Berkshire Hathaway Inc. BRK-B Analysis

Do all new highs in the market mean its time to hit the Buffet(t)?

Okay, anyone who invests knows the name Warren Buffet, but knowing someones name and knowing what they do are two different things all together.

Here is a snapshot of Berkshire Hathaway Inc from Yahoo Finance

Berkshire Hathaway Inc.
3555 Farnam Street
Suite 1440
Omaha, NE 68131
United States – Map
Phone: 402-346-1400
Fax: 402-346-3375
Website: http://www.berkshirehathaway.com

288,500 Employees.

BRK is a publicly owned fund known for out performing the market.

Warren Buffett is the CEO who also is known for his fundamental analysis and shrewd buy and hold strategy.  Basically, is one of the strongest bulls in the market.

If you are a trader who relies on fundamental analysis, this is probably not your stock.   You may want to do your own analysis of their holdings and try to pick from within.

If you prefer technical analysis, there may be an opportunity arising as we speak.

Here is a chart of the last 5 days of Berkshire B:

brk-b_5_day_may_03

 

At first glance we notice the chart has more gaps than a shopping mall, and they don’t exactly look like a fun time for bullish intraday trading strategies.  However, that’s only likely if you are human.  It has a penchant for gapping up in the morning and then settling down, but not filling the gap.  This is generally a bullish sign and it is very possible that the HFT Software Programs are gradually accumulating positions without moving the stock.  (there also appears to be black book trading, but we are ignoring this for now)

So far we see bull and bull, but mostly because we remember IBM doing something similar back in 2005 when it became almost impossible for day traders to take advantage of a really strong and bullish stock because of the consistent overnight gap up.

Looking at the 6 Month Chart:

brk b berkshire HFT profit stock chart

 

It shows it has previously gapped up and never looked back on a much larger time frame.  It is a steady climber and it has just broken through resistance.  Another two great bullish signs. (of course there is still always the short strategy after a break and/or retracement back to the red trendline.)

Now lets look at the 1 year chart:

bershire 1 year chart BRK.b

Now we see the gap from a different light.  This exposes the weakness in the overall trendline, but solidifies the bull move.  We see this as a benefit because it allows us to focus on shorter time frame and this is generally a longer time frame stock when traded on an overnight basis.  Here we are looking at the green bar of resistance that the security has moved through, and feel there is an opportunity to accumulate shares fairly safely around that level if the resistance turns into any type of support (we think the HFTs see this too and is part of the reason why the stock will not retrace its gap ups.

Now lets look at the all time high of the chart.

BRK all time high high freqeuency trading chart

Here we something really simple.  The stock is making all time highs, the overall markets are making all time highs, and BRK is run by the biggest bull market supporter around.

Its hard to make a case for a short here, even if it lines up well.  We’re all bulls around here, but make sure you do your own due diligence and choose your side yourself.

Buffett’s Bear More a Teddy than a Grizzly Wall Street Journal

Wall Street Journal. Buffett’s Bear More a Teddy than a Grizzly. Wall Street Journal. Since 1977 Berkshire Hathaway CEO Warren Buffett has written roughly 400,000 words in his annual letters to shareholders. See how often Mr. Buffett has mentioned current and former division bosses and other close associates plus see analysis on how.…

6 things I learned at Berkshire’s annual meeting Fortune blog

6 things I learned at Berkshire’s annual meeting. Fortune blog FORTUNE At Berkshire Hathaway’s BRKA annual meeting on Saturday Warren Buffett fielded questions from investors journalists analysts and for the first time invited onto the stage one investor Doug Kass who is betting against Berkshire’s stocks.…

Berkshire Hathaway 35 Of Potential Upside With Just 9 Downside Risk Seeking Alpha

New York Times blog Berkshire Hathaway 35 Of Potential Upside With Just 9 Downside Risk. Seeking Alpha. Having said that you can easily understand how happy I was when I checked out the recently released 10-Q of Warren Buffett’s Berkshire Hathaway BRK. A BRK. B for Q1 of 2013. It seems that Berkshire at its current valuation is a company that offers Warren Buffett’s Berkshire Hathaway Worst Among S P 100 Companies At Huffington Post. Berkshire Hathaway’s 2013 Shareholder MeetingNew York Times blog 2013 Berkshire Hathaway shareholders meetingOmaha World-Herald blog Financial Times Fort Worth Star Telegram. all 898 news articles.…

Buffett admits Berkshire Hathaway will underperform the S P 500 The Times subscription

The Times subscription Buffett admits Berkshire Hathaway will underperform the S P 500. The Times subscription Mr Buffett told about 20,000 shareholders at the Berkshire Hathaway annual meeting in Omaha that based on current trends the company may grow at a slower rate than the S P 500 this year. The company also underperformed last year with the book value.…

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