Warren Buffett’s Berkshire Hathaway (SPX500:BRK.B) releases its earnings on Monday and investors will be keen to hear his latest thoughts.
BRK.B Weekly – Daily Chart
The BRK.B shares are trading very close to the uptrend line from the start of 2023. A bearish close could see a test of that level when the numbers are released.
One of the key themes for the release will be the company’s cash reserves.
The renowned investor has been building his cash holdings, including short-term treasuries, and this is a sign that he does not see a lot of value in stocks at all-time highs. Warren Buffett’s overall portfolio is now around $294 billion, but 30% is held in only three stocks. Investors have noted that Buffett’s cash hoard has often grown ahead of market turns.
The three stocks that Buffett favours are American Express, which should deliver around $480 million in dividends to Berkshire this year. Berkshire owns 151.6 million American Express shares worth $47 billion, which represents 16.1% of its portfolio.
Oil company Chevron and drinks giant Coca-Cola should provide $811 million and $816 million in dividends, respectively. The other issue for Berkshire is that Buffett said he will step down as CEO of the company at the end of 2025. This is part of a long-term succession plan and follows the death of his investing partner, Charlie Munger, at the end of 2023.
Buffett’s comments to shareholders could have interesting comments on tariffs, oil & gas outlooks, and his thoughts on the stock market rally.