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Zacks Value Trader Highlights: Apple, StoneCo, YY, Bank of America and General Motors

Zacks Equity Research

For Immediate Release

Chicago, IL – February 22, 2018 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

(https://www.zacks.com/stock/news/356095/5-surprising-investing-moves-buffett-made-as-stocks-fell)

5 Surprising Investing Moves Warren Buffett Made as Stocks Fell

Welcome to Episode #130 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.

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As everyone knows, the end of 2018 was rough on stock investors. It was the largest sell-off in over 5 years.

But that also means it brought a buying opportunity for those who had the guts to jump in and buy their favorite names on sale.

But what about the most famous value investor of them all?

Was Warren Buffett buying stocks in his Berkshire Hathaway portfolio in the fourth quarter?

The 13-F filings are now in and there are some surprising results in Berkshire’s filing.

First Surprise: Selling Some Apple Shares

Warren Buffett has had a love affair with Apple AAPL for the past few quarters. It’s now the largest holding in Berkshire’s portfolio.

Then why’d he sell some in the fourth quarter?

Second Surprise: Buying a BRIC Stock

US stocks weren’t the only ones to sell off in 2018. The BRIC stock markets were weak too and that sent many foreign companies that traded on the US exchanges lower as well.

Brazil’s StoneCo STNE fell 46% while China’s YY YY was trading with a forward P/E under 8 by the end of 2018.

Did Berkshire Hathaway finally dive into some of the cheap BRIC social media and technology stocks?

Third Surprise: Buying More Banks?

Buffett has always been a big buyer of the financials. Going into the fourth quarter, Berkshire Hathaway already owned shares in seven of the ten largest US banks.

Bank of America BAC is his largest banking position, as it makes up 12% of Berkshire’s portfolio.

Did he add more?

Did he buy any new financials?

Fourth Surprise: The Beaten Down Big Caps

General Motors GM has been dirt cheap for over a year.

General Electric had sunk to multi-decade lows.

But both had been featured on prior podcasts as value traps given that their earnings were on the decline.

Did Berkshire jump in on either of these cheap big caps?

Fifth Surprise: Were Energy Stocks a Bargain?

With crude’s sharp plunge in the fourth quarter, many of the energy stocks lost 50% or more.

Energy insiders bought shares in droves as their stocks plunged. Usually, that’s a sign they thought the selling was overdone.

Did Warren Buffett and Berkshire follow suit?

If you’re a fan of Warren Buffett, you won’t want to miss this podcast.

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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Zacks Investment Research

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Bank of America Corporation (BAC) : Free Stock Analysis Report
 
YY Inc. (YY) : Free Stock Analysis Report
 
General Motors Company (GM) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
StoneCo Ltd. (STNE) : Free Stock Analysis Report
 
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