Why Good Time To Go Into Berkshire Hathaway (BRK.B)

With the PCE for February 2024 announced on Friday (29 Mar 2024), we would think it is time for Buffet to make some big bets when others are fearful. Berkshire Hathaway's substantial cash reserves also act as a buffer against any potential losses or liabilities that may arise from its operations, its investments, or a downturn in the broader economy.

In this article, I would like to share the simple research I have done on Berkshire Hathaway stock by looking at how it has reacted to the January 2024 PCE index result and whether is it a good time to buy them?

Berkshire Hathaway's performance over the decades has been nothing short of impressive. The company's market value per share has grown at an annualized rate of 19.8% since 1965, compared with 9.9% for the S&P 500 index (when including dividends).

We should always keep in mind that past performance does not really guarantee a prediction of good future returns when we look at stocks. Actually we should look at how Buffett's long-term vision and discipline as an investor have helped to generate this past success.

In the next few sections, I will be sharing what I have gathered from technical analysis on BRK.B

Since we know that PCE Feb 2024 has risen by 0.3%, it is quite close to the 0.4% for PCE Jan 2024. As seen in below chart, we can see that BRK.B did a small correction for the next 3 session after PCE announcement, before picking up and returning to its current stock price.

So I think it would be a good time to monitor and get into BRK.B stock, because we can see that MACD is rising and buying sentiment is picking up at the current stock price.

There might be some small correction, but I would think it is a good time to buy at that price.

We can see that the upper KC channel is rising, this means price has been rising. Normally we use the angle of the channel can help us identify the trend direction.

Looking at how the current stock price move above the upper band is showing us that the price strength is present and indicating an uptrend is in place, the confirmation is given with the channel is angled upwards.

If we look at the relative strength index, we could see that BRK.B is staying inside the safe zone, while we await the economic data, now we could see that it is making a move upwards to the overbought region.

We could see traders and investors coming back with LONG and buying sentiment on BRK.B. This would be a good time to buy this stock.

As we already know that BRK.B has a strong balance sheet and a mountain of cash that enable it to weather any storm and capitalize on any opportunity. This is one of the reason and combined with a strong technical analysis, I believe it is time to load up BRK.B for long term position.

Appreciate if you could share your thoughts in the comment section whether you think BRK.B would be a good buy now for long term in your portfolio.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.