Berkshire’s stock rally eases despite strong earnings report
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The A shares fell 2.4% on the week and dropped 5.1% from their all-time intraday high of $647,039 early Monday.
The B shares were also down 2.4% this week and fell 5.3% from their Monday intraday high of $430.00 per share.
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CNBC.com quoted Edward Jones analyst James Shanahan as saying Berkshire’s stock “significantly outperformed financial peers” last year, and he continues to expect “solid” earnings from the company, but “the current share price reflects these positives.” He has a “hold” rating.
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Berkshire’s breather this week hasn’t put much of a dent into speculation the company will be joining the six U.S. companies with market values of $1 trillion or more. (Microsoft, Apple. Nvidia, Amazon, Alphabet, and Meta.)
It stands at approximately $885 billion tonight.
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UBS analyst Brian Meredith raised his 12-month price target on the A shares to $715,000 from $655,000. His B share target is $477, up from $435.
The new targets would push Berkshire just over the $1 trillion mark.
Bloomberg notes that another non-tech name is in the race for a trillion.
Eli Lilly is in eighth place, after Berkshire, on the U.S. market cap list with $743 billion.
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Enthusiasm for its Zepbound weight loss drug, which won FDA approval in November, has helped send that stock nearly 150% higher over the past year.
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Berkshire fortune fuels ‘free tuition’ donation to medical school
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An early Berkshire Hathaway investor’s fortune will make it possible for a Bronx medical school to provide a tuition-free education to all its students “in perpetuity.”
Sandy Gottesman, a longtime friend and business partner of Warren Buffett who served on Berkshire’s board, died at the age of 96 in September 2022.
His widow, Ruth Gottesman, tells The New York Times that “he left me, unbeknownst to me, a whole portfolio of Berkshire Hathaway stock,” with simple instructions: “Do whatever you think is right with it.”
She decided the right thing is to eliminate tuition at the Albert Einstein College of Medicine in the Bronx borough of New York City, where she had been for many years a professor studying learning disabilities. She is currently the chair of its board of trustees.
Students enthusiastically greeted her announcement of the gift:
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