First it was chocolate, then it lead to marijuana. All investors know that Warren Buffett has had an outstanding return through his Berkshire Hathaway (BRK-A) (BRK-B), the highest priced American stock, which traded above $210,000 a share today. Buffett's Berkshire owns a very diverse, and somewhat eclectic group of companies, everything from insurance, to engine oils, to underwear, to private jets, to ice cream, to newspapers.
One business that it owns is See's Candies, which is one of the best tasting candy manufacturers in the United States, using that "addictive ingredient" chocolate. I normally don't eat candy, but I sometimes make an exception around the holidays with See's Candy. If you have never tasted it before, you need to try it at least once. Unfortunately, (or fortunately for the quality control), it is only available in 15 states.
So now what? According to an article in Bloomberg, Berkshire Hathaway is getting in to the marijuana cultivation business. Here is how they are doing it. Berkshire has a division called MiTek which has a subsidiary Cubic Designs, in the business of providing warehouse space platforms, is promoting its business to medical marijuana dispensaries, and even recreational marijuana dispensaries in Colorado and Washington. The company sent out approximately 1,000 flyers with a picture of a warehouse with mezzanine platforms with plants growing on them, emphasizing that growers can double the amount of space that can be available for growing plants.
Will the marijuana industry add a lot to Berkshire's bottom line? No. Will it help boost the price of Berkshire to a million dollars a share? No. But what this business does do is add a little more legitimacy to the marijuana growing industry.
The latest stocks in the Berkshire Hathaway portfolio are in less exciting industries. One of the companies is in the pipe business, not the kind you smoke but the ones used to transport oil and gas. The company is Now Inc. (DNOW). The other is in the cable television business, Charter Communications (CHTR).
You can find all the Warren Buffett stocks at WallStreetNewsNetwork.com. Yet, the best way to invest like Warren Buffett is through the Berkshire B shares (BRK-B), which sells for less than $150 a share.
Showing posts with label DNOW. Show all posts
Showing posts with label DNOW. Show all posts
Wednesday, October 08, 2014
Friday, August 22, 2014
What Warren Buffet Has Been Buying
Warren Buffett's Berkshire Hathaway (BRK-A) has been in the news recently because of the fine levied by the Justice Department for not following anti-trust guidelines. However, Buffett is still providing investors with significant returns. Berkshire Hathaway closed at $205,159 per share yesterday, an all time closing high for the stock.
One technique that some investors use is "follow the experts," basically, follow what the top investors are doing. Applying that technique to Warren Buffett and Berkshire Hathaway is easy. WallStreetNewsNetwork.com has a free list of Berkshire Hathaway holdings, so you can just pick and choose the stocks that you think are the best of Warren Buffett's holdings.
A better technique is to take a close look at the stocks that the experts have recently purchased. In the case of Buffett, he has only two new investments during the latest reported quarter ending June 30.
One of his purchases was Charter Communications (CHTR), the Stamford, Connecticut based cable television provider. The stock trades at 58 times forward earnings and although generating negative earnings currently, it posted a 14.6% increase in revenues for the latest quarter, year over year.
The new investment in Buffett's portfolio is Now Inc. (DNOW). The company distributes pipes and valves to utilities, refineries, and oil and gas operators. This isn't a new purchase as it was a spinoff from National Oilwell Varco (NOV), which Buffett already has in his portfolio. Now trades at 19 times forward earnings, and has reported a drop in quarterly earning of 18.2% on a revenue decrease of 11%. The company is debt free with $236 million in cash.
At the very least, Buffett's portfolio can provide you with some investment ideas worth looking into.
Disclosure: Author didn't own any of the above at the time the article was written.
By Stockerblog.com
One technique that some investors use is "follow the experts," basically, follow what the top investors are doing. Applying that technique to Warren Buffett and Berkshire Hathaway is easy. WallStreetNewsNetwork.com has a free list of Berkshire Hathaway holdings, so you can just pick and choose the stocks that you think are the best of Warren Buffett's holdings.
A better technique is to take a close look at the stocks that the experts have recently purchased. In the case of Buffett, he has only two new investments during the latest reported quarter ending June 30.
One of his purchases was Charter Communications (CHTR), the Stamford, Connecticut based cable television provider. The stock trades at 58 times forward earnings and although generating negative earnings currently, it posted a 14.6% increase in revenues for the latest quarter, year over year.
The new investment in Buffett's portfolio is Now Inc. (DNOW). The company distributes pipes and valves to utilities, refineries, and oil and gas operators. This isn't a new purchase as it was a spinoff from National Oilwell Varco (NOV), which Buffett already has in his portfolio. Now trades at 19 times forward earnings, and has reported a drop in quarterly earning of 18.2% on a revenue decrease of 11%. The company is debt free with $236 million in cash.
At the very least, Buffett's portfolio can provide you with some investment ideas worth looking into.
Disclosure: Author didn't own any of the above at the time the article was written.
By Stockerblog.com
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