Berkshire Hathaway - Potential 20% Upside?

2022년 5월 16일

Is the most famous investor in the modern history and his international conglomerate able to update historic highs before US economy spirals into recession?
Let's look at it in more detail.

Fundamental indicators:

• Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years except 2020
  
• Profit margin - not consistent and varies from 10% to 20%, 2021 was with the highest 28%
  
• P/E - 8.4x which is considerably lower than the current S&P500 ratio
  
• Liabilities - no problems with debt
  

Technical Analysis (Elliott Waves):

• Following the correction of March 2020 shares of Berkshire Hathaway have enjoyed similar growth cycle as S&P500 with 120% gains
  
• This bull run was formed by an impulse where waves 1 to 4 have been completed and wave 5 is currently developing
  
• Wave 4 is clearly identifiable as a lengthy and flat Running Correction that lasted between May and November 2021
  
• The final wave of the impulse is quite choppy with lots of crossings which often indicates the development of an Ending Diagonal pattern with a structure of 3-3-3-3-3
  
• If this is the case then waves 1 to 3 have been established and wave 4 is in the process of completion
  
• Once this zigzag-like correction is over we can observe another zigzag to update the historic highs and potential gains for investors of 20%
  

What do you think about Berkshire Hathaway and its short term prospects?
Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves.

Thanks

2022년 5월 26일

노트

Update to the idea: