Buffett’s Airline Bet and Four Picks

In anticipation of its Prime Day this month, Amazon prepared for an onslaught of orders by “getting its delivery ducks in a row, including a fleet of over 20 dedicated Prime Air Cargo planes,” writes Validea CEO John Reese in a recent article for Nasdaq. Reese segued into Warren Buffett’s bet on major airlines and his general investment approach. Using stock screening models he created based on the methodology of Buffett and other market greats, he identified the following high-scoring airline stocks: Delta Air Lines Inc. (DAL) provides scheduled air transportation for passengers and cargo throughout the United States and […]

Berkshire’s Oncor Deal Feeds Buffett’s Energy Appetites

Berkshire Hathaway arrived at a deal to purchase one of the country’s largest power-transmission companies, making electricity one of the conglomerate’s biggest businesses. This according to a recent article in The Wall Street Journal. The bankrupt Energy Futures Holding Corp. will be acquired by Berkshire Hathaway in a deal valued at $18 billion ($9 billion of which will be cash), the article says, and will include the Texas-based company Oncor. The acquisition will further enhance Buffett’s energy holdings and ambitions, the article says, adding that Berkshire Hathaway Energy (BHE) contributed about 9.5% of Berkshire’s total earnings of $24.07 billion last […]

Buffett, Bank of America, and Five Financials

Warren Buffett’s decision to exercise Berkshire Hathaway’s warrants to purchase 700 million shares of Bank of America common stock will make it the bank’s biggest shareholder, writes Validea CEO John Reese in a recent Forbes article. Reese provides an overview of Berkshire’s history with Bank of America, explaining that this transaction will be the company’s most profitable in the financial sector. He also underscores the fact that financials have become a “cornerstone of Berkshire Hathaway’s holdings.” Using the stock screening models he created based on the investment philosophy of Warren Buffett and other market gurus, Reese identified the following five […]

Buffett’s Patient Approach to Investing

In a recent article for Forbes, Validea CEO John Reese discusses Berkshire Hathaway’s current stockpile of cash and how Buffett, who Reese refers to as a “Patient Investor”, approaches both choosing opportunities and making investments with care. Reese cites a Bloomberg article that describes Buffett’s investing principle: “There’s no need to chase deals,” it says, adding that Buffett likens investing to hitting a baseball. “Don’t swing at one that’s out of your comfort zone.” Using stock screening models he created based on the philosophies of Buffett and other market greats, Reese identifies the following high-scoring stocks: Credit Acceptance Corp. (CACC) […]

Buffett now Largest Shareholder in Bank of America

Now that Bank of America got the Fed’s green light to up its dividend to 48 cents a share (a 60% hike), Berkshire Hathaway has decided to exchange its preferred shares in the bank to roughly $17 billion in common stock, according to last week’s Wall Street Journal. The move will render Berkshire the largest shareholder (7%) of the bank—the country’s second largest in terms of assets—passing Vanguard, which now owns 6.6% (data from FactSet). Bank of America also got approval to buy back $12.9 billion worth of shares, the article says. The move is consistent with Buffett’s assertion in […]