Expectations are high for Warren Buffett’s annual letter on Berkshire Hathaway‘s earnings and the impact the Oracle of Omaha’s words will have on his own company’s shares.
The letter comes at a very sensitive time for financial markets, which are in the throes of declines. The negative market trend was triggered by the news of the sharp rise in ten-year US government bonds, whose yield was higher than the shares of the so-called “big tech” companies. This triggered a sell-off that hit US, Asian and European markets, and did not leave the cryptocurrency sector unscathed.
In such an uncertain scenario, the movements of Warren Buffett and his Berkshire Hathaway should be monitored carefully. Like the market as a whole, the shares of NYSE-listed BRK have been falling since Wednesday. However, Berkshire is on the back of a strong monthly performance that saw it rise from $349,000 to $375,000.
One can bet that Warren Buffett’s letter to investors will have a significant effect. Bloomberg explains that Warren Buffett has been unusually quiet at a very particular time in the life of the United States, given the presidential elections. A turbulent time too, as the riots on Capitol Hill show. But as America changed and in a sense became disrupted, Warren Buffett was unusually silent.
The movements of Berkshire Hathaway and its shares
But being silent does not mean not being operational. Quite the contrary. Berkshire Hathaway has continued to expand its horizons. Buffett recently changed his portfolio, divesting part of his Apple shares to invest in so-called Big Pharma. This was not a casual choice and he “exploited” the golden moment of pharmaceutical companies, particularly those producing anti-Covid vaccines.
It is news these days that Warren Buffett is also strengthening his real estate holdings. Berkshire Hathaway Homeservice, the branch of the company that deals with property investments, is said to be very active in Italy, where it has set its sights on three particular areas: Sardinia, Tuscany and Lake Como, in search of luxury homes.
It would seem that for Warren Buffett, it’s not just gold or shares that matter (let alone Bitcoin, which he has always been sceptical about), but also the safe-haven asset par excellence is still real estate.
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