During the previous quarterly earnings, Berkshire Hathaway beat earnings and revenue by substantial margins, with price retreating to its lower daily range of $270 it may very well be the buying opportunity that investors are looking for for a longer time perspective.
Berkshire’s exposure has grown substantially in the tech stocks over recent years as its current holdings exposed is roughly about 45%, of which Apple is one of its bigger exposures rocketing up to more than $120 billion since its initial investment.
The continued repurchasing of its stock remains firm as the company bought back $6 billion during the second quarter of the year keeping it on track to equal repurchasing of $24.7 billion last year.
With $144 billion of cash at hand on its balance sheet, making up about 20% of the company’s total balance sheet. The markets are poised to see where Warren Buffet and Charlie Munger will deploy their buying power for their next acquisition.
Warren and Charlie are actively looking to purchase a company primed for growth as stated during their AGM that they want to put $70 to $80 billion to work as their current reserves are not being utilised efficiently as they feel they missed out on prime opportunities during the COVID pandemic.
From a technical perspective, the price retreated to its lower daily range, as momentum starts to shift off strong support levels, with the top of the range insight, the current target should be aimed at $293. However, if current cash on hand is set for acquisition more upsides should be expected.