Market Analysis: Buffett's Words and the Reaction of BRK.B Shares

FXOpen

At the weekend, another meeting of shareholders of Berkshire Hathaway was held, which was hosted by 92-year-old Warren Buffett and his partner, 99-year-old Charlie Munger. The duo fielded questions for 6 hours. Here are the key messages of the legendary investors:

→ AI can change everything in the world, but it won't tell you which stocks to buy.

→ Problems in the banking sector may continue.

→ The US dollar will not lose the status of the world's reserve currency, even amid fears related to public debt. Cryptocurrencies as a reserve currency is crazy and a hoax.

→ The US should not be in conflict with China, but trade.

→ In 2023, the US economy is likely to slow down.

→ The main rule of investing is to avoid mistakes.

Shareholders also learned about the results of the company's activities for Q1:

→ profit increased by +12% in annual terms;

→ companies sold more shares than they bought – that is, “Buffett turned to cash”;

→ the company increased the buyback.

Against the backdrop of news from the shareholders' meeting, BRK.B shares started the current week positively — a bullish gap formed on the chart of Berkshire Hathaway B shares, the price of BRK.B shares approached the highs of the year. However, on Tuesday, there was already less positivity. It is possible that BRK.B shares will fall in price along with the rest of the stock market amid fears related to public debt. President Biden is even said to be postponing his trip to the G7 summit. According to Secretary of the Treasury Janet Yellen, there is less and less room to solve the problem of default.

It is possible that the price of BRK.B shares will test the support line (1). According to the average opinion of analysts polled by the WSJ, the price of Berkshire Hathaway B shares can remain at current levels for a long time. Note that after 2008, the value of Berkshire Hathaway B shares does not have a significant advantage relative to the S&P 500 stock index, as it has been since the early 1980s.

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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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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