Nov 03, 2023

Warren Buffett’s Berkshire Hathaway conglomerate will share its latest earnings. Still, investors will be focused on the Oracle of Omaha’s economic ideas. 

brk chart

BRK – Daily Chart

BRK trades at $348 after a recent downturn, which saw the stock hit $332. The current level has resistance to a more significant push higher. 

Berkshire’s earnings are always eagerly anticipated, with Buffett giving his thoughts on the economy, stocks, and investing strategy.  

Oil may be an exciting topic after he bought up a large stock holding in Occidental Petroleum. Investors will also eagerly await his comments on Apple, the company’s largest single stock holding at 50% of the total stock portfolio. Buffett previously said it was the best stock he owned, and investors will want an update after a sales dip and a Chinese government ban on iPhones being reported in September. Apple stock was down 12% in the third quarter, which would shave $20 billion in value from Berkshire’s 900 million shareholding. 

Berkshire has sold shares in Chinese automaker BYD 13 times since August last year, netting $843.7 million, but still has a 7.9% stake in the firm. Berkshire Hathaway probably lost in the third quarter due to the stock market decline on its extensive equity portfolio. Still, Buffett’s company should deliver more substantial operating earnings. The conglomerate owns many businesses with an insurance division, manufacturers, oil and gas interests, railroads, and candy retailers. 

The increase in operating profits for the quarter will be driven mainly by higher rates lifting interest income on Berkshire’s cash balance of almost $150 billion, which is invested primarily on Treasury bills, now yielding close to 5%. Investors will want to hear Buffett’s thoughts on where rates will go and whether the US economy will see a recession. Investors will also look at Berkshire’s stock repurchases as an indication of Buffett’s view on the value of his shares.

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