CFRA is recommending investors to buy undervalued Berkshire Hathaway shares ahead of the company’s annual meeting. The firm believes that the stock is currently undervalued compared to historical averages and anticipates positive catalysts in the company’s upcoming earnings release. Berkshire Hathaway’s class B shares have seen a nearly 13% increase year to date, making them an attractive investment option. This recommendation comes as the firm prepares for CEO Warren Buffett’s annual meeting, which is often referred to as the “Woodstock for Capitalists.”
There is speculation that Berkshire Hathaway may reveal a mystery wager that the company has been buying for the past two quarters. In the third and fourth quarters of 2023, Berkshire was granted confidential treatment to keep details of its stock holdings private. Many believe that this secret purchase could be related to bank stocks, as the conglomerate’s cost basis for “banks, insurance, and finance” equity holdings increased significantly in the second half of last year. Berkshire’s decision to keep this purchase confidential is seen as a rare move, with the last instance being in 2020 when the company bought Chevron and Verizon.
This year’s annual meeting will be significant as it marks the first time without Charlie Munger, Buffett’s longtime partner who passed away in November at the age of 99. The absence of Munger will likely set a somber tone for the event. Vice Chairman of Non-Insurance Operations, Greg Abel, Buffett’s designated successor, will fill Munger’s seat during the meeting and assist in answering shareholder questions. Munger was known for broadening Buffett’s investing approach and for his blunt humor, leaving a lasting impact on generations of investors.
CNBC will be livestreaming Berkshire Hathaway’s annual shareholder meeting, providing viewers with insights into Warren Buffett’s market views and potential deals Berkshire could make in the coming year. The schedule for CNBC’s coverage includes a pre-show hosted by Becky Quick and Mike Santoli, morning and afternoon Q&A sessions with Berkshire Hathaway executives, as well as a halftime show and post-show analysis. The annual meeting is expected to generate lively discussions and offer valuable information for investors interested in Berkshire Hathaway’s future prospects.
Overall, CFRA’s recommendation to buy Berkshire Hathaway shares, the anticipation of a potential mystery wager reveal, and the absence of Charlie Munger at the annual meeting are key topics of interest for investors. The livestreaming of the event by CNBC will provide a platform for viewers to gain valuable insights into the company’s outlook and strategy moving forward. Berkshire Hathaway’s annual meeting has always been a crucial event for investors, and this year’s meeting promises to be no different.
