Daily Update: Berkshire Holds Up Purchase
| Wednesday's Financial Landscape || --- || S&P 5005,949 (-0.60%) || Nasdaq19,108 (-0.64%) || Dow43,751 (-0.47%) || Bitcoin88,007 (-0.71%) |
1. Buffett & Burry's Investment Spree
Quarterly filings indicated fresh investment activities in Berkshire Hathaway's (BRK.A 0.42%) (BRK.B 0.52%) portfolio as well as actions from Michael Burry's Scion Asset Management. Over 89.86% of Berkshire's portfolio is now allocated to its top ten stocks.
- Shift to B2C: Two significant acquisitions during the quarter include a $550 million investment in Domino's Pizza (DPZ -1.06%) and $152 million in Pool Corp (POOL 0.45%). Berkshire unloaded shares of Floor & Decor (FND -0.06%) and divested from various positions in stocks like Ulta Beauty (ULTA 1.28%) and Capital One (COF 0.28%).
- The Big Short goes long: Burry's investment firm increased its exposure to China, boosting holdings in Alibaba (BABA -0.75%), JD.com (JD -0.38%), and Baidu (BIDU -0.41%)
2. Powell's Optimistic Barrier
Stock markets dropped, with commodities including gold following suit, following Fed Chair Powell's comment that the central bank was not in a rush to lower interest rates due to the robust economy.
S&P 5005,949 (-0.60%)
- "The economy isn't pressuring us to slash rates": During a speech to business leaders, Powell expressed confidence in the labor market's state but emphasized that the process of reducing inflation isn't complete yet.
- Gold's luster fades: Gold prices have plunged for six consecutive days and are on course for its worst weekly performance since June 2021. Gold tends to perform well during periods of high uncertainty or concern.
3. Disney's (Overall) Recall
Nasdaq19,108 (-0.64%)
Disney (DIS 1.38%) saw a climb of over 6% after publishing fiscal Q4 results, with both revenue and earnings per share (EPS) outperforming market forecasts.
- A pivotal year of transformation: With revenue of $22.6 billion, a 6% year-over-year increase was recorded. Adjusted earnings of $1.14 per share jumped by 39% from Q4 2023. The direct-to-consumer (DTC) streaming enterprise posted another profitable quarter, with operating income of $321 million.
- Expecting further gains: For 2025, the organization reported high single-digit adjusted EPS growth, with DTC division operating income projected to surge by $875 million for the entire year.
Dow43,751 (-0.47%)
4. Retailing's Next Purchase: October Retail Sales, Alibaba Earnings
October retail sales data releases today, with experts anticipating a 0.3% monthly increase.
Bitcoin88,007 (-0.71%)
- Fourth consecutive growth spurt: Even a 0.3% increase would reveal persistent demand among consumers and validate Powell's assessment of the economy.
- Vulnerable to China: Alibaba is scheduled to post earnings before the opening bell, with revenue predicted to increase to $33.27 billion, an uptick of 5%, and EPS of $2.07, a slight decrease from $2.17 in the previous year.
5. Budgetary Guidance
Fool analyst Stephanie Marini advises utilizing remaining contribution opportunities: "As we draw close to the year's end, pertinent contribution deadlines to keep in mind follow. The employer-sponsored contribution plans such as 401k, 403b, and 457 have a December 31st deadline. HSA and IRA contribution deadline stretches to April 15, 2025. Ensure to allocate any additional funds from bonuses or Social Security tax limits for high-income earners appropriately. Join Our Website to gain more financially enriching perspective.
- Buffet and Burry's investment strategies continue to impact their portfolios, with Berkshire Hathaway investing $550 million in Domino's Pizza and Scion Asset Management boosting its holdings in tech companies like Alibaba.
- In light of Powell's confidence in the economy, many investors are turning to the stock market for potential gains, despite drops in indices like the S&P 500 and Bitcoin.
