Buffett and Berkshire Vice Chairman Charlie Munger have come under fire from some investors in recent years as tech stocks swept the market. But Buffett and Munger, 98, have remained steadfast in their belief that owning quality, large-cap American companies in the consumer, financial services and energy industries is a good recipe for long-term success.
Still, investment experts point out that Buffett’s penchant for buying major companies and holding them for a long time is what remains key to Berkshire Hathaway’s success.
“One thing that stands out about Buffett and Munger is their ability to produce such large returns over such a long period of time,” Bill Stone, chief investment officer of The Glenview Trust Company, said in a report. “The investment business is littered with shooting stars who made huge returns and then died out, sometimes spectacularly.”
Stone is also a Berkshire shareholder and will attend the meeting.
But other experts say they want to know how Buffett and Munger feel about the market in light of the recent slowdown in the economy and concerns that the Federal Reserve is expected to keep raising interest rates.
“With rising rates and inflation, what kind of asset allocation is appropriate? We’re looking for that wisdom from Buffett and Munger,” said Sean Bonner, chief executive of Guild, an investment education app aimed at military members. Bonner is a Berkshire shareholder who plans to attend the meeting for the first time.
Investors will also want to know what Berkshire plans to do with its massive amount of cash, which stood at nearly $147 billion at the end of February.
Amazon and Apple add to the market turmoil
It’s been a volatile month for Big Tech, and the markets don’t know what to make of it all.
Investors’ hopes of finally taking off their braces hinged on Apple and Amazon reporting first-quarter earnings yesterday afternoon. Some cohesion between the two trillion-plus companies could provide clarity on market prospects.
But that didn’t happen.
Apple beat earnings estimates. Revenue grew nearly 9% annually while sales increased 19%. Earnings per share came in at $1.52, beating estimates of $1.43. The company announced a $90 billion share buyback and a 5% dividend increase.
But Apple’s outlook doesn’t look too good. Shares fell after Chief Financial Officer Luca Maestri warned of Covid-related supply restrictions that could hit second-quarter sales by $4bn-$8bn. Apple is not immune to supply chain challenges, CEO Tim Cook added.
Amazon’s revenue grew 7% during the first quarter, compared to 44% last year. That’s the company’s slowest growth rate in any quarter since the dot-com bust in 2001. Forecasts for the second quarter were also disappointing. Growth could slow to 3% from a year earlier.
“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” Amazon CEO Andy Jassy said in a statement.
McDonald’s has to get rid of millions of Russian burgers
Trash bins in Russia are overflowing with bad Big Macs and moldy McNuggets.
McDonald’s lost $100 million in food and supplies after closing its restaurants in Russia following the country’s invasion of Ukraine. The inventory “will likely be removed,” the company said.
McDonald’s made the decision to close its 850 Russian restaurants and 108 restaurants in Ukraine due to the conflict, but continued to pay its 62,000 employees and numerous suppliers in the region.
McDonald’s reported better-than-expected earnings and revenue as it offset Russian losses with price increases in the US and strong international growth.
Reference-www.cnn.com