Buffett embraces Amazon as Berkshire gains stake

May 05, 2019, 01:11
Buffett embraces Amazon as Berkshire gains stake

Amazon's closing price on Thursday, ahead of this disclosure, was $1,900.82, and the shares were up nearly 2% at $1,938 shortly after the opening bell on Friday.

The event, second of its kind following its inauguration previous year, came as USA multinational conglomerate Berkshire Hathaway will be holding its annual shareholders' meeting Saturday.

Still, Berkshire Hathaway ended past year with its Apple investment valued more than the cost of buying the shares.

More news: Nintendo Switch Has Officially Passed N64 in Lifetime Sales

These results illustrate what Buffett has called the "wild and capricious" and, in his view, meaningless swings caused by an accounting rule requiring the reporting of unrealized stock gains with earnings, regardless of Berkshire's plans to sell.

One of the fellows in the office that manage money bought some Amazon, so it will show up in the 13F later this month.

But that unsuccessful investment did not stop the company from becoming one of the biggest in the world, with a market value of more than $500 billion and with almost 400,000 employees. Buffett, 88, is chairman and CEO of Berkshire.

More news: Mass. Democrats Criticize AG Barr - And Call On Mueller To Testify Himself

Buffett has been prepping shareholders for the possibility of more stock buybacks, a move he's largely shunned throughout his more than six-decade career.

Buffett is well-known for not being the biggest fan of tech stocks. Approaching $1 trillion valuation once more, Apple stock is up more than 32% this year. By contrast, Amazon's shareholders have allowed Bezos to expand aggressively at the expense of delivering consistent profits. "I promise this is good for Omaha", Buffett said. Suncor rose 4.1%. Investors saw Berkshire Hathaway's investment in the company as a bullish sign.

Berkshire Hathaway also has significant stakes in companies like the food conglomerate Kraft-Heinz. "I have admired Jeff for a long, long time but I did not think he could succeed on the scale that he has".

More news: Premier League report: Watford 0 Arsenal 1

Among other businesses, the Berkshire Hathaway Energy unit posted a 3-percent profit increase, while earnings from retailing and services units increased 16 percent, despite a 19 percent revenue drop at See's sweets because Easter fell late. The company also this week pledged $10 billion to help finance Occidental Petroleum's bid to beat out rival Chevron take over Anadarko Petroleum. Buffett, who has not commented on the deal, is likely to receive questions on the capital injection on Saturday.

Loading...
loading...
loading...
YOU MIGHT ALSO LIKE
popular