Connect with us

Berkshire Hathaway Stocks to Buy

All of these Berkshire Hathaway stocks would be a good buy for anyone’s portfolio. Here is why Warren Buffett loves them.
The post Berkshire Hathaway…

Published

on

Warren Buffett, chairman and CEO of Berkshire Hathaway, is universally known as one of the most successful investors in modern history. With a net worth that now tops $100 billion, one can easily see why Buffett is held in such high regard. Many want to invest directly in Berkshire Hathaway stocks. Buffet has stuck to his principles of value investing and buy-and-hold investing for many decades, allowing him to amass quite a fortune.

He has always had a unique approach, and has always had an intense passion for making money. Born in 1930, he began investing at just 11 years old and started delivering newspapers at age 13. He took a $35 tax deduction for the bicycle he used at 13; needless to say, most 13-year-olds are not thinking about taxes.

Those who want to mimic Buffett’s stock choices can either buy shares of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Berkshire’s top holdings are:

  • Bank of America (NYSE: BAC)
  • Apple (Nasdaq: AAPL)
  • American Express (NYSE: AXP)
  • Coca-Cola (NYSE: KO)
  • Kraft Heinz (Nasdaq: KHC)

If you live in the United States, you have likely heard of all of these companies, and it may seem apparent that they would be good choices. Nevertheless, we’ll take a closer look at them and why they have a spot in Berkshire Hathaway’s portfolio.

Berkshire Hathaway Stocks to Buy Now

All of these Berkshire Hathaway stocks would be a good buy for anyone’s portfolio. Here is why Warren Buffett loves them.

No. 1 Apple

It’s hard to believe Steve Jobs has been gone for well over 10 years now. And even though many people couldn’t imagine Apple without him, it continues to be one most successful companies on earth. It has the highest market cap of any company, so it’s no surprise that Apple is Berkshire’s top holding, worth more than $130 billion.

Apple, with its nearly $3 trillion market cap, has provided consistent returns for investors. Its share price has consistently grown since 2020, roughly tripling in price in under two years. It’s not tough to see why: the company’s gross margin is purported to be 43% as of Q1 2022. Analysts consider the stock a strong buy with a slight upside in terms of price.

No. 2 Bank of America

Bank of America is the second-largest bank in the U.S. by assets under management. And it happens to be one of Berkshire’s favorites as well which is why it made it onto this list of Berkshire Hathaway stocks to buy. In fact, Bank of America is Berkshire’s second-biggest holding and easily its top bank holding. Its stake was worth more than $44 billion by the end of 2021. Business Insider reported in 2021 that Berkshire had invested $2.1 billion in the stock in just 12 days in 2020 and earned a return of $1.7 billion.

BAC has a market cap of about $387 billion, meaning Berkshire’s stake is more than 10% of the company’s entire value. But the stock has more than doubled since early 2020 and has grown consistently, so one can easily see why Berkshire invests so much in the company. For Q4 2021, it had a net income of $3.1 billion, and deposit balances were up 16% to $1 trillion. Plus, the company’s pretax margin was 30%. Expect the stock to grow slightly over the next year.

No. 3 American Express

Even though American Express had just an 18% market share among credit card networks in 2020, the company is Berkshire’s third-largest holding with a stake worth more than $27 billion. While American Express is known mostly for its credit cards, it has other products and services, including Centurion Lounges at airports.

American Express has a market cap of $145 billion. Like many companies dealing in travel and credit card, it was hit hard during the pandemic; its shares dropped from $136 in early 2020 down to about $68. However, since then it has soared past its pre-pandemic high, and its share price is approaching the $200 mark. The company is consistently profitable, though it is just a moderate buy with a very slight upside for the next year.

Keep reading for more information on Berkshire Hathaway stocks.

No. 4 Coca-Cola

Coca-Cola has been something of an American institution for generations; it got its start way back in 1892 in Atlanta, Georgia. While it began as a company selling mainly its product of the same name, it started acquiring companies in 1960 with its purchase of Minute Maid. The company has been acquiring companies ever since and now has dozens of subsidiaries. Berkshire’s stake in the company is worth more than $20 billion.

