Score 7.6 (out of 10): BERKSHIRE HATHAWAY INC-CL A sets up for +4.1% rally in 2 months

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What’s Going On Here?

BERKSHIRE HATHAWAY had some big wins recently and in fact, is doubling up. Warren Buffett’s firm invested in South-American fintech firm ‘Nubank’ a while ago (around $30bn valuation back then) and with its recent IPO, those shares went up handsomely. Now Berkshire is even buying more shares since Nubank went IPO – currently the Nubank entity is valued at $50bn.

Why Now?

BERKSHIRE HATHAWAY INC-CL A has reached a new shorter-term high. Previously, during similar occasions, BERKSHIRE HATHAWAY INC-CL A shares had a median return of +4.1%, over the following 2 months – based on 10 historical occasions with 7 of those showing positive returns (70% hit ratio). This buy signal for BERKSHIRE HATHAWAY INC-CL A received a high score of 7.6 (out of 10). This insight was generated on 2021-December-13 with last price of 437730.

What’s This Company About?

BERKSHIRE HATHAWAY INC-CL A is in the Property/Casualty Ins business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 13.1% more (average). Ticker symbol: BRK/A US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 455473.11 (+4.1%) has been reached. Based on BERKSHIRE HATHAWAY INC-CL A’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 420424.2 (last price at 437730), which is equivalent to a -4% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

0.5% (October-2021), -2.6% (August-2021), 6.9% (April-2021), 11.6% (February-2021), 6.5% (November-2020), 5% (June-2020), 3.1% (December-2019), 8.8% (September-2019), -2.2% (April-2019), -1% (January-2019).

Historical Chart:

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Summary:

NameBERKSHIRE HATHAWAY INC-CL A
ViewUp
Star (1 to 10)7.6
Target+4.1%
Time2 months
Hit Rate70%

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