Before The story is about what Warren Buffett's Berkshire Hathaway (BRK) has been selling and how the company has been raising cash, but how about what Buffet is buying?
Berkshire Hathaway's recent quarterly earnings report showed that the company has raised the most cash it had ever In a sign that Warren Buffett expects a market volatility over the next 6 to 12 months.
The report also showed that Warren Buffett continues to lower his holdings on Apple (AAPL), But Berkshire’s 13-F statement released after the close on Wednesday showed that the company has been buying one media company.
Berkshire Hathaway’s filing showed that the company increased their holdings of Sirius XM Holdings (SIRI) by more than 96 million shares.
The company’s current holdings of the media company account for a total of 132.88 million shares worth $386 million.
Sirius XM does pay a $0.11 dividend to yield 3.66%.
Shares of Sirius XM are trading below $3.00, putting them well under the “speculative” $5-$10 price range.
That said, SIRI’s 50-day moving average turned bullish in early July as the stock formed a potential long-term bottom at $2.50.
The stock remains in a long-term bearish trend with its 20-month moving average in place to provide staunch resistance at $4.00.
Kellaanova (K) shares jumped 7.75% to a new all-time high price of $80.28 on Wednesday after the company announced it would be purchased my Mars, owner of the M&M brand and other candies.
The company was formed by the spinoff of the snack foods division of Kellogg’s in October 2023. The company’s products include Pringles and Pop-Tarts among other snack foods.
Mars has agreed to pay $36 billion for the deal to acquire the snack food manufacturer. That figure comes out to $83.50 per share.
As is often the case with an acquisition deal like this, investors will see the price per share of Kellanova remain near that targeted acquisition price until the deal closes or expires for some reason.
The deal is expected to close in the first half of 2025.
Cisco Systems (CSCO) shares are trading 6% after the close following the company’s quarterly earnings results.
The company announced quarterly results that were better than investors’ expectations, though the company’s revenue showed negative growth for the third quarter in a row.
Earnings per share beat expectations by $0.02 with revenue that fell inline within the company’s previous guidance stating that "We saw steady customer demand with order growth across the business as customers rely on Cisco to connect and protect all aspects of their organizations in the era of AI."
Cisco raised next quarter’s earnings per share guidance, something that we haven’t seen much in the technology sector this quarter.
Cisco’s earnings report stated that the company is implementing a restructuring plan that will result in $1 billion in pre-tax charges to its financial results and will “allow it to invest in key growth opportunities and drive more efficiencies in its business.”
Part of that restructuring includes cutting 7% of the company’s global workforce.
Investors are reacting to the company’s results and outlook positively with the stock price moving higher in after-hours trading. That said, Cisco shares remain in a bear market trend.
The stock is trading below its 20-month moving average, qualifying it as being in a long-term bear market.
Additionally, Cisco shares are trading below their bearish 50-day moving average. That critical trendline turned bearish in January 2023. Cisco shares are trading 10% lower for 2023 with the Nasdaq 100 posting a 15% gain.
Cisco shares maintain a bearish outlook with a target price of $40.
