🚀 BERKSHIRE HATHAWAY (BRK.B): Record Earnings (+16%), But Don't Rush Your Entry!
An incredible day for Warren Buffett's holding company! Berkshire Hathaway (
BRK.B) dropped its Q2 earnings report, completely smashing Wall Street’s expectations and showing massive fundamental strength in the current market.
📊 The Fundamentals In Plain English
- Stellar Earnings:
Operating income jumped over 16% year-over-year, beating the consensus Wall Street analyst estimates by an impressive +20%.
- Buffett Deploys Cash:
Under CEO Greg Abel, the firm stopped just hoarding cash and started investing aggressively. They put over $20 billion into equity purchases and deployed roughly $4.5 billion for stock buybacks. A buyback reduces the number of shares in circulation, making our remaining shares more valuable (the exact opposite of dilution!).
🧐 Wall Street Analyst Sentiment
This event has sparked a lot of discussion across major investment banks:
🟢 The Upside (Analyst Consensus):
Analysts are cheering the incredible cash-generating power of Berkshire’s core businesses (insurance, railroads, utilities) even in a complex macro environment. The aggressive stock buybacks are seen as a solid floor for long-term returns.
🔴 The Downside (Analyst Caution):
Some firms (like KBW) urge caution for short-term buyers. Even though the fundamentals are flawless, the stock is trading near all-time highs. Historically, buying Berkshire at an elevated Price-to-Book multiple narrows your immediate margin of safety.
🎯 Technical Strategy: Optimizing Entry Points Without Rushing
While the fundamental news is heavily Bullish, technical indicators suggest it might be wise not to rush an entry today. The stock is currently trading at a premium.
Analyzing the Price Action, Volume Profile (VPVR), and the Options Market (the ultimate forward-looking tool showing where institutional money is positioned), the data suggests waiting for a healthy profit-taking dip to consider these key support levels:
1. 🛒 First Watch Zone: $521 area (the first minor support shelf based on recent highs).
2. 📉 Intermediate Accumulation Zones: $511.89 area, followed by the $497.31 area.
3. 🛡️ The Long-Term "Floor": The major fundamental level at $473.88. At this price, the heavy volume concentration and intrinsic value are so strong that institutional investors will likely struggle to push the stock any lower. For investors looking to have this name in a portfolio, this represents a major technical area.
📈 Daily Macro Briefing & Portfolio Copying
For a full, daily pre-market macro briefing and comprehensive analysis every morning, subscribe here:
👉 Read The Daily Briefing On Substack
If you want to copy my trades based on my Momentum Quality strategy in real-time, follow my official profile:
👉 Copy My Portfolio On eToro (Search for: Fabio Di Salvo)
Disclaimer: The analysis provided above is for illustrative purposes only and does not constitute investment advice. Every trader must perform their own due diligence according to their risk profile.
An incredible day for Warren Buffett's holding company! Berkshire Hathaway (
BRK.B) dropped its Q2 earnings report, completely smashing Wall Street’s expectations and showing massive fundamental strength in the current market.📊 The Fundamentals In Plain English
- Stellar Earnings:
Operating income jumped over 16% year-over-year, beating the consensus Wall Street analyst estimates by an impressive +20%.
- Buffett Deploys Cash:
Under CEO Greg Abel, the firm stopped just hoarding cash and started investing aggressively. They put over $20 billion into equity purchases and deployed roughly $4.5 billion for stock buybacks. A buyback reduces the number of shares in circulation, making our remaining shares more valuable (the exact opposite of dilution!).
🧐 Wall Street Analyst Sentiment
This event has sparked a lot of discussion across major investment banks:
🟢 The Upside (Analyst Consensus):
Analysts are cheering the incredible cash-generating power of Berkshire’s core businesses (insurance, railroads, utilities) even in a complex macro environment. The aggressive stock buybacks are seen as a solid floor for long-term returns.
🔴 The Downside (Analyst Caution):
Some firms (like KBW) urge caution for short-term buyers. Even though the fundamentals are flawless, the stock is trading near all-time highs. Historically, buying Berkshire at an elevated Price-to-Book multiple narrows your immediate margin of safety.
🎯 Technical Strategy: Optimizing Entry Points Without Rushing
While the fundamental news is heavily Bullish, technical indicators suggest it might be wise not to rush an entry today. The stock is currently trading at a premium.
Analyzing the Price Action, Volume Profile (VPVR), and the Options Market (the ultimate forward-looking tool showing where institutional money is positioned), the data suggests waiting for a healthy profit-taking dip to consider these key support levels:
1. 🛒 First Watch Zone: $521 area (the first minor support shelf based on recent highs).
2. 📉 Intermediate Accumulation Zones: $511.89 area, followed by the $497.31 area.
3. 🛡️ The Long-Term "Floor": The major fundamental level at $473.88. At this price, the heavy volume concentration and intrinsic value are so strong that institutional investors will likely struggle to push the stock any lower. For investors looking to have this name in a portfolio, this represents a major technical area.
📈 Daily Macro Briefing & Portfolio Copying
For a full, daily pre-market macro briefing and comprehensive analysis every morning, subscribe here:
👉 Read The Daily Briefing On Substack
If you want to copy my trades based on my Momentum Quality strategy in real-time, follow my official profile:
👉 Copy My Portfolio On eToro (Search for: Fabio Di Salvo)
Disclaimer: The analysis provided above is for illustrative purposes only and does not constitute investment advice. Every trader must perform their own due diligence according to their risk profile.
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Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.