Stocks week ahead: Warren Buffett has the last laugh as Berkshire
But that’s not causing Berkshire Hathaway’s Warren Buffett to lose any sleep.
Banks, energy firms and other value stocks have rallied this year, which is great news for Buffett since the Oracle of Omaha’s conglomerate invests in many of these companies. Value stocks typically have lower price-to-earnings ratios, and they’re definitely not trendy.
It’s too soon to say whether the current market trends will hold. But value investors who showed patience are looking pretty good so far in 2022.
“Buffett’s the tortoise. Value investors just plod along,” said John Buckingham, a value stock fund portfolio manager at Kovitz. “Yes, the Portnoys and Cathie Woods will have their day. But so many view investing as a casino. The key is to be patient and accept volatility.”
Berkshire isn’t just an investing firm. It owns well-known companies ranging from battery maker Duracell and the Burlington Northern Santa Fe railroad to Dairy Queen, Fruit of the Loom and paint seller Benjamin Moore.
However, Berkshire is primarily a financial services firm thanks to the fact that it owns insurance giant Geico and several other companies in the industry.
“When investors gravitate towards value they will buy financial stocks…
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