Coca-Cola has a market cap of about $260 billion, putting Berkshire’s stake around 7% of the company. S&P Global Market Intelligence says the company is undervalued with high growth stability. Shares of KO were hit hard due to the pandemic, dropping from around $60 in February 2020 to $38 around a month later. However, the stock has completely recovered since then and is back to around $60. The stock is considered a moderate buy with an upside of about 10% for the next 12 months.

Berkshire Hathaway Stocks No. 5 Kraft Heinz

Kraft Heinz is one of the oldest companies on this list, with Kraft’s roots dating back to 1876. Of course, Kraft Heinz is the result of the merger of Kraft and Heinz; the latter got it start in 1909. Although Kraft Heinz is the fifth-largest holding in Berkshire’s portfolio, it is considered a subsidiary of Berkshire. That’s because Berkshire retains a majority stake in Kraft Heinz.

With its $12 billion stake, Berkshire controls about 28% of KHC, which has a $42 billion market cap. The company’s stock did drop due to the pandemic, though not as much as other food industry stocks. It fell from $30 in February 2020 to $20 in March 2020. While that is a 50% drop, it surged well past its pre-pandemic high to nearly $45 in the spring of 2021. The company is consistently profitable, although analysts consider it a hold at this point.

The post Berkshire Hathaway Stocks to Buy appeared first on Investment U.

Read More

Continue Reading

Government

Mathematicians use AI to identify emerging COVID-19 variants

Scientists at The Universities of Manchester and Oxford have developed an AI framework that can identify and track new and concerning COVID-19 variants…

Published

on

Scientists at The Universities of Manchester and Oxford have developed an AI framework that can identify and track new and concerning COVID-19 variants and could help with other infections in the future.

Credit: source: https://phil.cdc.gov/Details.aspx?pid=23312

Scientists at The Universities of Manchester and Oxford have developed an AI framework that can identify and track new and concerning COVID-19 variants and could help with other infections in the future.

The framework combines dimension reduction techniques and a new explainable clustering algorithm called CLASSIX, developed by mathematicians at The University of Manchester. This enables the quick identification of groups of viral genomes that might present a risk in the future from huge volumes of data.

The study, presented this week in the journal PNAS, could support traditional methods of tracking viral evolution, such as phylogenetic analysis, which currently require extensive manual curation.

Roberto Cahuantzi, a researcher at The University of Manchester and first and corresponding author of the paper, said: “Since the emergence of COVID-19, we have seen multiple waves of new variants, heightened transmissibility, evasion of immune responses, and increased severity of illness.

“Scientists are now intensifying efforts to pinpoint these worrying new variants, such as alpha, delta and omicron, at the earliest stages of their emergence. If we can find a way to do this quickly and efficiently, it will enable us to be more proactive in our response, such as tailored vaccine development and may even enable us to eliminate the variants before they become established.”

Like many other RNA viruses, COVID-19 has a high mutation rate and short time between generations meaning it evolves extremely rapidly. This means identifying new strains that are likely to be problematic in the future requires considerable effort.

Currently, there are almost 16 million sequences available on the GISAID database (the Global Initiative on Sharing All Influenza Data), which provides access to genomic data of influenza viruses.

Mapping the evolution and history of all COVID-19 genomes from this data is currently done using extremely large amounts of computer and human time.

The described method allows automation of such tasks. The researchers processed 5.7 million high-coverage sequences in only one to two days on a standard modern laptop; this would not be possible for existing methods, putting identification of concerning pathogen strains in the hands of more researchers due to reduced resource needs.

Thomas House, Professor of Mathematical Sciences at The University of Manchester, said: “The unprecedented amount of genetic data generated during the pandemic demands improvements to our methods to analyse it thoroughly. The data is continuing to grow rapidly but without showing a benefit to curating this data, there is a risk that it will be removed or deleted.

“We know that human expert time is limited, so our approach should not replace the work of humans all together but work alongside them to enable the job to be done much quicker and free our experts for other vital developments.”

The proposed method works by breaking down genetic sequences of the COVID-19 virus into smaller “words” (called 3-mers) represented as numbers by counting them. Then, it groups similar sequences together based on their word patterns using machine learning techniques.

Stefan Güttel, Professor of Applied Mathematics at the University of Manchester, said: “The clustering algorithm CLASSIX we developed is much less computationally demanding than traditional methods and is fully explainable, meaning that it provides textual and visual explanations of the computed clusters.”

