Warren Buffett fans have a lot to celebrate this weekend


Buffett has a lot to brag about. Berkshire’s major holdings, such as Coca Cola (KO) Y kraftheinz (KHC) they are thriving. The two food and beverage giants recently reported solid earnings. Coca-Cola shares are up 11% this year, while Kraft Heinz is up more than 20%.
Berkshire also has a sizable stake in the oil giant. Chevron (CLC)the of dow the best shares of this year with a gain of more than 35%.

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.

That’s not to say that Berkshire is totally against the idea of ​​owning tech stocks. In fact, Berkshire’s main holding is Apple (AAPL). The company has also recently invested in Amazon (AMZN) as well as hp (HPQ).

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.

Berkshire has put some money to work this year, with plans to buy the insurer aleghany (Y) and a boost to its participation in the oil company Western Petroleum (OXY). But Buffett has long talked about wanting to make an “elephant-sized” deal.
However, there is one issue that Berkshire investors won’t need to ask this year: the question of succession planning. Buffett announced last year that Vice Chairman Greg Abel, who oversees Berkshire’s energy, consumer and other non-insurance businesses, would eventually take over as CEO.

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 are suffering from whiplash: Mega-cap tech stocks led a 1,000-point drop in the Dow last week and then rebounded on Monday. On Tuesday we saw another 800 point drop in the Dow Jones and another big rally on Thursday.

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.

Strong figures from Apple and Amazon would boost investor confidence as the Federal Reserve plans to hike rates next week. Both companies also serve as indicators of consumer confidence; the good news could ease fears of an upcoming economic downturn.

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 disappointed investors with good earnings expectations. Shares fell nearly 13% in after-market trading after the company reported a $7.6 billion loss on its investment in electric vehicle company Rivian. Amazon posted earnings of $7.38 per share, missing estimates of $8.36.

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.

mcdonald’s announced in february that it closed its Ukrainian restaurants for security reasons, but that employees would provide additional food to municipalities whenever possible. The restaurant said it hoped the councils would distribute products such as buns, donuts, cheese, milk and water to Ukrainians in need.



Reference-www.cnn.com

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