable price and you focus on those that have lower volatility.
So this was Berkshire Hathaway and Buffett’s show. He had money floating this insurance to play with and he was kind of betting the farm on good growth stocks that traded at a reasonable price that didn’t move that much. It was his bread and butter trade there.
And oxidant is actually suitable for this mold.
It is funny. Buffett has made some significant combinations over the past few years. He made a big axis for technology, and it was something he never really did on such a scale.
Then again, over the last few years, he’s really turned hard on energy. I think the proof is in the pudding. It was a good move.
He succeeded to Accidental, and I do not see him getting rid of it any time soon.
Buffett’s other energy bet: Chevron
slowing down: And the other one here that attracted a little oh and ahs was his increased bet Chevron Corp. (NYSE: CVX).
Editor’s note: To see if Chevron is a leading stock to buy based on its stock strength rating, Click here to read about It’s the latest from Charles Dividend this week connect.
Charles: You, me, Adam O’Dell, have been bullied in the energy for a while. Apparently, we’re in an elite company with Buffett.
slowing down: I feel pretty good about myself about it now.
Charles: Feeling pretty good right now.
Yes, no one wanted to touch energy. And Buffett was one of the first greats Investors Jump in with both feet.
It shows that being independent and willing to look beyond the fears that dominate the market today pays off. Look at the numbers, be objective and just keep your head straight.
How can we emulate that of Buffett temperament?
Charles: As individual investors, we can do mind-boggling things.
Position size too large is easy to do. If you have too much of your capital at risk in one stock, it is difficult to remain emotionally detached and objective.
So if you want to be like Buffett, you want to be Cool Hand Luke here. Never let them see you sweating. I mix metaphors, but you get the idea.
If you want to accept Buffett’s behavior of not being nervous or scared, the key is do not overdo it in your portfolio. Don’t be so at risk that you start to get that feeling in your chest where you freak out.
Just get the right bag size where you can sleep at night … this is the first step to being like Buffett.
A plan helps with that too.
Buffett managed to become a legend because he had a plan and stuck to it. So find a good plan and do the same.
There will be times when it’s hard, but stick to your plan and you will have discipline. Follow this plan and you will succeed. Not all of us can be Buffett, but we can succeed.
slowing down: And if you’re struggling with what this program should look like, I encourage you to check it out Green Zone Fortunes.
Again, Charles touched on that … Adam, Charles, I and our entire team are bullied in energy, even before it was fashionable to be bullied in energy.
We have a lot of great presentations in the model portfolio right now and we provide you with the roadmap and stock analysis.
If you want to find out more, Click here to view a person’s ‘Infinite Energy’ presentation now.
Management Editor note: Click here Watch the rest Investment with Charles. Matt and Charles inspect two of Berkshire’s other large holdings, Apple Inc. (NASDAQ: AAPL) and Coca-Cola Co. (Symbol: KO) To see if they are solid shopping right now.
Where to find us
In the coming week, Matt will have more information The bull and the bear Podcast, so stay tuned. Do not forget to check out ours Ask Adam anything A series of videos in which chief investment strategist Adam Odell answers your questions.
You can also catch Matt every week on his Marijuana Market Update. If you’re into investing in cannabis, you do not want to miss Matt’s weekly insights.
Remember, you can send an email to my team and me at Feedback@MoneyandMarkets.com – or leave a comment on YouTube. We love hearing from you! We may even present your question or comment in a future release of Investment with Charles.
To ensure profits,
Charles Sizemore, co-editor, Green Zone Fortunes
Charles Sizemore Is the co – editor of Green Zone Fortunes And specializes in income and retirement issues. He is also a frequent guest on CNBC, Bloomberg and Fox Business.
Buffett’s Bullish on Energy Too — Follow Him Into OXY Stock? Source link Buffett’s Bullish on Energy Too — Follow Him Into OXY Stock?