BRK.B

Valuentum Exclusive Success Rates Trump Even the Best Quant Hedge Funds

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Image: President of Investment Research Brian Nelson, CFA By Brian Nelson, CFA A new book, “The Man Who Solved the Market,” hit bookshelves last year, and thus far it has been a hit. The text goes into the story of quant hedge fund Renaissance Technologies and its hedge fund, the Medallion Fund, which has put up mammoth returns since inception. Though the book focuses more on the life and times of founder Jim Simons and dedicated only a page or two to the fall of Long-Term Capital Management (LTCM), another quant fund that went belly-up during the late 1990s, it was nonetheless a thoroughly interesting and enjoyable read. But why I am bringing up one of the most successful quant … Read more

2019: Another Market Beating Year for the Best Ideas Newsletter Portfolio!

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2019: Another Market Beating Year for the Best Ideas Newsletter Portfolio! — Summary: — We estimate thus far the Best Ideas Newsletter portfolio return has beat the S&P 500 by 2.8 percentage points during 2019 (34.4% versus 31.6% for the S&P 500, as measured by the SPY). — Our move to overweight Apple, Facebook, and Visa worked out wonderfully for members during 2019. We continue to overweight big winners, and we credit this to our team’s conviction in our very best ideas. —  We also made quite the savvy move in rolling over a solid gain in Chipotle (60%+) into even more shares of Apple stock during the year. We’re putting some of the best ideas right in front of … Read more

Berkshire Hathaway Invests in RH, a Quality Company in Our View

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Image Shown: RH now counts Berkshire Hathaway Inc as a shareholder, which saw shares of RH initially spike up on the news. By Callum Turcan In a recent regulatory filing, Berkshire Hathaway Inc (BRK.A) (BRK.B) announced it had acquired a ~$0.2 billion stake in upscale home-furnishings company RH (RH), formerly known as Restoration Hardware Holdings, by initiating a position in the company’s equity. Please note RH does not pay out a common dividend at this time, indicating Berkshire Hathaway is seeking capital appreciation with this investment. Additionally, RH’s fiscal 2018 ended on February 2, 2019. Business Overview As of February 2, 2019, RH operated 86 galleries and showrooms across the US, Canada, and the UK. That includes galleries highlighting offerings … Read more

Top Best Ideas Newsletter Portfolio Holding Berkshire Hathaway Reports Solid Third Quarter Performance

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Image Shown: Shares of Berkshire Hathaway Inc moved higher on Monday November 4 after reporting a decent third quarter 2019 earnings report on Saturday November 2. By Callum Turcan Berkshire Hathaway Inc (BRK.A) (BRK.B) reported solid third quarter 2019 earnings on November 2, and we continue to like Berkshire Hathaway Class B shares as a top holding in our Best Ideas Newsletter portfolio. Our fair value estimate for BRK.B stands at $229 per share with room for upside, as the top end of our fair value estimate range sits at $275 per share. Third Quarter Overview We would like to highlight up front that Berkshire Hathaway’s underlying financial performance improved from the third quarter of 2018 to the same quarter … Read more

Buffett Favorite, Bank of America a Bargain

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“If Bank of America can continue to narrow the return on capital gap to JPMorgan, we expect its shares will grow into our $35 fair value estimate.” — Matthew Warren By Matthew Warren and Brian Nelson, CFA On October 16, Bank of America (BAC) reported third-quarter results that showed adjusted EPS of 75 cents per share, as compared to the average analyst estimate of 68 cents per share, and 66 cents in the year-ago quarter. The adjustment was for the previously announced $2.1 billion pre-tax impairment charge related to Bank of America’s investment in its merchant services joint venture from 2009, which negatively impacted EPS by 19 cents per share. The bank plans to create this capability in-house going forward. … Read more

ICYMI: Interview with Valuentum’s President Brian M. Nelson, CFA

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Catch up with Valuentum’s President Brian M. Nelson, CFA in a recent interview with dividend growth investor Arne Magnus Lorentzen Ulland of the blog stockles. By Brian Nelson, CFA Recently, I was interviewed by Arne Magnus Lorentzen Ulland of the blog stockles. Arne is a dividend growth investor like many of you, and I sincerely hope you enjoy the interview he put together. I’m very grateful for his interest. His questions were fantastic. We discuss why and how I incorporate independence and integrity into the service at Valuentum. We go into detail regarding why Valuentum views stocks the way it does, and how Valuentum combines enterprise valuation and the information contained in prices in its stock-selection process. I discuss the pitfalls … Read more

Covering Best Ideas Newsletter Holding Berkshire Hathaway

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Image Source: Berkshire Hathaway Inc – 2018 Annual Report By Callum Turcan As a top holding in our Best Ideas Newsletter portfolio, Berkshire Hathaway Inc (BRK.A) (BRK.B) Class B shares have room to run in our view. Our fair value estimate for BRK.B stands at $229 per share, significantly higher than where shares are trading at as of this writing (~$204 per share). Please note Berkshire Hathaway does not pay out a common dividend at this time. Covering a Tricky Balance Sheet The conglomerate splits its operations into two; ‘Insurance and Other’ and ‘Railroad, Utilities, and Energy,’ with Berkshire Hathaway breaking down the financial performance of each segment when possible. Berkshire Hathaway’s ‘Insurance and Other’ segment had a large net … Read more

Jim Chanos Attacks DaVita and Throws Shade at Warren Buffett

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Image Shown: DaVita Inc is a midsized kidney dialysis company with strong free cash flows. However, the company is coming under fire from famed short seller Jim Chanos who recently threw shade at Warren Buffett. Image Source: DaVita Inc – IR Presentation By Callum Turcan Fabled short seller Jim Chanos was in the news on September 19 when he announced he was short DaVita Inc (DVA), a kidney dialysis company, at the Delivering Alpha conference. What made this news particularly noteworthy comes down to Berkshire Hathaway Inc (BRK.A) (BRK.B) having a significant stake in DaVita. We must stress here that Berkshire’s ~24% equity stake in DaVita’s outstanding shares isn’t needle moving; the stake is worth ~$2-2.5 billion. Warren Buffett didn’t … Read more

Berkshire Hathaway Gets Ready to Put Part of Its Large Cash Pile to Use

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Image Source: Fortune Live Media By Callum Turcan Berkshire Hathaway Inc (BRK.A) (BRK.B), specifically Class B shares trading as BRK.B, is a top holding in Valuentum’s Best Ideas Newsletter portfolio. The massive holding company is invested in much more than just insurance (a portfolio which includes Geico, Cornhusker Casualty Company, General Re, Oak River Insurance Company, and more), Berkshire has exposure to American railroads (through its ownership of BNSF), global consumer goods sales–through its ownership of See’s Candy and stake in Kraft Heinz Company (KHC)–and a slate of other industries. We give shares of BRK.B a fair value estimate of $229, with a fair value range of $183/share – $275/share. As BRK.B trades at the lower end of our fair … Read more

Markets Crumbling Under Trade War

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Markets Crumbling Under Trade War — Just a reminder to lock in the Exclusive today. The price of the publication will go up tomorrow. The Exclusive highlights an income idea, a capital-appreciation idea, and a short idea each month. It is limited to 1,000 subscribers. Learn more here. — By Brian Nelson, CFA — Stock markets around the globe are under considerable pressure during today’s trading session, August 5, as onlookers no longer have faith that the White House and China officials are being truthful about the progress of trade talks. We think credibility is severely damaged, and China letting the yuan decline against the US dollar suggests the country may go to just about any lengths to defend itself against US … Read more