Score 9.5 (out of 10): BERKSHIRE HATHAWAY INC-CL A sets up for +6.2% rally in 2 months

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What’s Going On Here?

California Public Employees’ Retirement System (calpers) is American’s largest public pension fund. Recently, the initiated a position in Warren Buffett’s Berkshire Hathaway. Buffett has cut US drugmaker stakes and instead invested in a drug royalty company.

Why Now?

BERKSHIRE HATHAWAY INC-CL A has successfully tested a support level. During similar occasions, BERKSHIRE HATHAWAY INC-CL A shares had a median return of +6.2%, over the following 2 months – based on 6 historical occasions with 6 of those showing positive returns (100%). This buy signal for BERKSHIRE HATHAWAY INC-CL A received a high score of 9.5 (out of 10). This insight was generated on 2021-November-18 with last price of 426198.

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 Moderate Risk. ‘Wall Street’ analysts think the stock price will be worth 16.2% 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 452679.51 (+6.2%) 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 411842.9 (last price at 426198), which is equivalent to a -3.4% 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:

10.8% (January-2021), 11.2% (September-2020), 6.6% (October-2019), 1.4% (May-2019), 5.8% (February-2019), 4.9% (September-2017).

Summary:

NameBERKSHIRE HATHAWAY INC-CL A
ViewUp
Star (1 to 10)9.5
Target+6.2%
Time2 months
Hit Rate100%

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