Q2 STOCKS TO BUY

Warren Buffet's Berkshire Takes Stake in Insurance Giant

The company slashed its stake in WFC and CVX

Deputy Editor
May 18, 2021 at 10:46 AM
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The shares of Berkshire Hathaway Inc (NYSE:BRK) are struggling for direction, trading sideways at $289.10 at last check, amid news that the company took a $943 million stake in insurance company Aon (AON). Furthermore, the Warren Buffett conglomerate slashed its holdings of Wells Fargo (WFC) and Chevron (CVX). 

BRK has been barreling up the charts since the start of the year, when it overcame familiar pressure at the $230 region. With close support from its 40-day moving average since early February, BRK is up 24.7% year-to-date, and recently hit a May 10 record high of $295.08, before pulling back slightly. 

Analysts are split on Berkshire Hathaway stock, with two carrying a "buy" or better rating, while two say "hold." Meanwhile, the 12-month consensus price target of $292 is a chip-shot away from current levels. 

So far today, albeit low absolute volume, puts are winning out in the options pits, with 1,324 across the tape so far, in comparison to 775 calls. Most popular are the June 285 put and the December 275 put. 

 

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