Click here: The Weekly Beacon – October 21 2022
We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
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This weeks issue: Tesla, Berkshire Hathaway, Warren Buffett, Old and Wise, Hyped and Growth, High Multiple Stocks, Market Cap, Used Car Prices, CPI, Energy, U.S. Midterms, House Races, Senate Races, November Elections, Western Attack on Energy, China Pollution, Climate Change, Oil Usage, Energy Crisis, Growth Wall, Netflix Revenue, Netflix Stock, Entertainment Stocks, Streaming Stocks, Netflix Competitors, Yield Curve, Inverted yield Curve, FED, Recession, Costco Prices.
Slow and Steady Wins the Race
Warren Buffett is known as the greatest investor to ever live. He did not earn that name through high-growth companies that promised to revolutionize the world. Some of his most successful investing has been through brick-and-mortar companies that have produced outsized returns on an annual basis.
Even though some young investors call Buffett “old” or “out of touch” he still chugs on. His fundamental approach to investing beats any quant fund in the long run. In recent years, many have pointed to his hesitancy to invest in the technology space as a reason not to invest in his company. Many have believed that he is limiting investor upside by ignoring the most disruptive companies. Buffett once told investors to never invest in anything they do not understand, and he has lived up to that. In recent years, he has invested in Apple giving his investors some exposure to technology.
We only bring this up because Buffett’s company Berkshire Hathaway is approaching an interesting milestone. A milestone that is related to its market capitalization.
Berkshire’s market cap is almost larger than Tesla’s. The reason why we mention this is because Tesla’s market cap was almost double Berkshire’s at the end of 2021. Berkshire’s investments have held up during market volatility as its holding was not trading at ridiculous multiples like Tesla.