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Zacks Value Investor Highlights: Apple, Alphabet and Berkshire Hathaway
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For Immediate Release
Chicago, IL – March 4, 2024 – Zacks Value Investor 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/2234701/alphabet-is-on-sale-will-buffett-buy-shares
Alphabet on Sale: Will Warren Buffett Buy Shares?
Welcome to Episode #360 of the Value Investor Podcast.
(0:30) - Should You Buy More of The Magnificent 7?
(8:00) - If Warren Buffett Buys Apple, Should You Buy Too?
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
There is a lot of angst on Wall Street about the stocks of Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) this year. Both are off record highs set earlier in the year and neither one is performing like NVIDIA, up triple digits.
Berkshire Hathaway (BRK.B - Free Report) owns Apple shares. Warren Buffett bought a big position in the company in 2016 and considers it one of the four linchpins of Berkshire Hathaway’s business.
Buffett loves it so much, he gushes about Apple at nearly every Berkshire Hathaway annual meeting.
Berkshire Hathaway Bought Apple on the Cheap
It may be hard to believe today, but Apple was out of favor in 2016 when Buffett dove in. It traded with a forward P/E as low as 10.6 that year. Apple’s 2024 forward P/E is 28. No one is calling Apple a value stock in 2024.
Apple also had a cheap P/S ratio in 2016. The high that year was 2.8 and the low was 2.3. Currently, Apple trades with a P/S ratio of 7.3. It’s not over 10, which is considered expensive, but 7.3 is above the current average of the S&P 500 at 4.2.
Apple also had an attractive P/B ratio in 2016. It’s high was 4.7 and low was 3.9 that year. A P/B under 3.0 usually indicates value. Currently, Apple’s P/B ratio is a sky-high 38.
Criteria for Buffett and Berkshire Hathaway to Buy a Stock
Buffett loves companies with great free cash flow and Alphabet has doubled its free cash flow since 2019. In 2023, it had annual free cash flow of $69.5 billion, up from $30.9 billion in 2019.
Buffett also likes companies that are doing share buybacks and Alphabet announced a $70 billion buyback in April 2023.
Does Alphabet have a moat? Berkshire Hathaway looks for companies with competitive advantages of a “moat.”
Alphabet’s advertising revenue has been a moat over the last two decades, although some are questioning whether AI might eat into it. But Alphabet also has YouTube, which recently posted its best quarter for ad revenue ever.
Buffett also likes companies with great management who have been in a place for years. Alphabet fits that bill.
Will Buffett Buy Shares of Alphabet for the Berkshire Hathaway Stock Portfolio?
Tune into this week’s podcast for Tracey’s analysis of Alphabet’s valuation. The stock is on sale. But is it cheap enough for Buffett to dive in?
[In full disclosure, Tracey owns shares of GOOGL in her personal portfolio.]
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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Zacks Value Investor Highlights: Apple, Alphabet and Berkshire Hathaway
For Immediate Release
Chicago, IL – March 4, 2024 – Zacks Value Investor 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/2234701/alphabet-is-on-sale-will-buffett-buy-shares
Alphabet on Sale: Will Warren Buffett Buy Shares?
Welcome to Episode #360 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
There is a lot of angst on Wall Street about the stocks of Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) this year. Both are off record highs set earlier in the year and neither one is performing like NVIDIA, up triple digits.
Berkshire Hathaway (BRK.B - Free Report) owns Apple shares. Warren Buffett bought a big position in the company in 2016 and considers it one of the four linchpins of Berkshire Hathaway’s business.
Buffett loves it so much, he gushes about Apple at nearly every Berkshire Hathaway annual meeting.
Berkshire Hathaway Bought Apple on the Cheap
It may be hard to believe today, but Apple was out of favor in 2016 when Buffett dove in. It traded with a forward P/E as low as 10.6 that year. Apple’s 2024 forward P/E is 28. No one is calling Apple a value stock in 2024.
Apple also had a cheap P/S ratio in 2016. The high that year was 2.8 and the low was 2.3. Currently, Apple trades with a P/S ratio of 7.3. It’s not over 10, which is considered expensive, but 7.3 is above the current average of the S&P 500 at 4.2.
Apple also had an attractive P/B ratio in 2016. It’s high was 4.7 and low was 3.9 that year. A P/B under 3.0 usually indicates value. Currently, Apple’s P/B ratio is a sky-high 38.
Criteria for Buffett and Berkshire Hathaway to Buy a Stock
Buffett loves companies with great free cash flow and Alphabet has doubled its free cash flow since 2019. In 2023, it had annual free cash flow of $69.5 billion, up from $30.9 billion in 2019.
Buffett also likes companies that are doing share buybacks and Alphabet announced a $70 billion buyback in April 2023.
Does Alphabet have a moat? Berkshire Hathaway looks for companies with competitive advantages of a “moat.”
Alphabet’s advertising revenue has been a moat over the last two decades, although some are questioning whether AI might eat into it. But Alphabet also has YouTube, which recently posted its best quarter for ad revenue ever.
Buffett also likes companies with great management who have been in a place for years. Alphabet fits that bill.
Will Buffett Buy Shares of Alphabet for the Berkshire Hathaway Stock Portfolio?
Tune into this week’s podcast for Tracey’s analysis of Alphabet’s valuation. The stock is on sale. But is it cheap enough for Buffett to dive in?
[In full disclosure, Tracey owns shares of GOOGL in her personal portfolio.]
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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https://www.zacks.com/performance
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.