Dr J Rould
Full-Time Tech Investor, Quantum/Cybersecurity, Philosophy Background
Berkshire Hathaway is a hedge for a tech-heavy portfolio against a tech correction, an oil shock or an inflation spike. It offers defensive exposure to insurance, energy and rails, a cash pile of over $350 billion that makes it an optionality machine, and a culture of discipline and compounding that should outlast Buffett. Possible bad surprises from the Iran conflict make that protection worth having during inevitable rotations. x.comÂ
Berkshire Hathaway benefits from a flight to low-beta quality stocks that are not burdening themselves with AI debt. Its shares are up 10% in October, while three of its largest holdings, Apple, Coca-Cola and Chevron, have been surging. Boring pays. x.comÂ
JPMorgan's miss on both revenue and earnings strengthens the case for avoiding bank and financial stocks. The earlier bank-index chart rollover had suggested possible profit disappointment, but the observed JPMorgan share weakness is not a near-term price forecast. x.com x.com x.comÂ
Berkshire Hathaway is starting a breakout as the summer rotation out of tech into value begins, and its record cash pile was a loaded gun waiting for this moment. After two years going sideways, the chart is coiled at the top of a five-year run. Rotation is a healthy breather before the next leg: value leads through October while tech rests, then both push together toward the S&P 500 at 10,000 and Nasdaq 100 at 40,000 by 2028. x.comÂ
JPMorgan is the only bank worth adding to a portfolio, mainly because of its CEO, and it just delivered a great quarter. x.comÂ
Berkshire Hathaway offers no edge over simply owning the S&P 500. Its supposed defensiveness does not hold up, since both fell over 50% in the financial crisis and over 30% in 2020. Investors worried about a recession can keep some cash themselves rather than rely on Berkshire's cash pile. x.com x.comÂ
Brookfield, Berkshire Hathaway, Investor AB, Constellation Software and BlackRock are the best true buy-and-hold names, because their exceptional management gives real confidence in long-term performance and compounding. x.comÂ
Berkshire Hathaway is a hedge against the market in current conditions, not a vehicle to beat it, which explains its nearly $400B in cash and treasuries. x.comÂ
Berkshire Hathaway risks another five years of returns decimated by big tech, which is too strong. Greg Abel should study Jensen Huang every day, or it will come at great cost to shareholders. Berkshire is more than an insurance company now, and missing Google and Amazon, which it has acknowledged as mistakes, was bad in the long run, not just the short run. x.com x.com x.comÂ
These six are attractive because strong businesses trade at fair prices. Constellation Energy is America's only needed nuclear grid player with tech deals; MercadoLibre is Latin America's unstoppable commerce and fintech leader; JPMorgan is a fortress bank at scale. American Express has premium spenders and owns its network and credit risk; Visa takes the smallest cut on the world's largest payment network; Arm's phone chip designs are spreading to PCs and data centers. x.com x.com x.com x.com … Show more