Berkshire Hathaway Inc. shares fell nearly 5.5% on Monday, which was more than the 4.2% drop in the S&P 500. After topping $300,000 per share in mid-December, Warren Buffett’s iconic company lost $18,700 per share in value and fell to just over $295,000. Buffett noted on CNBC in early January that he felt stocks were not overvalued given the level of interest rates and the ramifications of the corporate tax cut haven’t been fully realized.
As a value investor, Warren Buffett has always focused on making investments in companies at attractive valuations, which creates a margin of safety. This margin of safety could help pad the stock in the event of a significant market decline since value stocks tend to be punished less than growth stocks. That said, some analysts have suggested that the conglomerate has a stretched valuation following the significant rally in the stock market. (See also: How Warren Buffett Made Berkshire Hathaway.)
Berkshire Hathway shares weren’t immune to the market drop on Monday, and traders will be closely watching these key levels. …read more
Read more here: Berkshire Hathaway Stock Breaks Down to Prior Price Channel
Category: BRK.A, BRK.B