Berkshire Hathaway bull run begins to tail off

FXOpen

Warren Buffett is a remarkable character among the investment and trading world.

At 91 years of age, he shows absolutely no sign of slowing his strategic methodology, and looks just as enthusiastic today when a deal is complete as he did in the early years of his career several decades ago.

Over the past five days, Berkshire Hathaway shares, traded publicly on the New York Stock Exchange, have been on a very noticeable bull run, having risen to their highest point this month since the beginning of the trading week yesterday.

Looking at the five-day moving average, Berkshire Hathaway shares are up 1.45%, however this trend began to slow as the US trading session closed yesterday in New York with Berkshire Hathaway shares down by 0.27% during the course of the day.

This may be a drop, but it is a very minor drop which still leaves Berkshire Hathaway stock at a high point compared to the levels at which it was trading during the entirety of last week.

The market sentiment which elevated the value of Berkshire Hathaway stock may well be a reaction to the investment firm's announcement yesterday that it had deployed and committed approximately $22 billion in investments during the first quarter of 2022, marking that period as one of Warren Buffett's most forthright stock buying periods over the past two years.

Whilst Berkshire Hathaway bought $22 billion in stocks in just three months at the beginning of 2022, it only bought a total of $8 billion of stock throughout the entire year of 2020.

The $22 billion which has been allocated to new investments is beginning to make steps toward Berkshire Hathaway's share buyback figures. The company invested a record $25 billion on share repurchases in 2020, then set a new record in 2021, with buyback purchases of over $27 billion whilst having not committed anywhere near that figure to new stock investments.

This bullish direction on new stock purchases has taken place just a few weeks after Berkshire Hathaway announced that it was to buy property and casualty reinsurance investment and managed portfolio company Alleghany Corporation for $848.02 Per Share in $11.6 Billion Transaction, which if it goes ahead will create one of the largest investment and wealth management firms in the world.

The tailing off of Berkshire Hathaway's share price yesterday therefore represents the calming down and settling of investors after a bull run during Monday's trading session after the massive increase in investment in the first quarter of this year was announced.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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