Roberto Cahuantzi added: “Our analysis serves as a proof of concept, demonstrating the potential use of machine learning methods as an alert tool for the early discovery of emerging major variants without relying on the need to generate phylogenies.

“Whilst phylogenetics remains the ‘gold standard’ for understanding the viral ancestry, these machine learning methods can accommodate several orders of magnitude more sequences than the current phylogenetic methods and at a low computational cost.”


Read More

Continue Reading

International

There will soon be one million seats on this popular Amtrak route

“More people are taking the train than ever before,” says Amtrak’s Executive Vice President.

Published

on

While the size of the United States makes it hard for it to compete with the inter-city train access available in places like Japan and many European countries, Amtrak trains are a very popular transportation option in certain pockets of the country — so much so that the country’s national railway company is expanding its Northeast Corridor by more than one million seats.

Related: This is what it's like to take a 19-hour train from New York to Chicago

Running from Boston all the way south to Washington, D.C., the route is one of the most popular as it passes through the most densely populated part of the country and serves as a commuter train for those who need to go between East Coast cities such as New York and Philadelphia for business.

Veronika Bondarenko captured this photo of New York’s Moynihan Train Hall. 

Veronika Bondarenko

Amtrak launches new routes, promises travelers ‘additional travel options’

Earlier this month, Amtrak announced that it was adding four additional Northeastern routes to its schedule — two more routes between New York’s Penn Station and Union Station in Washington, D.C. on the weekend, a new early-morning weekday route between New York and Philadelphia’s William H. Gray III 30th Street Station and a weekend route between Philadelphia and Boston’s South Station.

More Travel:

According to Amtrak, these additions will increase Northeast Corridor’s service by 20% on the weekdays and 10% on the weekends for a total of one million additional seats when counted by how many will ride the corridor over the year.

“More people are taking the train than ever before and we’re proud to offer our customers additional travel options when they ride with us on the Northeast Regional,” Amtrak Executive Vice President and Chief Commercial Officer Eliot Hamlisch said in a statement on the new routes. “The Northeast Regional gets you where you want to go comfortably, conveniently and sustainably as you breeze past traffic on I-95 for a more enjoyable travel experience.”

Here are some of the other Amtrak changes you can expect to see

Amtrak also said that, in the 2023 financial year, the Northeast Corridor had nearly 9.2 million riders — 8% more than it had pre-pandemic and a 29% increase from 2022. The higher demand, particularly during both off-peak hours and the time when many business travelers use to get to work, is pushing Amtrak to invest into this corridor in particular.

To reach more customers, Amtrak has also made several changes to both its routes and pricing system. In the fall of 2023, it introduced a type of new “Night Owl Fare” — if traveling during very late or very early hours, one can go between cities like New York and Philadelphia or Philadelphia and Washington. D.C. for $5 to $15.

As travel on the same routes during peak hours can reach as much as $300, this was a deliberate move to reach those who have the flexibility of time and might have otherwise preferred more affordable methods of transportation such as the bus. After seeing strong uptake, Amtrak added this type of fare to more Boston routes.

The largest distances, such as the ones between Boston and New York or New York and Washington, are available at the lowest rate for $20.

Read More

Continue Reading

International

The next pandemic? It’s already here for Earth’s wildlife

Bird flu is decimating species already threatened by climate change and habitat loss.

I am a conservation biologist who studies emerging infectious diseases. When people ask me what I think the next pandemic will be I often say that we are in the midst of one – it’s just afflicting a great many species more than ours.

I am referring to the highly pathogenic strain of avian influenza H5N1 (HPAI H5N1), otherwise known as bird flu, which has killed millions of birds and unknown numbers of mammals, particularly during the past three years.

This is the strain that emerged in domestic geese in China in 1997 and quickly jumped to humans in south-east Asia with a mortality rate of around 40-50%. My research group encountered the virus when it killed a mammal, an endangered Owston’s palm civet, in a captive breeding programme in Cuc Phuong National Park Vietnam in 2005.

How these animals caught bird flu was never confirmed. Their diet is mainly earthworms, so they had not been infected by eating diseased poultry like many captive tigers in the region.

This discovery prompted us to collate all confirmed reports of fatal infection with bird flu to assess just how broad a threat to wildlife this virus might pose.

