Stocks
Are All of Buffett’s Big Four is Worth the Buy?
There has been new opening news to the world on Feb 27. In the said date, Warren Buffet released his highly anticipated shareholder letter. In this letter, Buffett touted his “Big Four” investments and detailed that Berkshire Hathaway (BRK.A) (BRK.B) increased its ownership stake in each company.
On the other hand, Berkshire only dynamically bought more shares on two among the Big Four. The remaining of the four was only bought back their own stock in which Buffett pointed out increased Berkshire’s ownership stakes through fewer shares outstanding.
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According to Buffett’s estimation, in every percentage that will increase in Berkshire’s stake in the Big Four will enhance its yearly earnings by $500 million per year
Now, as we can see, not every one of Berkshire’s Big Four is worth the buy. However, as we will base the stellar track record of the Oracle of Omaha (Berkshire’s stock has returned 20.8% annually since 1965 — more than double the market’s return of 9.7%) each are very worthy of meticulous analysis.