Buffet Bonus shrinking
Since legendary Warren Buffett announced his retirement for end of this year the company value lost ground. The $BRK-B stock is down -17% from its ATH and approaching a quite significant support line around $440. The latest earnings were not as good as expected and share buybacks were halted.
Is it time to buy now?
In my view the price decline is not fundamentally driven, the company neither has major problems nor is it overvalued. The only thing going on is a transition period from Buffett/Munger to the new Leadership by Greg Abel. And he is obviously planning to restructure the portfolio. Berkshire announced a big write-down of $3.7B for their KraftHeinz investment and has stepped down from their board positions. This seems like they are considerung to sell at least parts of their stake which is a weak performer since years now.
But don’t forget Berkshire is still sitting on a huge pile of cash, latest number was something around $340B. So they have enough possibilities to react and get involved if chances arise.
In my view the Company is not dirt cheap yet but if you always wanted to step in, this could be a chance to get it quite a bit cheaper than it used to be. I am DCAing in and am slowly building up a position. Once we see stock prices below $400 I will probably double down on that.
Are you still following Berkshire since Buffett announced his retirement?