This is how a newly discovered virus in Chinese poultry came to threaten so much of the world’s biodiversity.

H5N1 originated on a Chinese poultry farm in 1997. ChameleonsEye/Shutterstock

The first signs

Until December 2005, most confirmed infections had been found in a few zoos and rescue centres in Thailand and Cambodia. Our analysis in 2006 showed that nearly half (48%) of all the different groups of birds (known to taxonomists as “orders”) contained a species in which a fatal infection of bird flu had been reported. These 13 orders comprised 84% of all bird species.

We reasoned 20 years ago that the strains of H5N1 circulating were probably highly pathogenic to all bird orders. We also showed that the list of confirmed infected species included those that were globally threatened and that important habitats, such as Vietnam’s Mekong delta, lay close to reported poultry outbreaks.

Mammals known to be susceptible to bird flu during the early 2000s included primates, rodents, pigs and rabbits. Large carnivores such as Bengal tigers and clouded leopards were reported to have been killed, as well as domestic cats.

Our 2006 paper showed the ease with which this virus crossed species barriers and suggested it might one day produce a pandemic-scale threat to global biodiversity.

Unfortunately, our warnings were correct.

A roving sickness

Two decades on, bird flu is killing species from the high Arctic to mainland Antarctica.

In the past couple of years, bird flu has spread rapidly across Europe and infiltrated North and South America, killing millions of poultry and a variety of bird and mammal species. A recent paper found that 26 countries have reported at least 48 mammal species that have died from the virus since 2020, when the latest increase in reported infections started.

Not even the ocean is safe. Since 2020, 13 species of aquatic mammal have succumbed, including American sea lions, porpoises and dolphins, often dying in their thousands in South America. A wide range of scavenging and predatory mammals that live on land are now also confirmed to be susceptible, including mountain lions, lynx, brown, black and polar bears.

The UK alone has lost over 75% of its great skuas and seen a 25% decline in northern gannets. Recent declines in sandwich terns (35%) and common terns (42%) were also largely driven by the virus.

Scientists haven’t managed to completely sequence the virus in all affected species. Research and continuous surveillance could tell us how adaptable it ultimately becomes, and whether it can jump to even more species. We know it can already infect humans – one or more genetic mutations may make it more infectious.

At the crossroads

Between January 1 2003 and December 21 2023, 882 cases of human infection with the H5N1 virus were reported from 23 countries, of which 461 (52%) were fatal.

Of these fatal cases, more than half were in Vietnam, China, Cambodia and Laos. Poultry-to-human infections were first recorded in Cambodia in December 2003. Intermittent cases were reported until 2014, followed by a gap until 2023, yielding 41 deaths from 64 cases. The subtype of H5N1 virus responsible has been detected in poultry in Cambodia since 2014. In the early 2000s, the H5N1 virus circulating had a high human mortality rate, so it is worrying that we are now starting to see people dying after contact with poultry again.

It’s not just H5 subtypes of bird flu that concern humans. The H10N1 virus was originally isolated from wild birds in South Korea, but has also been reported in samples from China and Mongolia.

Recent research found that these particular virus subtypes may be able to jump to humans after they were found to be pathogenic in laboratory mice and ferrets. The first person who was confirmed to be infected with H10N5 died in China on January 27 2024, but this patient was also suffering from seasonal flu (H3N2). They had been exposed to live poultry which also tested positive for H10N5.

Species already threatened with extinction are among those which have died due to bird flu in the past three years. The first deaths from the virus in mainland Antarctica have just been confirmed in skuas, highlighting a looming threat to penguin colonies whose eggs and chicks skuas prey on. Humboldt penguins have already been killed by the virus in Chile.

A colony of king penguins.
Remote penguin colonies are already threatened by climate change. AndreAnita/Shutterstock

How can we stem this tsunami of H5N1 and other avian influenzas? Completely overhaul poultry production on a global scale. Make farms self-sufficient in rearing eggs and chicks instead of exporting them internationally. The trend towards megafarms containing over a million birds must be stopped in its tracks.

To prevent the worst outcomes for this virus, we must revisit its primary source: the incubator of intensive poultry farms.

Diana Bell does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

Read More

Continue Reading

Trending